Insider Monkey

11 Most Profitable Canadian Stocks

Ramish Cheema
9 min read

In This Article:

In this piece, we will take a look at the 11 most profitable Canadian stocks. For more great Canadian stocks, head on over to 5 Most Profitable Canadian Stocks.

Canada is one of the largest, richest, and most developed countries in the world. In terms of land mass, it is the second largest, coming second only to the Russian Federation, and in terms of the economy, its nominal gross domestic product (GDP) was worth $2.2 trillion by the end of last year, ranking 15th globally. At the same time, Canada's GDP per capita, which is the per person economic output stood at $56,794.

The country is rich in natural resources, and it is one of the few developed nations in the world that also relies on the primary sector for its export earnings. Canada's economy also benefits from its close proximity to the United States. The U.S. border is Canada's largest land border, and as of 2021, the U.S. and Canada had traded in $665 billion of products and services (For more on America's biggest trading partners, be sure to check out 30 Largest Trading Partners of the U.S.). The pair have a close partnership in several key sectors, and Canada has a crucial role in American economic strength as it is the largest importer of U.S. origin products.

These stood at $307 billion as of 2021 end, and the largest imports were of machinery and vehicles, which stood at a whopping $88 billion. Yet, while Canada buys cars from the U.S., it sells its southern neighbor the fuel on which it runs its own vehicles. As of 2021 end, Canada had exported $365 million of goods and services to the U.S., and more than one third of these, or $109 billion were of mineral fuels and derivatives. At the same time, while Canada was America's largest export destination, the U.S. was also the largest importer of Canadian goods - indicating a key and enduring partnership between the two North American countries.

Therefore, it is unsurprising that some of the largest Canadian companies are traded directly on U.S. exchanges instead of as over the counter stocks. This trend is often absent globally, as corporate behemoths from other regions and countries such as South Korea see their shares trade over the counter. However, Canada also has a well-developed financial industry of its own. The Canadian Toronto Stock Exchange (XTSE) is the third largest exchange in North America as of 2022 with the cumulative market capitalization of all the firms trading on it sitting at $2.76 trillion. Globally, the TSX comes in at an eleventh place. Business is booming for the exchange as well, with the latest data showing that in December 2022 total financing grew by 521% over November and by 27% annually. Finally, a total of 1,791 companies were listed on the exchange in December 2022.

and

Recommended Stories