We asked our Foolish writers for their top ideas for September. Here are their picks:
Chris MacDonald: Manulife
My top stock for September is Manulife (TSX:MFC)(NYSE:MFC). This top insurance player is among the biggest players in Canada, with a growing market share in key growth markets abroad, particularly China.
Given a resurgence in higher bond yields, the longer-term earnings prospects of Manulife have improved. This insurance player currently trades at a significant discount to peers in the financials space, providing great value for long-term investors.
As far as top value stocks with excellent leverage to the pandemic recovery, Manulife remains a top pick of mine. This is a stock I think has tremendous value in September and beyond.
Fool contributor Chris MacDonald has no position in any of the stocks mentioned.
The economic recovery may be slow, but it’s there. NorthWest Healthcare Properties REIT (TSX:NWH.UN) continues to run strong. The company saw revenue skyrocket during the pandemic, as one of the very few real estate investment trusts (REITs) that provided essential services. NorthWest then used the low interest rate environment to renew lease agreements and bring in new properties — even an Australian healthcare REIT!
Yet despite this and its dividend yield of 6.16%, shares are only up 7% year to date, and it continues trade at a P/E ratio of 9.28. Given that healthcare REITS are immune to global inflation, that makes them in high demand moving forward. And NorthWest currently boasts a global 97% occupancy rate with a 14.3 year average lease agreement! So, while investors may have to be patient for share growth, it won’t be for long. Meanwhile, you can bring in this solid dividend yield for guaranteed passive income.
My top stock for September is Suncor Energy(TSX:SU)(NYSE:SU). Shares of this Canadian energy heavyweight had dropped 7.6% month over month as of close on August 26. However, it has delivered much-improved earnings in 2021. The rise of the Delta variant remains a concern when it comes to demand, but I’m bullish on the energy sector going forward.
Suncor posted a profit of $868 million in Q2 2021. Meanwhile, its production enjoyed a significant uptick, even in the face of planned maintenance. This stock last had a price-to-earnings ratio of 23, putting it in solid value territory relative to its industry peers. It offers a quarterly dividend of $0.21 per share, representing a 3.5% yield. I’m looking to snatch up this super energy stock on the dip before the summer ends.
Fool contributor Ambrose O’Callaghan has no position in any of the stocks mentioned.
Nicholas Dobroruka: goeasy
My top stock for the month of September is goeasy(TSX:GSY).
This $3 billion company might be one of the best-kept secrets on the TSX. Shares are up close to 100% year to date and more than 800% over the past five years.
Some investors may be hesitant to buy during such a strong bull run, but I’m as bullish as ever on goeasy. The reopening of the country could send the growth stock surging even higher over the next couple of months.
goeasy is a consumer-facing financial services company. It provides Canadians with all types of home, auto, and personal loans. So, if consumer spending begins to rise as the country slowly reopens, I think it’s a safe bet to say that goeasy revenue will be rising too.
The best part is, goeasy stock is trading at a discount compared to many other Canadian growth stocks right now. Shares are trading at a bargain price of a forward price-to-earnings ratio of just 15.
Fool contributor Nicholas Dobroruka has no position in any of the stocks mentioned.
Jed Lloren: Nuvei
My top stock for September is Nuvei(TSX:NVEI). This is a stock that has intrigued me since its IPO. Of all the industries to invest in, I am most fascinated by the potential growth of the e-commerce industry. While Nuvei doesn’t operate in that industry per se, it is highly exposed to it due to its business as a payment processor. As more retail spending continues to flow into these online streams, Nuvei is poised to benefit.
In its latest earnings presentation, the company reported that its total volume processed in Q2 2021 was 146% greater than its processed volume in Q2 2020. This translated into a 114% year-over-year increase in Nuvei’s quarterly revenue. Already present in 200 global markets, Nuvei is well positioned for continued growth in the future.
Fool contributor Jed Lloren has no position in any of the stocks mentioned.
Robin Brown: Sangoma Technologies
Sangoma Technologies(TSXV:STC) is a one-stop shop for unified communications-as-a-service solutions across the world. This stock has pulled back 38% from highs set earlier this year.
Yet this company is in excellent shape. It just acquired a similar-sized peer in the United States. This should significantly broaden its cloud services platform. Likewise, Sangoma expects to see higher gross margins and expanded recurring revenues (over 70%).
The company expects to grow revenues and EBITDA in fiscal 2021 by 26% and 40%, respectively. Despite strong growth and profitability, this stock trades at fraction of larger, unprofitable peers. Hence, this stock could enjoy the double-edged combination of rising earnings and higher valuation multiples in years to come.
Fool contributor Robin Brown owns shares of Sangoma Technologies.
Kay Ng: Canadian Net REIT
Nothing beats having the reassurance of earning safe passive income every month. Canadian Net REIT (TSXV:NET.UN) is a Canadian Dividend Aristocrat with a track record of cash distribution increases.
Recently, it had shown signs of accelerated dividend growth. Its five-year dividend-growth rate is 13%, including this year’s cash distribution hike of 17%.
Canadian Net REIT maintains a high occupancy rate of 99%. It has benefited from a low interest rate environment. Last quarter, its weighted average interest rate on fixed loans and mortgages was 3.4% versus 3.7% a year ago.
It’s still a small REIT with $232 million of assets and lots of room to grow. With a safe yield of about 3.9%, the undervalued monthly dividend stock is a great buy for passive income in a TFSA.
Fool contributor Kay Ng owns shares of Canadian Net REIT.
Stephanie Bedard-Chateauneuf: Spin Master
Spin Master (TSX:TOY) is my top TSX stock for September.
The toymaker posted higher earnings for its most recent quarter, as revenue climbed 39% on better-selling products from Paw Patrol, Gabby’s Dollhouse, and Present Pets as well as strong revenues for its digital games.
The Toronto-based company reported a net profit of US$33.5 million (US$0.32 per share) for the quarter ended June 30 compared with a net loss of US$14.9 million (US$0.15 per share) in the prior-year quarter.
According to Spin Master’s president and CEO Max Rangel, the company is well positioned for the second half of 2021, with a strong toy lineup, growth in its digital game franchises, and the release of the movie Paw Patrol: The Movie. Spin Master’s first foray into the film business is expected to boost toy sales as well as licensing and merchandising revenue.
Fool contributor Stephanie Bedard-Chateauneuf has no position in any of the stocks mentioned.
Puja Tayal: Suncor Energy
My top TSX stock pick for September is Suncor Energy (TSX:SU)(NYSE:SU). This stock has dipped 22% since July 5, as rising Delta variant cases created hiccups in the global recovery. Moreover, a decline in oil price and production issues at Suncor’s Fort Hills oil sands mine put downward pressure on the stock.
But these are temporary issues. There is pent-up demand for travel, and it is reflected in Suncor’s second-quarter earnings. As the fourth wave eases, the recovery could return. Suncor stock could recoup the two-month loss and surge more than 20% back to the July level of over $30.
Fool contributor Puja Tayal has no position in any of the stocks mentioned.
Vineet Kulkarni: Canadian Natural Resources
Shares of Canadian Natural Resources(TSX:CNQ)(NYSE:CNQ), Canada’s biggest energy company by market cap, have been on a downtrend for the last few months. Fears of reopening delays weighed on energy commodities and on CNQ stock as well. However, this could be a valuable opportunity for discerning investors.
Canadian Natural will likely see stellar earnings growth in the second half of 2021, driven by higher production and higher oil prices as against last year. Moreover, its lower breakeven costs allows huge free cash flow growth even at current oil prices. So, once the Delta variant fears subside, CNQ stock should resume its upward climb.
Apart from its superior capital gain prospects, CNQ offers a juicy yield of nearly 5%. Investors can expect consistent dividend growth from the energy giant driven by its robust balance sheet and strong financial growth.
Fool contributor Vineet Kulkarni has no position in any of the stocks mentioned.
Demetris Afxentiou: Fortis
The growing need to diversify your portfolio to counter volatility has never been greater. That’s just one reason why my pick for this month is Fortis(TSX:FTS)(NYSE:FTS).
Fortis is one of the most defensive picks on the market. In terms of size, the utility behemoth is one of the largest on the continent, with operations across 10 different operating regions. Fortis also boasts over 3.4 million utility customers across both electric and gas segments. If that weren’t enough, keep in mind that utilities generate a stable revenue stream backed by long-term regulated contracts.
Fortis’s immense size coupled with a very reliable and stable business model make it a great defensive pick in an increasingly volatile market.
Adding to that appeal is Fortis’s dividend. The current yield works out to a juicy 3.52%. Even better, Fortis has provided investors with annual bumps to that dividend for over 47 consecutive years. The company is also extending that guidance through 2025, making Fortis a perfect defensive option (and a future Dividend King) for your portfolio.
Fool contributor Demetris Afxentiou owns shares of Fortis.
TOKYO (AP) — Japanese technology group SoftBank swung back to profitability in the July-September quarter, boosted by positive results in its Vision Fund investments.
Tokyo-based SoftBank Group Corp. reported Tuesday a fiscal second quarter profit of nearly 1.18 trillion yen ($7.7 billion), compared with a 931 billion yen loss in the year-earlier period.
Quarterly sales edged up about 6% to nearly 1.77 trillion yen ($11.5 billion).
SoftBank credited income from royalties and licensing related to its holdings in Arm, a computer chip-designing company, whose business spans smartphones, data centers, networking equipment, automotive, consumer electronic devices, and AI applications.
The results were also helped by the absence of losses related to SoftBank’s investment in office-space sharing venture WeWork, which hit the previous fiscal year.
WeWork, which filed for Chapter 11 bankruptcy protection in 2023, emerged from Chapter 11 in June.
SoftBank has benefitted in recent months from rising share prices in some investment, such as U.S.-based e-commerce company Coupang, Chinese mobility provider DiDi Global and Bytedance, the Chinese developer of TikTok.
SoftBank’s financial results tend to swing wildly, partly because of its sprawling investment portfolio that includes search engine Yahoo, Chinese retailer Alibaba, and artificial intelligence company Nvidia.
SoftBank makes investments in a variety of companies that it groups together in a series of Vision Funds.
The company’s founder, Masayoshi Son, is a pioneer in technology investment in Japan. SoftBank Group does not give earnings forecasts.
Shopify Inc. executives brushed off concerns that incoming U.S. President Donald Trump will be a major detriment to many of the company’s merchants.
“There’s nothing in what we’ve heard from Trump, nor would there have been anything from (Democratic candidate) Kamala (Harris), which we think impacts the overall state of new business formation and entrepreneurship,” Shopify’s chief financial officer Jeff Hoffmeister told analysts on a call Tuesday.
“We still feel really good about all the merchants out there, all the entrepreneurs that want to start new businesses and that’s obviously not going to change with the administration.”
Hoffmeister’s comments come a week after Trump, a Republican businessman, trounced Harris in an election that will soon return him to the Oval Office.
On the campaign trail, he threatened to impose tariffs of 60 per cent on imports from China and roughly 10 per cent to 20 per cent on goods from all other countries.
If the president-elect makes good on the promise, many worry the cost of operating will soar for companies, including customers of Shopify, which sells e-commerce software to small businesses but also brands as big as Kylie Cosmetics and Victoria’s Secret.
These merchants may feel they have no choice but to pass on the increases to customers, perhaps sparking more inflation.
If Trump’s tariffs do come to fruition, Shopify’s president Harley Finkelstein pointed out China is “not a huge area” for Shopify.
However, “we can’t anticipate what every presidential administration is going to do,” he cautioned.
He likened the uncertainty facing the business community to the COVID-19 pandemic where Shopify had to help companies migrate online.
“Our job is no matter what comes the way of our merchants, we provide them with tools and service and support for them to navigate it really well,” he said.
Finkelstein was questioned about the forthcoming U.S. leadership change on a call meant to delve into Shopify’s latest earnings, which sent shares soaring 27 per cent to $158.63 shortly after Tuesday’s market open.
The Ottawa-based company, which keeps its books in U.S. dollars, reported US$828 million in net income for its third quarter, up from US$718 million in the same quarter last year, as its revenue rose 26 per cent.
Revenue for the period ended Sept. 30 totalled US$2.16 billion, up from US$1.71 billion a year earlier.
Subscription solutions revenue reached US$610 million, up from US$486 million in the same quarter last year.
Merchant solutions revenue amounted to US$1.55 billion, up from US$1.23 billion.
Shopify’s net income excluding the impact of equity investments totalled US$344 million for the quarter, up from US$173 million in the same quarter last year.
Daniel Chan, a TD Cowen analyst, said the results show Shopify has a leadership position in the e-commerce world and “a continued ability to gain market share.”
In its outlook for its fourth quarter of 2024, the company said it expects revenue to grow at a mid-to-high-twenties percentage rate on a year-over-year basis.
“Q4 guidance suggests Shopify will finish the year strong, with better-than-expected revenue growth and operating margin,” Chan pointed out in a note to investors.
This report by The Canadian Press was first published Nov. 12, 2024.
TORONTO – RioCan Real Estate Investment Trust says it has cut almost 10 per cent of its staff as it deals with a slowdown in the condo market and overall pushes for greater efficiency.
The company says the cuts, which amount to around 60 employees based on its last annual filing, will mean about $9 million in restructuring charges and should translate to about $8 million in annualized cash savings.
The job cuts come as RioCan and others scale back condo development plans as the market softens, but chief executive Jonathan Gitlin says the reductions were from a companywide efficiency effort.
RioCan says it doesn’t plan to start any new construction of mixed-use properties this year and well into 2025 as it adjusts to the shifting market demand.
The company reported a net income of $96.9 million in the third quarter, up from a loss of $73.5 million last year, as it saw a $159 million boost from a favourable change in the fair value of investment properties.
RioCan reported what it says is a record-breaking 97.8 per cent occupancy rate in the quarter including retail committed occupancy of 98.6 per cent.
This report by The Canadian Press was first published Nov. 12, 2024.
