It looks like Canadians might be getting ahead of themselves. After millions of jobs were reported lost in April, in May there was some good news. Canada added almost 290,000 jobs, and with that came new hope, especially with top stocks.
The news gave another boost to the markets, leaving many thinking that a market rebound was only going to continue. However, analysts have been warning investors not to get too comfortable.
Unfortunately, further dips are not only likely, but also imminent. While businesses may be starting to open, the coronavirus hasn’t gone anywhere. Businesses will still be restricted in both opening and in how they handle the prevention of the virus spreading. So it’s definitely not business as usual.
That said, it’s harder to find top stocks on the TSX trading at a discount, and have a promising near and distant future. But two stocks I would look at today are Premier Gold Mines (TSX:PG) and Algonquin Power & Utilities (TSX:AQN)(NYSE:AQN). Both stocks offer investors the chance to get in on cheap prices, and create some defense in this risky environment. So let’s take a look.
Golden opportunity
For the last decade, if you wanted to invest in gold, you would likely be sent to gold streaming companies. These companies offer gold producers some cash to get mines started. Those businesses can then reap some of the gold at wholesale prices, removing of the risk investors usually get from gold mines.
But there’s been a huge change recently with gold top stocks. About two years ago, gold miners started to make some moves towards creating partnerships and acquisitions. This year and in 2019, many of those partnerships have come to fruition.
These miners are now making new, larger businesses on a global scale. This creates a diverse portfolio with substantially more gold produced.
Premier Gold currently trades far below its pre-crash levels and analysts fair value is nearing $4 per share. The company currently trades at about $2 per share, giving a potential upside of 100%. The company explores, develops and produces gold and silver in Canada, the United States, and Mexico.
The potential upside comes from the price of gold as a whole, which is set to more than double by 2030. If you’re going to buy into gold, Premier Gold is the perfect opportunity for a quick boost in share price.
Use utilities
If you’re looking for diverse top stocks, you’ll find it with Algonquin Power. The company is part of the utilities sector, and owns and operates power generation, distribution, and transmission of utility assets in Canada and the United States.
No matter what happens in the markets, people need power, leaving Algonquin Power in a prime position to continue bringing in earnings no matter the market performance.
Yet the company wasn’t immune to the March crash. Algonquin Power currently trades at about $18.75 per share at writing. That’s a 16% decrease from its 52-week highs, leaving some room to grow to pre-crash prices after falling nearly 40% from peak to trough.
But investors should be really excited about the company’s utility generation. Algonquin also owns and operates hydroelectric, wind, solar, and thermal facilities, and a portfolio of electric, natural gas, water distribution, and wastewater collection utility systems. Basically, when it comes to power, it does it all. No matter what happens in the future, Algonquin Power will be ready.
Foolish takeaway
No matter which stock you choose — and I’d recommend both — you can’t go wrong with these great deals. The potential upside for both Algonquin Power and Premier Gold is huge.
Both industries stand to have huge share increases in the near future, and throughout the next decade. Buying now will only increase your stake with these top stocks as long-term defensive holds.
TORONTO – Cineplex Inc. reported a loss in its latest quarter compared with a profit a year ago as it was hit by a fine for deceptive marketing practices imposed by the Competition Tribunal.
The movie theatre company says it lost $24.7 million or 39 cents per diluted share for the quarter ended Sept. 30 compared with a profit of $29.7 million or 40 cents per diluted share a year earlier.
The results in the most recent quarter included a $39.2-million provision related to the Competition Tribunal decision, which Cineplex is appealing.
The Competition Bureau accused the company of misleading theatregoers by not immediately presenting them with the full price of a movie ticket when they purchased seats online, a view the company has rejected.
Revenue for the quarter totalled $395.6 million, down from $414.5 million in the same quarter last year, while theatre attendance totalled 13.3 million for the quarter compared with nearly 15.7 million a year earlier.
Box office revenue per patron in the quarter climbed to $13.19 compared with $12 in the same quarter last year, while concession revenue per patron amounted to $9.85, up from $8.44 a year ago.
This report by The Canadian Press was first published Nov. 6, 2024.
TORONTO – Restaurant Brands International Inc. reported net income of US$357 million for its third quarter, down from US$364 million in the same quarter last year.
The company, which keeps its books in U.S. dollars, says its profit amounted to 79 cents US per diluted share for the quarter ended Sept. 30 compared with 79 cents US per diluted share a year earlier.
Revenue for the parent company of Tim Hortons, Burger King, Popeyes and Firehouse Subs, totalled US$2.29 billion, up from US$1.84 billion in the same quarter last year.
Consolidated comparable sales were up 0.3 per cent.
On an adjusted basis, Restaurant Brands says it earned 93 cents US per diluted share in its latest quarter, up from an adjusted profit of 90 cents US per diluted share a year earlier.
The average analyst estimate had been for a profit of 95 cents US per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
ST. JOHN’S, N.L. – Fortis Inc. reported a third-quarter profit of $420 million, up from $394 million in the same quarter last year.
The electric and gas utility says the profit amounted to 85 cents per share for the quarter ended Sept. 30, up from 81 cents per share a year earlier.
Fortis says the increase was driven by rate base growth across its utilities, and strong earnings in Arizona largely reflecting new customer rates at Tucson Electric Power.
Revenue in the quarter totalled $2.77 billion, up from $2.72 billion in the same quarter last year.
On an adjusted basis, Fortis says it earned 85 cents per share in its latest quarter, up from an adjusted profit of 84 cents per share in the third quarter of 2023.
The average analyst estimate had been for a profit of 82 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
