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5 TSX Stocks I'd Invest $5000 in Right Now – The Motley Fool Canada

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In today’s market, any investment in TSX stocks has to be for the long term, and the stocks need to have two qualities.

First, they need to be top-notch businesses that are major players in their industries, preferably with a considerable competitive advantage.

Second, the stocks have to have defensive business models and be able to withstand the coronavirus pandemic.

Air Canada, for example, is a high-quality business that’s a leader in the Canadian air travel industry. However, the stock is being significantly impacted by the coronavirus, so in my view, it’s not worth an investment today.

Here are five of the top TSX stocks to consider investing in right now.

Green energy TSX stock

The first stock on the list is the leading renewable energy stock on the TSX, Northland Power (TSX:NPI).

Northland Power owns several green energy-generating assets in Canada as well as Europe. The stock is attractive for two reasons. First, it has extremely strong as well as defensive operations. Management expects the company to earn roughly $2 per share in free cash flow during 2020.

Also, its long-term growth projects look very exciting. These should add considerable value to the company and continue to allow Northland to expand its earnings potential.

Currently, the stock trades just off its 52-week high; however, it’s still an exceptional buy for long-term investors.

Telecom stock

Another high-quality stock to consider today is BCE (TSX:BCE)(NYSE:BCE). BCE is the largest telecom in Canada and has a highly defensive business model.

It has seen an impact on its media division as well as some impact from telecom services to businesses. However, for the most part, during the pandemic, it’s been business as usual at BCE.

Management even decided to go ahead with its pre-planned capex spending rather than delaying it until the end of the pandemic, like almost every other TSX stock did.

At the moment, there is considerable long-term upside in the stock. Also, its dividend, which is raised often, yields 5.8%.

TSX pipeline stock

One of the best value stocks on the TSX today is the midstream energy company Pembina Pipeline (TSX:PPL)(NYSE:PBA).

Pembina has a crucial role in Western Canada, and although it may see some impacts on its business, its operations are resilient enough that it can handle these short-term headwinds.

This is crucial for long-term investors willing to hold the stock and wait. There is considerable opportunity for upside in the shares considering Pembina is still trading roughly 35% off its 52-week high.

Plus, Pembina’s stock pays an exceptional dividend yielding more than 7.2%.

Consumer staples stock

One stock you surely can’t go wrong buying today is Metro (TSX:MRU). Consumer staples stocks are always reliable businesses to own during a recession. Plus, Metro has had some strong performance as of late.

The company has seen a significant uptick in sales since the start of coronavirus. This uptick in sales increased its same-store sales by nearly 10% in the second quarter of its fiscal 2020.

This increase in same-store sales resulted in a roughly 8% increase in revenue. That’s a massive jump and is crucial to help Metro cover the extra costs of coronavirus and grow its net earnings.

Metro itself isn’t super undervalued. However, it’s a great long-term investment and a perfect TSX stock to own through periods of uncertainty.

TSX gold stock

The last stock to consider today would be a rapidly growing, high-quality gold stock like Equinox Gold (TSX:EQX).

Equinox has been ramping up production and growing through acquisition at a time when gold prices are skyrocketing. This has combined to give EQX shares a 190% increase since the beginning of 2019.

Today, Equinox continues to represent a strong opportunity for long-term investors. After transitioning into an intermediate gold producer, the stock is still somewhat priced like a junior.

The stock has been rallying considerably as of late, however, so investors should look to gain exposure sooner rather than later.

Bottom line

Most TSX stocks are pretty fairly valued these days. This means there likely won’t continue to be massive share price gains in the near term. So, make sure to have a long-term mindset and buy high-quality stocks such as these five.

Although there aren’t too many cheap TSX stocks these days, these five look particularly attractive.

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Fool contributor Daniel Da Costa owns shares of EQX, BCE INC., and NORTHLAND POWER INC. The Motley Fool recommends PEMBINA PIPELINE CORPORATION.

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China's imports and exports grew in June – MarketWatch

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China’s imports and exports rose in June from a year earlier, mainly reflecting improving demand at home and abroad as the country largely brought the coronavirus pandemic under control and some developed countries began reopening.

China’s imports rose 2.7% in June, reversing a 16.7% slump in May, the General Administration of Customs said Tuesday. Economists polled by The Wall Street Journal expected June’s imports to drop 10.0%.

Exports edged up 0.5% in June, compared with a 3.3% decline in May, customs data showed. June’s exports were also better than economists’ median forecast of a 4.3% decline.

China recorded a trade surplus of $46.42 billion last month, much smaller than May’s $62.93 billion surplus and below the $59.30 billion surplus economists expected.

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Why the 2021 Ford Bronco Has Independent Front Suspension – RoadandTrack.com

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Hardcore off-roaders and Jeep fans swear by the solid axle. They say the durability, articulation, and simplicity of a live-axle setup can’t be beat. Yet slowly, the solid front axle has died out. Aside from the Wrangler, no new passenger vehicle is sold in the U.S. today with a solid front axle. And now we know the new Ford Bronco won’t change that.

The Bronco instead opts for an independent front suspension, like pretty much every other truck or SUV out there. It’s easy to see why: Independent front suspension gives you more wheel control, reduces unsprung weight, and increases steering precision.

Ford

But the new Bronco isn’t just about about the on-road experience. And independent front suspension has some drawbacks for off-roaders. Most IFS designs offer less suspension travel than a solid axle, making it harder to maintain traction on uneven surfaces and keep all four wheels on the ground

According to Gavin McGee, a vehicle dynamics engineer for the Bronco, Ford considered a solid front axle. But beyond the fact that the increased unsprung weight tends to make for an uncomfortable ride, there were other dynamic concerns. A big one is wheel control, which suffers on a live-axle vehicle. Because both wheels are tied together, a bump on one side affects the other. That creates a wobbly ride, especially at speed, as the suspension can’t keep up with cascading impacts. On high-speed washboard surfaces or desert conditions, independent suspension allows for greater control.

Perhaps more importantly, independent front suspension allows for more precise, responsive steering. Solid-axle vehicles mostly use recirculating ball steering systems, an ancient design. Independent suspension allows for more modern steering systems, which should help give the Bronco better high speed behavior than the Wrangler, and more precise steering feedback at all speeds.

Lastly, McGee says Ford has mitigated a lot of the off-road compromises of independent front suspension. One of the key things that reduces the flexibility of an independent suspension setup is the stabilizer bar, which links the two front wheels together to reduce body roll. The Bronco has an available electronic disconnect on its front stabilizer bar, allowing way more travel—on an RTI ramp, which measures a 4×4’s suspension flex, a Bronco Badlands goes from a score of 560 with the stabilizer bar connected to 700 when disconnected.

Finally, while independent suspension used to mean limited wheel travel, Ford says the Bronco’s suspension has 17 percent more travel than the Wrangler. You can also get Bilstein position-sensitive dampers on every trim of the Bronco, which get stiffer toward the top end of their travel. That means more on-road comfort around town with better composure in challenging high-speed terrain. Combined with the inherent advantages of independent front suspension, the new Bronco should easily feel more refined and stable than the Wrangler, especially in the on-road driving where most owners spend the majority of their time.

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First Look: 2021 Ford Bronco – Driving

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I haven’t driven it yet, but here’s my early verdict: The new Ford Bronco looks buckin’ cool.

The Bronco was introduced for 1966 as a direct competitor to Jeep. Ford interviewed Jeep owners to see what they didn’t like about their vehicles, and engineered those improvements into the Bronco. Ford says it did the same this time, once again to try and out-wrangle the Wrangler.

The original Bronco was later joined by the smaller Bronco II, and now alongside it is the milder Bronco Sport. The first Bronco also came as a pickup truck, but so far, there’s no official announcement of one to tackle Jeep’s Gladiator.

The Sport hits showrooms later this year, while the bigger Bronco arrives in the spring of 2021, in two- or four-door configurations. You can reserve any of them right now for $100.

The Bronco will range from $40,199 to $61,994, ranging from the base two-door to the top-trim four-door. The Sport starts at $32,199 and tops out at $40,199; for that price, will you take a loaded Sport or a base Bronco two-door?

The Bronco sits on a fully-boxed frame and it’s meant to be modular. Ford says with a wrench and an hour, you can “strip it almost to its bare bones” — all the easier to install some of the 200-plus accessories offered at launch. The bumper caps come off for more clearance, the inside grab handles can be moved around, and roof cargo such as a canoe can be tied to the hood loops, which double as trail sights.

The doors are frameless and come off — they average about 21 kilograms each — and unlike the Wrangler, they stow inside the vehicle and the mirrors stay on the body (although Jeep still has that folding windshield in its favour). Depending on the Bronco’s trim, you get a cloth top, or a removable hard roof with smaller, easier-to-handle sections. The crossbar is behind the rear seat, so everyone gets a full view of the sky.

There are six trim levels: Base, Big Bend, Black Diamond, Outer Banks, and the tougher Wildtrak and Badlands. The U.S. also gets a limited “Special Edition” at launch that won’t be offered in Canada.

Every Bronco engine is powered by an EcoBoost engine — that’s Ford-speak for turbocharged. The base 2.3L four-cylinder makes 270 horsepower and 310 pound-feet of torque, but you can upgrade to a twin-turbo 2.7L V6 good for 310 ponies and 400 lb.-ft. of torque — more horsepower than any production Wrangler, and you only get more twist if you opt for Jeep’s diesel.

Four-cylinder Broncos can be ordered with a seven-speed manual — actually a six-speed with a “crawler” gear. A ten-speed automatic is optional on the turbo-four and standard on the V6. Two transfer cases will be available, depending on trim: two-speed with shift-on-the-fly, or an advanced system with an “auto” 4×4 setting that can be used on pavement as well as off-road.

The rest of the greasy bits include an independent front suspension, Dana front and rear axles, available Spicer electronic locking diffs and Bilstein shocks, and a final drive ratio ranging from 3.73:1 to 4.7:1. Up the option ladder, there are 35-inch mud-terrain tires on beadlock-capable rims, and a stabilizer bar that can be disconnected during articulation — for when you’re on the trail and the horizon is sideways through the windshield.

Equipped with 35-inch tires, the gnarliest four-door Bronco gives you 11.5 inches of ground clearance, a 43.2-degree approach angle, 26.3-degree breakover, and 37-degree departure. Maximum towing capacity on all models is 3,500 pounds.

For those new to off-road, selectable drive modes include mud/ruts and rock crawl. There’s Trail Control, which works as low-speed cruise control, and one-pedal drive that operates both brake and throttle for the roughest stuff. You can also attach a dash rack to mount a phone or GoPro, and there are cameras in front of the wheels so you don’t need a spotter.

Once you’re back in base camp, swing open the hatch, slide out the tailgate seat, and open your beverage with the built-in bottle opener. While it still has a retro-style feel to it, the Bronco will offer several higher-tech features, such as Ford’s Sync 4 infotainment system, over-the-air vehicle updates to reduce dealer visits, and off-road navigation that can track and capture where you’ve been so you can share it with fellow off-roaders.

The Bronco Sport will also take you off the pavement, but not quite as deep into the wilds. It’s a unibody, based on the same platform that underpins the Ford Escape. All trims have a four-wheel-drive ystem that prioritizes the front axle and sends more to the rear as required, but the Badlands adds a twin-clutch rear unit with differential lock, and can deliver all rear-axle torque to one wheel if the other loses traction. Ford says it’ll outperform the Trailhawk versions of Jeep’s Cherokee and Compass — and both of those perform surprisingly well on tougher terrain.

The standard Bronco Sport engine is a 1.5-litre EcoBoost three-cylinder engine, making 181 horsepower and 190 lb.-ft. of torque, while a 2.0L EcoBoost engine with 245 horsepower and 275 lb.-ft. — provided you’re running premium fuel — is available. That’s the annoying way some automakers now present their power numbers to make them as high as possible, so expect a little less grunt on the regular-grade gas most people will use. Both engines come with an eight-speed automatic.

Bronco’s target customers prefer to drive into the wilderness, while Sport buyers tend to park at the edge and venture in themselves. So, two mountain bikes can fit standing up in the Sport’s cargo area, and accessories include a tent and ladder for sleeping on the roof. The liftgate includes floodlights, and you can get a slide-out table to go under them.

Like its rougher-tougher sibling, the Bronco Sport will offer the the Trail Control low-speed cruise, front camera, skid plates, drive modes with rock-crawl setting, and a washable rubber floor. Emergency front braking, blind-spot monitoring, lane-keep assist, and automatic high-beam headlights are standard, and adaptive cruise control and lane centering are available.

The Bronco Sport is also meant for those who want comfort during the week and blackflies on the weekend, and will get them there with more off-road capability than Ford’s other compact sport-utes. But it’s that hard-core Bronco that’s the big news here, and I can’t wait to get this thing on a trail to see what it’ll do.

There’s no question the Bronco looks the part. Now we just have to see if Ford really did out-Jeep the Jeep.

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