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.
CALGARY – TC Energy Corp. has lowered the estimated cost of its Southeast Gateway pipeline project in Mexico.
It says it now expects the project to cost between US$3.9 billion and US$4.1 billion compared with its original estimate of US$4.5 billion.
The change came as the company reported a third-quarter profit attributable to common shareholders of C$1.46 billion or $1.40 per share compared with a loss of C$197 million or 19 cents per share in the same quarter last year.
Revenue for the quarter ended Sept. 30 totalled C$4.08 billion, up from C$3.94 billion in the third quarter of 2023.
TC Energy says its comparable earnings for its latest quarter amounted to C$1.03 per share compared with C$1.00 per share a year earlier.
The average analyst estimate had been for a profit of 95 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 7, 2024.
BCE Inc. reported a loss in its latest quarter as it recorded $2.11 billion in asset impairment charges, mainly related to Bell Media’s TV and radio properties.
The company says its net loss attributable to common shareholders amounted to $1.24 billion or $1.36 per share for the quarter ended Sept. 30 compared with a profit of $640 million or 70 cents per share a year earlier.
On an adjusted basis, BCE says it earned 75 cents per share in its latest quarter compared with an adjusted profit of 81 cents per share in the same quarter last year.
“Bell’s results for the third quarter demonstrate that we are disciplined in our pursuit of profitable growth in an intensely competitive environment,” BCE chief executive Mirko Bibic said in a statement.
“Our focus this quarter, and throughout 2024, has been to attract higher-margin subscribers and reduce costs to help offset short-term revenue impacts from sustained competitive pricing pressures, slow economic growth and a media advertising market that is in transition.”
Operating revenue for the quarter totalled $5.97 billion, down from $6.08 billion in its third quarter of 2023.
BCE also said it now expects its revenue for 2024 to fall about 1.5 per cent compared with earlier guidance for an increase of zero to four per cent.
The company says the change comes as it faces lower-than-anticipated wireless product revenue and sustained pressure on wireless prices.
BCE added 33,111 net postpaid mobile phone subscribers, down 76.8 per cent from the same period last year, which was the company’s second-best performance on the metric since 2010.
It says the drop was driven by higher customer churn — a measure of subscribers who cancelled their service — amid greater competitive activity and promotional offer intensity. BCE’s monthly churn rate for the category was 1.28 per cent, up from 1.1 per cent during its previous third quarter.
The company also saw 11.6 per cent fewer gross subscriber activations “due to more targeted promotional offers and mobile device discounting compared to last year.”
Bell’s wireless mobile phone average revenue per user was $58.26, down 3.4 per cent from $60.28 in the third quarter of the prior year.
This report by The Canadian Press was first published Nov. 7, 2024.
TORONTO – Canada Goose Holdings Inc. trimmed its financial guidance as it reported its second-quarter revenue fell compared with a year ago.
The luxury clothing company says revenue for the quarter ended Sept. 29 totalled $267.8 million, down from $281.1 million in the same quarter last year.
Net income attributable to shareholders amounted to $5.4 million or six cents per diluted share, up from $3.9 million or four cents per diluted share a year earlier.
On an adjusted basis, Canada Goose says it earned five cents per diluted share in its latest quarter compared with an adjusted profit of 16 cents per diluted share a year earlier.
In its outlook, Canada Goose says it now expects total revenue for its full financial year to show a low-single-digit percentage decrease to low-single-digit percentage increase compared with earlier guidance for a low-single-digit increase.
It also says it now expects its adjusted net income per diluted share to show a mid-single-digit percentage increase compared with earlier guidance for a percentage increase in the mid-teens.
This report by The Canadian Press was first published Nov. 7, 2024.
