The S&P/TSX Composite Index moved up 42 points on June 22. Valuations are high in North American markets right now, but there are still some fantastic long-term bets for investors to make. Today, I want to look at three TSX stocks that are worth spending $2,000 on in late June. Let’s dive in.
Why I still love this TSX stock in late June
Maple Leaf Foods (TSX:MFI) is an Ontario-based consumer protein company. Its shares have climbed 14% in 2020 as of close on June 22. This time last year, I’d discussed why Maple Leaf had the chance to become the Canadian Beyond Meat.
The burgeoning plant-based alternatives market has generated justifiable enthusiasm. Many consumers, particularly younger demographics, are turning to vegetarian and vegan options. Fortunately, Maple Leaf jumped on this trend with its acquisition of Lightlife Foods back in early 2017. The growth of its plant-based proteins is one of the reasons it’s a top TSX stock to own for the long haul.
In its first-quarter 2020 results, Maple Leaf reported sales growth of 25.9% in its Plant Protein Group. Adjusted EBITDA in this group came in at a loss of $20.5 million. However, Maple Leaf has continued to pour investment into this promising space. Shares of Maple Leaf last possessed a favourable price-to-book (P/B) value of 1.9.
Don’t forget to target dividend champs
Toromont Industries (TSX:TIH) is a company that provides specialized capital equipment in Canada, the United States, and worldwide. Its shares have climbed 14% year over year. Toromont is notable for its proven track record and its long history of dividend growth. These are some of the reasons this is a TSX stock I’m still bullish on in late June.
In its first-quarter 2020 results, the company saw revenues rise 2% year over year to $715.5 million. Backlogs came in at $567 million with a new record set at its CIMCO group. Shares of Toromont last possessed a favourable price-to-earnings (P/E) ratio of 19 and a high P/B value of 3.6.
Toromont last declared a quarterly dividend of $0.31 per share. This represents a modest 1.8% yield. The company has delivered dividend growth for 30 consecutive years.
Healthcare stocks should still be on your radar
When this year started, I’d had my eye on healthcare stocks. That has not changed in the face of this pandemic.
Savaria (TSX:SIS) is a Quebec-based company that designs, engineers, and manufactures products for personal mobility in Canada, the U.S., and around the globe. The global personal mobility market is positioned for promising growth over the next decade and beyond, largely due to aging demographics. It is still a top TSX stock to grab in June. Shares of Savaria have surged 52% over the past three months.
In Q1 2020, Savaria reported revenue growth of 1.1% to $88.4 million and gross profit growth of 11.4% to $30.1 million. Moreover, adjusted net earnings shot up 96.1% to $7.2 million and 75% to $0.14 on a per-share basis. Savaria stock last had a P/E ratio of 23 and a P/B value of 2.3. This puts it in attractive value territory relative to industry peers.
Better yet, Savaria offers a monthly dividend of $0.0383 per share. At the time of this writing, it represents a 3.5% yield.
While we are on the topic of top stocks for the summer…
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Fool contributor Ambrose O’Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends Beyond Meat, Inc. and Savaria.
China's economy grows 3.2% in second quarter – MarketWatch
BEIJING–China’s economy in the second quarter expanded 3.2% from a year earlier, rebounding from a historic coronavirus-induced contraction in the first three months of the year, as Beijing managed to largely bring the virus under control and restore economic activity.
Following the historic 6.8% on-year economic contraction in the first quarter, China is now the first of the major world economies to post positive growth after the Covid-19 pandemic began to ravage the global economy earlier this year.
The result beat a median forecast of a 2.6% increase expected by economists polled by The Wall Street Journal.
China’s gross domestic product in the second quarter rose 11.5% from the first quarter, according to data released by the National Bureau of Statistics Thursday. In the first half, the Chinese economy dropped 1.6% from a year earlier.
China’s policy makers omitted setting a growth target for 2020 after the economy ground to a near halt in the first quarter due to the coronavirus outbreak. Chinese leaders pledged to stabilize the job market and create more jobs instead this year.
China’s urban surveyed jobless rate dropped to 5.7% in June, compared with 5.9% in May.
Coronavirus: Chinese economy bounces back into growth – BBC News
China’s economy grew 3.2% in the second quarter following a record slump.
The world’s second biggest economy saw a sharp decline in the first three months of the year during coronavirus lockdowns.
But figures released on Wednesday show China’s Gross Domestic Product (GDP) returned to growth during April to June.
The numbers are being closely watched around the world as China restarts its economy.
The figure is higher than experts were predicting and points towards a V-shaped recovery – that is, a sharp fall followed by a quick recovery.
It also means China avoids going into a technical recession – signified as two consecutive periods of negative growth.
The bounce-back follows a steep 6.8% slump in the first quarter of the year, which was the biggest contraction since quarterly GDP records began.
The country’s factories and businesses were shutdown for most of this period as China introduced strict measures to curb the spread of the virus
The government has been rolling out a raft of measures to help boost the economy, including tax breaks.
Is this a V-shaped recovery?
Analysis by Mariko Oi, BBC News, Singapore
The Chinese economy managed to grow stronger than expected as the economy emerged from the lockdown.
All the stimulus measures announced by the authorities seem to be working – with factories getting busier, evident in growth in the industrial production data.
But one sector that hasn’t recovered as quickly as they had hoped is retail sales.
They still fell in the second quarter – and getting people spending again will remain a challenge.
And just as the economy starts to recover, tensions with the US are flaring up – especially over Hong Kong.
That is why some economists are reluctant to call it a V-shaped recovery just yet.
A research note from Deutsche Bank said the “V-shaped recovery” was “largely completed”.
“Consumer spending is still below its pre-Covid path, but the remaining gap is largely concentrated in a few sectors – travel, dining, leisure services– where rapid recovery is unlikely,” it added.
In May, China announced it would not set an economic growth goal for 2020 as it dealt with the fallout from the coronavirus pandemic.
It is the first time Beijing has not had a gross domestic product (GDP) target since 1990 when records began.
For the first six months of the year, China’s economy fell 1.6%, its National Bureau of Statistics said.
21 more cases of COVID-19 reported in B.C. – CTV News VI
Another 21 cases of COVID-19 have been confirmed in British Columbia, health officials announced Wednesday.
The total includes 19 new positive tests for the coronavirus and two additional epidemiologically linked cases, bringing the total number of confirmed cases in B.C. since the pandemic began to 3,149.
There have been no additional deaths from the virus over the last 24 hours, leaving the provincial death toll at 189.
There have now been 2,753 recoveries from the virus in B.C., leaving the province with 207 active cases. Of those, 14 people are hospitalized and five are in intensive care.
Wednesday’s update from provincial health officer Dr. Bonnie Henry and Health Minister Adrian Dix came in the form of a news release. It comes after a surge in new positive tests reported over the weekend, many of them related to private parties in the province’s Interior.
The 21 additional cases announced make Wednesday the sixth day out of the last seven in which the provincial case count grew by at least 20. Tuesday, when 13 new cases were reported, was the only day in the last week not to cross that threshold.
Dix and Henry addressed these increases in their joint statement Wednesday.
“We are concerned about the increase in new cases in recent days as COVID-19 continues to silently circulate in our communities,” the pair said. “As we spend more time with others, we need to find our balance with COVID-19. We need to minimize the number of cases, manage new cases as they emerge and modify our activities accordingly.”
The officials noted that many of B.C.’s early cases of the coronavirus were found in long-term care and assisted-living facilities, the recent growth in the provincial caseload has happened mostly in the broader community.
There continue to be three ongoing outbreaks of COVID-19 in health-care facilities, including two in seniors’ care homes and one in an acute care unit. There is also one ongoing “community outbreak,” according to Dix and Henry.
Most cases of COVID-19 in B.C. have been located in the Lower Mainland, with 1,659 in the Fraser Health region and 1,023 in the Vancouver Coastal Health Region.
Elsewhere in the province, there have been 216 cases in Interior Health, 135 in Island Health and 65 in Northern Health.
An additional 51 cases of COVID-19 reported in B.C. have been found in people who reside outside Canada, according to Wednesday’s update.
Henry and Dix will deliver their next live briefing on Thursday.
China's economy grows 3.2% in second quarter – MarketWatch
Canada adds 341 new coronavirus cases as world total hits 13.5 million – Globalnews.ca
Super 16: Top right wings playing in Stanley Cup Qualifiers – NHL.com
Silver investment demand jumped 12% in 2019 – report – MINING.com
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