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The Best TSX Stocks to Buy in a Market Pullback – The Motley Fool Canada

Published

4 years ago

March 26, 2021

The S&P/TSX Composite Index was down triple digits in late-morning trading on March 25. A ship blockage in the Suez Canal has spooked markets as it threatens to disrupt about $10 billion in goods every day it remains stuck. At the time of this writing, the ship is still blocking both directions in one of the world’s busiest shipping channels. Tugs are being dispatched to dislodge the 400-metre-long cargo ship. Meanwhile, positive economic data continues to pour in. Investors should consider taking advantage of this market pullback. Here are the best TSX stocks to snatch up in a correction.

Bank stocks were a great buy in the 2020 market pullback

Bank stocks were throttled during the March 2020 market pullback. Investors who bought the dip in Canada’s top financial institutions have been rewarded over the past year. These equities are not the most exciting, but they do offer nice balance with solid capital growth and income.

Toronto-Dominion Bank (TSX:TD)(NYSE:TD) is the second-largest bank in Canada. Its shares have climbed 37% year over year at the time of this writing. Canadian banks continued to show strong progress after releasing their first-quarter earnings in late February and early March. TD Bank was no different.

The bank reported earnings of $1.5 billion or $1.69 per diluted share — up from $1.3 billion, or $1.44 per diluted share, in the prior year. TD Bank’s revenue rose 5.5% to $5.5 billion. Shares of this top TSX stock last had a favourable price-to-earnings ratio of 12. It offers a quarterly dividend of $0.79 per share. That represents 3.8% yield.

Why you should buy this top TSX stock on the dip

Earlier this month, I’d discussed why young investors should get in on tech stocks that have recently dipped. Kinaxis (TSX:KXS) remains one of my favourite TSX stocks in the technology space. However, its shares have plunged 19% in 2021. The stock is up 36% year over year.

In 2020, Kinaxis saw total revenue rise 17% from the prior year to $224 million. Meanwhile, gross profit jumped 12% to $154 million. The supply chain and operating planning software space is geared up for big growth this decade. Kinaxis has vaulted Canada into a leadership position in this technological race. Investors should look to scoop up this exciting TSX stock on the dip in late March.

Invest in promising industries during a market pullback

Healthcare stocks have proven potent during the COVID-19 pandemic. Few companies have thrived during this crisis like WELL Health Technologies (TSX:WELL). Shares of this TSX stock have climbed over 390% from the previous year. However, the stock has plunged 18% month over month.

WELL Health has thrived due to its exposure to the emerging telehealth space. Digital healthcare consultations have become more commonplace during this crisis. This led to revenue growth of 53% for WELL Health in 2020. Software and Services revenue soared 393% to $12.3 million and adjusted gross profit rose 93% to $12.3 million.

Shares of WELL Health were down 1.9% in today’s trading at the time of this writing. Now is a perfect time to jump on this exciting TSX stock in the healthcare space.

Speaking of stocks to buy during a market pullback …

This Tiny TSX Stock Could Be the Next Shopify

One little-known Canadian IPO has doubled in value in a matter of months, and renowned Canadian stock picker Iain Butler sees a potential millionaire-maker in waiting…
Because he thinks this fast-growing company looks a lot like Shopify, a stock Iain officially recommended 3 years ago – before it skyrocketed by 1,211%!
Iain and his team just published a detailed report on this tiny TSX stock. Find out how you can access the NEXT Shopify today!

Click here to discover how!

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Ambrose O’Callaghan owns shares of TORONTO-DOMINION BANK. The Motley Fool recommends KINAXIS INC.

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Business

Carry On Canadian Business. Carry On!

Published

4 hours ago

October 22, 2024

Steven Kaszab

Human Resources Officers must be very busy these days what with the general turnover of employees in our retail and business sectors. It is hard enough to find skilled people let alone potential employees willing to be trained. Then after the training, a few weeks go by then they come to you and ask for a raise. You refuse as there simply is no excess money in the budget and away they fly to wherever they come from, trained but not willing to put in the time to achieve that wanted raise.

I have had potentials come in and we give them a test to see if they do indeed know how to weld, polish or work with wood. 2-10 we hire, and one of those is gone in a week or two. Ask that they want overtime, and their laughter leaving the building is loud and unsettling. Housing starts are doing well but way behind because those trades needed to finish a project simply don’t come to the site, with delay after delay. Some people’s attitudes are just too funny. A recent graduate from a Ivy League university came in for an interview. The position was mid-management potential, but when we told them a three month period was needed and then they would make the big bucks they disappeared as fast as they arrived.

Government agencies are really no help, sending us people unsuited or unwilling to carry out the jobs we offer. Handing money over to staffing firms whose referrals are weak and ineffectual. Perhaps with the Fall and Winter upon us, these folks will have to find work and stop playing on the golf course or cottaging away. Tried to hire new arrivals in Canada but it is truly difficult to find someone who has a real identity card and is approved to live and work here. Who do we hire? Several years ago my father’s firm was rocking and rolling with all sorts of work. It was a summer day when the immigration officers arrived and 30+ employees hit the bricks almost immediately. The investigation that followed had threats of fines thrown at us by the officials. Good thing we kept excellent records, photos and digital copies. We had to prove the illegal documents given to us were as good as the real McCoy.

Restauranteurs, builders, manufacturers, finishers, trades-based firms, and warehousing are all suspect in hiring illegals, yet that becomes secondary as Toronto increases its minimum wage again bringing our payroll up another $120,000. Survival in Canada’s financial and business sectors is questionable for many. Good luck Chuck!. at least your carbon tax refund check should be arriving soon.

Steven Kaszab
Bradford, Ontario
skaszab@yahoo.ca

Business

Imperial to cut prices in NWT community after low river prevented resupply by barges

Published

7 hours ago

October 22, 2024

Anne Joseph

NORMAN WELLS, N.W.T. – Imperial Oil says it will temporarily reduce its fuel prices in a Northwest Territories community that has seen costs skyrocket due to low water on the Mackenzie River forcing the cancellation of the summer barge resupply season.

Imperial says in a Facebook post it will cut the air transportation portion that’s included in its wholesale price in Norman Wells for diesel fuel, or heating oil, from $3.38 per litre to $1.69 per litre, starting Tuesday.

The air transportation increase, it further states, will be implemented over a longer period.

It says Imperial is closely monitoring how much fuel needs to be airlifted to the Norman Wells area to prevent runouts until the winter road season begins and supplies can be replenished.

Gasoline and heating fuel prices approached $5 a litre at the start of this month.

Norman Wells’ town council declared a local emergency on humanitarian grounds last week as some of its 700 residents said they were facing monthly fuel bills coming to more than $5,000.

“The wholesale price increase that Imperial has applied is strictly to cover the air transportation costs. There is no Imperial profit margin included on the wholesale price. Imperial does not set prices at the retail level,” Imperial’s statement on Monday said.

The statement further said Imperial is working closely with the Northwest Territories government on ways to help residents in the near term.

“Imperial Oil’s decision to lower the price of home heating fuel offers immediate relief to residents facing financial pressures. This step reflects a swift response by Imperial Oil to discussions with the GNWT and will help ease short-term financial burdens on residents,” Caroline Wawzonek, Deputy Premier and Minister of Finance and Infrastructure, said in a news release Monday.

Wawzonek also noted the Territories government has supported the community with implementation of a fund supporting businesses and communities impacted by barge cancellations. She said there have also been increases to the Senior Home Heating Subsidy in Norman Wells, and continued support for heating costs for eligible Income Assistance recipients.

Additionally, she said the government has donated $150,000 to the Norman Wells food bank.

In its declaration of a state of emergency, the town said the mayor and council recognized the recent hike in fuel prices has strained household budgets, raised transportation costs, and affected local businesses.

It added that for the next three months, water and sewer service fees will be waived for all residents and businesses.

This report by The Canadian Press was first published Oct. 21, 2024.

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U.S. vote has Canadian business leaders worried about protectionist policies: KPMG

Published

7 hours ago

October 22, 2024

Anne Joseph

TORONTO – A new report says many Canadian business leaders are worried about economic uncertainties related to the looming U.S. election.

The survey by KPMG in Canada of 735 small- and medium-sized businesses says 87 per cent fear the Canadian economy could become “collateral damage” from American protectionist policies that lead to less favourable trade deals and increased tariffs

It says that due to those concerns, 85 per cent of business leaders in Canada polled are reviewing their business strategies to prepare for a change in leadership.

The concerns are primarily being felt by larger Canadian companies and sectors that are highly integrated with the U.S. economy, such as manufacturing, automotive, transportation and warehousing, energy and natural resources, as well as technology, media and telecommunications.

Shaira Nanji, a KPMG Law partner in its tax practice, says the prospect of further changes to economic and trade policies in the U.S. means some Canadian firms will need to look for ways to mitigate added costs and take advantage of potential trade relief provisions to remain competitive.

Both presidential candidates have campaigned on protectionist policies that could cause uncertainty for Canadian trade, and whoever takes the White House will be in charge during the review of the United States-Mexico-Canada Agreement in 2026.

This report by The Canadian Press was first published Oct. 22, 2024.

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