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Highlights
- ATD stock spiked by over 18 per cent in the past one year.
- Tourmaline Oil holds a three-year dividend growth rate of 58.38 per cent.
- TOU stock zoomed by roughly 130 per cent in 52 weeks.
After a robust rise amid the pandemic, the Canadian housing market is now cooling down with the Bank of Canada (BoC) rapidly raising the interest rate to rein in inflation. With more rate hikes expected in the coming months, the real estate space could weaken further.
The TSX Capped Real Estate Index has dipped by about 19 per cent year-to-date (YTD), with some notable property stocks feeling the heat.
If you are looking to redistribute your funds among other sectors and industries to avoid losses, here are three TSX stocks that you can consider.
Alimentation Couche-Tard Inc (TSX: ATD)
Alimentation Couche-Tard Inc is a North American company that owns and operates two convenience brands (Couche-Tard and Circle K) and fuel brand Ingo globally. The retail company also rolled out its first electric vehicle charging station under its Circle K banner in Rock Hill, South California.
Such companies with branched-out operations could significantly help diversify portfolio risk in the long run. Alimentation Couche-Tard also deployed ‘Smart Checkout’ using Mashgin Touchless Checkout System in its over 7,000 Couche-Tard and Circle K banners for three years.
As for its stock performance, ATD stock spiked by over 18 per cent in the past one year. As per EODHD/Others information, ATD’s Relative Strength Index (RSI) was at 35.49, slightly up from the 30-mark, reflecting a bearish trend.
Also read: 3 TSX growth stocks for young investors - DOL, H and DSG
Tourmaline Oil Corp (TSX:TOU)
Tourmaline Oil Corp might also be an explorable option, especially considering the rising energy prices. The TSX Capped Energy Index has fared well (climbed over 69 per cent in 2022) compared to other indices or even the S&P/ TSX Composite Index.
Tourmaline Oil holds a three-year dividend growth rate of 58.38 per cent, and looking at its dividend history, one can find that it has notably increased its quarterly dividend.
The large-cap oil producer reported a year-over-year (YoY) rise of 71 per cent in its cash flow in Q1 FY2022. The energy company also increased its total revenue by 70 per cent in the first quarter of FY2022 compared to the previous year.
TOU stock zoomed by roughly 130 per cent in 52 weeks and held an RSI value of 44.32 on June 13, as per EODHD/Others.
Also read: 3 TSX natural gas stocks to buy right now & hold forever: TOU, ENB, CVE
Canadian National Railway Company (TSX: CNR)
Canadian National Railway is a known railway transportation company in Canada. Canadian National hold a massive market capitalization of C$ 97.24 billion and an adequate debt-to-equity (D/E) ratio of 0.63.
As Canadian National transports various goods across Canada and also connects to the U.S. market, it could be a safe bet to diversify the risk and earn stable dividend income in the long-time horizon.
Having surged by almost three per cent on a YoY basis, CNR stock held an RSI value of 33.47 on June 13, according to EODHD/Others.
Bottomline
Investors often consider the housing market a safe investment option that would only appreciate value. However, several factors like rising borrowing costs could slow it down. Hence, investing in stocks from different sectors is important to minimize the risk.
Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
