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Highlights
- As Russia declared a full-scale invasion of Ukraine early Thursday morning, February 24, the equities markets got hammered.
- Commodities like grains (mainly wheat), oil and gold saw a substantial price increase as both the countries involved are key exporters to the global economy.
- Many commodity experts believe that the Russia-Ukraine war could significantly squeeze the supply side of things leading to higher commodity prices in the global market.
As Russia declared a full-scale invasion of Ukraine early Thursday morning, February 24, the equities markets got hammered. On the other hand, this invasion has driven the commodity markets.
Commodities like grains (mainly wheat), oil and gold saw a substantial price increase as both the countries involved are key exporters to the global economy.
On that note, let us look at five TSX stocks to navigate the ongoing Russia-Ukraine crisis.
1. Loblaw Companies Limited (TSX:L)
Loblaw is a diversified retailer that manages grocery, pharmacy and general stores across Canada. The C$ 33-billion market cap retail company noted a 2.8 per growth year-over-year (YoY) in its revenue to C$ 12.75 billion in Q4 FY2021. The retailer saw its net earnings increase by 140 per cent YoY to C$ 744 million in the latest quarter.
Loblaw stock spiked by nearly four per cent in light of its latest quarter results on February 24 and closed at C$ 101.06 apiece. The retail stock expanded by approximately 66 per cent in the last one year.
Also read: Royal Bank (TSX:RY) posts net profit of $4.1B in Q1. Time to buy?
2. Tourmaline Oil Corp (TSX:TOU)
Stocks of Tourmaline ballooned by almost 110 per cent in the past 12 months. The oil stock climbed nearly 20 per cent so far in 2022.
The Canadian crude oil and natural gas company has a return on equity (ROE) of 18.55 per cent. Its 3-year dividend growth rate stood at 43.49 per cent.
3. Ceres Global Ag Corp (TSX:CRP)
Ceres Global Ag Corp saw its stock gallop by nearly 12 per cent on Thursday to close at a value of US$ 5.16 apiece.
The Minneapolis-headquartered company noted a net income of US$ 4.03 million in Q2 FY2021 compared to US$ 1.32 million a year ago.
4. Barrick Gold Corporation (TSX:ABX)
Barrick Gold recorded a net profit of US$ 726 million in Q4 FY2021, notably up from US$ 347 million in the previous-year quarter. The gold company will also pay a quarterly dividend of US$ 0.10 apiece on March 15.
The Barrick Gold stock gained about 20 per cent year-to-date (YTD). The gold stock closed at US$ 28.87 apiece on Thursday.
5. SunOpta Inc (TSX:SOY)
SunOpta is a North American plant-based and fruit-based food and beverages company. The US$ 708-million market cap company expects its total revenue to reach somewhere between US$ 890 million to US$ 930 million in 2022.
The Minnesota-headquartered company saw its stock surge by about 11 per cent to close at US$ 6.53 apiece on Thursday.
Also read: Can Russia’s attack on Ukraine impact Canada's economy & trade?
Which Are The 5 TSX Stocks To Navigate The Russia-Ukraine Crisis
Bottom line
Many commodity experts believe that the Russia-Ukraine war could significantly squeeze the supply side of things leading to higher commodity prices in the global market. Hence, investors should cautiously take any investment decisions based on their understanding of how demand and supply for commodities like grains, precious metals, oil etc., will play out for the related businesses.
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.
