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Summary
- Grocery retailers Metro Inc (TSX:MRU), Goodfood Market Corp (TSX:FOOD) and Loblaw Companies (TSX:L) are currently trending on the TSX ahead of Thanksgiving.
- Shares of liquor companies Rocky Mountain Liquor Inc (TSX:RUM) and Alcanna Inc (TSX:CLIQ) have also been popular among investors.
- While tech giant Shopify Inc (TSX:SHOP) remains on top on the TSX, Amazon Inc (NAZDAQ: AMZN) is gearing up for its gigantic Prime Day event on October 13-14.
- The S&P/TSX Composite Index climbed nearly three per cent this month.
The coronavirus pandemic will change the way we celebrate Thanksgiving this year, with smaller gatherings at the table and less cooking. This will make things tight business-wise as well, even with the economy slowly reopening post lockdown. Reports have it that turkey farmers this year have been reconsidering the usual months-long preparation for Thanksgiving, while grocery stores are gearing up for panic-triggered bulk buying.
So, in the light of all things dreary, thanks to the coronavirus, the one thing that will keep things bright would be food. And since we’re on that topic, let’s discuss a few food and consumer stocks that we could keep in mind around Thanksgiving.
Food-Related Stocks for Thanksgiving
The S&P/TSX Composite Index climbed nearly three per cent this month, while investors continue to flock around food-related stocks. Currently, grocery retailers Metro Inc, Goodfood Market Corp and Loblaw Companies are trending high among consumer stocks on the Toronto Stock Exchange (TSX).
Metro Inc (TSX:MRU) stocks rose over 18 per cent this year. Its stock price briefly dropped to a low of C$ 50.29 (March 19) amid the pandemic-led market crash in March, but quickly rebounded to gain 26 per cent in seven months’ time. Its current stock price is C$ 63.41
Shares of Goodfood Market Corp (TSX:FOOD) have steadily climbed through the COVID-19 times, securing a growth of nearly 188 per cent year-to-date (YTD). Its value rose 143 per cent in the last six months and over 50 per cent in three months.
Goodfood Market Corp currently has a stock price of C$ 9.01.
Loblaw Companies Limited (TSX:L) registers a YTD growth of three per cent, but its scrips have rebounded over 15 per cent since a low of C$ 59.7 (March 24) during the March lows. Its stock price stands at C$ 68.86.
While taking your family out for a Thanksgiving dinner may not be the best idea this year, discussing stocks from the restaurant industry can do no harm.
Franchisor MTY Food Group (TSX:MTY) recently posted its financial results for the third quarter ending 31 August 2020. The company saw a 16 per cent YoY drop in its revenues of C$ 135.4 million and a 17 per cent YoY dip in its system-wide sales of C$ 897.5 million in Q3 2020.
Stocks of MTY Food Group, which are currently priced at C$ 43.2 rebounded nearly 82 per cent in the last six months and nearly 50 per cent in three months.
Liquor Stocks to ‘Toast’ to This Thanksgiving
As we raise our glasses to the holiday spirit, shares of Canadian liquor company Alcanna Inc and Rocky Mountain Liquor Inc are drawing attention on the stock market.
Rocky Mountain Liquor Inc (TSX:RUM), with a stock price of C$ 0.095 is currently trending on the TSX for its low price-to-earnings ratio. Its scrips have recorded a growth of an impressive 137.5 per cent YTD. In the last three months, its stock price climbed nearly 73 per cent.
Alcanna Inc (TSX:CLIQ) stocks dipped to a low of C$ 1.46 amid the March market crash but has made a steady recovery since. Its scrips are now valued at C$ 5.1.
Alcanna shares climbed a substantial 114 per cent in the last six months and nearly 15 per cent this year. The company is currently in news for its decision to stop selling cannabis products manufactured by Canopy Growth.
How Are Tech Stocks Doing This Thanksgiving?
Apart from cooking and eating, another habit that sees a spike around holidays is shopping. And with the pandemic still hanging around, most people are likely to opt for online shopping.
The e-commerce industry has enjoyed quite a boost during the lockdown period. This rise in demand, in turn, converted to its demand on the stock market amid investors. With the holiday season around the corner, the TSX tech index climbed nearly three per cent this month.
Canada’s darling one-stop e-commerce platform Shopify Inc (TSX:SHOP) continues to soar on the TSX as one of the top trending stocks. The C$ 158-billion market cap company recorded a growth of over 170 per cent this year. Its stock price at the moment is C$ 1,438.68.
Through the challenging times of the pandemic, Shopify Inc scrips shot up 146 per cent in the last six months and nearly 152 per cent in the seven months’ time since the March lows.
Shopify’s biggest rival across the border, Amazon Inc (NAZDAQ: AMZN) has also been making the most of the pandemic times. And come right after the Canadian Thanksgiving, Amazon is poised to launch its massive Prime Day event of October 13-14.
In 2019, Amazon’s revenue from its Prime Day sales is said to have amounted to US$ 7.16 billion, according to a Statista report. In fact, the tech juggernaut’s Prime Day sales record beat that of its sales on Black Friday and Cyber Monday put together.
Shares of Amazon Inc climbed about 78 per cent this year and nearly 61 per cent in the last six months. In the last 10 days, its scrips have garnered an average trading volume of 4.4 million.
So, What To Do This Thanksgiving?
In the early days of the pandemic, bulk-buying cropped up to be a real menace in the country. But if studies are to be seen, UK-based International Grains Council recently predicted that the global production of corn, wheat and soybean will rise to the near-record levels of close to 2.23 billion tons by next year. It also said that grain production this year is up to 629 million tons.
Hence, the problem at hand is not food shortage, but food insecurity.
The United Nations World Food Programme, which won the 2020 Nobel Peace Prize this October, has pointed out that the number of people across the world, who face intense food insecurity, has doubled amid the pandemic. A UN representative speaking at the Wall Street Journal’s Global Food Forum recently said that approximately 270 million people around the world still struggle to afford food.
So, this holiday season, enjoy your food and family, and don’t stress too much about panic-buying or worrying about empty shelfs on the grocery stores.
Happy Thanksgiving!
