It's Thanksgiving in US: 3 stocks for Canadians to buy

Highlights 

  • Food and retail companies, which were hit hard by the COVID-19 outbreak and its consecutive waves, are likely to see improvements in business this Thanksgiving season.
  • Unlike last year, people can meet up with friends and families this year in the wake of the vaccination drives and relaxed lockdowns.
  • Some Canadian food companies operate in the US as well, so it is likely that these enterprises will see a boost in their sales during this American holiday.

Food and retail companies, which were hit hard by the COVID-19 outbreak and its consecutive waves, are likely to see improvements in business this Thanksgiving season.

Unlike last year, people can meet up with friends and families this year in the wake of the vaccination drives and relaxed lockdowns. With bigger parties and family reunions, purchases are also likely to go up for the food and grocery industry.

Some Canadian food companies operate in the US as well, so it is likely that these enterprises will see a boost in their sales during this American holiday.

Also read: Top 2 Canadian retail stocks to buy in November

Keeping that in mind, let us explore three TSX-listed stocks you can explore as Thanksgiving comes around in the US.

1.    Premium Brands Holdings Corporation (TSX: PBH)

Premium Brands Holdings Corporation is a Vancouver-based speciality food manufacturer and premium food distributor that also operates in the United States.

Stocks of Premium Brands soared by over 26 per cent this year and grew by about 31 per cent in the last 12 months.

The food stock closed at C$ 127.41 per share on Wednesday, November 24, down by about one per cent.

Premium Brands saw its top line surge by 21.9 per cent year-over-year (YoY) to C$ 1.3 billion in Q3 FY2021. Its adjusted EBITDA in this latest quarter was C$ 122.6 million, noting a YoY increase of 31.1 per cent.

PBH is expected to dole out a quarterly dividend of C$ 0.635 apiece on January 17 next year.

2.    Aritzia Inc (TSX: ATZ)

The integrated fashion designer, which also has business operations in the US, noted a YoY growth of 74.9 per cent in its net revenue of C$ 350.1 million in the second quarter of fiscal 2022.

Aritzia’s e-commerce revenue jumped by 48.7 per cent YoY to C$ 130.4 million in the latest quarter, while its retail revenue increased by 95.3 per cent YoY to C$ 219.6 million.

The fashion stock surged by nearly 101 per cent year-to-date (YTD). It also delivered a return of about 113 per cent in the past year.

ATZ stock closed at C$ 51.75 apiece on November 24, while its market capitalization stood at C$ 4.5 billion. It held a return on equity of 28.97 per cent at the time of writing this.

Aritzia Inc (TSX:ATZ)’s stock performance as of November 24, 2021

 Image source: © 2021 Kalkine Media Inc 

Also read: 3 consumer stocks to buy before Black Friday

3.    Maple Leaf Foods Inc (TSX: MFI)

Maple Leaf Foods Inc, with its roots in Canada, provides packaged meats to consumers across the US, China and Japan.

The Mississauga, Ontario-headquartered firm saw its revenue grow by 12.4 per cent YoY to C$ 1.18 billion in Q3 FY2021. In the latest quarter, it posted an adjusted EBITDA margin of 9.7 per cent, which was up from 7.8 per cent in the same period a year ago.

Maple Leaf Foods’ stock spiked by about nine per cent in the past month and swelled by almost 16 per on a quarter-to-date (QTD) basis. It also expanded by roughly 26 per cent in the last nine months.

After hitting a day high of C$ 30.24, MFI stock closed at C$ 29.82 apiece on November 24.

Also read: 2 Canadian pizza stocks to enjoy this weekend

The packaged meat provider is set to deliver a quarterly dividend of C$ 0.18 per share on December 31 this year.

Bottom line

As the people in the US gear up to dig into their turkeys and mashed potatoes for Thanksgiving, the food and retail stores there are expected see a surge of customers through the day. And as the shelves thin out, their overall revenues are likely to beef up.

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