Kalkine Media evaluates TSX stocks to watch amid recession fears

Recession is looming over Canada like other countries in the world and the economy is busy preparing a recovery plan. TSX investors must stay alert as the market continues to record high volatility.

The rising prices of commodities and interest rate hikes to tame the rising inflation might tip the economy into recession. But not all stocks dread the impact of the recession. Certain stocks are preparing to survive the situation.

Let's explore the five stocks curated by Kalkine Media® and see their performances:

Brookfield Infrastructure Partners L.P. (TSX: BIP.UN)

Brookfield Infrastructure Partners L.P., as a firm, owns and operates long-life assets. Further, it acquires infrastructure assets having capital costs on a lower side along with high entry barriers. The company has an employee size of 225,000.

The company has a total market capitalization of C$ 25.3 billion. As of June 30, 2022, the company generated revenue of US$ 3,681million and witnessed an increase of 38.22 per cent compared to the previous year.

In contrast, there was a decline in the net income by 67.45 per cent.

As of June 30, 2022, in a period of six months, the company's assets and liabilities declined by 3.58 per cent and 0.08 per cent, respectively.

The Funds from operations (FFO) were reported at US$ 513 million compared to US$ 394 million in the previous year's corresponding quarter.

According to the official reporting by the company, on August 23, 2022, the company signed a definitive agreement with Intel Corporation, showcasing their assistance for big companies. This includes joint funding for the latter's under-construction semiconductor fabrication facility in Arizona.

Fortis Inc. (TSX:FTS)

Fortis Inc. owns and operates utility transmission and distribution assets that serve electricity and gas customers. The company operates with an employee size of 9,100.

At present, Fortis holds a total market capitalization of 26.9 billion. The company pays a quarterly dividend of C$ 0.535. Its dividend growth is 5.66 per cent in five years.

For the quarter that ended June 30, 22, Fortis Inc. reported net earnings of C$ 284 or C$ 0.59 per common share. It was C$ 253 million in the same quarter a year ago.

Furthermore, the company has an EPS of 2.65 with a P/E ratio of 21.1.

Dollarama Inc. (TSX:DOL)

Dollarama Inc. is a Canada-based firm that operates discount retail stores. The company's product range includes seasonal items and comprises everyday consumer products and general merchandise.

Presently, Dollarama Inc. has a market capitalization of C$ 22.3 billion. The company distributed a dividend of C$ 0.055 to its investors and witnessed a dividend growth of 11.22 per cent in 3 years.

As of July 31, 2022, the sales growth is 18.2 per cent (C$ 1,217.1 million), including a 13.2 per cent increase in comparable store sales growth.

Reportedly, growth in the total number of companies stores over the past 12 months resulted in a growth in EBITDA by 25.8 per cent (C$ 369.4 million). 

Hydro One Limited (TSX:H)

Hydro One Limited operates regulated transmission (60 per cent) and distribution assets (40 per cent). In Q2, 2022, the company reported a net income of C$ 255 million.

In the reported quarter (Q2 2022), there was an increase in the EPS (C$ 0.43) of the company by 7.5 per cent. The revenue generated by the company also witnessed an increase of 6.85 per cent and was reported at C$ 1,840 million.

Hydro One Limited declared a cash dividend of C$ 0.28 per share and saw a dividend growth of 4.57 per cent in five years.

According to the official website, Hydro One Limited was awarded Gold Best Practices Award in customer service from Chartwell Inc. for its improvement program in early 2021. As of September 20, 2022, Hydro One Limited's stock increased by 1.5 per cent within two months.

Loblaw Companies Limited (TSX:L)

Loblaw Companies Limited is a grocery, pharmacy, and general merchandise retailer.

The company's C$ 36.5 billion market capitalization distributes a quarterly dividend of C$ 0.405. The dividend growth for the five years was reported at 6.10 per cent, with a dividend yield of 1.435 per cent.

For the quarter that ended June 18, 2022 (Q2), there was an increase in revenue and a decline in operating income by 2.9 per cent and 1.3 per cent, respectively. The net earnings for Q2 2022 were reported at C$ 387 million and represented an increase of C$ 12 million compared to the previous year.

Bottom Line

As an investor, you may have to see both sides while investing in stocks, i.e., increase and decrease. With rising global uncertainties, some stocks may go down while others outperform.

Ensure to go by your thorough research while selecting stocks. Go for diversification and back it up with facts. A long-term strategy is also the right approach. Understanding the factors that rule the market may help in tackling any volatility effectively. 

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.