Kalkine Media explores 5 TSX stocks to watch under $20

Highlights

• In Q2 FY 2023, BlackBerry’s gross margin was US$ 106 million.
• Innergex Renewable’s revenue in Q3 2022 was noted at C$ 258.38 million.
• Air Canada’s operating income was at C$ 644 million in Q3 2022.

The stock market is full of opportunities. There are many stocks that may offer different returns at different time periods. As a new entrant, make the best out of your stocks and tap them at the right time. The initial investment approach may lay the foundation for your future journey. Hence, it is crucial to select stocks that match your long-term goals.

Additionally, form a risk mitigation strategy that will help you to shield your portfolio from market volatility and fluctuations. Within the market, every factor plays a crucial role and has an impact on the market direction. Understanding these factors may give clarity and help you form your future strategy.

With the slowing down of inflation, the market may operate in a different direction compared to the recent past. Amid these changes, investors may juggle several thoughts at once. To have a clear approach, it is important to understand aspects such as stock price, market movements, company valuations, etc. These all are part of the game and decide your portfolio’s fate at different time periods.

Another factor is diversification. You may diversify your portfolio by picking up different stocks. In the stock market, some stocks may trade at high prices while others may trade at cheaper prices.

To start with, investors can avoid breaking the bank and analyze such stocks. Here are five stocks to evaluate along with their recent financial highlights:

1. BlackBerry Limited (TSX:BB)

BlackBerry Limited is a software provider that works on secure end-to-end communication for enterprises. The company caters to enterprises by providing protection and endpoint management. These enterprises include governments, industrial markets, automotive, and medical.

In Q2 FY 2023, BlackBerry’s gross margin rose to US$ 106 million from US$ 104 million in the previous quarter. For the same period, the company’s revenue remains unchanged at US$ 168 million. The net loss decreased to US$ 54 million from US$ 181 million.

The company’s cash and cash equivalents grew to US$ 458 million from US$ 318 million in the year-ago quarter.

2. Savaria Corporation (TSX:SIS)

Savaria Corporation is engaged in designing, manufacturing, and engineering personal mobility products. The company’s operating segments are Patient handling, Accessibility and Adapted vehicles and the product portfolio includes stairlifts, home elevators, ceiling lifts, and van conversions.

Savaria’s revenue was noted at C$ 201.39 million versus C$ 180.75 million in Q3 2021. Its net earnings rose to C$ 10.58 million from C$ 4.75 million for the same comparable period. The adjusted EBITDA grew to C$ 31.02 million from C$ 26.31 million. The company’s gross profit increased to C$ 64.04 million from C$ 58.57 million for the reported quarter. Savaria distributed a monthly dividend per share of 0.043 and reported a dividend yield of 3.359 per cent. The company noted a five-year dividend growth of 14.66 per cent.

Market Capitalization of BB, SIS, INE, AC, and MEG:

3. Innergex Renewable Energy Inc. (TSX:INE)

Innergex Renewable Energy Inc. is engaged in operating, developing, acquiring, and owning solar, wind, and hydroelectric facilities. As a power producer, the company has its presence in Chile, the US, France, and Canada.

In Q3 2022, Innergex Renewable’s revenue grew to C$ 258.38 million from C$ 184.56 million in the year-ago quarter. For the same period, the company posted a net income of C$ 20.98 million versus a net loss of C$ 23.46 million.

Meanwhile, the adjusted EBITDA increased to C$ 181.15 million from C$ 122.52 million. Innergex Renewable Energy paid a quarterly dividend of C$ 0.18 per share. The company’s dividend yield was reported at 4.414 per cent with a five-year dividend growth of 2.54 per cent.

On October 4, 2022, Innergex Renewable Energy Inc. acquired the remaining minority interest (30.45 per cent) in its France’s wind portfolio.

4. Air Canada (TSX:AC)

Air Canada operates as a freedom airline and caters to roughly 50 million passengers annually with its regional partners. The airline flies US nationals on long distance trips with a layover in Canada.

In Q3 2022, the company’s operating income was reported at C$ 644 million versus a loss of C$ 364 million in the year-ago quarter. For the same period, Air Canda’s EBITDA soared to C$ 1,057 million from C$ 36 million. The operating revenues rose to C$ 5.32 billion from C$ 2.1 billion. Meanwhile, the operating expenses rose to C$ 4.67 billion from C$ 2.46 billion for the reported quarter.   

5. MEG Energy Corp. (TSX:MEG)

MEG Energy Corp. is a Canada-based oil sands developer and producer.

MEG Energy’s revenues in Q3 2022 were noted at C$ 1,571 million compared to C$ 1,091 million in Q3 2021. The net earnings of the company increased to C$ 156 million from C$ 54 million for the same comparable period. The company’s free cash flow rose to C$ 418 million from C$ 159 million. MEG Energy’s net debt decreased to C$ 1.63 billion from C$ 2.55 billion for the reported quarter. The funds flow from operating activities grew to C$ 501 million from C$ 212 million. The company’s EPS is C$ 3.

Bottom Line

Your portfolio outcome is directly proportional to your market understanding. Several factors affect your investment growth and may alter your goals from time to time. Hence, focus on your strategy and be vigilant while repositioning your portfolio. With numerous options, pick stocks that offer stability and sustainability. Keep on changing your lens as per the fluctuating and dynamic market conditions.

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.