Kalkine Media lists TSX consumer stocks to watch in Q3

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Kalkine Media lists TSX consumer stocks to watch in Q3

 Kalkine Media lists TSX consumer stocks to watch in Q3
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  • This year has been a roller coaster ride for investors as the stocks have remained extremely volatile.
  • TSX market is majorly governed by factors like the US market movement and Canadian fiscal policy.
  • The TSX consumer sector went up by nine per cent quarter-to-date (QTD).

Consumer companies in Canada have a significant share in the market. The TSX consumer sector is one of the country's prominent sectors, and it went up by nine per cent quarter-to-date (QTD). Meanwhile, it declined by 10.456 per cent year-to-date (YTD).

This year has been a roller coaster ride for investors as the stocks have remained extremely volatile. Equity markets worldwide have been affected due to geopolitical tensions, coronavirus and the higher interest rates to control inflation.

The TSX market is majorly governed by factors like the movements in the US markets, Canadian monetary and fiscal policy, investor sentiments, oil prices, and foreign direct investment.

That said, let's look at some consumer stocks listed on the Toronto Stock Exchange (TSX):

Saputo Inc. (TSX: SAP)

Saputo is a dairy processor with products like cream, cheese, fluid milk, and other products. Currently, the total market capitalization of Saputo is C$ 14.37 billion.

The company's total revenue was C$ 4.327 billion, up by 24.1 per cent year-over-year (YoY).

Saputo recently distributed a quarterly dividend of C$ 0.18 per share. Furthermore, the below graph indicates the changes in net earnings and total revenues.  

Canadian Tire Corporation (TSX:CTC.A)

Canadian Tire sells apparel, home goods, footwear, sporting equipment, automotive parts, and accessories. It further has vehicle fuel as a product that is sold through a store network of dealer, company, and franchisee-operated locations across Canada.

Canadian Tire Corporation has a market capitalization of C$ 1.04 billion. With a three-year dividend growth of 9.33 per cent, the company recently announced a dividend of C$ 1.625 apiece, payable on December 1, 2022.

In Q2 2022, the consolidated Comparable sales (excluding Petroleum) were up by five per cent, and consolidated retail sales grew by 9.9 per cent.

The company’s revenue increased by 12.4 per cent YoY to C$ 4,404 million in Q2 2022.

Maple Leaf Foods Inc. (TSX:MFI)

Maple Leaf Foods Inc. is a company dealing in packaged meats for consumers. Moreover, it produces poultry and turkey products, prepared meats and meals, and fresh pork. Also, the company has its agribusiness operations.

The company has an employee size of 13,500. Maple Leaf has a total market capitalization of C$ 2.8 billion.

Maple’s total company sales grew by 3.1 per cent YoY to C$ 1,195.1 million in Q2 2022. Meanwhile, the adjusted operating earnings were C$ 23.6 million, down from C$ 58.3 million in Q2 2021.

The company’s return on equity is 0.28 per cent, and its return on assets is 0.13 per cent. The dividend offered to its shareholders is C$ 0.2. Maple saw a growth of 12.81 per cent in the past five years.

Linamar Corporation (TSX:LNR)

Linamar is a diversified global manufacturing company with an Industrial segment. The company operates brands like MacDon and Skyjack brands. It manufactures products for the Agricultural industries and Aerial Work Platforms, respectively.

As of September 19, 2022, the market capitalization of Linamar Corporation is reported at C$ 4.06 billion. With a dividend growth of 13.03 per cent in three years, presently, the company offers a dividend of C$0.2 to its shareholders.

Linamar’s sales increased from C$ 1,575.3 million in Q2 2021 to C$ 1,981.6 million in Q2 2022.

Despite the difficult cost environment, Linamar completed two acquisitions in Q2 2022. Moreover, the company reportedly witnessed an increase in Industrial sales by 28.2 per cent. The company said this was due to market share growth and agricultural and access sales.

AutoCanada Inc. (TSX:ACQ)

AutoCanada is synonymous with car dealerships. Further, it provides spare parts for used and new vehicles and offers maintenance services and customer financing. The company has an employee size of 5,400.

As reported by AutoCanada, the total revenue witnessed an increase of 32 per cent, which was the highest second-quarter revenue in the company's history.

The revenue was C$ 1,686 million in Q2 2022 compared to $1,281.1 million in the prior year. The net income was C$ 39.1 million, up from C$ 37.7 million in Q2 2021.

The company has a total market capitalization of C$ 750.7 million. The EPS of AutoCanada is 5.4, and its return on equity is 39.04 per cent.

Bottom Line

The stock market may face unforeseen situations as several macroeconomic factors dominate it. Investors might consider portfolio diversification to prepare themselves for any situation.

However, investors must clearly understand their investments and research before investing.

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.


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