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Highlights
- The S&P/TSX Capped Consumer Discretionary Index is down 18 per cent year-to-date and 11 per cent quarter-to-date
- MRE has increased 9.8 per cent in five days
- GBT’s P/E ratio is 6.3
It has been a bearish year so far and inflation and interest hikes may be weighing on the economy. An investor may not be able to control what is happening with the economy or the ups and downs of the stock market, but they can choose what companies they put their money in and when.
Cyclical stocks tend to be more susceptible to market forces, but that said they can vary from company to company. Non-cyclical stocks though are less volatile, usually.
The S&P/TSX Capped Consumer Discretionary Index is down 18 per cent year-to-date (YTD) and 11 per cent quarter-to-date (QTD). But some consumer stocks have performed better.
Let’s look at five TSX outperforming consumer stocks.
Winpak Ltd (TSX:WPK)
The stock of packaging company Winpak closed at C$41.75 Wednesday, May 11. It has gained nearly nine per cent this quarter, so far. Year-to-date, it is up 12.3 per cent.
On May 5, it touched a 52-week high of C$44.81. It is currently about seven per cent below that.
WPK has a price-to-earnings (P/E) ratio of 19.4 which is the amount of dollars that needs to be invested for a one-dollar gain.
It has a dividend yield of 0.29 per cent, and this represents the dividends paid out relative to the stock’s price.
Also read: WEED, LOVE, TLRY, XLY & CRON: 5 Canada pot stocks to hold for 10 years
KP Tissue Inc (TSX:KPT)
KP Tissue’s stock closed at C$11.46 on Wednesday. For Q2 2022, it is up about four per cent. Its YTD gain is over 10 per cent.
On May 2, it touched C$12.51, its 12-month high. Its low for the same period came way back on May 17, 2021, when it was C$10.
KPT has a dividend yield of 6.28 per cent, but its P/E ratio is 95.5.
BMTC Group (TSX:GBT)
The stock of the furniture and electronic appliance retailer closed at C$15.79 on Wednesday. Its QTD rise is 5.41 per cent.
In the last one month, it has gained 3.47 per cent. GBT’s P/E ratio of 6.3 is easily the best in this list.
The stock has a dividend yield of 2.28 per cent.
Also read: BKM, VAX, LRA, RBX & ARU: 5 TSXV mining stocks too cheap to ignore
Martinrea International Inc (TSX:MRE)
The company primarily serves the automotive industry with parts. Its stock closed Wednesday at C$8.51.
MRE is in the red on a QTD basis by 5.2 per cent but it has rebounded 11 per cent in a month and so merits a place on this list. It has increased 9.8 per cent in five days.
Its P/E ratio is at 30.7 while its dividend yield is 2.35 per cent.
Primo Water Corporation (TSX:PRMW)
PRMW’s QTD gain is 0.2 per cent but it is in the green, nonetheless. On Wednesday, it closed at C$17.83.
Its 52-week low of C$17.15 came on March 8, and it is now four per cent better. Still, on a QTD basis, it is beating the S&P/TSX Capped Consumer Staples Index on which it is listed.
Its dividend yield is 2.05 per cent.
Also read: RY, BNS, TD, CM & BMO: Bag these 5 TSX big bank stocks on the dip
Bottom line
The above stocks can be said to be outperforming the sphere, recently. They are also dividend-paying stocks. However, it is mandated that their fundamentals, management teams and financial reports be combed through before any investment.
Also read: FFN, DF, DGS, LCS & FTN: 5 top TSX dividend stocks under $10
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.
