3 TSX stocks that could withstand inflation storm: DOL, IMO & ATD

July 15, 2022 06:27 PM AEST | By Raza Naqvi
 3 TSX stocks that could withstand inflation storm: DOL, IMO & ATD
Image source: © Michaeljayberlin | Megapixl.com

Highlights

  • Canada is facing record-high inflation, and some analysts believe it could continue.
  • The Bank of Canada raised the benchmark interest rate by one per cent this week.
  • The equities markets have taken a hit due to unpleasant economic conditions.

When the Bank of Canada (BoC) decided to raise the benchmark interest rate by one per cent this week, observers were taken aback. The benchmark rate now stands at 2.5 per cent overall.

Policymakers are aggressively fighting inflation to relieve pressure on Canadian households. Whether these policy changes will have the desired effect in the near future is still up for debate.

Canada is facing record-high inflation, and some analysts believe that the rising consumer prices could further trouble policymakers. The equities markets have taken a hit due to unpleasant economic conditions, and if you are looking to reshuffle your portfolio, you might consider exploring the following stocks:

Dollarama (TSX:DOL)

Rising prices have significantly strained the average consumer. Following the financial crisis of 2008, dollar stores became more popular. In this inflationary environment, they could once again gain momentum and Canada's largest network of dollar stores, Dollarama, could benefit from that.

The DOL stock surged 34.5 per cent year-over-year (YoY) and 21.1 per cent year-to-date (YTD). On July 8, the Dollarama stock clocked a 52-week high of C$ 78.41 per share.

The DOL stock appears to be showing resistance in the current market situation, as evidenced by its RSI value of 57.7, according to Refinitiv data. Some analysts believe the Relative Strength Index value between 50 and 60 represents a resistance zone.

Imperial Oil Limited (TSX:IMO)

The main cause of recent inflation has been rising gas costs. The price of crude oil and natural gas have increased after the Russia-Ukraine war. However, thoughts of a recession have caused the sector to wane.

Calgary-based Imperial Oil produces and markets oil and natural gas. In the first quarter, the company achieved the highest net income of C$ 1,173 million and cash flow of C$ 1,914 million in over 30 years.

Imperial Oil's upstream production was 380,000 barrels per day in Q1 2022.

Alimentation Couche-Tard Inc. (TSX:ATD)

We have shortlisted this company in this article as Alimentation Couche-Tard operates convenience stores across the world.

The company's merchandise and service revenues increased by one per cent YoY to US$ 3.8 billion in Q4 2022. Meanwhile, the adjusted net earnings amounted to approximately US$ 573 million.

In the past six months, the ATD stock returned 2.4 per cent to shareholders and 5.1 per cent quarter-to-date.

Please note, the above content constitutes a very preliminary observation or view based on digital trends 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.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.


AU_advertise

Advertise your brand on Kalkine Media

Sponsored Articles


Investing Ideas

Previous Next
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.