Top 5 Canadian industrial stocks to buy in Q4 2021

Highlights

  • The Canadian S&P/TSE Capped Industrial Index rose 1.602 per cent October 20 despite a StatCan report stating a 4.4 per cent year-over-year increase in inflation in September.
  • One of the industrial stocks mentioned here soared by roughly 117 per cent in the past year.
  • An industrial company listed posted a return on equity of 40.20 per cent.

The Canadian economy saw inflation of 4.4 per cent year-over-year (YoY) in September a StatCan report Wednesday, October 20, said. However, investors in the industrial sector responded positively as the sector grew by 18.21 per cent on a year-to-date (YTD) basis.

On Wednesday, October 20, the Canadian S&P/TSE Capped Industrial Index jumped up by 1.602 per cent to 388.71 points at market close. This rise was primarily led by the Canadian National Railway Company (TSX:CNR) with a 5.2 per cent gain. In addition, Canadian Pacific Railway (TSX:CP) and TFI International (TFI) boosted their performances by more than one per cent each, thus making the Canadian industrial sector an attractive option for investors amid rising inflation.

Also read: 5 Canadian bank stocks to buy before their dividends surge

 Here are some of the top industrial stocks listed on the Toronto Stock Exchange (TSX) that are worth exploring.

5 TSX-listed industrial stocks to buy in 2021

1.      Canadian National Railway Company (TSX:CNR)

The stock of Canadian National Railway closed at C$ 161.53 on October 20 as President and CEO Jean-Jacques Ruest announced his retirement at the end of January 2022. At this closing price, it traded slightly up from its 52-week high of C$ 161.15 reached on September 7.

The rail stock experienced a year-over-year (YoY) surge of nearly ten per cent and a year-to-date (YTD) increase of more than 15 per cent. It climbed roughly 17 per cent in the past six months and gained more than 23 per cent in the last three months. It rose by almost 11 per cent in the previous month and grew by more than nine per cent in the previous week.

At the time of writing, Canadian National Railway stood at a market capitalization of C$ 114.51 billion. Additionally, it held a return on equity (ROE) of 20.89 per cent and return on assets (ROA) of 8.94 per cent.

The Montreal-based railway company noted a dividend yield of 1.523 per cent on Thursday, October 21. It is expected to doll out a quarterly dividend of C$ 0.615 per share on December 30, with December 8 mentioned as the ex-dividend-date.

2.      TFI International Inc (TSX:TFII)

The transportation and logistics firm TFI International noted its scrip wrapping trade up by 1.077 per cent at C$ 139.84 per share October 20. Its scrip was priced almost five per cent below its 52-week high of C$ 146.78 (September 2).

TFI International Inc (TSX:TFII) stock performance as of Wednesday, October 20, 2021

The scrip rocketed by roughly 117 per cent in the previous year and noted a YTD increase of more than 113 per cent. Its scrip gained about 45 per cent in the past six months and grew by more than ten per cent in the last three months.

On the valuation front, the transportation firm recorded an ROE of 27.96 per cent and an ROA of 9.43 per cent as of October 21. 

3.      Canadian Pacific Railway Limited (TSX:CP)

The railroad operator Canadian Pacific Railway Limited was priced at C$ 92.05 apiece, up by 1.354 per cent October 20 after reporting a YoY rise of four per cent in its latest quarter’s revenue. However, at this market closing, it had slipped by nearly eight per cent from its 52-week high of C$ 100 (as of June 2).

The railroad stock soared by roughly ten per cent in the past year and climbed more than four per cent on a YTD basis. It expanded by more than 11 per cent on month-to-date (MTD) and increased by more than six per cent in the last week.

On October 21, the Calgary-headquartered Canadian Pacific Railway posted an ROE of 40.20 per cent and an ROA of 13.70 per cent. The company declared to pay C$ 0.19 per share as a quarterly dividend to shareholders on January 31, 2022 (ex-dividend-date December 30).

Also read: CP Rail stock declines despite Q3 profit. An undervalued stock to buy?

4.      WSP Global Inc (TSX:WSP)

The engineering and design service provider WSP Global saw its stock priced up by 0.817 per cent at C$ 169.09 apiece on October 20. However, its stock was down by almost one per cent from its 52-week high of C$ 170.51 (August 31).

The construction stock noted a YoY increase of nearly 92 per cent, and it rose by about 40 per cent in the previous nine months. Moreover, it jumped almost 32 per cent in the past six months and rose by more than seven per cent in the last month.

WSP Global stood with an ROE of 9.21 per cent and dolls out a dividend of C$ 0.375 to its shareholders every quarter.

5.      CAE Inc (TSX:CAE)

The global aerospace and defence company CAE Inc noted its stock up by 0.107 per cent at C$ 37.51 per share at market close on October 20. However, from its 52-week high of C$ 39.75 (August 11), it had plunged by roughly six per cent at its recent closing price.

The stock has expanded by more than 69 per cent in the past year and climbed roughly two per cent in the previous six months. It surged by more than two per cent in the last three months and gained nearly four per cent in the past month.

CAE held an ROE of 4.11 per cent and an ROA of 1.39 per cent at the time of writing.

Bottom line

Industrial stocks may not be as popular when compared to bank, energy and technology stocks, however, investors may consider the capabilities of the Canadian industrial sector and the above-mentioned industrial stocks for returns.

Also read: 3 Canadian dividend utility stocks to buy at a low cost

However, note that the market changes every day and it is of utmost importance to delve into your research to understand the fundamentals, financials, and factors crucial for the growth of industrial stocks and invest according to your risk-return profile.

Comment


Disclaimer

   
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. OK