3 Canadian mid-cap stocks to buy under $25

Highlights

  • The S&P/TSX Composite Index surged by almost 23 per cent this year.
  • A utility company mentioned here is set to pay a monthly dividend of C$ 0.083 per share on December 15.
  • An oil and gas stock listed below expanded by more than 106 per cent in the last year.

The S&P/TSX Composite Index surged by almost 23 per cent so far this year. Although the index plunged by roughly one per cent on Monday, November 22, it noted a month-to-date (MTD) increase of nearly two per cent.

Turquoise Hill Resources Ltd (TSX:TRQ) rose by roughly 10 per cent on Monday and led the benchmark index, while Whitecap Resources Inc (TSX:WCP) also contributed a growth of more than two per cent.

Such mid-cap stocks, which belong to firms with a market capitalization of C$ 2 billion to C$ 10 billion, are often considered to be a pocket-friendly options that can fetching healthy returns.

Also read: 3 Canadian mid-cap stock to buy in Q4 2021

So, let us have a quick look at three TSX-listed mid-cap stocks. 

1.    Whitecap Resources Inc (TSX: WCP) 

The Calgary, Alberta-based oil and gas producer saw its production increase by 12 per cent year-over-year (YoY) to 115,935 barrels of oil equivalent daily (including 75 per cent liquids) in the third quarter of fiscal 2021.

Its record funds flow rose by 59 per cent YoY to C$ 294 million and its free funds flow amounted to C$ 159 million in this quarter. Its net income was C$ 1.5 billion, including C$1.4 billion of an after-tax impairment reversal.

As for its stock performance, WCP scrip spiked by more than 37 per cent in the past three months and expanded by over 106 per cent in the last year.

Its stock closed at C$ 7.05 apiece on Monday, November 22, up by more than two per cent. Its 10-day average trading volume was 2.9 million on this day.

Whitecap Resources Inc (TSX:WCP)’s performance as of November 22, 2021  

 Image source: © 2021 Kalkine Media Inc 

Whitecap held a market capitalization of C$ 4.4 billion and a return in equity (ROE) of 87.45 per cent at the time of writing this.

Whitecap Resources is scheduled to pay a month dividend of C$ 0.022 per share on December 15. 

2.    AltaGas Ltd (TSX: ALA) 

AltaGas Ltd is a diversified utility firm that owns and operates energy infrastructure across North America.

The Canadian utility provider saw a YoY surge of 15 per cent in normalized EBITDA of C$ 244 million in Q3 FY2021. Its normalized net income was C$ 5 million in Q3 FY2021, as compared to C$ 12 million in the same quarter a year ago.

Its normalized FFO amounted to C$ 170 million in its latest quarter, up from C$ 112 million in Q3 FY2020.

ALA stock swelled by almost 38 per cent in the past 12 months. The utility stock closed at C$ 24.69 apiece on November 22, slightly down from its previous close.

The C$ 6.9-billion market cap utility firm had a price-to-earnings (P/E) ratio of 15.70 and an ROE of 7.17 per cent. It is set to pay a monthly dividend of C$ 0.083 per share on December 15. 

3.    Turquoise Hill Resources Ltd (TSX: TRQ)

Turquoise Hill Resources Ltd is a Montreal-headquartered miner primarily engaged in the exploration and development of natural resources like copper, gold, coal etc.

The Canadian resource miner noted a revenue growth of 135.6 per cent YoY to US$ 622.8 million in the third quarter of fiscal 2021. Its reported US$ 350.6 million as cash generated from operating activities in this quarter, up from US$ 77.6 million in the same period a year ago.

The mining stock rose by nearly 19  per cent in the past week. Its stock gained almost 23 per cent on a year-to-date (YTD) basis and delivered a return of roughly 43 per cent in the last year.

TRQ stock closed at C$ 19.42 apiece on November 22, up by nearly 10 per cent.

Turquoise Hill held a market capitalization of C$ 3.9 billion and an ROE of 5.33 per cent on Monday.

Also read: 3 consumer stocks to buy before Black Friday

Bottom line

Many mid-cap companies are known to actively adapt to the ever-changing market dynamics and business needs. For instance, Whitecap Resources is said to be working with Federated Co-operatives Limited to limit CO2 emission in Saskatchewan.

Investors should mind such developments while taking any investment decisions as they can impact a company’s future performance and demand. 

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