- The S&P/ TSX Composite Index tanked by roughly eight per cent in 2022.
- Premium Brands announced two acquisitions with its Q2 FY2022 financial results.
- Cargojet posted a growing net income of C$ 160.9 million in Q2 2022, reflecting a significant change of 1549.5 per cent YoY.
Mid-cap investors generally aim to diversify portfolio risk and benefit from growth exposure simultaneously by focusing on healthy stocks like Premium Brands (TSX: PBH), Lightspeed Commerce (TSX: LSPD), and Kinross (TSX: K), etc.
The S&P/ TSX Composite Index sank by roughly eight per cent in 2022. As economic threats continue to keep investors away from risky options, investors with the ability to bear some risk can explore quality mid-cap stocks to unlock gains, resulting from substantial growth exposure in the future.
Here are five TSX mid-cap stocks shortlisted by Kalkine Media® that one can explore:
1. Premium Brands Holdings Corporation (TSX: PBH)
Premium Brands is a Vancouver-based company that operates in the consumer-packaged goods (CPG) industry. Premium Brands announced its Q2 2022 financial results on Friday, August 5. The food distributor reported a double-digit surge of 23.1 per cent year-over-year (YoY) to C$ 1.52 billion in the second quarter of 2022.
Premium Brands also announced the acquisition of Ohio-based protein maker King’s Command and deli meats manufacturer Golden Valley Farms based in Ontario. In addition, the mid-cap consumer company also declared a quarterly dividend of C$ 0.70 scheduled for October 17.
The PBH stock zoomed by over seven per cent quarter-to-date (QTD). According to Refinitiv data, PBH stocks held a Relative Strength Index (RSI) value of 53.11 on August 5, 2022, which signals a moderate market condition.
2. Lightspeed Commerce Inc (TSX: LSPD)
Lightspeed said its total revenue grew by 50 per cent YoY to US$ 173.9 million in the first quarter of fiscal 2023. The technology company revealed that its subscription revenue spiked by 47 per cent while its transaction revenue climbed 62 per cent in Q1 2023, compared to Q1 2022. However, the software technology company widened its net loss to US$ 100.8 million in the latest quarter, relatively higher than US$ 49.3 million a year ago.
The tech stock spiked by over 11 per cent in three months. As per information taken from Refinitiv, LSPD stocks had an RSI value of 52.41 on August 5, 2022.
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3. TransAlta Corporation (TSX: TA)
TransAlta posted a power production of 4,461 GigaWatt hour (GWh) in the second quarter of FY2022 compared to 4,688 GWh in the same period a year ago. As per its latest income statement, TransAlta reported C$ 458 million in revenues in Q2 2022, compared to C$ 619 million in the same quarter, last year.
Now, coming to TransAlta’s stock performance, TA scrip jumped by nearly four per cent in a year. According to Refinitiv findings, TA scrips held an RSI value of 33.74 on August 5, 2022, marginally up from the oversold territory of 30.
4. Kinross Gold Corporation (TSX: K)
Kinross produced 560,852 gold ounces in Q2 2022, compared to 541,954 ounces produced a year ago. The mid-cap gold miner posted an increased metal sales of US$ 821.5 million in Q2 2022, up from US$ 707.9 million in Q2 2021. The metal company will also disburse a quarterly dividend of US$ 0.03 on September 1, 2022. The K stock plunged by about 41 per cent year-to-date (YTD). As per Refinitiv, Kinross stocks held an RSI value of 45.61 on August 5.
5. Cargojet Inc (TSX: CJT)
Cargojet said its total revenue was C$ 246.6 million in Q2 2022, comparatively higher than C$ 172.1 million in the second quarter, last year. The air cargo company posted a growing net income of C$ 160.9 million in the latest quarter, compared to a loss of C$ 11.1 million recorded in Q2 2021, reflecting a significant change of 1549.5 per cent YoY.
The CJT stock soared by almost five per cent in the past month. On August 5, 2022, Cargojet stocks saw an RSI value of 59.29, according to Refinitiv data.
Mid-cap investors can consider the TSX stocks mentioned here. Some of these TSX stocks have seen significant growth in revenue and profit in the latest quarter. Except Lightspeed, other stocks discussed here, pay dividend to their shareholders. Hence, besides diversifying risk, these mid-cap stocks could offer long-term value.
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.