GOOS and BLX: These under-$40 midcap stocks should be on your radar

Be the First to Comment Read

GOOS and BLX: These under-$40 midcap stocks should be on your radar

Follow us on Google News:
 GOOS and BLX: These under-$40 midcap stocks should be on your radar
Image source: © 2022 Kalkine Media®

Highlights

  • For some investors, the ongoing market volatility can be a chance to buy quality stocks at discounted prices.
  • Others may want to load up their portfolio with safer equities like utility stocks.
  • Canada Goose has announced plans to expand its operations through joint venture Canada Goose Japan.

Investors generally have different approaches when it comes to investing. For some, the ongoing market volatility can be a chance to explore quality stocks at discounted prices than when the market is on a bull run. Others may want to load up their portfolio with relatively safer equities like utility stocks.

Also read: CPG, MEG, PSK, SSRM & TRQ: 5 TSX no-brainer mid cap stocks for March

The S&P/ TSX Capped Consumer Discretionary Index has fallen by about 18 per cent year-to-date (YTD). However, some companies like Canada Goose Holdings (TSX: GOOS), which are branching out to new markets in such market situations, can be worth exploring.

On the other hand, investors with low-risk levels can take a look at utility stocks like Boralex Inc (TSX: BLX) as they are believed to fare better in any economic conditions as they provide essential services. Notably, the S&P/ TSX Capped Utilities Index spiked by over two per cent in 2022.

So, without any further delay, let us know more about these two TSX mid-cap stocks in detail.

Canada Goose Holdings Inc (TSX: GOOS)

Canada Goose Holdings announced the plan to expand its direct to consumer (DTC) operations, including retail outlets in March by entering into joint venture (JV), Canada Goose Japan, with its partner Sazaby League Ltd.

Stocks of Canada Goose Holdings plummeted by nearly 54 per cent in the last 52 weeks. Its Relative Strength Index (RSI) of GOOS stood at 39.96 as of May 11.

Also read: PRO, NXR, TCN, DRM & MRG: 5 TSX property stocks to buy before its late

Boralex Inc (TSX: BLX)

Boralex Inc revealed that it signed two partnership deals in total, in France and Quebec, which can help it grow in high potential markets. The electric utility company said that land-based solar and wind farms can make European countries energy independent and provide price stabilization in the long run.

Boralex increased its power production from 1630 Gigawatt hours (GWh) in Q1 2021 to 1681 GWh in the first quarter of fiscal 2022. The company reported C$ 227 million in revenues from energy sales and feed-in premium in the latest quarter, a year-over-year (YoY) rise of 10 per cent.

The utility company said that its operating income also increased by 18 per cent YoY to C$ 91 million in Q1 2022. The TSX company recorded a YoY growth of 14 per cent to C$ 173 million in its EBITDA in the latest quarter.

Boralex Inc’s net profit surged considerably to C$ 57 million in Q1 2022 compared to C$ 40 million a year ago.

Stocks of Boralex jumped by over 16 per cent in three months. As per Refinitiv, the renewable energy stock held an RSI value of 39.96 at the time of writing.

 Boralex (TSX: BLX)’s Q1 2022 results

Bottomline

Canada Goose and Boralex are both mid-cap companies and, hence, still have growth exposure compared to large-cap stocks. Investors can explore both or any of these TSX stocks based on their risk and return preferences.

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. 

Disclaimer

Featured Articles

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