AUS
NZ
UK
CA
USA
IND
Summary
- Toronto-based Canadian Tire stocks have swelled nearly 20 per cent year-to-date (YTD). The firm distributes a quarterly dividend of C$ 1.175 per unit.
- Boyd Group stocks have yielded almost 9 per cent returns YTD. The group pays a quarterly dividend of C$ 0.141 per stock.
- Both retail stocks made it to TMX’s top consumer goods list and currently delivering a positive return on equity.
Retail sales increased by 0.4 per cent to C$ 54.6 billion in October, marking the sixth monthly increase in a row since the record drop in April, as per the Statistics Canada report. The sales growth was guided by motor vehicle and parts dealers. Higher sales were recorded at sporting goods, hobby, book and music stores, furniture, up 11.8 per cent month-over-month in October.
On the back of Statistics Canada data, let us look at the following two retail stocks that have been gaining steam in the markets:
Canadian Tire Corporation Limited (TSX:CTC)
Current Stock Price: C$ 210.25
Canadian Tire retails home products, sporting gear, apparel, footwear, auto parts and accessories, and vehicle gas. The company also manages and owns majority stakes in Canadian Tire Financial Services, in which Scotiabank has a 20 per cent stake. It also operates CT REIT and owns about 70 per cent stake in it.
The Toronto-based retail firm stock has returned nearly 20 per cent year-to-date (YTD). The tire stocks are marginally up over 2 per cent in the last three months. It offers a return on equity (ROE) of 14.14 per cent and a return of assets (ROA) of 2.90 per cent.
The company is paying a quarterly cash dividend of C$ 1.175 per stock, with a current dividend yield of 2.235 per cent. Its present market cap stands at approximately C$ 720 million.
Tire stocks are offering current earnings per share (EPS) of C$ 11.26. Its price-to-earnings (P/E) ratio is 21.80, and the price-to-book (P/B) ratio is 3.099, as per the TMX portal.
In the third quarter of 2020, the firm reported consolidated sales up 18.9 per cent year-over-year (YoY). As of November 5, its eCommerce sales touched C$ 1 billion, a 211 per cent YTD.
Boyd Group Services Inc. (TSX:BYD)
Current Stock Price: C$ 221.52
The Winnipeg-based auto service provider is one of the leading retailers of auto glass in the US. It offers auto parts and auto glass repair services across North America.
Boyd Group stocks are up nearly 9 per cent YTD. The stock has added almost 14 per cent gains in the last three months. The auto parts stocks deliver an ROE of 6.80 per and a ROA of 2.56 per cent. The group distributed quarterly dividend yield of C$ 0.141 per share.
The stock has a present P/B ratio of 5.194 and a price-to-cashflow (P/CF) of 14.40. Its EPS stands at C$ 2.48, and the P/E ratio is 89.30, as per TMX data.
The group’s operating income soared by 40.72 per cent year-over-year (YoY) in the third quarter of 2020.
In its outlook for the fourth quarter of 2020, the firm is projected that the vehicle industry is likely to improve, driven by the increasing sales volume of electric vehicles.
