The TSX-listed, Canadian stocks we’ve found have outperformed the TSX over the past month with an average return of 12%, compared with a 2.7% return for the TSX Composite Index
SmallCapPower | November 8, 2019: The TSX Composite Index has lagged the S&P 500 over the past month, with the S&P 500 returning 6.2% since October 8, 2019, and the TSX Composite returning 2.7% over the same time period. Reasons for the rally in the S&P 500 include a more dovish Fed and China-U.S. trade optimism, while the TSX has been weighed down due primarily to Canadian energy stocks. However, some TSX-listed stocks have been going against the trend and have seen share price increases over the past month that have been greater than the TSX Composite Index. Today we have identified four TSX-listed, Canadian stocks that have since share price appreciation of greater than 4.5% over the past month.
*Share price data as at November 6, 2019, data obtained from S&P Capital IQ
National Bank of Canada (TSX:NA) – $68.64
Diversified Banks
National Bank of Canada, together with its subsidiaries, form an integrating financial group in Canada. NA provides various financial products and services to retail, commercial, corporate, and institutional clients in Canada and internationally. It has more than 24,000 employees and has been recognized numerous times as a top employer and for its commitment to diversity. On June 6, National Bank of Canada announced that the Toronto Stock Exchange and the Office of the Superintendent of Financial Institutions Canada have approved the Bank’s new normal course issuer bid to purchase for cancellation up to 6M of its common shares, representing ~1.8% of its ~335M common shares. On August 28, 2019, National Bank reported Q3/19 financial results, highlighted by EPS of $1.66, which beat analysts estimates of $1.59.
- Market Cap: $22,940.7M
- 5-Day Return: +1.3%
- 30-Day Return: +4.6%
- YTD-Return: +22.9%
- 30-Day Average Trading Volume: 877,890
Richelieu Hardware Ltd. (TSX:RCH) – $27.47
Trading Companies and Distributors
Richelieu Hardware is a North American importer, distributor, and manufacturer of specialty hardware and related products. The Company currently has a customer base of kitchen and bathroom cabinetry, storage and closet, home furnishings and office furniture manufacturers, residential and commercial woodworkers, and hardware retailers, such as renovation superstores. Overall, the Company provides 110,000 different items that are designed for its customer base of over 80,000 customers that are served at 72 centers located in North America. A few of the products offered by the Company include functional hardware, lighting systems, storage solutions, and decorative products. On October 4, 2019, the Company announced that total sales for Q3/19 grew 2.9% to $260.6M.
- Market Cap: $1,560.1M
- 5-Day Return: +1.6%
- 30-Day Return: +5.2%
- YTD-Return: +21.1%
- 30-Day Average Trading Volume: 65,850
Home Capital Group Inc. (TSX:HCG) – $29.75
Alternative Lending
Home Capital Group is a specialty finance company. The Company operates through its subsidiary, Home Trust Company. Home Trust is an alternative lender that operates as a federally-regulated trust. The Company offers deposits, mortgages, retail credit and credit-card issuing services. Home Capital has offices across Canada. As of Q2/19, the Company has over $22 billion in loans under administration, and is well capitalized with a common equity Tier 1 ratio of 19.5%. Home Capital reported Q2/19 financial results on August 2, 2019; EPS came in at $0.53, which beat estimates of $0.51 and was up 43% from $0.37 during Q1/19. HCG is expected to report Q3/19 financial results on November 13, 2019, before markets open. Analysts are expecting EPS to come in at $0.57 for the third quarter.
- Market Cap: $1,742.7M
- 5-Day Return: +9.1%
- 30-Day Return: +17.1%
- YTD-Return: +105.4%
- 30-Day Average Trading Volume: 290,440
Aritzia Inc. (TSX:ATZ) – $19.31
Retail, Apparel, and Accessories
Aritzia engages in the design and retail of accessories and women’s apparel with Millennial appeal. The Company sells its products under the Aritzia banner, as well as other banners such as TNA, Babaton, and Wilfred. Aritzia operates a network of 61 retail stores across Canada and 20 across the United States, as well as an eCommerce portal through atrizia.com. On January 9, the Company released its fiscal Q3 2019 results, reporting a 16% EPS increase and an 18.8% increase in revenue. On March 8, Aritzia announced the closing of a follow-up equity offering for total gross proceeds of $330M. The Company is planning on using $107M from the follow-up equity offer to buy back shares from Berkshire Partners, the private equity firm that took Artizia public. The remainder is expected to be used to finance additional store openings and expansion into new markets. On October 15, 2019, ATZ reported Q2/19 financial results, highlighted by a 17.4% increase in revenue YoY to $241.2M and an 12.5% increase in EPS to $0.18, both of which beat analysts estimates of $229.8M and $0.13.
- Market Cap: $2,089.0M
- 5-Day Return: +3.2%
- 30-Day Return: +21.4%
- YTD-Return: +18.1%
- 30-Day Average Trading Volume: 396,750
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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