The Canadian stocks on our list are candidates to join the S&P/TSX 60 Index this week, an index comprised of the largest companies on the Toronto Stock Exchange by market capitalization
SmallCapPower | December 13, 2018: The S&P/TSX 60 Index is a stock market index comprised of the 60 largest companies listed on the Toronto Stock Exchange. The index is rebalanced quarterly, every third Friday of March, June, September and December. The rebalancing set for this Friday, December 14, is expected to bring new inclusions into the TSX 60, and we have identified some Canadian stocks that could be added.
Note: The metrics used in this article reflect the prices as at close on December 11, 2018
Canopy Growth Corp. (TSX:WEED) – $44.30
Cannabis
Canopy Growth Corporation is the largest cannabis company listed by market cap on the TSX and NYSE. To position itself in the Canadian recreational market, the Company has secured agreements with the Provinces of Quebec, Prince Edward Island, New Brunswick, and Newfoundland & Labrador to supply its adult consumer market with high-quality cannabis. The Company has the largest licensed production platform in Canada, with over 600,000 sq. ft. of production space. To further solidify its leading position in the market, the Company expects to have up to an additional 5,000,000 sq. ft. of production over the next 12 months. The Company has also secured the necessary agreements to export medicinal cannabis to Australia, Brazil and Germany.
- Market Cap: $15,182 Million
- 1-Month Total Return: -14.6%
- YTD Total Return: 38.7%
- Average Daily Volume (3 Month Average): 4.82 Million
Shopify Inc. (TSX:SHOP) – $207.30
Internet Services and Infrastructure
Shopify provides a cloud-based, e-commerce platform for businesses around the world, including Canada, U.S., U.K., and Australia. The Company’s platforms are designed to offer merchants a one-stop shop when running their business. Merchants can manage inventories, process orders and payments, ship orders, access working capital financing, and utilize data analytics all from Shopify’s platform. Although most of the Company’s merchants are small and medium-sized businesses, large companies such as Pepsico (NASDAQ:PEP) are also clients of Shopify. Merchants can also sell their products on Amazon (NASDAQ:AMZN) and eBay (NASDAQ:EBAY) through the Shopify platform. On October 30, 2018, the Company announced that its Shopify Payments offering has expanded into Germany. Shopify will work with leading payments provider Klarna to offer payment methods that best suit German consumers.
- Market Cap: $20,480 Million
- 1-Month Total Return: 15.4%
- YTD Total Return: 57.0%
- Average Daily Volume (3 Month Average): 1.65 Million
Brookfield Infrastructure Partners L.P. (TSX:BIP.UN) – $50.08
Multi-Utilities
Brookfield Infrastructure Partners L.P. operates in the utility, transport, energy and communications infrastructure business. It owns and operates a globally-diversified portfolio of critical infrastructure assets across developed and emerging markets, including electricity and natural gas transmission, roads, rail, ports and telecommunications towers. This endows its earnings with the stability associated with developed markets and the additional growth that emerging markets offer. On October 16, 2018, the Company completed its $4.3B acquisition of Enercare Inc., one of North America’s leading provider of water heaters, furnaces and air conditioners to home and commercial services.
- Market Cap: $14,170 Million
- 1-Month Total Return: -6.1%
- YTD Total Return: -10.3%
- Average Daily Volume (3 Month Average): 0.28 Million
Canada Goose Holdings Inc. (TSX:GOOS) – $73.98
Apparel, Accessories and Luxury Goods
Canada Goose is a Toronto-based designer and manufacturer of premium outdoor apparel, selling its products through both wholesale and direct-to-consumer channels. The Company’s products are sold in 38 countries, including jackets, vests, and accessories for the fall, winter, and spring seasons. Canada Goose has exhibited rapid growth since its IPO in March 2017, with the Company posting y/y revenue growth of 46.4% in FY 2018. Canada Goose’s shares jumped following a Q2 2019 earnings beat announced on November 15, 2018.
- Market Cap: $3,800 Million
- 1-Month Total Return: -2.4%
- YTD Total Return: 85.9%
- Average Daily Volume (3 Month Average): 0.45 Million
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
To read our full disclosure, please click on the button below:
