Business & Investment

Did you get $ 2,000?Buy these four Canadian stocks for a good return

Global equity markets have been volatile for the past few days amid concerns about rising yields and rising valuations. Despite volatility, I believe these four Canadian stocks will offer excellent returns in 2021.

Air Canada

Air Canada (TSX: AC) Stock prices rose 32.8%, with strong buying since early February. However, the company still trades more than 45% below record highs, offering excellent buying opportunities. Delays in the spread of vaccines can delay the recovery of air travel demand.

However, Canadian households have a significant amount of cash and have saved in case of an emergency. Improved economic activity and lower unemployment have allowed Canadians to spend their savings on travel and leisure, benefiting Air Canada.In addition, the company’s long-awaited acquisition Transat AT It has the potential to gain a large market share in the leisure travel market. Air Canada’s valuation is also attractive, with a multiple of the forward price of 1.2.

Cineplex

The pandemic blockade closed theaters and entertainment venues and caused damage. Cineplex (TSX: CGX) Finance.Recently announced Fourth quarter results, The company’s top line fell by 88.2%. It reported a net loss of $ 230.4 million compared to a net profit of $ 3.5 million in the year-ago quarter. However, the company has taken several initiatives to reduce costs, including headcount reductions and rent renegotiations, to reduce operating losses in the coming quarters.

In addition, Cineplex raised $ 57 million by selling and leasing back its headquarters. Scotiabank By expanding its loyalty program. In addition, the spread of vaccines could lift regulations and boost company finances. In the improvement of economic activity I think there is upward momentum Cineplex shares may continue.

Suncor Energy

Oil prices have risen to their highest levels in 12 months due to announcements from OPEC countries that production levels will not rise until April and a recovery in oil demand due to improved economic activity.Rising oil prices can benefit Suncor Energy (TSX: SU)(NYSE: SU).. The company is making about 26% of its revenue this year.

However, given its attractive valuations, improved investment indicators, and the expectation that oil prices will remain high for some time, I think the company’s share price could rise further. By 2021, the company’s management expects production to increase by 10%, but refinery utilization could increase by 6%. On the other hand, operating expenses may decrease and profit margins may improve.

Despite the recent surge, Suncor Energy is trading more than 22% below its 52-week high. In addition, the valuation looks attractive, with the price-to-book value ratio and the forward price multiple being 1.1 and 1.3, respectively. The company also pays a quarterly dividend of $ 0.21 per share. This corresponds to a forward dividend yield of 3.1%.

Waste connection

Waste connection (TSX: WCN)(NYSE: WCN) Given the nature of its business, it is almost always unaffected by the recession. Operating in the secondary or monopoly market, the company can maintain a profit margin. In addition, its disposable site is close to a waste source, reducing operating costs and providing competitiveness.

In recently reported fourth-quarter revenues, Waste Connections top-line and adjusted EBITDA increased 2.6% and 1.8%, respectively. Meanwhile, adjusted EPS fell slightly from $ 0.69 to $ 0.68. In addition, the company’s management has set a promising 2021 outlook, with top-line and adjusted EBITDA expected to increase by 6.5% and 8.3%, respectively. Management also expects the company to generate $ 950 million in adjusted free cash flow in 2021. We pay a quarterly dividend of $ 0.205 per share, equivalent to a forward dividend yield of 0.7%.

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Motley Fool recommends BANK OF NOVA SCOTIA and CINEPLE XINC. Fool contributor Rajiv Nanjapla does not have a position in any of the listed stocks.

Did you get $ 2,000?Buy these four Canadian stocks for a good return

https://www.fool.ca/2021/03/05/got-2000-buy-these-4-canadian-stocks-for-superior-returns/ Did you get $ 2,000?Buy these four Canadian stocks for a good return

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