Business & Investment

Two Top Canadian Stocks To Buy While They Are Still Cheap

National Bank of Canada (TSX: NA) When Alicja (TSX: ATZ) They are two top Canadian stocks that are a good buy now because they are cheap. Both of these two stocks have a five-year price / earnings / growth (PEG) ratio of less than one, which means they are undervalued compared to expected future growth rates.These two top latest quarterly results Undervalued stock It was very strong.

National Bank of Canada

The National Bank of Canada is Canada’s sixth largest bank and one of the top Canadian stocks to buy in the financial sector. Like its peers, the National Bank had a strong quarter thanks to the economic recovery. Banks posted higher-than-expected profits in the third quarter due to increased revenues across all business areas.

Profit for the third quarter of 2021 was $ 839 million, an increase of 39.4% from $ 602 million in the third quarter of 2020.

On an adjusted basis, the National Bank earned $ 2.36 per diluted share in the quarter ending July 31, surpassing analysts’ estimates of $ 2.11 per share. This is compared to adjusted earnings of $ 1.66 per diluted share in the same quarter last year.

Revenue was $ 2.3 billion, up 15% from $ 2 billion in the previous quarter and slightly above the estimated $ 2.2 billion.

Quebec-focused National Bank’s personal and commercial banking sector profits increased from $ 223 million a year ago to $ 330 million.

Wealth management business profits increased 30% to $ 165 million in the quarter. Finally, banks’ net income from financial market activity increased 21% in the previous quarter to $ 227 million.

The bank has announced a quarterly dividend of $ 0.71 per share. This corresponds to a yield of 2.8%.

The national bank’s five-year PEG is only 0.74, which is considerably cheaper than expected future growth. A reliable bank stock after 2021.

Alicja

what teeth The striking thing about Aritzia is that store productivity has already recovered before the pandemic began.

Despite the closure and restrictions imposed on the region, fashion retailers were able to post a better first quarter than expected. Total sales were up 121.7% to $ 246.9 million, while sales in the United States were up 243%.

This performance is noteworthy given that half (34) of Canadian stores were closed during two-thirds of the quarter.

Online sales continue to grow, even though store productivity recovered 99% before the pandemic. These virtual sales increased by another 18.6% after a 125% explosion last year. Online commerce penetration has doubled from 20% to 42% in the last two years.

Earnings per share of $ 0.19 was consistent with a consensus of $ 0.18.

Strategically, merchants increased their inventories by 44% to $ 165 million to meet accumulated demand and avoid supply problems.

Aritzia has raised the 2022 guidelines. It expects net sales of $ 1.15 billion to $ 1.2 billion, from the company’s previous forecast of $ 1.11 billion to $ 1.16 billion. This represents an annual growth of 35-40%.

Aritzia predicts Capital investment of $ 55 to $ 60 millionThis will, among other things, open 6-8 stores in the United States and relocate 4 and 2 other stores in the United States.

Aritzia’s five-year PEG is only 0.43, so it’s time to load some stocks while it’s still cheap.


This article represents the opinion of a writer who may disagree with the “official” recommendation position of the Motley Fool Premium Services or Advisors. We are Motley! Asking investment treatises, even our own treatises, can help you think critically about your investment and make decisions to be smarter, happier, and richer. As a result, we may publish articles that may not match recommendations, rankings, or other content. ..

A stupid contributor, Stephanie Bedard Chateauneuf, owns a stake in the National Bank of Canada. Motley Fool does not have a position in any of the listed stocks.

Two Top Canadian Stocks To Buy While They Are Still Cheap

https://www.fool.ca/2021/09/03/2-top-canadian-stocks-to-buy-while-theyre-still-cheap-3/ Two Top Canadian Stocks To Buy While They Are Still Cheap

Back to top button