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Are these TSX consumer stocks worth watching this season?

Published 2023-04-17, 02:40 a/m
© Reuters.  Are these TSX consumer stocks worth watching this season?

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Highlights

  • In the last 12 months, the NWC stock returned seven per cent
  • The retailer of discounted products, Dollarama is one of the top consumer stocks in Canada
  • Customers can focus on Dollarama due to its low prices in an inflationary atmosphere

On the other hand, some names have held strong and outperformed larger markets. Let's look at a few stocks and see how they are currently faring.

North West Company Inc . (TSX: TSX:NWC) It is a Canadian firm that focuses mostly on retail in underserved urban and rural locations. North West sells food, clothing for the whole family, housewares, appliances, and outdoor gear, with food products making up the majority of its sales.

In the last 12 months, the NWC stock returned seven per cent and outperformed the S&P/TSX capped consumer discretionary index, which surged by 5.2 per cent.

In Q4 2022, the company's sales amounted to C$ 635.1 million compared to C$ 579 million in Q4 2021. North West's same-store sales increased by 2.1 per cent in the fourth quarter of 2022.

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The company's gross profit increased to C$ 201.17 million from C$ 184.7 million in the same period. North West paid a quarterly dividend of C$ 0.38 per share, and its dividend yield was 3.86 per cent at the time of writing.

As of writing, the NWC stock's market cap was C$ 1.87 billion, and its price-to-earnings (P/E) ratio was 15.7.

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Dollarama Inc. (TSX: DOL) The retailer of discounted products, Dollarama is one of the top consumer stocks in Canada. At the end of the trading session on April 14, the DOL stock was priced at C$ 82.8 per share after increasing by 1.2 per cent.

Customers can focus on Dollarama due to its low prices in an inflationary atmosphere. As a result, it has recently had rather excellent revenue growth.

In Q4 2023, the sales increased by 20.3 per cent year-over-year (YoY) to C$ 1,473.2 million. Meanwhile, the comparable store sales surged by 15.9 per cent YoY.

The EBITDA grew 18.8 per cent YoY to C$ 467.7 million, and operating income amounted to C$ 381.4 million, reflecting a growth of 20.8 per cent.

Please note, the above content constitutes a very preliminary observation based on the industry and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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