Recent market weakness and questions with regard to the economy may have left you reconsidering your positions for 2019.
What worked in 2018 will not work in 2019.
2019 demands a more defensive positioning, as the market is more risk averse and will punish those stocks that present riskier propositions.
Trading at 52-week highs, the following three stocks have the macro-economic environment working in their favour as well as strong management execution to send them soaring even higher, so we can hit the jackpot in 2019.
Alimentation Couche-Tard (TSX:ATD.B) Alimentation Couche-Tard is still hovering around all-time highs, as the company has been firing on all cylinders, and as investor sentiment has been shifting toward more defensive stocks.
With a global network of 10,000 stores globally, the company has a history of profitably growing both organically and through acquisitions.
Strong cash flows is one of the key characteristics of the company’s business model, as demonstrated by the company’s free cash flow generation (excluding acquisitions) of almost $3 billion in the last three years, its 8.6% five-year compound annual growth rate in operating cash flow, and its respectable free cash flow margin of over 2%.
Going forward, we can expect continued synergies from the company’s recent acquisitions, as well as deleveraging of the balance sheet and continued growth both organically and via acquisitions, with the company’s target being to double the company once again.
Loblaw Companies (TSX:L) Loblaw is a stock that has rallied almost 90% in the last five years and 17% in the last year as food deflation subsides.
Over the last many years, Loblaw has successfully used its scale to drive operating efficiencies and value for the consumer.
And its success has been significant, as demonstrated by its three-year compound annual EPS growth rate of 12.35%, accelerating same-store sales growth, margin improvements, and an e-commerce strategy that is making good progress.
SSR Mining (TSX:SSRM)(NASDAQ:SSRM) Another defensive stock that is providing a jackpot of winnings for investors is SSRM Mining.
This gold stock is still attractively valued, as the company remains a top-notch performer with rapidly growing cash flow and production.
The stock is up 44% since September lows as a reflection of this.
SSR has had an impressive performance in the last few years, with strong cash flow generation and strong cost performance.
2017 free cash flow was $111 million, and while in 2018 spending has accelerated to fund future growth, the company remains very well positioned to benefit from rising gold prices.
With a track record of beating expectations, industry-leading margins and returns, a healthy balance sheet with $475 million in cash, and a debt-to-total-capitalization ratio of just 20 times, the shares are a good buy for investors wanting exposure to a jackpot of gold.
Fool contributor Karen Thomas has no position in any of the stocks mentioned. Couche-Tard is a recommendation of Stock Advisor Canada.