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Should long-term investors look at these TSX stocks?

Published 2023-04-04, 12:08 a/m
© Reuters.  Should long-term investors look at these TSX stocks?
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Highlights:

  • It's crucial to understand that the short-term is never assured and challenging to predict.
  • In Q3 2022, Dollarama reported that its comparable store sales had increased by 10.8% YoY
  • When investing in the stock market, it is essential to research and study the stock.
One of the most important qualities that investors need to possess is the ability to keep a long-term perspective. The best businesses will continue to add value over the long term, despite the cyclical market and economy.

It's crucial to understand that the short-term is never assured and challenging to predict, regardless of the situation, particularly when the economy has problems.

So, if you can stay in the market long-term and are exploring some TSX-listed stocks, you may further want to scroll through this article.

Let's see how these stocks have been performing in the recent past:

Dollarama Inc. (TSX:DOL) The company offers discounted products to its customers and is one of the biggest retailers in Canada. During economic uncertainty, people might be looking to save money, and they can opt for discounted products. Thus, Dollarama is on our list, and let's see how it has performed.

In Q3 2022, Dollarama reported that its comparable store sales had increased by 10.8 per cent year-over-year (YoY). Meanwhile, the diluted net earnings per share increased by 14.8 per cent YoY.

The sales of the Canadian retailer also increased by about 15 per cent YoY to C$ 1,289.6 million in Q3 2022. Also, the EBITDA increased by 11.3 per cent to C$ 386.2 million.

The DOL stock paid a quarterly dividend of C$ 0.055 per share, which grew by 12.5 per cent in the last three years.

goeasy Ltd. (TSX: TSX:GSY) A provider of financial services, goeasy held a market capitalization of C$ 1.79 billion, and its price-to-earnings (P/E) ratio stood at 13.2 on March 23.

The financial services company said in its fourth quarter results that its quarterly loan grew 54 per cent YoY to C$ 206 million.

The adjusted quarterly diluted eps stood at C$ 3.05, up from C$ 2.76 in Q4 2021. goeasy also maintained a strong balance sheet in 2022 as its total assets grew to C$ 3.3 billion from C$ 2.6 billion in 2021.

The GSY stock recently announced paying a quarterly dividend of C$ 0.96; its dividend yield was 3.5 per cent at the time of writing.

WELL Health Technologies (TSX: TSX:WELL) WELL had a terrific start to the year, but the stock started to decline as risk and uncertainty have grown over the past three weeks.

However, it's important to note that the company achieved a record annual revenue of C$ 569.1 million, an increase of 88 per cent YoY. It also achieved record quarterly revenues of C$ 156.5 million in Q4 2022, up 35 per cent YoY.

In 2022, WELL's adjusted EBITDA recorded a significant surge, increasing by 73 per cent YoY to C$ 104.6 million.

Revenue projection for 2023 is between $665 million and $685 million per year. Also, the company anticipates that yearly adjusted EBITDA will rise by more than 10 per cent over 2022 levels.

Bottom line When it comes to investing in the stock market, it is essential to research and study the stock before investing. Making informed decisions based on thorough research is crucial to minimize the risk of losing money. Investors should start by analyzing the company's financial statements, including its income, balance, and cash flow statements.

Understanding the company's revenue streams, profitability, and liquidity can help investors determine the company's overall financial health.

Additionally, it's important to stay up to date on the company's industry and competitors, as well as any news or events that may impact the stock's performance. In summary, conducting thorough research and analysis can help investors make informed decisions and minimize risks associated with investing in the stock market.

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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