Written by Ambrose O'Callaghan at The Motley Fool Canada
The S&P/TSX Composite Index dropped 103 points on Thursday, August 24. Unfortunately, the only sector to finish the day in the black was the S&P/TSX Capped Communication Services Index. Some of the worst-performing sectors included health care, base metals, and the battery metals space. Markets have been choppy, but there are still strong TSX stocks that are worth targeting.
Here’s the first red-hot TSX stock I’d snatch up before September
Maple Leaf Foods (TSX:MFI) is a Mississauga-based company that produces food products in the United States, Canada, China, Japan, and around the world. Shares of this TSX stock have increased 6.1% month over month as of close on Thursday, August 24. The stock has now climbed 16% so far in 2023. Investors can see more of its recent performance with the interactive price chart below.
This company released its second quarter (Q2) fiscal 2023 earnings on August 3. Maple Leaf reported total sales of $1.26 billion in Q2 — up 6.2% compared to the prior year. Meanwhile, the company’s Meat Protein Group posted sales growth of 6.6% to $1.23 billion. The Plant Protein Group delivered sales of $36.7 million. Better yet, the Plant Protein Group’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) improved by 61% to a loss of $11.6 million.
Shares of this TSX stock are trading in very favourable value territory compared to its industry peers at the time of this writing. The stock also offers a quarterly dividend of $0.21 per share. That represents a 2.8% yield.
This stock offers a shot at growth and some income in 2023
Badger Infrastructure (TSX:BDGI) is the second TSX stock I’d look to snatch up right now. This Calgary-based company provides non-destructive excavating and related services in Canada and the United States. Its shares have shot up 26% in the year-to-date period at the time of this writing.
In Q2 2023, Badger Infrastructure delivered revenue growth of 19% to $171 million. Meanwhile, gross profit jumped 40% year over year to $50.1 million. The company reported adjusted EBITDA of $39.2 million — up 51% compared to Q2 2022.
This TSX stock currently possesses an attractive price-to-earnings (P/E) ratio of 26. Moreover, Badger offers a quarterly distribution of $0.172 per share, which represents a modest 2% yield.
One more TSX stock I’d buy in the late-summer season
Great-West Lifeco (TSX:GWO) is the third and final red-hot TSX stock I’d look to snatch up before September 2023. This Winnipeg-based company is engaged in the life and health insurance, retirement and investment services, asset management, and reinsurance businesses in Canada, the United States, and Europe. This TSX stock has climbed 21% so far in 2023.
This company released its Q2 2023 results on August 8. Great-West reported base earnings of $920 million or $0.99 per share — up marginally from $903 million, or $0.97, in the previous year. Moreover, base earnings in the first six months of fiscal 2023 rose to $1.74 billion, or $1.87 per share, compared to $1.61 billion, or $1.73 per share, in the first half of fiscal 2022.
Shares of this TSX stock currently possess an attractive P/E ratio of 12. Meanwhile, it offers a quarterly dividend of $0.52 per share, representing a strong 5.4% yield.
Before you consider Badger Infrastructure Solutions Ltd., you'll want to hear this.
Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in August 2023... and Badger Infrastructure Solutions Ltd. wasn't on the list.
The online investing service they've run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 26 percentage points. And right now, they think there are 5 stocks that are better buys.
See the 5 Stocks * Returns as of 8/16/23