Canadian Stocks Shine Amid Economic Uncertainty: 5 Top Picks for August
The Bank of Canada says economic growth is improving, but warns that American trade policy and the Middle East conflict create considerable uncertainty. Despite this, the TSX sits near record territory.
To navigate these uncertain times, investors are looking for durable demand, improving cash flow, sensible valuation, and a catalyst capable of surviving beyond August.
The following five companies stand out: Shopify (TSX:SHOP), Nutrien (TSX:NTR), Toronto-Dominion Bank (TSX:TD), MDA Space (TSX:MDA), and Hydro One (TSX:H).
Shopify's first-quarter revenue increased 34%, with the free-cash-flow margin reaching 15%. Management expects high-twenties revenue growth in the second quarter.
Nutrien produces potash, nitrogen, and phosphate while selling crop supplies directly to farmers. Record first-quarter potash volumes and stronger prices lifted potash adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by 30%.