Slowing Economy Won't Stop Me from Buying These Canadian Stocks
Amy Legate-Wolfe of The Motley Fool Canada says that despite the slowing Canadian economy, she's still buying stocks. According to her, a slowdown in GDP growth and a decline in employment rates don't necessarily mean a recession is inevitable.
Lega-Wolfe points out that consumer spending doesn't stop during economic downturns, but rather shifts towards more essential or value-focused products. She cites Dollarama (TSX: DOL) as an example of a company that benefits from this shift in consumer behavior.
Dollarama operates 1,734 stores across Canada and has expanding businesses in Latin America, Mexico, and Australia. Its Canadian comparable-store sales increased by 5.4% in the latest quarter, driven by a 3.7% increase in transactions. The company's diluted earnings per share rose by 11.2% to $1.29.
Lega-Wolfe also recommends Waste Connections (TSX: WCN), which collects, transfers, recycles, and disposes of waste across Canada and the United States. The company's second-quarter revenue increased by 6.4%, with adjusted earnings before interest, taxes, depreciation, and amortization rising by 6.8%.