World News – CA – Top 3 stocks on the TSX to be bought after a strong performance in the third quarter


The Motley Fool Canada »Dividend Stocks» Top 3 TSX Stocks to Buy After Strong Third Quarter Performance

Sneha is a sculptor 9 November 2020 | More on: ENB KGC CJT ENB K

With third-quarter earnings rising by leaps and bounds, some of the largest TSX-listed companies reported their quarterly numbers while third-quarter numbers mostly reflect a sequential improvement for most companies, few have performed better than the rest

Today, I shortlisted three companies that I admired for their performance in the third quarter of the year with strong fundamentals that can help these companies achieve excellent returns for their investors

2020 turns into a strong year for Cargojet (TSX: CJT) – Third quarter was no different Cargojet’s revenue increased 38% year-over-year, its EBITDAR adjusted profit nearly doubled; Cargojet’s average freight revenue jumped For every operating day of nearly 60% on top of that, its adjusted free cash flow has posted impressive growth

While Cargojet’s third-quarter numbers are impressive, the strength in its core business and strong e-commerce volumes indicate that the company could continue to deliver strong financial data in the coming years, which is likely to support the upside in its shares. / p>

Cargojet’s next-day delivery capabilities provide most Canadian households with a strong competitive advantage over their peers. Moreover, its focus on optimizing costs and expanding its network capacity bodes well for growth. Investors should note that most of Cargojet’s domestic revenue has long-term contracts with guarantees. Revenue, cost pass allocations and annual price increase based on CPI

As the holiday season approaches, Cargojet could see higher customer demand, generate strong revenue and adjust EBITDA, and amortization, which could lead to a year-end higher in its inventory

Favorable industry trends and higher average gold prices achieved continued to drive stellar growth in earnings for Kinross Gold (TSX: K) (NYSE: KGC) in the third quarter, gold miner’s revenue in the third quarter jumped by 10 percent. 29% year-on-year, while profit margins are up 60% Thanks to strong sales and margin expansion, Kinross Gold’s third-quarter earnings and operating cash flows recorded explosive growth.

Investors should note that higher gold prices will continue to drive Kinross Gold sales and profit margins. At the same time, increased production directives and lower cost trends soften their margins and push their stocks higher. Moreover, Kinross Gold is generating cash flows. Strong is likely to support future dividends and boost investor returns.

While its core business remains strong, Kinross Gold shares are trading at an attractive EV / EBITDA multiple of 42, which is well below the peer group average and signals further upside in its stock

Enbridge (TSX: ENB) (NYSE: ENB) continued to impress with its resilient financial performance despite major disruptions in the energy sector amid the COVID-19 pandemic, Enbridge’s distributable cash flow remained nearly flat in the third quarter, while profits declined Adjusted before interest, taxes, depreciation and amortization marginally, thanks to its core business strength

While weakness in major line volumes remains a constraint, growth in its gas business and continued momentum in its renewable energy business support its cash flow and payments

As the economy reopens, energy demand is expected to show a slight pick-up, which could drive a rebound in Enbridge stock.Meanwhile, its diversified cash flow, guaranteed capital program, and cost-cutting measures are likely to soften its margins and dividends

While a drop in its stock makes it an attractive value game, a high dividend yield of over 9% makes it a stock with higher earnings

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Deceptive Contribution Senha Nahata has no position in any of the listed shares Motley Fool owns shares in CARGOJET INC and recommends them by Wanbridge

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NYSE: ENB, Stock, Enbridge, TSX, Finance

World News – CA – Top 3 TSX stocks to buy after strong third-quarter performance
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