Ambrose O’Callaghan: Kinaxis Inc. (TSX:KXS)
My top stock for June is Kinaxis Inc. (TSX:KXS). Kinaxis is an Ottawa-based company that offers supply chain solutions through its RapidResponse software. Shares of Kinaxis have soared over 500% since its initial public offering in June 2014. Supply chain management and operation planning is evolving in the global marketplace, and Kinaxis has already partnered with companies like Toyota Motor Corp. and Volvo in 2018.
The company posted 24% growth in subscription revenue in Q1 2018. Kinaxis is well positioned to take advantage of its position in a fast-growing industry going forward. It is an attractive long-term hold.
Fool contributor Ambrose O’Callaghan has no position in any stocks mentioned.
Kay Ng: Alimentation Couche-Tard Inc. (TSX:ATD.B)
After having consolidated and is now trading at the low end of its trading range of the last few years, Alimentation Couche-Tard Inc. (TSX:ATD.B) stock looks like a good value at ~$54.50 per share for medium- to long-term investment.
Couche-Tard is trading at a forward price-to-earnings multiple of ~13.8, while it’s estimated that the company will grow its earnings per share at a double-digit rate over the next three to five years.
The convenience store leader and consolidator should continue to benefit from the synergies of the integrations of recent acquisitions. Going forward the company has its eyes set on global growth in Asia and Europe.
Couche-Tard has strong upside potential for the next three to five years.
Fool contributor Kay Ng owns shares of Couche-Tard.
Karen Thomas: Enerplus Corporation (TSX: ERF)
Enerplus Corporation (TSX:ERF) has been a beacon of strength in the oil and gas sector.
A top-notch balance sheet, operating performance, and cash flow growth profile sets it apart from its peers.
With slightly less than half of its production coming from conventional crude oil, this $3.4 billion oil and gas giant is benefitting from the sharp rise in crude and natural gas prices.
In 2017, the company reported a 72% increase in cash flows, driven by increasing crude oil and natural gas prices, and a reduction in operating costs.
Going forward, the company will focus on the high-growth Marcellus and North Dakota areas to spur year-over-year production growth of 10% and liquids growth of 20%, which will serve to drive the stock price higher.
Stephanie Bedard-Chateauneuf: Goeasy Ltd. (TSX:GSY)
Goeasy Ltd. (TSX:GSY), a seller and financer of household goods, is my top stock for June.
Goeasy is a high-growth, high-profitable business. In the first quarter of 2018, its revenue reached $114.8 million, up 22% from the first quarter of 2017. Loan originations increased 92%, reaching an all-time high of $202.4 million. Net income jumped 7.8% to $11.1 million and diluted EPS increased 5.5% to $0.77. The lender had a strong return of equity of 17.4% in the quarter.
Goeasy has a strong performance record, with a 15-year compound annual growth rate of return of 17.5%. While the company’s earnings are estimated to grow at a high rate of 30% next year, the stock’s forward P/E is only 9.2. Thus, Goeasy’s stock is cheap relative to the company’s potential future growth.
Fool contributor Stephanie Bedard-Chateauneuf has no position in shares of Goeasy Ltd.
Mat Litalien: Cervus Equipment Corp. (TXS:CERV)
My top pick for the month of June is Cervus Equipment Corp. (TSX:CERV). The company is one of the most undervalued stocks on the TSX. It is trading at a cheap valuation in relation to historical averages and significantly below industry values.
The company is expected to grow revenues by approximately 17% annually over the next couple of years. Yet, it is only trading at a forward 9.46 times earnings. Cervus is riding the cyclical upwards momentum of the industry and its share price is not keeping up with expected growth rates.
Fool contributor Mat Litalien is long Cervus Equipment Corp.
Ryan Goldsman: Inter Pipeline Ltd (TSX:IPL)
After several years of low oil prices, shares of Inter Pipeline Ltd (TSX:IPL) may once again be set for a major bull run over the next several years. As oil has finally crossed the US$70 per barrel mark, many companies are once again starting to undertake capital investment which will lead to oil production.
More oil production translates to higher revenues for oil pipelines!
At a current price of $24 per share, investors will be receiving a dividend yield of no less than 6.9% with the potential for a major breakout to the upside. Similar to the cherry on the cake, what could be better than a little capital appreciation to go alongside these lucrative dividends!
Fool contributor Ryan Goldsman owns shares in Inter Pipeline Ltd.
Matt Smith: MEG Energy Corp. (TSX:MEG)
Despite oil’s latest weakness oil sands company MEG Energy Corp. (TSX:MEG) is an appealing investment. It owns the high-quality long-life Christina Lake SAGD project and after recent asset sales totalling $1.6 billion has strengthened its balance sheet. MEG has a well-laddered debt profile and considerable liquidity finishing the first quarter 2018 with $675 million in cash and an undrawn US$1.4 billion credit facility endowing it with significant financial flexibility.
Weaker oil will have little impact on MEG’s profitability because of its low breakeven costs of US$45 per barrel produced. The company is developing the next phase of Christina Lake which by 2020 should lift production by 40% to 113,000 barrels daily. That coupled with low breakeven costs will give profitability a solid boost. These factors along with the latest pullback in MEG’s share price makes it an attractive play on higher oil.
Fool contributor Matt Smith has no position in any stocks mentioned.
Andrew Walker: Suncor Energy Inc. (TSX:SU) (NYSE:SU)
Suncor Energy Inc. (TSX:SU) (NYSE:SU) took advantage of its strong balance sheet during the oil rout to acquire assets and push ahead with organic projects.
As oil prices continue to recover, shareholders are starting to see the benefits of those decisions. The company raised its dividend by 12.5% for 2018, and additional distribution growth should be on the way.
Suncor isn’t a cheap stock, but investors can get a top-quality name with a reliable dividend in a sector that remains badly wounded. In addition, the refineries and more than 1,500 retail locations the company owns provide a nice hedge against future potential downturns in the oil market.
Fool contributor Andrew Walker has no position in Suncor.
Jason Phillips: Enbridge Inc (TSX:ENB)(NYSE:ENB)
My top pick for the month of June is Enbridge Inc (TSX:ENB)(NYSE:ENB).
Enbridge stock continues to offer investors solid value, trading at around $40 on the TSX and $30 on the NYSE.
The company reported another strong quarter in May including adjusted earnings per share of $0.82, a 43% increase year over year. Enbridge also announced that it would be raising its quarterly payout by 10% in 2018, marking the 23rd straight year of dividend increases for the company.
Last month management also announced a pair of strategic asset sales that will allow it to rationalize the debt on its balance sheet and in doing so help to solidify future dividend increases for years to come.
Fool contributor Jason Phillips owns the Enbridge Inc January 2019 25-strike calls.
Demetris Afxentiou: Exchange Income Corp. (TSX:EIF)
Winnipeg-based Exchange Income Corporation (TSX:EIF) is an investment that checks all the boxes that investors look for.
Exchange Income Corp owns several regional airlines and aviation service companies, as well as several manufacturing subsidiaries that collectively make the company a well-diversified and acquisition-focused investment option. Collectively, the company has over a dozen different subsidiaries catering to both the aviation and manufacturing segments.
In terms of results, Exchange Income Corp’s recent quarterly update highlighted an impressive 20% increase in revenue year-over-year to $266 million, and EBITDA surged 25% to $54 million over the prior period last year. Net earnings registered an equally impressive 55% improvement over the same quarter last year.
If that isn’t reason enough to consider Exchange Income Corp as an investment, the deciding factor may just be the lucrative monthly dividend that provides a very healthy 6.23% yield.
Fool contributor Demetris Afxentiou has no position in Exchange Income Corp.
