3 Smokin’ Stocks That Could Stay Hot in September

This trio of hot stocks, including Canada Goose (TSX:GOOS)(NYSE:GOOS), could fuel your portfolio in September.

| More on:

Last week was a wacky one for the TSX.

Optimism over a new trade deal between Canada and the U.S. lifted the market early in the week, but the positive vibes steadily faded as it became clear that nothing was going to be signed. President Trump has warned that if Canada and the U.S. aren’t able to reach a deal, he’ll slap new auto tariffs on Canadian car imports.

This past Friday was Trump’s deadline for Canada to make concessions, so we’ll just have to wait and see if Trump quickly follows through on his threats. Overall, the S&P/TSX Composite Index shed about 0.6% over the week.

Of course, not all stocks fell last week. A few of them even popped quite considerably, suggesting that they might be solid hedges against all of this trade turbulence.

Remember, Fools: don’t think of it as a “stock market,” but rather a market of stocks. No matter what’s happening on the larger economic or geopolitical front, you’ll always be able to find companies that are performing well.

With that in mind, I’ve highlighted three hot stocks that bucked last week’s market weakness. Additionally, they all have solid revenue growth over the past year — this helps us hone in on stocks that are actually being fueled by fundamentals.

Company 5-Day Price % Change 1-Year Revenue % Growth
Aphria (TSX:APH) 21% 45%
Canada Goose Holdings (TSX:GOOS)(NYSE:GOOS) 8% 32%
Linamar (TSX:LNR) 10% 13%

As always, these stocks aren’t formal recommendations. They’re simply ideas for you to do further research on.

With that said, winter jacket specialist Canada Goose catches my eye.

Goosed-up shares

Canada Goose isn’t for the faint of heart. With a beta of around three, it can go from an ice-cold stock to a red-hot momentum play very quickly. But there are few reasons why this recent run-up seems sustainable.

First, the company’s most recent results bode well for the rest of the year. In Q1 — a traditionally slow one for Canada Goose — revenue still managed to spike 58.5% to $44.7 million. Moreover, gross and adjusted EBITDA margins also topped expectations.

“Our strong start to the year, in our smallest fiscal quarter, is a great leading indicator,” said President and CEO Dani Reiss. “Our products and our brand continue to resonate with people around the world, and our direct-to-consumer channel was a standout performer in the quarter.”

Second, even with last week’s gain, the stock is still off about 13% from its 52-week highs. I’m not big into technical analysis, but I always get a bit nervous when I see a stock sitting at its highs for the year.

Finally, Canada Goose’s global growth potential — particularly in China — remains phenomenal. So regardless of what the stock does in September, the company’s long-term upside should give investors plenty of comfort.

The bottom line

There you have it, Fools: Canada Goose seems like a stock that could keep rallying — even in the face of more NAFTA-related trouble. The company’s operating momentum, short-term upside, and overseas potential all provide a solid setup going forward.

Fool on.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned.   

More on Investing

top TSX stocks to buy
Dividend Stocks

Beat the TSX With This Cash-Gushing Dividend Stock

This dividend stock has been absolutely crushing the TSX 60 and looks like it will continue to do so while…

Read more »

money cash dividends
Stocks for Beginners

Where to Invest $10,000 in April 2024

If you've already created a diversified portfolio and are looking for more options from a windfall, here is where I…

Read more »

data analyze research
Investing

The Ultimate TSX Stock to Buy With $1,000 Right Now

Brookfield Asset Management (TSX:BAM) is one of the best Canadian stocks to buy for those looking to put capital to…

Read more »

young woman celebrating a victory while working with mobile phone in the office
Dividend Stocks

3 CRA Benefits Most Canadians Can Grab in 2024

You can save on taxes by claiming the dividend tax credit on Fortis Inc (TSX:FTS) shares.

Read more »

A cannabis plant grows.
Cannabis Stocks

Canopy Growth Stock Is Rising But I’m Worried About This One Thing

Canopy Growth stock is soaring as the legalization effort makes real progress in both Germany and the United States.

Read more »

young woman celebrating a victory while working with mobile phone in the office
Investing

3 Roaring Stocks to Hold for the Next 20 Years

These top TSX stocks are excellent long-term buys, given their multi-year growth potential and solid underlying businesses.

Read more »

Two seniors float in a pool.
Dividend Stocks

TFSA: How to Earn $1,890 in Annual Tax-Free Income

Plunk these investments into your TFSA to earn passive income and avoid the taxman.

Read more »

grow dividends
Investing

Here’s My Top 3 TSX Stocks to Buy Right Now

Even though the TSX has been rising, there are still some good bargains out there. Here are three top compounding…

Read more »