Don’t Miss Out on These 2 Stocks Hitting New 52-Week Highs

It’s not too late to join the party: Growth through acquisitions has been the name of the game for these two stocks, which have rewarded shareholders big-time.

| More on:
Arrowings ascending on a chalkboard

Image source: Getty Images.

As investors, we are always looking for that next big winner in order to guide out portfolios higher.

Stocks that are hitting 52-week highs can be a warning of impending losses in the case of those stocks that have simply gotten ahead of themselves or confirmation of a good decision that is going just as planned.

Here I will look at two stocks that are hitting new 52-week highs in order to reassess where they will go from here.

Parkland Fuel Corp. (TSX:PKI)

With a five-year return of 145% and a one-year return of 111%, investors may be wondering if they’re simply too late to get into Parkland Fuel stock.

Fair question.

But I am here to tell you why you aren’t too late — and why this stock has plenty more upside from here.

Parkland is a $5.9 billion convenience store operator and fuel marketer that has aggressively grown organically and through acquisitions, driving a 312% total shareholder return in the last eight years.

Being involved in the supply and refining of fuel as well as the retail and commercial convenience locations gives Parkland an advantage. It is not concerned with the absolute price of oil, only in the spread between its supply/refining business and pump prices.

The company’s latest acquisition of the largest independent fuel marketer in the Caribbean is testament to Parkland’s expertise and striving for growth to the benefit of shareholders.

This acquisition will add approximately $0.50 in cash flow per share right away, plus a further $0.23 per share from synergies.

Parkland has a leading market position, and its scale and buying power give it a real and significant competitive advantage now and well into the future.

MTY Group Inc. (TSX:MTY)

MTY Group stock has increased 107% in the last five years and 39% in the last year as the company has expanded to approximately 5,500 locations of its quick-service restaurants such as Extreme Pita, Mucho Burrito, Manchu Wok, and Thai Express.

The company’s continued acquisitions of new restaurant chains has driven an almost 200% increase in revenue in the last five years, to $276 million in 2017, and a more than 200% increase in cash flows, driving increasing returns while maintaining a healthy balance sheet.

In fact, in the last 15 or so years, MTY has acquired and integrated more than 60 brands, doing so successfully and maintaining a healthy balance sheet and stock price, which has grown at a compound annual growth rate of 25%.

In a time when we are all eating out more than ever amidst increasingly busy schedules and increasing wealth, this company is poised to continue to do well.

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 Karen Thomas has no position in any of the stocks mentioned. The Motley Fool owns shares of MTY Food Group.

More on Energy Stocks

Arrowings ascending on a chalkboard
Energy Stocks

Beat the TSX With This Cash-Gushing Dividend Stock

Canadian Natural Resources stock is well set up to beat the TSX as it continues to generate strong cash flows…

Read more »

energy industry
Energy Stocks

2 TSX Energy Stocks to Buy Hand Over Fist Now

These two rallying TSX energy stocks can continue delivering robust returns to investors in the long term.

Read more »

green energy
Energy Stocks

1 Magnificent TSX Dividend Stock Down 37% to Buy and Hold Forever

This dividend stock has fallen significantly from poor results, but zoom in and there are some major improvements happening.

Read more »

oil tank at night
Energy Stocks

3 Energy Stocks Already Worth Your While

Here's why blue-chip TSX energy stocks such as Enbridge should be part of your equity portfolio in 2024.

Read more »

Solar panels and windmills
Energy Stocks

1 Beaten-Down Stock That Could Be the Best Bet in the TSX

This renewable energy stock could be one of the best buys you make this year, as the company starts to…

Read more »

Dice engraved with the words buy and sell
Energy Stocks

Is Enbridge Stock a Buy, Sell, or Hold?

Here's why Enbridge (TSX:ENB) remains a top dividend stock long-term investors may want to consider, despite current risks.

Read more »

Gas pipelines
Energy Stocks

If You Had Invested $5,000 in Enbridge Stock in 2018, This Is How Much You Would Have Today

Enbridge's high dividend yield hasn't made up for its dismal total returns.

Read more »

Bad apple with good apples
Energy Stocks

Avoid at All Costs: This Stock Is Portfolio Poison

A mid-cap stock commits to return more to shareholders, but some investors remember the suspension of dividends a few years…

Read more »