4 Stocks to Scoop Up After Last Week’s Stock Market Rout

Canada Goose Holdings Inc. (TSX:GOOS)(NYSE:GOOS) stock and others can be had at a discount after a bloodbath on the TSX in October.

| More on:
think, plan, and act to work towards your financial goals

The S&P/TSX Composite Index suffered its largest drop in three years on October 24, the same day the Bank of Canada elected to hike the benchmark rate by another 0.25%. The central bank said that strong fundamentals justify an accelerated rate-tightening path into next year. Indexes across the developed world continued to struggle last week. The NASDAQ fell into correction territory on the same day.

Investors should look to take advantage of discounts before the inevitable uptick. The TSX has dropped to 2016 levels but a batch of late fall and early winter earnings should give it a boost before 2018 comes to an end.

Lundin Mining (TSX:LUN)

Lundin Mining is a Toronto-based metals company with operations in North America, Latin America, and Europe. Shares had dropped 34% over a three-month span as of mid-afternoon trading on October 25. The stock reached a five-year peak in late 2017 on the back of soaring base metals prices.

Copper and zinc prices have experienced weakness in 2018 and are not expected to regain momentum until early next decade. Analysts now expect a prolonged trade war between the United States and China, which will curb global growth and hurt commodity prices going forward. For this reason, Lundin Mining is the riskiest bet of the stocks we will cover today.

Canada Goose (TSX:GOOS)(NYSE:GOOS)

Canada Goose stock had dropped 18% month over month as of mid-afternoon trading on October 25. Shares were still up over 50% in 2018 so far. Canada Goose still boasts a high valuation when we look at its price/earnings and price/sales ratios, but its world class leadership has so far proven that it can successfully navigate the harsh modern retail environment.

Canada Goose has seen its e-commerce business post fantastic growth over the past year, and it is now entering the busy season. The company is also expanding into Asia where its brand has encountered early success. The stock is worth considering ahead of its second-quarter earnings release, which is expected in early November.

Kinaxis (TSX:KXS)

Kinaxis stock was down 10% month over month as of mid-afternoon trading on October 25. Shares were still up 11% in 2018 thus far. Kinaxis is expected to release its third-quarter results on November 9. The company has won several significant clients in 2018, including Volvo and Toyota Motor Corp., which has made up for the loss of a major Asia-based client in 2017. Trade tensions will complicate global supply chains and could ultimately boost demand for Kinaxis’s flagship RapidResponse product. This stock remains an attractive long-term hold.

TMX Group (TSX:X)

TMX Group stock was down 7.8% month over month as of this writing. Shares were still up double digits in 2018 so far. The company is expected to release its third-quarter results in early November. The TSX has suffered from lower volumes in 2018 as Canada has experienced an investment flight since U.S. tax reform.

However, lower prices and stability on the trade front after the USMCA was announced should draw interest for the Canadian market going forward. Legal cannabis has also drawn in overseas investors. TMX posted a record quarter in Q2 2018 in the face of these headwinds.

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 Ambrose O'Callaghan has no position in any of the stocks mentioned. Kinaxis is a recommendation of Stock Advisor Canada.

More on Investing

how to save money
Investing

Could This Undervalued Canadian Stock Be Your Ticket to Millionaire Status?

Not every millionaire-maker stock is a consistent grower. Some are temporary but substantial bullish opportunities that you can ride to…

Read more »

Confused person shrugging
Dividend Stocks

Passive Income: How Much Do You Need to Invest to Make $625 Per Month?

This retirement passive-income stock proves why investors need to always take into consideration not just dividends but returns as well.

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

Secure Your Future: 3 Safe Canadian Dividend Stocks to Anchor Your Portfolio Long Term

Here are three of the safest Canadian dividend stocks you can consider adding to your portfolio right now to secure…

Read more »

money goes up and down in balance
Dividend Stocks

Is Fiera Capital Stock a Buy for its 8.6% Dividend Yield?

Down almost 40% from all-time highs, Fiera Capital stock offers you a tasty dividend yield right now. Is the TSX…

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Wednesday, December 11

In addition to the U.S. inflation report, the Bank of Canada’s interest rate decision and press conference will remain on…

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

How to Use Your TFSA to Double Your TFSA Contribution

If you're looking to double up that TFSA contribution, there is one dividend stock I would certainly look to in…

Read more »

Income and growth financial chart
Investing

A Top-Performing U.S. Stock That Canadian Investors Really Should Own

Amazon (NASDAQ:AMZN) is starting to run faster in the AI race, making it a top U.S. pick for 2025.

Read more »

Person uses a tablet in a blurred warehouse as background
Tech Stocks

2 Canadian AI Stocks Poised for Significant Gains

Here are two top AI stocks long-term investors may want to consider before the end of the year.

Read more »