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

Arrowings ascending on a chalkboard

5 Canadian Stocks That Have Gained Value Year to Date

Although many Canadian stocks have sold off this year, and by a significant amount, here are five that have actually…

Read more »

Filling up at the gas pumps.
Energy Stocks

Gas Prices Are Hitting Record Highs: 2 Stocks to Buy Now!

Buy Suncor Energy stock, Canada's integrated oil and gas giant that's benefitting immensely, as gasoline prices continue to soar.

Read more »

Senior Couple Walking With Pet Bulldog In Countryside
Bank Stocks

A Different Bank for a Comfortable Retirement

Want a comfortable retirement? Investing in this different bank today can help you reach that goal through a solid income…

Read more »

Money growing in soil , Business success concept.
Dividend Stocks

Top Canadian Dividend Stocks to Buy and Hold for the Long Term

These Canadian companies have been paying dividends for more than four decades and have been consistently growing the same.

Read more »

Bank Stocks

Bank of Montreal (TSX:BMO) Raises Dividend: Is the Stock a Buy?

Bank of Montreal is about to get a lot bigger. Should you buy the stock?

Read more »

man window buildings

Where Do Economists Expect Canadian Housing Prices to Fall Most?

Canadian housing prices may be falling -- in some regions, more than others -- but there are still plenty of…

Read more »

Business success with growing, rising charts and businessman in background
Energy Stocks

3 Hydrogen Stocks Set to Become Major Multi-Baggers

These three hydrogen stocks could certainly achieve multi-bagger status in the years to come after they overcome the present-day hurdles.

Read more »

Stocks for Beginners

Starting an Investment Portfolio? Buy These 3 Stocks!

Interested in getting a start in the stock market? Buy these three stocks today!

Read more »