While the TSX has been plunging in recent months, there are still many quality large-cap stocks that have performed well and should keep rising in the coming months.
Below I’m presenting my three top large-cap stocks to buy in December.
Alimentation Couche-Tard (TSX:ATD.B)
Couche-Tard stock price is going in opposite direction of the market. While the latter has plunged by about 7% in the last three months, Couche-Tard stock has risen by about 12%. The stock is a bargain, so there’s room for more upside.
Last week, Couche-Tard reported its second-quarter results, which were well above analysts’ expectations, with net income of US$473.1 million, or US$0.84 per share (compared to US$432.5 million or US$0.76 per share at the same time last year). Adjusted profit increased 5% to US$0.84 a share for the quarter.
Revenues jumped 21% to US$14.7 billion, as same-store merchandise revenues rose by 5.1% in Canada, 4.4% in the United States, and 4.6% in Europe.
Analysts were anticipating an adjusted profit of US$0.82 on US$13.9 billion of revenues.
The Laval-based company announced it would open 200 new convenience stores this year and look for new acquisitions. Couche-Tard is the world leader in its industry, with more than 16,000 convenience stores worldwide.
BCE stock has gained more than 8% in the past three months. The stock should continue gaining ground in the coming months, as investors are turning away from volatile stocks to go into safer stocks.
What helped to boost the stock price are the good third-quarter results that BCE released on November 1. The stock has gained more than 10% since that date.
In the third quarter, BCE posted a revenue of $5.88 billion, which is better than the revenue of $5.70 billion it earned in the same quarter last year. The telecom company earned $814 million attributable to shareholders or $0.90 per share, and $0.96 per share on an adjusted basis, beating expectations of $0.93 per share.
BCE also added 135,000 net postpaid wireless subscribers for the quarter, a 15.5% year-over-year increase. BCE has invested in its fibre-optic network and upgraded its Internet service to compete with cable-based providers.
BCE pays a quarterly dividend yielding 5.2%, which is interesting if you’re looking for a high dividend.
Canada Goose stock has been rising fast since the company’s IPO in March 2017, and it is still outperforming the market by a wide margin. Indeed, the stock price rose by 13% in the last three months, with a gain of 25% just in the last month.
Canada Goose keeps beating expectations quarter after quarter, which helps to push its stock price up. In its latest quarter, the retailer earned an adjusted profit of $0.46 per share, up 59% from a year ago, while analysts estimate was $0.26 per share. Revenue increased by 34% to $230.3 million, beating estimates of $197.9 million.
Strong growth is still in the cards for Canada Goose; the company expects its revenue and profit to grow by at least 30% and 40%, respectively, for the whole fiscal year.
Demand for its luxury winter parkas is increasing, and Canada Goose is taking initiatives to answer that demand by opening new stores. It opened its first store in Eastern Canada in November. It is also diversifying into other product lines like knitwear, and, more recently, into footwear.