The Motley Fool

Top Stocks for March

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David Jagielski: Stars Group Inc

Stars Group (TSX:TSGI)(NASDAQ:TSG) is my stock pick for March. The company is releasing its fourth-quarter results during the month and I expect it to be a good showing as it continues to grow it sports betting segment. And with U.S. markets slowing opening their doors to sports betting, this is a great stock to own as the industry will take off in a hurry.

Stars Group is trading at a little more than its book value and it’s also close to its 52-week low, making it a good value buy today. However, it might not stay that way for long as there’s a lot of upside for this stock and all it needs is some good news or a good quarter for investors to get bullish about it again.

Fool contributor David Jagielski owns shares of The Stars Group

Joey Frenette: Jamieson Wellness Inc.

Jamieson Wellness (TSX:JWEL) stock has been pummeled in recent months with shares now down over 35% from 52-week highs.

Vitamins, minerals, and supplements (VMS) may not be seen as an attractive industry for most growth-savvy investors. But given the near-term international growth catalysts (China) that are on the horizon, I believe the Street is severely discounting Jamieson’s growth prospects.

At just 10.8 times trailing earnings, Jamieson looks like one of the timeliest opportunities on the TSX as the high-growth name appears to be priced like a troubled stalwart. As we head into the latter part of 2019, we could see Jamieson stock clock in an impressive relief rally now that the bar has been lowered with the floodgates ready to open on the Chinese market.

Jamieson shares are too cheap, the growth story is misunderstood, and concerns over the company’s strategic partners segment are overblown beyond proportion. If you’ve got the cash, Jamieson looks like a terrific bet with a stellar risk/reward trade-off.

Fool contributor Joey Frenette has no position in Jamieson Wellness Inc.

Andrew Button: Shopify Inc

Shopify (TSX:SHOP)(NYSE:SHOP) has been a consistent solid performer on the TSX, gaining 32% in 2018 and 350% since its IPO. In the past, Shopify’s gains were driven by high revenue growth alone. Now, we’re starting to see an emerging trend of profitability. In Q4, Shopify slashed its GAAP net loss in half, and increased its already positive adjusted EPS by 73%. Shopify often live-blogs its sales data during key periods (e.g. holidays) so investors won’t have to wait long to see if this growth trend continues.

Fool contributor Andrew Button does not own shares of Shopify Inc.

Stephanie Bedard-Chateauneuf: Quebecor Inc.

Quebecor (TSX:QBR.B) is my top stock for March.

This Canadian company operates in telecommunications, media, and sports and entertainment businesses.

The stock shows a low volatility and delivers good returns year after year. With a 10-year compound average annual rate of return over 20%, Quebecor is the best-performing stock in the telecom sector.

Quebecor’s earnings are estimated to grow by 38% for the current year. This will give the flexibility for the media conglomerate to increase its dividend, which currently amounts to $0.22 per share annually for a yield of 0.6%.

The company’s return on equity is very high, reaching almost 80%, meaning that the company is very profitable.

Fool contributor Stephanie Bedard-Chateauneuf owns shares of Quebecor Inc.

Kay Ng: Manulife Financial Corporation

Manulife Financial (TSX:MFC)(NYSE:MFC) has made a strong recovery from the global financial crisis of 2007-2008. Its five-year adjusted earnings-per-share growth rate is more than 15%. Strong profitability allowed for healthy dividend growth of 11.8% per year over the five-year period.

In 2018, Manulife experienced core earnings growth across all the geographies it operates in: Asia, Canada, and the U.S. Total core earnings rose more than 22% to $5.6 billion year over year.

At $22.31 per share as of writing, Manulife trades at a price-to-earnings ratio of about 8.1, while it’s estimated to increase earnings per share by about 10% per year over the next three to five years. In summary, Manulife is a deep value stock that offers a yield of nearly 4.5%.

Fool contributor Kay Ng owns shares of Manulife.

Ambrose O’Callaghan: Telus Corp.

My top stock for the month of March is Telus (TSX:T)(NYSE:TU).

Telus has rallied nicely in 2019 and was up 4.6% on the year as of close on February 22. In Q4 2018 Telus saw revenue rise to $3.76 billion compared to $3.54 billion in the prior year. The company has said that there is a “material” risk if Canada elects to bar Huawei from its 5G network. A ban appears likely, but Telus can survive the fallout.

The stock last paid out a quarterly dividend of $0.545 per share, which represents a 4.4% yield. Telus has achieved dividend-growth for 15 consecutive years.

Fool contributor Ambrose O’Callaghan has no position in any stocks mentioned.

Nelson Smith: Suncor Energy Inc.

My top stock for March is Suncor Energy (TSX:SU)(NYSE:SU) for a few different reasons.

A big one is the endorsement of the greatest investor in the world, Warren Buffett. After originally selling his shares back in 2016, Buffett’s recent purchase of 10.6 million shares is a bullish signal.

Investors should also be positive on energy, especially coming from Alberta. Government imposed production cuts helped cut the spread between heavy oil prices and lighter crude, which helps producer like Suncor which is heavily focused on the oil sands.

And remember, Suncor has a solid balance sheet, steady earnings from its downstream business, and a dividend that has been hiked annually since 2009.

Fool contributor Nelson Smith has no position in Suncor Energy.

Matt Smith: Bank of Nova Scotia

News that China and the U.S. are poised to avoid a trade war bodes well for the global economy and emerging markets in particular because of their dependence on producing and exporting raw materials. This is a positive development for Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) which has built a sizable presence in Latin America. That business, which spans Mexico, Colombia, Chile and Peru, was a key growth driver during 2018. Loans across those nations rose by a stunning 42% year over year and revenue by a healthy 28%.

The IMF expects 2019 GDP in Chile, Colombia and Peru alone to expand by 3.4%, 3.6% and 4.1% respectively, presaging further robust growth because of greater demand for credit and other financial services. This reduces Scotiabank’s dependence on a decelerating Canadian mortgage market and will support added earnings growth. That will sustain its dividend which is yielding a tasty 4.5%.

Fool contributor Matt Smith has no position in any stocks mentioned.

Andrew Walker: Suncor Energy Inc.

Suncor (TSX:SU) (NYSE:SU) had a rough Q4 2018, but investors should look beyond the results when evaluating the stock.

Management raised the dividend by nearly 17% for 2019, so they executive team is obviously positive on the cash flow outlook, and a recovery in oil prices over the past two months should bode well for the company’s production margins.

In addition, Berkshire Hathaway just revealed a new position in Suncor, reversing its exit from the stock not that long ago.  Apparently there is something to like in the Canadian oil patch after all.

Suncor offers a yield of 3.7% and appears attractively priced today for a buy-and-hold portfolio.

Fool contributor Andrew Walker has no position in any stock mentioned.

Neha Chamaria: Magna International Inc.

If you’re looking to buy a deep discount stock now, look no further than Magna International (TSX:MG)(NYSE:MGA). Magna isn’t just a leading automotive supplier but also builds complete vehicles for companies like BMW and Daimler — an expertise no other auto supplier can boast of.

Magna’s sales hit record highs of US$40.8 billion in fiscal 2018, thanks to 39% growth in complete vehicle sales. Magna also earned record net income and free cash flow and increased dividend by 11%, marking its tenth consecutive increase.

Yet, Magna stock is trading at a price-to-cash flow of only five times and yielding 2.6%. Magna’s focus on new-age technologies like electric and autonomous vehicles and management’s commitment to shareholder returns makes it a steal deal for long-term investors.

Fool contributor Neha Chamaria has no position in this company.

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Tom Gardner owns shares of Shopify. The Motley Fool owns shares of Shopify.

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