The Motley Fool

Top Stocks for April 2019

Neha Chamaria: Agnico-Eagle Mines Limited

Agnico-Eagle Mines (TSX:AEM)(NYSE:AEM) has hit my watchlist for a couple of reasons. To start, the gold industry is consolidating, what with two of the world’s largest gold miners making big growth moves in recent weeks. As a leading gold miner, it’s hard not to expect Agnico-Eagle Mines to join the bandwagon or, perhaps, even become a takeover target.

Even otherwise, Agnico is growing steadily, targeting record gold production in 2019 and a 30% jump in production by 2021. That should mean greater cash flows and dividends for shareholders. Last year, the miner hiked its dividend by 14%.

The current favourable gold-price environment, combined with the growth potential in Agnico’s production and cash flows, makes it a great gold stock to buy now.

Fool contributor Neha Chamaria has no position in this company.


Ryan Vanzo: Uranium Participation Corp

Uranium Participation (TSX:U) is my top pick for April. It’s an incredibly simple company that gives you direct exposure to the price of uranium. If uranium prices rise, you win. If they fall, you lose.

Why will uranium prices rise? The devastating Fukushima accident caused prices to crumble, but there’s a big reason to expect a reversal soon. Uranium is usually sold on long-term contracts, but regulatory uncertainty has caused a lot of money to remain on the sidelines. Those contracts need to be renewed shortly, which could provide quick gains to Uranium Participation Corp shareholders.

Fool contributor Ryan Vanzo has no position in Uranium Participation Corp.


Amy Legate-Wolfe: Enbridge Inc.

It might seem like an odd time to buy Enbridge (TSX:ENB)(NYSE:ENB). The stock has hit its 52-week high recently, and remains steadily on the rise.

But here’s the thing: Enbridge has way more room to grow. Analysts put its worth in the $60 range, and the company has a strong and stable future ahead with its current and future projects.

Now for me, April means taxes. That means looking for a dividend stock that can bring in some extra cash, which is another bonus for Enbridge. So if you don’t have this stock in your portfolio already, I would definitely consider adding it.

Fool contributor Amy Legate-Wolfe owns shares of Enbridge Inc.


Ambrose O’Callaghan: NFI Group Inc.

My top stock for April is NFI Group (TSX:NFI).

NFI Group stock has been battered over the past year. In late March it was trading at the low end of its 52-week range. The company’s 2018 results were a mixed bag. It delivered record new vehicle deliveries and record revenue of $2.5 billion, but several non-recurring factors were a drag on earnings.

NFI Group reached technically oversold territory in late March. The company upped its annual dividend by 13.3% to $1.70 per share. This represents an attractive 5.5% yield. NFI Group is a sneaky target in a market plagued by high prices.

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


Andrew Button: Canadian National Railway

Canadian National Railway (TSX:CNR)(NYSE:CNI) is one of the best-performing dividend stocks on the TSX. Having nearly doubled in price over a five-year period, it has soundly outperformed the TSX in the same period. With adjusted EPS consistently increasing by 20% or more each quarter, there’s no reason to believe the stock can’t keep rising.

Recently, Canadian National increased its reach by purchasing the intermodal company TransX. Analysts are expecting EPS of $0.96 per share for this quarter, up from $0.79 last year. Results will come out April 22nd.

Fool contributor Andrew Button owns shares in Canadian National Railway


Karen Thomas: Northwest Healthcare Properties REIT

Northwest Healthcare (TSX:NWH.UN) offers investors a high-quality global diversified portfolio of healthcare real estate properties located throughout Canada, Brazil, Germany, Australia and New Zealand.

As such, Northwest stock offers exposure to the biggest demographic shift that much of the developed world is facing.

In the last three years, the stock has traded between $8.00 and above $12.00, and it has a five-year return of just over 10%.

This, as well as its dividend yield of 7.45%, reflects the fact that Northwest has more leverage than its peers, which makes it slightly more risky. But considering the strong underlying demand and its leadership in the medical real estate space, I think that this stock offers investors a solid income stream that is secure.

Fool contributor Karen Thomas owns shares of Northwest Healthcare Properties REIT.


Stephanie Bedard-Chateauneuf: CannTrust Holdings Inc.

CannTrust Holdings (TSX:TRST)(NYSE:CTST) is my top stock for April.

This Canadian licensed producer and distributor of medical and recreational cannabis has the potential to become one of the major players in the marijuana industry.

CannTrust serves more than 63,000 medical patients and an increasing number of recreational consumers. The company is looking to expand its international presence by making strategic partnerships, like the one it has made recently with Breakthru Beverage Group.

The cannabis producer expects to have an annual production capacity topping 100,000 kg by the second half of 2020.

CannTrust is targeting a production cost of only $0.25 per gram, making it one of the lowest cost producers.

Fool contributor Stephanie Bedard-Chateauneuf has no position in any stock mentioned.


James Watkins-Strand: Trevali Mining Corp.

Simply put, Trevali Mining (TSX:TV) had a positively dismal 2018. The company’s loss in the fourth quarter amounted to nearly $240 million due to a non-cash impairment — a figure better appreciated when one considers Trevali’s current market capitalization of just over $300 million.

Gratefully, the company’s pains are likely behind it and 2019 promises to be a kinder year to shareholders. Trevali is well positioned to continue on its path of increasing production and reducing net debt.

Zinc-weighted small-value Trevali is my top stock for April, boasting a forward price-to-earnings multiple of a little more than 6 and price-to-book ratio of only 0.5.

Fool contributor James Watkins-Strand has no position in Trevali Mining Corp.


David Jagielski: NFI Group Inc.

NFI Group (TSX:NFI) is my stock pick for April. The bus manufacturer has had a rough stretch over the past 12 months, losing around half of its value during that time. The stock is coming off a 52-week low and the last time it was trading regularly below $30 a share was three years ago.

While investors might be disappointed that the company didn’t show much growth in its latest quarterly report and that earnings were a little softer, NFI is still a solid long-term buy, especially with a focus on electric vehicles. And at a price-to-earnings multiple of just 12, NFI is a solid value buy that offers investors a great dividend of 5.5% per year.

Fool contributor David Jagielski has no position in NFI Group Inc


Mat Litalien: Brookfield Asset Management

After its transformative acquisition, Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM) is my top pick for the month of April. The deal to acquire Oaktree Capital is expected to be immediately accretive to Brookfield upon closing and will position it as one of the premier private equity firms in the world.

Stripping out the Oaktree deal, Brookfield expects to grow fee-related revenue and cash flow by 18% annually through 2023. This makes it a top growth stock for investors. Combined with its rising dividend and decent valuations, Brookfield Asset Management is a foundational stock for your portfolio.

Fool contributor Mat Litalien has no position in Brookfield Asset Management.


Kay Ng: Wheaton Precious Metals Corp.

Brexit, a global economic slowdown and trade uncertainties are contributing to stronger precious metal prices. This has helped push Wheaton Precious Metals (TSX:WPM)(NYSE:WPM) stock to new heights we haven’t seen since 2016.

Because Wheaton Precious Metals is a precious metal streaming company that doesn’t run any mines, it consistently enjoys incredibly high net margins. This makes it stand out as a top quality name in the mining industry. Wheaton Precious Metals’ recent net margin was nearly 54% compared to the industry average of about 7%.

The 12-month mean analyst target of US$29.50 per share from Thomson Reuters indicates there’s still about 18% near-term upside potential for the shiny stock.

Fool contributor Kay Ng has no position in any stocks mentioned.


Andrew Walker: Bank of Nova Scotia

Bank of Nova Scotia (TSX:BNS) (NYSE:BNS) reported disappointing results for fiscal Q1 2019, but the bank has long-term potential that deserves a closer look.

Canada had a rough three months, but the international division actually performed well in the latest quarter, supported by strong loan and deposit growth in the Latin American operations. This trend should continue in the core markets of Mexico, Colombia, Peru, and Chile.

Additional near-term weakness could be in the cards for the stock, but investors with a long-term investing horizon might want to pick up the bank on any further downside. The 4.8% yield is a nice reward while you wait for sentiment to reverse course.

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


Demetris Afxentiou: TransAlta Renewables

TransAlta Renewables (TSX:RNW) is a must-have stock for any investor looking towards the bright future that renewable energy investments promise. Just like its fossil-fuel burning kin, TransAlta’s portfolio of energy facilities benefit from the lucrative PPA business model, but unlike traditional energy companies TransAlta is well suited towards the colossal shift in the energy space towards renewable sources.

In total, TransAlta is diversified across 10 different operating regions encompassing 34 facilities spread across wind, hydro, gas and solar elements on two different continents. In other words, not only is TransAlta a smart investment for those investors looking to benefit from the green economy, but the company is also incredibly diversified both geographically and in terms of its energy sources.

Adding to that appeal is TransAlta’s incredibly lucrative dividend, which provides investors with a monthly payout that works out to an impressive 7% yield, handily making the company one of the best-paying dividend stocks on the market.

Fool contributor Demetris Afxentiou has no position in any stocks mentioned.


Matt Smith: Continental Gold Inc.

An inverted yield curve pointing to a looming recession has helped to buoy gold. This along with good news from beaten-down Continental Gold (TSX:CNL) makes now the time to acquire the miner. It recently announced that it had secured US$175 million in funding to cover the shortfall identified for its flagship Buritica project in Colombia. This removed many of the doubts that were weighing on its stock. Newmont Mining took a further US$50 million stake which if converted into shares will boost its equity from almost 20% to 28%.

Buritica is a compelling asset to own. It has gold reserves of 3.7 million ounces with an impressive grade of 8.4 grams of gold per tonne of ore (g/t) and forecast all-in sustain costs (AISCs) of US$600 per ounce. This underscores its profitability in an environment where gold is trading at over US$1,300 an ounce. Continental also released an updated mineral resource estimate where measured and indicated gold ounces increased by 19% and silver shot up by 50%. This highlights the considerable exploration upside held by Buritica and Continental’s ability to expand its reserves.

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


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

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