May is a busy month for many companies as many go to report their earnings, and that means there could be opportunities for investors to buy stocks that could see a boost thanks to good results. Below are three stocks that are going to release their results this month that look like good buys today.
AltaGas (TSX: ALA) is expected to release its first-quarter results on May 2. It’s coming off a strong Q4 and another performance could give the stock another bump up in price. The stock still has a lot of room to rise, as it is nowhere near its 52-week high of around $28, and it’s still trading right around book value. The company has good fundamentals and should be trading a lot higher than where it is today.
We’ve seen oil and gas stocks report some good earnings lately, and we could see the same for AltaGas. My top pick for 2019, AltaGas has already risen around 28% since January, but I’d be surprised if it doesn’t climb a whole lot more. With improved conditions in the industry, there’s a lot of reason to like the stock in both the short and long term. You’ll also get a good dividend to collect on top of what could be a great return.
Magna International (TSX: MG)(NYSE: MGA) is set to report its earnings on May 9. The stock is down 3% over the past 12 months, and at a price-to-book multiple of around two and a price-to-earnings ratio of eight, there’s a lot of value in Magna and its current price. In its last quarter, the company wasn’t able to generate any growth in its top or bottom lines, but if that changes in Q1, then we could see the stock jump in price.
Concerns about tariffs on the auto industry have spooked investors, and the bearishness has created a terrific opportunity for investors today to get Magna’s stock on a dip. It too pays shareholders a dividend, and at approximately 2.7%, it’s a modest payout that will help pad your overall returns. Long term, there’s a lot of upside for this stock, especially given the company’s focus on self-driving technologies.
DHX MediaĀ (TSX:DHX)(NASDAQ: DHXM) is another stock that’s set to release its quarterly earnings in May. DHX is also coming off a disappointing quarter where it saw a big loss and no sales growth. The company has a lot of good content and has been facing challenges since its acquisition of Peanuts. As DHX is able to find some efficiency in its operations, we could start to see a healthier bottom line and hopefully some improved sales numbers as well.
The stock is trading at only 0.8 times its book value and could be a bargain buy. Despite the stock’s decline, I see a lot of upside for the stock and have invested more into it because of the good opportunity for DHX to rise, especially if it can bounce back this coming quarter. Children’s content is always in high demand, and DHX is a company that has a lot of quality shows to offer; that’s why I still see a recovery in the cards for the stock, especially from the low price that it’s at today.
