The Motley Fool

How My Top Stocks to Buy Have Performed in 2019

Image source: Getty Images.

Like other Fool contributors, each month I share my best stock to buy for the coming month. Now that 2019 is almost over, it could be interesting to review how my 12 top stocks have actually fared since the start of the year. So, here is a short review of my monthly picks’ performance. As a reference point, the TSX has returned 18.7% year to date.

The first stock I suggested, in January, was Alimentation Couche-Tard. The stock has soared 26.4% year to date. So, the convenience store operator was clearly a good pick. This defensive stock usually performs well when there is a lot of volatility on the markets, so I expect it to continue to do well in 2020.

For February, my top stock was Algonquin Power & Utilities. The stock has been rising steadily all year. With a return near 40%, the renewable energy company has beat the TSX by a wide margin. Utilities are always nice to have during uncertain times.

In March, I recommended buying Quebecor. The stock has risen 16.5% year to date, which is close to the TSX. Most of this return has been realized in the last two months. The media conglomerate has low volatility, so this stock could perform better if the market is plunging, which could be the case in 2020.

CannTrust Holdings was my top stock for April. Unfortunately, the stock has plunged by 83%. In July, we learned that CannTrust has been involved in an illegal growth scandal. This kind of event is hard to predict. That’s why it’s important to diversify among stocks and sectors. 

My best stock for May was Fiera Capital, an asset management firm. Its performance for the year isn’t stellar, with a return of 6.6% year to date. However, things have been getting better recently as the return for the last three months is about 9%. The stock is very cheap with a five-year PEG of 0.6. The dividend yield of 7.5% is very interesting for people looking for income.

In June, my top stock was goeasy, a seller and financier of household goods. This stock almost doubled in value since the start of the year. goeasy is a great alternative to banks if you’re looking for a high-growth stock in the financial sector.

I suggested Dollarama in July. The dollar store chain has fared very well, soaring 38.8%. Shoppers are spending more at Dollarama stores, as same-store sales keep beating analysts’ estimates. The retailer expects full-year comparable-store sales growth in the range of 3.5-4.5%.

In August, my best stock was Neptune Wellness Solutions, a wellness and nutrition products company. The stock has returned 12% year to date. Neptune had much bigger losses than analysts expected. The situation should improve next year, as the company is expected to report a profit and a big jump in sales.

Barrick Gold was my top stock for September. The gold stock has performed pretty well, soaring 27% year to date. The world’s second-largest gold miner beat estimates in the third quarter with an adjusted profit of US$0.15 per share vs. a forecast of US$0.12. It has been a good year in general for gold stocks, as the price of gold has risen. Gold is a good hedge against inflation, so it’s good to have some exposure.

My best stock to buy in October was Silvercorp Metals. This silver stock has soared 153% year to date, making it the best-performing stock among my top stocks. With a PEG of only 0.07, I expect the silver producer to perform well in the years to come.

National Bank of Canada was November’s top pick. This bank stock has returned 32% year to date, which is much better than the Big Five banks returns. EPS has beat expectations in the last two quarters, thanks to a booming Quebec economy.

Last but not least, my top stock for December was AutoCanada, an automobile dealership group. The stock has soared almost 23% year to date. Most of this return has been realized in the last three months, as the stock rose 64% over that period. AutoCanada expects its U.S. operations to be profitable in 2020.

This Tiny TSX Stock Could Be the Next Shopify

One little-known Canadian IPO has doubled in value in a matter of months, and renowned Canadian stock picker Iain Butler sees a potential millionaire-maker in waiting...
Because he thinks this fast-growing company looks a lot like Shopify, a stock Iain officially recommended 3 years ago - before it skyrocketed by 1,211%!
Iain and his team just published a detailed report on this tiny TSX stock. Find out how you can access the NEXT Shopify today!

Click here to discover how!

Fool contributor Stephanie Bedard-Chateauneuf owns shares of ALIMENTATION COUCHE-TARD INC, DOLLARAMA INC, and QUEBECOR INC., CL.B, SV. The Motley Fool recommends ALIMENTATION COUCHE-TARD INC and CannTrust Holdings Inc.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.