The first quarter of 2020 is nearly over, and as the markets are starting to turn bearish, it’s time for investors to turn their attention to stocks that can provide a bit more stability. The three stocks listed below have earnings coming up this month and could be attractive buys, not just for March but the long term as well.
Park Lawn (TSX: PLC) has its year-end earnings coming up in March, and a good showing could give the stock a boost. Park Lawn’s share price is down in recent weeks, and it could be an opportune time to buy the stock on a dip.
The funeral home operator and deathcare services provider is one of the more stable, consistent long-term buys that investors can hold today. While the markets may be struggling, the stock averages a beta of around 0.4, indicating that it doesn’t normally move in unison with the markets.
It also provides investors with a modest dividend of 1.7% per yea, which can help add to the stock’s gains. And with the company making payouts monthly, investors can benefit from a lot of recurring income coming their way.
In 2019, Park Lawn’s stock rose 27% and outperformed the TSX, which increased by just 19% during the year.
Alimentation Couche-Tard (TSX:ATD.B) will release its third-quarter results in mid-March. The convenience store operator will likely feel some impact from fewer travellers as a result of the coronavirus, but that’s more of a trend that’ll likely occur in the summer. Its stores are not places where there are usually high volumes of people at any given time, and that may make the stock a bit more resistant to the effects of the coronavirus and of people staying home.
Travel is still inevitable for commuters and day-to-day errands, and the company’s convenience stores may actually rise in popularity for people who don’t want to go far or into crowded stores.
Couche-Tard has been a solid growth stock to buy over the years, growing via acquisition and posting solid profits as well. With the stock trading at 18 times earnings, the lower its share price goes amid the bearishness in the markets, the better of a buy Couche-Tard could be, and for the reasons mentioned above, it has the potential to do better than most TSX stocks during this downturn. Its beta value of zero also indicates that the stock may offer investors some protection against the market’s swings.
Savaria (TSX: SIS) provides people with personal mobility products, and demand for items like ceiling lifts, elevators, or wheelchairs isn’t likely to be impacted by coronavirus fears, as it too may be able produce strong quarters in the midst of the market’s struggles. Investors expect the company to release its fourth-quarter results toward the end of the month.
Over its last 10 reporting periods, Savaria has had no trouble staying profitable, and it’s shown good growth over the years as well. In 2018, revenue of $286 million was more than double the $120 million the company generated two years earlier. The stock trades at a forward price-to-earnings multiple of 22, and it too may become a more attractive buy should its price come down before it releases its earnings results, which could show lots of growth.
This is another low-beta stock with a value of of around 0.80. Savaria also pays a monthly dividend, and investors can benefit from a yield of around 3.8% per year.
