The Motley Fool

Earnings Season: 2 Top Canadian Stocks to Watch This Week

Gold bars
Image source: Getty Images

Each time earnings season rolls around, it’s crucial to take notice. Not only is it important to get an update into how the businesses you own and those you’re watching have been doing over the last few months, but it’s also a time of the year where even the top Canadian stocks can get quite volatile.

If several companies miss earnings or lower their future guidance, it can cause a selloff across the broader market.

This makes it even more important that you know how your investments are performing so you can take advantage of the volatility.

So with that in mind, here are two of the top Canadian stocks to watch that are reporting earnings this week.

A top Canadian telecom stock

One of the biggest blue-chips in Canada and a top stock for dividend investors is BCE (TSX:BCE)(NYSE:BCE).

BCE is one of the top core Canadian stocks for your portfolio. The massive telecom stock reports earnings on Thursday, and it will be interesting to get a look into how it’s been progressing the last few months.

The top Canadian telecom stock wasn’t impacted very severely by the pandemic. However, it wasn’t immune either. With so many Canadians stuck at home over the last year, revenue from the mobile segment has been impacted.

And while learning how its operations have been recovering will be important, getting an update from management on the outlook of the business and the growth strategy going forward will be key.

With the introduction of 5G technology, these next few years will be crucial for telecom stocks’ long-term growth potential. BCE even elected to continue with its capital plan through the pandemic in an attempt to get a leg up on its competitors.

Billions have been spent lately on Canadian wireless spectrum auctions. So getting an update on BCE’s growth of operations as well as the growth of its dividend will be crucial for investors going forward.

A top Canadian gold miner

There are plenty of high-quality gold stocks trading cheap these days, making them worth an investment. One of the cheapest stocks, though, has to be B2Gold (TSX:BTO)(NYSEMKT:BTG).

B2Gold is one of the top Canadian value stocks because although gold prices have been selling off lately, its robust operations can keep its margins strong.

The company reports earnings Wednesday after the market closes with a conference call Thursday morning. This will be crucial to get an update on its operations and profitability.

One of the reasons gold stocks across the board have gotten so cheap lately is due to the fall in gold prices throughout the year. Investors know that as the price falls, profitability will be impacted.

Right now, B2Gold has a trailing price to earnings ratio of just 6.8 times and a forward price to earnings ratio of 8.9 times. Both are extremely cheap, but a higher forward price to earnings ratio means that analysts expect the stock to earn less this year than it did in 2020.

This is why it’s crucial to watch for B2Gold’s earnings results. For a top Canadian gold stock like B2Gold with low-cost operations, this profitability will likely be less impacted. So it will be paramount to get an idea of exactly how cheap this cash cow is trading today.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Daniel Da Costa owns shares of B2GOLD CORP. and BCE INC. The Motley Fool has no position in any of the stocks mentioned.

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.