The S&P/TSX Composite Index shed 87 points to close out the month on September 30. Canada’s industrials sector suffered the steepest decline. Only the energy sector was able to scrounge together a day in the green. Investors will be hoping for a better start to October, as volatility hit hard to open the new fall season. Today, I want to look at two hot TSX stocks that have defied the shaky market. I’m looking to stash these promising equities going forward. Let’s jump in.
It’s not too late to jump on Jamieson Wellness
Jamieson Wellness (TSX:JWEL) is a Toronto-based company that develops, manufactures, distributes, and sells natural health products in Canada and around the world. Shares of Jamieson dropped 1.8% on September 30. This TSX stock is still up 2.5% month over month.
Back in August, I’d explained why Jamieson Wellness was my top TSX stock for the rest of the year. The company unveiled its second-quarter 2021 results on August 6. It delivered revenue growth of 18.6% to $110 million. Jamieson’s branded revenue increased 11% due to improved demand from its consumer base. The COVID-19 pandemic has had a big impact on health conscientiousness, especially among older demographics. This should provide a boost to Jamieson and its peers going forward.
The company reported earnings from operations growth of 50.3% to $16.0 million. Moreover, its operating margin jumped 300 basis points to 14.5%. Nutrition and supplements products have seen soaring demand, as an aging population in the developed world looks for ways to improve their health. This is a trend that will underpin Jamieson’s performance going forward.
This TSX stock last had a price-to-earnings (P/E) ratio of 33. That puts Jamieson in favourable value territory relative to its industry peers. Moreover, it offers a quarterly dividend of $0.15, which represents a modest 1.6% yield.
This red-hot TSX stock is worth a look in October
Energy stocks managed to reward investors in yesterday’s tough trading session. Few stocks performed as well as Vermilion Energy (TSX:VET)(NYSE:VET). This Calgary-based company is engaged in the acquisition, exploration, development, and production of petroleum and natural gas in North America and around the world. Shares of this energy focused TSX stock have soared 50% month over month. I’d suggested that investors snatch up shares of Vermilion in late August.
Vermilion has been on a roll since the release of its second-quarter 2021 results on August 16. In that quarter, the company reported funds flow from operations (FFO) of $173 million — up 7% from the previous quarter. Like its peers, Vermilion has benefited from rebounding oil and gas prices in the late summer.
Previously, this TSX stock attracted investors for its consistent cash flow that supported a reliable dividend payout. The COVID-19 pandemic forced Vermilion to suspend its dividend in 2020. Its recent success should spur hope for a return to its dividend-paying ways. Meanwhile, the TSX stock possesses a very attractive P/E ratio of 2.4. Vermilion still has room to run as we open the month of October.