Are you looking for great stocks to buy? Aritzia (TSX:ATZ), Intact Financial (TSX:IFC), and MTY Food Group (TSX:MTY) are three top Canadian stocks to buy in November.
Aritzia
This Vancouver-based company designs and sells women’s clothing and accessories in Canada and the United States.
Aritzia reported strong third-quarter results. It reported net sales of $350 million in the quarter, up 75% from the previous year. Aritzia was fuelled by strong momentum in all regions and all channels. The company recorded a huge quarter in the United States. Meanwhile, Aritzia’s e-commerce revenue grew 49%. Retail revenue increased 95% while same-store sales rose 60%, exceeding pre-pandemic levels. Earnings per share were $0.39, compared to $0.01 a year earlier.
Not only did Aritzia surpass expectations, but the Vancouver-based merchant also raised its 2022 revenue forecast by 8% to a range of $1.25-$1.3 billion. This represents an increase of 45% to 50% compared to 2021.
The strong performance during the pandemic and reopening saw Aritzia realize the potential of its brand in the United States which provides it with 44% of revenue, even before stores in Las Vegas, Memphis, and Miami are scheduled to open in the second half of 2022.
The company has a fantastic track record and is on track for promising earnings growth going forward. This is one of the best Canadian growth stocks to buy now.
Intact Financial
Relatively few insurance stocks are worth buying for their prospects for capital growth, but Intact Financial is one of them. It is the largest property and casualty insurance company in the country and covers around 21% of the market.
It also has an international presence, particularly in the U.S. the U.K., and Ireland. In the last quarter, the company experienced strong growth in the U.S. and Canadian business sectors.
Intact is a financially stable company with a very strong presence and offers constant growth. Its current dividend yield is almost 2%.
In the second quarter, earnings per share increased 106% year-over-year to $3.59, driven by strong operating results. Net operating income per share increased 39% to $3.26 thanks to strong technical performance and distribution results. The average estimate of earnings per share and net operating income per share for the quarter among analysts following the company was $1.86 and $2.37, respectively.
Premiums increased 29%, supported by the acquisition of RSA and the strength of commercial insurance in Canada and the United States. The company ended the quarter in a strong financial position, with a total capital margin of $2.6 billion.
MTY Food
MTY Food Group owns more than 80 restaurant brands, including Thai Express, Tiki-Ming, and Tutti Frutti. The company reported higher sales and profits in the third quarter amid rebounding customer traffic at the company’s restaurants.
The positive results came despite persistent supply chain problems, labour shortages, and temporary restaurant closures due to the COVID pandemic. 19.
MTY reported a third-quarter profit of $ 24.3 million, up from $ 22.9 million a year ago. Earnings were $0.98 per diluted share for the quarter ended August 31, down from $0.93 per diluted share a year earlier.
Revenue totalled $150.8 million, up from $135.4 million a year ago.
System sales in Canada increased by 29%, while system-wide sales in all markets were up 13%.
The franchisor and restaurant operator restored its quarterly dividend in the quarter with a payment of $0.19 per share on August 13.
MTY Food announced a few days ago that one of its wholly-owned subsidiaries has reached an agreement to acquire the assets of Küto Comptoir à Tartares, a growing chain of tartare restaurants.
The Küto network currently has 31 points of sale, all franchised and located in Quebec. Thirteen of these locations have opened in the past 12 months.
On an annualized basis, network system sales are between $20 million and $25 million.
Eric Lefebvre, CEO of MTY, said that Küto offers significant growth potential for the years to come.
