When this month kicked off, I’d discussed the spike in value enjoyed by Nutrien (TSX: NTR)(NYSE: NTR) stock. The Russia-Ukraine conflict has had a big impact on many sectors around the world. Canadians may need to brace for higher food prices due to the ongoing war. Today, I want to look at three TSX stocks that are worth targeting in this environment.
This top fertilizer company has erupted since late February
Russia and Ukraine are two of the top fertilizer producers on the planet. Both countries moved to suspend their fertilizer production due to the ongoing conflict. Nutrien is a Saskatoon-based company that is a top fertilizer producer in Canada. The disruption in the global fertilizer trade sparked a run for this top Canadian stock. Its shares have now climbed 37% in 2022 as of mid-morning trading on March 18.
In 2021, the company delivered sales growth of 33% to $27.7 billion. Meanwhile, adjusted EBITDA increased 94% to $7.12 billion. Moreover, adjusted net earnings per share were reported at $6.23 — up 246% from the previous year.
This is a TSX stock that Canadian should target in this uncertain environment. Its shares still offer a favourable price-to-earnings (P/E) ratio of 17.
Here’s a TSX stock to snatch up in the grocery retail space
The consequences of the Russia-Ukraine war will reach beyond a disruption in the fertilizer market. Ukraine is often referred to as the “break basket of Europe” due to its role as one of the continent’s premier wheat producers. Experts and analysts now expect that Canadians will feel the pinch of higher food prices in the weeks and months ahead.
Canadian investors should look to snatch up TSX stocks like Loblaw Companies (TSX: L) in this environment. Grocery retailers are set to experience a jump in revenues in this climate, especially as Canadians turn from higher prices at restaurants. Shares of this TSX stock have climbed 8.8% so far in 2022.
In 2021, Loblaw delivered a 36% increase in adjusted diluted net earnings per common share compared to the same period in 2020. Meanwhile, e-commerce sales jumped 13% to $3.1 billion. This TSX stock possesses a favourable P/E ratio of 20 at the time of this writing.
One more TSX stock that offers big income as a grocery-focused REIT
Slate Grocery REIT (TSX: SGR.U) is the last food-focused TSX stock I’d look to snatch up as we approach the final weeks of March. I’d suggested that investors target this real estate investment trust (REIT) back in October 2021. This REIT owns and operates grocery retail locations in North America. Its shares have increased 12% so far this year.
The REIT unveiled its final batch of 2021 earnings on February 23. Slate Grocery REIT bolstered its exposure to leading omnichannel grocers in metropolitan areas like New York and Texas throughout the previous year. Shares of this TSX stock are up 34% from the prior year. It offers a monthly distribution of $0.072 per share. That represents a tasty 6.7% yield.
