There is still money to make in the Canadian stock market, despite rising interest rates and inflation. Here are two top TSX stocks to buy in June if you’re looking for growth.
Alimentation Couche-Tard
Convenience store chain Alimentation Couche-Tard (TSX: ATD) sells everything from snacks and groceries to tobacco, alcohol, and fuels for road transportation.
Some of the brands Alimentation Couche-Tard operates include Mac’s, Ingo, Holiday, Couche-Tard, Corner Stone, Circle K, and many more. The company has significantly expanded and diversified its offerings over the years to incorporate additional services such as car washes, ATMs, and bus ticket issuance.
The dividend paid by Couche-Tard is currently quite modest, with a dividend yield of 0.54%. However, it is almost sure that it will increase significantly in the coming years, thanks to the company’s fast growth.
Couche-Tard is currently in the process of acquiring Petro Canada stations and the businesses of British retailer EB Group. Acquiring Petro Canada resources would be an awesome addition for Couche-Tard, which has more than enough cash on the sidelines to make plenty of acquisitions.
Shares are currently trading at 17.7 times earnings, which is pretty good for a company that could double its bottom line in five years.
Couche-Tard has sufficient cash and credit to complete its largest acquisition to date. There are many ways Couche-Tard can use its enviable liquidity position. Plus, many deals on the global stage could help the company achieve its long-term profitability goals.
A few days ago, Couche-Tard earned a consensus rating of “Buy” from the 13 brokerages that currently cover the business. The one-year average target price among analysts who have updated their coverage of the stock in the past year is $58.62.
goeasy
Over the past five years, there has been an emergence in one particular niche industry within the financial sector: alternative lenders. goeasy (TSX: GSY) is of the best Canadian stocks within this niche.
The Canadian small-cap company offers a wide range of loan and leasing services through its easyhome and easyfinancial divisions.
goeasy revenues have grown at a compound annual growth rate of 15.9% since 2011.
The company’s profits are even more impressive. Indeed, net profit since 2001 has grown at a rate of 31% per year.
The company is also increasing its dividend at one of the fastest rates in Canada. The company has an annual dividend-growth rate of 35% over five years. Plus, it has increased its dividends for seven consecutive years, including the most recent increase of 45%.
If you’re looking for top stocks in the financial industry, goeasy is an excellent option. Despite a global pandemic, the stock has consistently provided excellent returns for investors. Indeed, the subprime financial sector looks set to continue growing and expanding over the next few years.
Shares of goeasy recently earned an average recommendation of “buy” from the eight brokerages that cover the company. The average 12-month price target among brokerages that have updated their coverage on the stock over the past year is $196.25.
