3 TSX Stocks That Are Actually Beating the Market

Dependable TSX stocks like Hydro One Ltd. (TSX:H) and Loblaw Companies Ltd. (TSX:L) have beaten the TSX in a harsh 2022.

| More on:
A worker gives a business presentation.

Source: Getty Images

The S&P/TSX Composite Index has been throttled in recent weeks. It suffered a triple-digit loss in four out of the five trading sessions in the prior week. No one sector was spared from the carnage that has wreaked havoc on portfolios. Meanwhile, it does not appear that the Bank of Canada (BoC) is set to reverse course on its rate-tightening path any time soon. Today, I want to zero in on three TSX stocks that have managed to beat this choppy market.

This grocery retail giant has managed to beat the Canadian market so far in 2022

Grocery retailers have been one of the most dependable equities since the beginning of the COVID-19 health crisis in early 2020. Food price increases have been one of the key drivers of inflation since the beginning of 2022. These conditions have crushed Canadian consumers, but grocery retailers have raked in monster profits.

Loblaw Companies (TSX:L) is the largest grocery retailer in Canada. It owns and operates top chains like Fortinos, No Frills, Freshmart, and others. Shares of this TSX stock have climbed 9.8% in 2022 as of early afternoon trading on September 26. The stock is up 33% in the year-over-year period.

The company released its second quarter (Q2) fiscal 2022 results on July 27. It delivered retail segment sales growth of 2.8% to $12.6 billion. Meanwhile, adjusted net earnings per common share jumped 25% to $1.69. This stock possesses a favourable price-to-earnings (P/E) ratio of 19. Moreover, it offers a quarterly dividend of $0.405 per share. That represents a modest 1.4% yield.

Here’s a TSX stock in the utility space that is holding strong

Utilities have proven to be another dependable hold in the beginning of this uncertain decade. Hydro One (TSX:H) is the top utility in the province of Ontario. Its shares have climbed 4.8% so far in 2022. The stock is up 13% compared to the same period in 2021.

In Q2 2022, this company delivered basic earnings per share (EPS) growth of 7.5% to $0.43. Meanwhile, it has posted capital investments and in-service additions for the second quarter of $612 million and $547 million. That is up from $553 million and $300 million in the prior year. Hydro One is betting big on its growth, and investors should feel confident in its future.

Hydro One has delivered dividend increases in every year since its inception on the TSX. It is currently trading in attractive value territory with a P/E ratio of 20. Meanwhile, it offers a quarterly dividend of $0.28 per share, which represents a 3.2% yield.

One more TSX stock that is beating the main index in the year-to-date period

Metro (TSX:MRU) is another top grocery retailer that is worth targeting in this choppy market. This TSX stock has climbed 4.4% in the year-to-date period. Its shares are up 16% from the previous year.

Investors got to see Metro’s third-quarter fiscal 2022 earnings on August 10. It posted sales growth of 2.5% to $5.86 billion. Moreover, adjusted net earnings climbed 8.7% to $283 million. This TSX stock last had a P/E ratio of 19. It offers a quarterly dividend of $0.275 per share. That represents a modest 1.5% yield.

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 Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Investing

retirees and finances
Stocks for Beginners

TFSA Investors: 3 Solid Stock Ideas for Your $6,500 Limit in 2023

Here are three potential long-term winners for TFSA investors.

Read more »

oil and gas pipeline
Energy Stocks

Should You Be Buying Liquefied Natural Gas Stocks Right Now?

Here's why Tourmaline Oil (TSX:TOU) is one of the top natural gas stocks long-term investors should consider buying in this…

Read more »

Man considering whether to sell or buy
Stocks for Beginners

December 2022: Is it Better to Pull Your Money Out of the Stock Market or Keep Investing for Now?

Time in the market always beats timing the market. Diversify and stay the course.

Read more »

sad concerned deep in thought
Bank Stocks

Scotiabank Stock Rose 5.6% in November: Is it a Buy Today?

Scotiabank (TSX:BNS) stock had a strong performance in November. Investors should look to buy this bank stock after earnings.

Read more »

Canadian Dollars
Dividend Stocks

How I’d invest $1,000 in December to Make Easy Passive Income

These BMO covered call ETFs are great for generating passive income.

Read more »

Couple relaxing on a beach in front of a sunset
Energy Stocks

3 CPP Changes Coming in 2023 – What to Invest Your Accounts In

CPP premiums are increasing next year. You can lower your overall tax burden by holding stocks like Enbridge Inc (TSX:ENB)(NYin…

Read more »

A worker drinks out of a mug in an office.
Bank Stocks

3 Cheap Financial Stocks to Buy Now and Never Sell

Financial stocks, specifically bank stocks, are solid choices for long-term income both from growth and dividends.

Read more »

grow dividends

3 Small-Cap Stocks to Buy Before the Market Rebounds

Given their high-growth prospects and cheaper valuation, these three small-cap stocks look attractive at these levels.

Read more »