2 TSX Stocks With Market-Beating Potential

These TSX stocks have jumped in the double digits this last month, so what’s going on and should you buy today?

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The stock market hasn’t been the best place to look these days. While the TSX seemed to be recovering, a recent slide continues as I’m writing. While the TSX is down 7.7% year to date, which is an improvement from earlier in the year, it has slidden by 4% since the beginning of December.

But just because the TSX is down, doesn’t mean all TSX stocks are down. In fact, there are three that continue to climb even today. So let’s look at the biggest winners of the last month.

Parkland

Parkland (TSX:PKI) shares are up 17% in the last month alone. This stock jump was driven in part by the company producing estimate-beating results in its most recent earnings report. This report came with an increase to their 2023 guidance.

Parkland stock is now one of the TSX stocks doing well even while others fall around it. Management announced adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) guidance of between $1.7 and $1.8 billion for 2023. Further, it aims for adjusted EBITDA of $2 billion by 2025, even without acquisitions.

The food and convenience operator trades near value territory at 17.9 times earnings, and offers a dividend yield of 4.16% as of writing. So you can certainly count Parkland stock as a winner among your TSX stocks right now.

George Weston

Another of the TSX stocks continuing to do well in the last month is George Weston (TSX:WN), with shares up 15.3% in the last month alone. This boost was likewise driven by a quarter that beat out analyst estimates for the food and drug retailer.

Revenue for the quarter came in up 8.2% year over year to $17.5 billion, with net income up a whopping 279% to $903 million! Further, its earnings per share exploded to $6.20, up 288% from the year before.

Yet in this market, George Weston stock is certainly a steal trading at 11 times earnings, and a 1.49% dividend yield as of writing. Furthermore, WN remains well below analyst estimates, providing you with strong returns in the near future.

BRP

Finally, BRP (TSX:DOO) is another of the strong TSX stocks in the last month investors should consider, with shares up 14%. The reason? You guessed it, another quarter of stellar earnings. In fact, in the case of the maker of the famous Ski-Doo and other leisure vehicles, it’s seriously strengthening its balance sheet.

BRP stock announced a US$500 million term loan from lenders, which will be used to strengthen its balance sheet. During the earnings report, revenue jumped 71% year over year to $2.7 billion, with net income up 11% reaching $141.2 million for the quarter.

And again, BRP stock falls within value territory among TSX stocks. It currently trades at 12.1 times earnings and offers a small but existent 0.61% dividend yield. With a potential upside of 26% as of writing, it’s definitely one to consider.

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 Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends BRP. The Motley Fool has a disclosure policy.

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