3 Red-Hot TSX Stocks to Own This Summer

Canadian investors who are on the hunt for growth this summer should look to red-hot TSX stocks like Maple Leaf Foods Inc. (TSX:MFI) and others.

| More on:
Index funds

Image source: Getty Images

The S&P/TSX Composite Index dropped 103 points on Thursday, August 24. Unfortunately, the only sector to finish the day in the black was the S&P/TSX Capped Communication Services Index. Some of the worst-performing sectors included health care, base metals, and the battery metals space. Markets have been choppy, but there are still strong TSX stocks that are worth targeting.

Today, I want to target three red-hot TSX stocks that are worth snatching up before we close the book on the 2023 summer season.

Here’s the first red-hot TSX stock I’d snatch up before September

Maple Leaf Foods (TSX:MFI) is a Mississauga-based company that produces food products in the United States, Canada, China, Japan, and around the world. Shares of this TSX stock have increased 6.1% month over month as of close on Thursday, August 24. The stock has now climbed 16% so far in 2023. Investors can see more of its recent performance with the interactive price chart below.

This company released its second quarter (Q2) fiscal 2023 earnings on August 3. Maple Leaf reported total sales of $1.26 billion in Q2 — up 6.2% compared to the prior year. Meanwhile, the company’s Meat Protein Group posted sales growth of 6.6% to $1.23 billion. The Plant Protein Group delivered sales of $36.7 million. Better yet, the Plant Protein Group’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) improved by 61% to a loss of $11.6 million.

Shares of this TSX stock are trading in very favourable value territory compared to its industry peers at the time of this writing. The stock also offers a quarterly dividend of $0.21 per share. That represents a 2.8% yield.

This stock offers a shot at growth and some income in 2023

Badger Infrastructure (TSX:BDGI) is the second TSX stock I’d look to snatch up right now. This Calgary-based company provides non-destructive excavating and related services in Canada and the United States. Its shares have shot up 26% in the year-to-date period at the time of this writing.

In Q2 2023, Badger Infrastructure delivered revenue growth of 19% to $171 million. Meanwhile, gross profit jumped 40% year over year to $50.1 million. The company reported adjusted EBITDA of $39.2 million — up 51% compared to Q2 2022.

This TSX stock currently possesses an attractive price-to-earnings (P/E) ratio of 26. Moreover, Badger offers a quarterly distribution of $0.172 per share, which represents a modest 2% yield.

One more TSX stock I’d buy in the late-summer season

Great-West Lifeco (TSX:GWO) is the third and final red-hot TSX stock I’d look to snatch up before September 2023. This Winnipeg-based company is engaged in the life and health insurance, retirement and investment services, asset management, and reinsurance businesses in Canada, the United States, and Europe. This TSX stock has climbed 21% so far in 2023.

This company released its Q2 2023 results on August 8. Great-West reported base earnings of $920 million or $0.99 per share — up marginally from $903 million, or $0.97, in the previous year. Moreover, base earnings in the first six months of fiscal 2023 rose to $1.74 billion, or $1.87 per share, compared to $1.61 billion, or $1.73 per share, in the first half of fiscal 2022.

Shares of this TSX stock currently possess an attractive P/E ratio of 12. Meanwhile, it offers a quarterly dividend of $0.52 per share, representing a strong 5.4% 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

stock research, analyze data
Dividend Stocks

How Much to Invest to Get $500 in Dividends Every Month

TSX dividend stocks such as Enbridge, TD Bank, and Telus, can help you earn $500 in monthly dividend payments.

Read more »

A solar cell panel generates power in a country mountain landscape.
Energy Stocks

Clean Energy Play: Is Brookfield Renewable a Good Stock for a TFSA?

Add this top renewable energy stock to your self-directed TFSA portfolio for significant long-term and tax-free wealth growth.

Read more »

Golden crown on a red velvet background
Dividend Stocks

Dividend Powerhouses: Canadian Stocks to Fuel Your Portfolio

These two top Canadian dividend aristocrats are some of the top stocks on the TSX to buy now and hold…

Read more »

Dial moving from 4G to 5G
Dividend Stocks

This Undervalued Dividend Stock is Worth Buying Right Now

Want an undervalued dividend stock with long-term potential and a juicy yield? Here's an option you may regret not buying…

Read more »

A worker gives a business presentation.
Dividend Stocks

1 Stock I’m Buying Hand Over Fist in July Despite the Market’s Pessimism

This top dividend stock is going through a rough patch, but don't let that count out all the growth we've…

Read more »

financial freedom sign
Investing

2 Stocks With Millionaire-Maker Potential

These two top Canadian stocks are among the best on the TSX, and each has the potential to be millionaire-maker…

Read more »

Piggy bank next to a financial report
Stocks for Beginners

Is It Finally the Right Time to Buy Bank Stocks?

Canadian bank stocks are some of the most secure investments out there, but of them all, this bank stock is…

Read more »

clock time
Investing

3 Blue-Chip Stocks Every Canadian Should Own

Want some reliable blue-chip Canadian stocks to buy and hold for the next 10 years? These three stocks are worth…

Read more »