The S&P 500/TSX Composite Index could bounce back this month following one of its worst slumps in recent years. Besides dropping to its lowest level over a year ago on October 3, 2023, the index posted its longest losing streak (seven days) in five years on October 27, 2023. The overall loss for the month was 3.4%.
However, as of November 10, 2023, the index has gained 781 points (4.1%) since the start of the month. The good news is that investors can quickly identify the best buys. Alimentation Couche-Tard (TSX:ATD), Kinross Gold (TSX:K), or Crescent Point Energy (TSX:CPG) are the TSX stocks every Canadian should own in November 2023.
Convenience store champion
Alimentation Couche-Tard’s defensive qualities are on full display amid a challenging operating environment. At $78.65 per share, current investors enjoy a 33% year-to-date gain on top of a 0.71% dividend. The global leader in the convenience store sector is continually growing its footprint.
Couche-Tard is the flagship, although Circle K and Ingo brands are equally popular in their markets. The $76 billion multinational company is on track to close a game-changing transaction by the end of December 2023. It will acquire 100% of TotalEnergies retail assets in Germany and the Netherlands, and obtain a 60% controlling interest in the Belgium and Luxembourg entities.
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Couche-Tard grew its presence recently in the Southern U.S. after purchasing MAPCO Express’ 112 fuel and convenience retail sites, logistics fleet, and a surplus property. Management launched the “10 for the Win” strategy last month. The goal is to grow EBITDA by 72.4% from US$5.8 billion in full-year 2023 to US$10 billion in EBITDA by full-year 2028.
Shining precious metals stock
The materials sector is the worst performer among the 11 primary sectors thus far, but Kinross Gold continues to outperform. Besides the 32.3% market-beating return year-to-date, the mining stock pays a decent 2.31% dividend. The $8.8 billion senior gold mining company has operating mines and projects in Canada, Brazil, Chile, Mauritania, and the United States.
In the first nine months of 2023, metals sales increased 31.3% year over year to US$3.1 billion, while total gold production rose 18% to 1,606,507 ounces from a year ago. Notably, net earnings and net cash flow from operating activities climbed 154.5% and 126.1% to US$350.9 million and US$1.19 billion, respectively, compared to the same period in 2022.
Its President and CEO, Paul Rollinson, said it has been a great nine months for Kinross, given its solid production profile and significant cash flow. He adds that Kinross is well positioned to meet its annual guidance due to the robust performance year-to-date.
Recently, energy stocks have dominated trading activities, with Crescent Point Energy among the volume leaders. The stock is up 4.8% ($9.75 per share) and pays an attractive 4.09% dividend. This $3.7 billion company operates in southern Saskatchewan and central Alberta, producing light oil.
Crescent Point is now Canada’s seventh-largest oil and gas exploration and production company by volume due to two blockbuster deals in 2023. It will become the dominant player in the prodigious Montney play by acquiring Hammerhead Energy.
Couche-Tard is a no-brainer buy, but Kinross and Crescent Point are the best options if you want exposure to the mining and energy sectors.