November of this year was a huge month. While we didn’t see the TSX today hit 52-week highs, we saw a major rally — one that was sustained and continues to climb, even today. With interest rate hikes looking like they’re behind us, inflation cool across North America, and continued investor interest, we saw many climbing TSX stocks.
But which were the best of the best? And, more importantly, are they still buys?
Perhaps it comes as no surprise that Shopify (TSX:SHOP) stock increased the most in November 2023. Shopify stock was able to put out both its earnings report this month as well as its results from Black Friday-Cyber Monday sales. And both were very positive.
Shopify stock hit a record US$9.3 billion in sales by its merchants over this weekend. That included incredible use of its Shopify Payments platform. Furthermore, its earnings saw major improvements as well. The company revenue rose 25% year over year, with gross profit also up 36% in that time.
This showed that the company made the right call when deciding to cut out its logistics business and that its focus back on e-commerce is paying off. Sure, shares are now passing $100 per share, but it looks like that could only be the beginning, with shares up 55% in the last month alone.
Another payment operator that saw major growth is Nuvei (TSX:NVEI). Nuvei and its point-of-sale system also saw great growth during the last month. This also was connected to Nuvei stock and its growth in earnings. The company saw total volume increase by a whopping 72% to US$48.2 billion from US$28 billion the year before. Revenue also increased by 55% to US$304.9 million, with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) up 36% as well.
There was a net loss for the quarter at US$18.1 million compared to a $13 million profit the year before. However, this was marked as being related to foreign currency exchanges of US$25.6 million, so this issue should correct itself as the market and economies improve.
What’s more, Nuvei stock continues to buy back a lot of shares. This led to investors believing perhaps management knew something they didn’t. Therefore, shares surged upwards as well, with the stock seeing a climb of 47% in the last month.
Finally, Gildan Activewear (TSX:GIL) also saw a nice boost after its earnings report came out this month. This came as the company continued to strengthen their financial position, beating earnings estimates once again.
Net sales increased 2% year over year to US$870 million, with the company’s cash flow from operations up to US$305 million as well. Gildan stock also returned US$113 million to shareholders through dividends and share repurchases.
The company has decreased its 2023 guidance to the lower end of its revenue and earnings per share ranges. However, it does continue to expect its free cash flow to generate above US$425 million. This seemed enough to remain positive about the future in a very challenging retail environment. So, now, with shares up 29% in the last month, you can grab a sweet 2.1% dividend yield — one that looks like it may drop as shares continue to improve.