A lot has changed over the last five years. We’ve gone from a bull market to a bear market to a pandemic to another bull market, and now we’re deep inside a bear market. But things look like there might be some improvements. Even so, it’s unclear when the bear market might come to an end.
Today, I’m going to focus on two stocks that could beat a bear market.
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Dollarama
First up, Dollarama (TSX:DOL) continues to be a strong investment for those wanting to beat out a bear market. The company has long been a provider of low-cost options, which Canadians flock to during these downturns. This has allowed the company to see improvements, even in the darkest times of this bear market.
However, recently, the company stated it would have to increase its costs from inflation and pass that on to the consumer. Even still, Dollarama stock remained confident that it will continue to see growth, even in a bull market.
After all, Dollarama stock has a few items at its disposal. During a downturn, we see consumers come. Then, they tend to stay when they see the household names from the brands they carry. Further, in a bull market, they have more cash to spend, seeing an increase in sales from this.
But beyond that, Dollarama stock has been going global. The company purchased Latin American low-cost retailer Dollarcity and has seen great success. With a rumour it could purchase another chain in Australia, there is a lot of growth coming the company’s way, even with shares already up 21% year to date.
Magna stock
A company that could beat a bear market and see major growth in the near future is Magna International (TSX:MG). In fact, Magna stock has been climbing higher and higher, as it finally sees improvements in supply-chain disruptions.
The automobile industry has been struggling to get back to normal after the pandemic. There was a massive decrease in new vehicles produced, with even used cars seeing an increase in price from high demand. Now, the company is getting back to normal. And so is its share price.
In fact, analysts have been quite bullish about the future of Magna stock. The company continues to make partnerships to provide parts for more and more products. Whether it’s electronic components or recyclable foam seating, the company has it all. It continues to partner with some of the largest dealers in the world to get its items out there.
After strong earnings results and more predictions for the future, there looks to be a lot of value in Magna stock. Shares are still down 6% year to date, as of writing, trading at just 15.96 times earnings. Further, you can grab a juicy 3.37% dividend yield as of writing. I would certainly consider this stock as it continues to climb higher and is already up 18% within the last month alone.
