With broader markets experiencing a bit of weakness, with the TSX Index plunging around 1.3% on Tuesday’s turbulent session of trade, investors may have a chance to snag a few shares of wonderful companies on the cheap. Indeed, there’s no telling when this latest selloff (if you can even call it that, with the TSX Index off just shy of 3%) will conclude.
Regardless, I’d argue that there’s no guarantee that the value plays on your radar will be around in a week or month from now. In any case, long-term investors (those who plan to invest for years rather than months at a time) should treat the April season of volatility as nothing more than a chance to revisit the intriguing TSX stocks on your buy watchlist.
Let’s check out two that I view as currently sporting magnificent entry points for investors seeking to buy and hold for the next 12 years or more.
Restaurant Brands International
Restaurant Brands International (TSX:QSR) recently reported some sensational quarterly earnings results that helped keep its stock well in the green on what was a big red day for the TSX Index as well as the U.S. markets. For Tuesday, shares ended the day up more than 3.5%. The impressive gains were on the back of a massive 18% profit, as demand for its quick-serve restaurant offerings surged.
Indeed, Restaurant Brands, the firm behind such names as Tim Hortons, Burger King, Popeyes Louisiana Kitchen, and Firehouse Subs, seems to have been bucking the trend in the fast-food scene of late. Undoubtedly, lower-income consumers seemed to have ditched many fast-food firms in favour of eating at home amid rising prices.
While Restaurant Brands’s peers may have taken a bit of a hit, it’s clear that there’s more to the story than many of us may have realized. After the solid first-quarter showing by QSR, I believe Restaurant Brands is positioning itself to take a share, perhaps a big share, away from some of its competitors. With that, management deserves a round of applause.
Whether inflation bites as hard for future quarters, I think QSR can continue expanding and making the most of the uptick in demand. It’s a winner that could very well keep on winning for the rest of the year. The stock boasts a nice 3.11% dividend yield and appears to be on the comeback after suffering a swift correction back in March.
My take? New highs could be up ahead, so treat any weakness as an opportunity to buy.
Alimentation Couche-Tard
Alimentation Couche-Tard (TSX:ATD) is back below $77 per share after the latest slip, which I view as completely overdone. Couche-Tard is one of the names you can comfortably hold in your portfolio for the next 12 years or so. It’s faced turbulent times every so often, only to skyrocket on the back of solid earnings and revenue growth.
Indeed, mergers and acquisitions have been the name of the game in the past. Nowadays, it’s more about balancing organic and inorganic growth to keep the needle moving higher. With robust cash flows and enough cash on hand to make a splash in the near future, I’d keep ATD stock on my radar right here.
