Market observers expect Canadian stocks to gain momentum in the third quarter if inflation cools further and the Bank of Canada implements a second rate cut. Meanwhile, you can purchase two winning stocks with $10,000.
Propel Holdings (TSX: PRL) and Kinross Gold (TSX: K) are must-buy stocks this July. The fintech (+86.31%) and gold miner (+45.25%) continue to deliver solid gains and have market-beating returns thus far in 2024.
Record quarterly results
Propel Holdings in the financial services sector outperforms Canada’s big bank stocks. This $819.5 million financial technology company, through its proprietary and artificial intelligence (AI) powered online lending platform, caters to underserved customers in North America. Banks or traditional lenders overlook, if not deny, these people access to credit.
“We have had an exceptionally strong start to the year and are proud to deliver another quarter of record results,” said Clive Kinross, chief executive officer (CEO) of Propel. In the three months ending March 31, 2024, revenue rose 47% year over year to US$96.5 million. Net income climbed 77% to US$13.1 million, notwithstanding the 36.1% increase in the provision for credit losses (PCL) to US$42.4 million from a year ago.
It was Propel’s strongest first quarter in history. Other financial highlights include year-over-year increases in adjusted EBITDA (73%) and Combined Loan and Advance Balances (41%) to US$29.5 million and US$349.2 million, respectively. The board approved a 14% hike over the fourth-quarter (Q4) 2023 dividend.
According to Kinross, the credit performance across the loan portfolio was strong. He also cited the very strong demand and originated record volume during the quarter. Moreover, he said the robust results show the economic health and resilience of the underserved consumer, particularly across the border.
“Looking ahead, we remain confident for the remainder of the year. There is much more to come,” said Kinross. He believes that Propel is well-positioned to serve its clients in North America and globally because the fintech is well-capitalized, has a robust development pipeline, and an industry-leading technology. At $23.87 per share, PRL also pays a modest 2.18% dividend.
A gold mine
As of July 5, 2024. the Basic Materials sector (+17.1%), where mining stocks belong, is the top-performing sector. At $11.54 per share, Kinross Gold is up +45.25% year to date, and investors partake in the 1.43% dividend. This $14.2 billion gold and silver mining company operates mines in Canada and host countries Brazil, Chile, Mauritania, and the United States.
The centrepiece is the Great Bear Project in Red Lake, Ontario. Kinross acquired the world-class project in February 2022. The long-life mine complex boosts the long-term production outlook.
In Q1 2024, total production increased 13.2% to 527,399 gold equivalent ounces versus Q1 2023, while net earnings and attributable free cash flow (FCF) rose 18.6% and 204% year over year to US$107 million and US$145.3 million, respectively.
J. Paul Rollinson, CEO of Kinross, said, “Our portfolio of mines performed well, driven by strong operational performance, disciplined cost management and higher gold prices. With the strong sustained gold price, we will continue to prioritize our financial discipline and operational excellence.” Kinross trades at $11.54 per share with a 1.43% dividend.
Profitable combination
An equal allocation ($5,000 each) in Propel Holdings and Kinross forms a profitable combination. You can earn money in two ways: through capital gains and dividends.
