Stock prices are relative, although supply and demand often dictate the spikes and dips. Still, the price of a stock generally rises when more people want to buy it. However, some investors are more price-conscious than others and limit their purchases to certain price levels.
Assuming $30 or less is reasonable and not too expensive for you, Heroux-Devtek (TSX:HRX), Gibson Energy (TSX:GEI), and Primo Water (TSX:PRMW) are no-brainer TSX stocks to buy. Although they belong to different sectors, they all outperform and continue to beat the broader market.
Industrial
Heroux-Devtek is among the steadiest in the industrial sector amid a challenging investment landscape. At $25.92 per share, current investors are up 70.53% year to date. Based on market analysts’ 12-month average price target of $30.25, the upside potential is 17%.
The $872.3 million company supplies landing gears in the aerospace market and provides aftermarket products and services. It also repairs and overhauls landing gears, actuation systems, and components. The customer base is in the commercial and defence sectors.
In fiscal 2024 (12 months ending March 31, 2024), consolidated sales rose 15.8% to a record $629.8 million versus fiscal 2023, while net income climbed 178% year over year to $38.3 million. Heroux-Devtek has a solid industry footprint because its programs cover the entire aircraft life cycle.
Growth is also on the horizon due to the return of commercial air traffic, global defence demand, and the expected launch of next-gen defence programs.
Energy
Prospective investors can earn money from Gibson Energy in two ways. At $22.46 per share, the mid-cap energy stock is up 15.58% and pays a lucrative 7.3% dividend. The $3.65 billion liquids infrastructure company operates a +500-kilometre crude pipeline and boasts 25.2 million barrels of storage capacity.
In the first quarter (Q1) of 2024, revenue increased 39% to $3.3 billion compared to Q1 2023, while net income fell 54% year over year to $40.5 million due to higher finance costs and unrealized gains on financial instruments. However, cash flow from operations rose 21% to $195.8 million from a year ago.
Gibson Energy strengthened its cash flows by acquiring the Texas Gulf Coast Export Facility last year (95% of revenue is under take-or-pay contracts). The company has a dividend program and hasn’t missed a quarterly dividend payout since Q1 2014.
Consumer defensive
Primo Water provides water solutions for residential and commercial customers. The $3.37 billion Canadian-American firm delivers bottled water, has over 13,000 water exchange stations, and self-service refill stations for drinking water. At $23.85 per share, investors in this consumer defensive stock enjoy a 44.91% year to date on top of the 1.71% dividend yield.
The latest buzz is that Primo Water will merge with Blue Triton to create a North American pure-play healthy hydration company. In addition to a national footprint and combined delivery platform, the partners expect $200 million in cost synergies.
In Q1 2024, revenue and net income increased 10% and 484% to US$452 million and US$18.7 million versus Q1 2024. However, by the first half of 2025, Primo will likely delist on the TSX post-merger, and the new company will list on the NYSE.
Profitable options
Heroux-Devtek, Gibson Energy, and Primo Water are profitable options if you prefer stocks in the $20-30 price range.
