The S&P/TSX Capped Financial Index rose just 0.35% on Wednesday, January 24. In this piece, I want to zero in on one of the most exciting financial stocks available on the Toronto Stock Exchange (TSX). That stock is goeasy (TSX:GSY). This Mississauga-based company provides non-prime leasing and lending services under the easyhome, easyfinancial, and LendCare brands to consumers in Canada.

Today, I want to explore three things about goeasy that every smart investor knows, or should know, in the early part of 2024. Let’s jump in.

goeasy has been one of the top growth stocks in the financials space

goeasy has been one of the most explosive growth stocks on the broader TSX, let alone the financial space. That has made it a favourite target of investors who have been on the hunt for big growth in the first half of the 2020s. Shares of goeasy have been quite static in the month-over-month period as of close on January 24. Indeed, the financial stock has moved down marginally over this trading period.

Shares of goeasy have increased 30% year over year as of close on January 24. Moreover, the stock has soared over 300% in a five-year span at the time of this writing. goeasy’s performance was especially impressive during the COVID-19 pandemic. Its stock succumbed to the early 2020 market pullback, falling below the $30 price mark in March. By April 2021, a little over a year later, goeasy stock had climbed above the $130 price point.

What is the reason for its explosive performance? Let’s glance at the company’s earnings.

The company has posted consistently strong earnings for years

Investors can expect to see goeasy’s fourth-quarter (Q4) and full year fiscal 2023 earnings in the middle of February. The company unveiled its Q3 FY2023 earnings back in November 2023. In the quarter, loan originations climbed 13% year over year to $722 million, while the company’s loan portfolio grew 33% to a whopping $3.43 billion. Meanwhile, revenue rose 23% to $322 million.

goeasy’s largest brand, easyfinancial, delivered record revenue of $284 million in Q3 — up 26% over Q3 2022. Moreover, it posted record volume of credit applications and record new customer volume of 42,700. Overall, goeasy has achieved 89 straight quarters of positive net income. It also delivered its 54th consecutive quarter of same-store revenue growth.

Looking ahead, goeasy is in a great position to take advantage of the soaring demand for non-prime leasing and lending. Canadians are living under increased financial pressure due to rising inflation and the highest interest rates in over 15 years.

goeasy is a Dividend Aristocrat

A Canadian Dividend Aristocrat is a stock that has achieved at least five straight years of dividend growth. Five years is not a guarantee of dividend stability, but it does show a solid history for investors to consider. The fact that goeasy is nearing the decade mark in terms of dividend growth speaks to its track record.

goeasy last paid out a quarterly dividend of $0.96 per share. That represents a 2.4% yield. The company has now delivered dividend increases for nine consecutive years. Shares of goeasy currently possess a price-to-earnings ratio of 13, which puts this growth stock in favourable value territory compared to its industry peers.

The post 3 Things About goeasy Stock Every Smart Investor Knows appeared first on The Motley Fool Canada.

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Fool contributor Ambrose O’Callaghan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

This TSX gold stock has been hit hard as the yellow metal flounders

NovaGold Resources (TSX:NG) is a Vancouver-based company that explores for and develops gold mineral properties in the United States. Shares of this gold exploration and mining stock have plunged 21% month over month as of close on January 25. The stock is now down 53% in the year-over-year period. NovaGold stock is now trading a smidgen over its 52-week low at the time of this writing.

The company released its fourth-quarter (Q4) and full-year fiscal 2023 earnings on January 24. NovaGold announced the completion of its 2023 fieldwork, particularly the continuous work at Donlin Gold, which it said “enhances the project’s value and visibility.” Meanwhile, the company’s treasury remains strong, with $126 million in cash and deposits as of November 30, 2023.

NovaGold is currently unprofitable and has generated substantial revenue growth. Indeed, earnings have suffered a deterioration over the past five years. The stock could positively benefit from momentum in the spot price of gold, but there are better gold miners to target for that purpose.

Does Aptose Biosciences still have a future worth betting on?

Aptose Biosciences (TSX:APS) is a Toronto-based clinical-stage biotechnology company; it discovers and develops personalized therapies addressing unmet medical needs in oncology primarily in the United States. This Canadian stock has plunged 24% month over month as of close on January 25. Its shares have plummeted 82% compared to the previous year. Aptose is trading just $0.02 off its 52-week low.

Investors can expect to see this company’s last batch of 2023 earnings in late March. In Q3 of fiscal 2023, the company reported operating expenses of $11.6 million — up from $10.0 million in Q3 fiscal 2022. Its net loss also deepened to ($11.4 million) compared to ($9.77 million). Meanwhile, in the year-to-date period, Aptose Biosciences’s net loss was ($39.2 million) — down from a net loss of ($31.8 million).

This company has also struggled to generate revenue in its hunt for prospects. It does boast a strong balance sheet, but it appears to have a severely limited upside right now.

One more struggling Canadian stock to zero in on right now

Yellow Pages Limited (TSX:Y) is a Montreal-based company that provides digital and print media and marketing solutions in Canada. Shares of Yellow Pages have dipped 1.8% over the past month. The stock has fallen 25% over the past year. Its shares are now trading at its 52-week low of $10.55.

This company is set to unveil its Q4 2023 earnings by the middle of February. In Q3 2023, Yellow Pages delivered revenues of $58.0 million — down from $66.3 million. EBITDA stands for earnings before interest, taxes, depreciation, and amortization; the measure aims to give a clearer picture of a company’s profitability. The company’s adjusted EBITDA came in at $17.9 million — down from $26.3 million.

Shares of this Canadian stock currently possess a very favourable price-to-earnings ratio of 2.9. Yellow Pages also boasts an immaculate balance sheet. This stock appears to have the most promise of the three we have covered today, considering its value and cash position.

The post Is it Time to Buy the TSX’s 3 Worst-Performing Canadian Stocks? appeared first on The Motley Fool Canada.

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Fool contributor Ambrose O’Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends Yellow Pages. The Motley Fool has a disclosure policy.

How has WELL Health stock performed this decade?

Shares of WELL Health have jumped 8.2% month over month as of close on Thursday, January 18, 2024. Meanwhile, the stock has climbed 27% year over year. WELL Health stock has shot up 902% over a five-year period at the time of this writing. There is no denying the explosive potential of this healthcare stock. But is WELL Health’s best days in the past?

Why investors should be excited about the telehealth space

The COVID-19 pandemic shook up the social, political, and economic fabric of Canadian society. Citizens fought to prevent the spread of infection in the early days of the pandemic. Because of this, policymakers urged all non-essential workers to work from home. Not even healthcare workers were spared. Indeed, many doctors and other healthcare professionals needed a way to treat their patients without meeting face to face and risking further spread. Fortunately, telehealth already existed.

Telehealth involves the use of digital information and communication technologies to access healthcare services remotely. Naturally, there are several options for those seeking telehealth in the modern world. Patients can speak to their healthcare provider over the phone or through a video chat. Indeed, the visual over a video chat could aid in making a remote diagnosis. Moreover, patients can send and receive messages through a secure messaging app, email, or a secure file exchange. Some healthcare providers also offer remote monitoring to their patients. This allows healthcare professionals to check up on you at home or at work.

Grand View Research estimated that the global telehealth market was worth US$101 million. That same report projected that this market would grow at a compound annual growth rate (CAGR) of 24%.

WELL Health earnings: A breakdown

Investors can expect to see this company’s fourth-quarter (Q4) and full-year fiscal 2023 earnings in the month of March if the previous year is any indication. In Q3 fiscal 2023, WELL Health achieved record quarterly revenues of $204 million. That was up 40.2% compared to Q3 fiscal 2022. Moreover, the company delivered organic growth of 16%. Patient services revenue was reported at $57.8 million, which was up 27% compared to patient services revenue of $45.5 million in the previous year.

WELL Health delivered adjusted gross profit growth of $94.2 million — up 20.5% compared to Q3 fiscal 2022. EBITDA stands for earnings before interest, taxes, depreciation, and amortization; the measure aims to give a clearer picture of a company’s profitability. This company posted adjusted EBITDA growth of 2.6% to $28.2 million.

The verdict

Shares of WELL Health are trading in favourable value territory compared to its industry peers at the time of this writing. Better yet, the company’s earnings are also on track to deliver very strong growth going forward.

The post Is it Too Late to Buy WELL Health Stock? appeared first on The Motley Fool Canada.

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Fool contributor Ambrose O’Callaghan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

How has Canadian Utilities stock performed over the past two years?

Canadian Utilities stock has increased 0.83% month over month as of close on Wednesday, January 17, 2024. Shares of this top utility stock have plunged 16% year over year at the time of this writing. Utility stocks have been throttled in an environment that has seen the most aggressive interest rate-tightening policy since the beginning of the 2000s. Why have utility stocks struggled?

Should Canadians seek exposure to the utility space right now?

Utility stocks like Canadian Utilities, Fortis, Hydro One, and Emera all performed well over the course of the 2010s. The Great Recession of 2007-2009 spurred the U.S. Federal Reserve and the Bank of Canada (BoC) to drop interest rates to historic lows. Moreover, the U.S. pursued multiple rounds of quantitative easing, a multi-trillion-dollar asset purchasing program that helped significantly prop up valuations in the U.S. stock market.

Meanwhile, utility stocks benefited in this climate as a low-risk alternative for conservative investors. Fixed-income vehicles saw their rate of return plunge to historic lows. Indeed, products like Guaranteed Investment Certificates (GICs), long a darling among the traditional Canadian investor, offered deeply unimpressive savings rates. Utility stocks, however, offered the stability of a blue-chip stock that allowed investors exposure to essential services. These equities also offered superior dividend yields compared to fixed-income vehicles like GICs.

Among utility stocks, Canadian Utilities stock stands in a class of its own.

Canadian Utilities earnings in 2023: A breakdown

Investors can expect to see Canadian Utilities’s fourth-quarter (Q4) and full-year fiscal 2023 earnings in late February or early March. In the third quarter of fiscal 2023, the company delivered adjusted earnings of $87 million — down from $120 million in the previous year. Moreover, adjusted earnings for the first three quarters of fiscal 2023 were reported at $404 million — down from $475 million in the year-to-date period in fiscal 2022.

Canadian Utilities also reported unrealized gains (losses) on mark-to-market forward and swap commodity contracts of $70 million in Q3 2023 — up from an unrealized loss of $17 million in the previous year. In the year-to-date period, Canadian Utilities posted unrealized gains of $138 million compared to a loss of $48 million for the same timespan in the prior year.

Bottom line

We have covered Canadian Utilities’s stock performance, the broader utility space, and its recent earnings, but it has one specific quality that makes it stand taller than any other Canadian stock. Canadian Utilities stock was the very first Dividend King on the Toronto Stock Exchange.

A Dividend King is a stock that has delivered at least 50 consecutive years of dividend growth. In the U.S., some of the most well-known Dividend Kings include Coca-Cola, 3M Company, and Walmart. Canadian Utilities has now hiked its quarterly dividend payout for 51 straight years as of January 2024. This stock currently offers a quarterly dividend of $0.453 per share. That represents a strong 5.7% yield.

Shares of Canadian Utilities stock also possess a favourable price-to-earnings ratio of 14. That puts this stock in very favourable value territory compared to its industry peers. The BoC has signalled that it will pursue several interest rate cuts in 2024. That is a bullish sign for utility stocks. Now could present an opportunity to add Canada’s first Dividend King at great value.

The post Canadian Utilities Stock: Buy, Sell, or Hold? appeared first on The Motley Fool Canada.

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Fool contributor Ambrose O’Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends Emera, Fortis, and Walmart. The Motley Fool has a disclosure policy.

The early part of the 2020s has proven to be promising for Loblaw stock and the company it represents. Should investors expect its good fortune to carry into the next 10 years? Let’s jump in.

How has Loblaw stock performed over the past year?

Loblaw stock has climbed 10% month over month as of close on Tuesday, January 16, 2024. Meanwhile, its shares are now up 12% in the year-over-year period. Better yet, Loblaw stock has soared 108% in a five-year timespan. Typically viewed as a defensive play, Loblaw stock has proven to be a rock-solid hold for investors through stormy and calm waters alike.

Where is the grocery retail business headed in the next decade?

Grocery retailers like Loblaw and its peers have raked in amazing profits as inflation has had a huge impact on rising food prices. Canadians hoping to get a glimpse at how price fluctuations will shake out this year might want to look at the Canada Food Price Report 2024.

This annual report is prepared by Dalhousie University, the University of Guelph, the University of British Columbia, and the University of Saskatchewan. The 2024 Food Price Report forecasts that food prices will increase between 2.5% and 4.5%. Meanwhile, it stated that the average family of four should expect to spend $16,297.20 on food in 2024 — up $701.79 compared to the previous year. The largest category increase was between 5% and 7% in the categories of bakery, meat, and vegetables.

Consumers have become increasingly frustrated with high prices at the grocery store. In the report, Dr. Evan Fraser suggested that policymakers need to take steps to give grocery shoppers more options. However, in the near term, there is little to suggest that any new policies will put a dent in the dominant position Loblaw Companies possesses in the grocery retail space. That bodes well for its prospects over the next decade.

Should investors be pleased with Loblaw Companies’s latest earnings?

Investors can expect to see Loblaw Companies’s fourth-quarter (Q4) and full-year fiscal 2023 earnings in the second half of February. In Q3 FY2023, the company reported revenue of 5% year over year to $18.2 billion. Meanwhile, food retail same-store sales rose by 4.5%, while drug retail same-store sales jumped by 4.6%.

EBITDA stands for earnings before interest, taxes, depreciation, and amortization, aiming to give a better picture of a company’s profitability. In Q3 2023, Loblaw Companies delivered adjusted EBITDA of $1.9 billion — up 7.5% from the prior year. Meanwhile, operating income also increased 7.5% year over year to just over $1 billion.

Conclusion

Shares of Loblaw currently possess a price-to-earnings ratio of 20. That puts this top grocery retail stock in solid value territory compared to its industry peers. Moreover, Loblaw stock last paid out a quarterly dividend of $0.446 per share. That represents a modest 1.3% yield. It has delivered dividend growth for over five straight years, making it a Dividend Aristocrat.

Loblaw stock maintained its strong showing to start this decade on the back of its dominant position in a thriving business. Investors should not expect policymakers to make any significant changes that could negatively impact the company’s bottom line going forward.

The post Where Will Loblaw Stock Be in 10 Years? appeared first on The Motley Fool Canada.

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Fool contributor Ambrose O’Callaghan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Telus (TSX:T) is a Vancouver-based company that provides a range of telecommunications and information technology products and services in Canada. Today, I want to explore how Telus stock has performed over the past year and in the first half of this decade. Moreover, I want to dig into the state of the telecommunications space in Canada and how Telus looks as a prospect in early 2024. Let’s jump in.

How has Telus stock performed over the past year?

Shares of Telus have climbed 3.6% month over month as of close on Monday, January 15, 2024. However, the telecom stock is still down 12% year over year. Telus stock has managed to produce only a marginal gain since it opened just above the $25 price point in January 2020. The stock closed at $24.63 per share after trading ended on January 15.

On the other hand, shareholders in Telus stock have been able to rely on its dividends. We will dig into its dividend payout and history when we get to its earning coverage later in the piece.

The state of Canadian telecoms in 2024

The Canadian telecom industry passed through a relatively turbulent year in 2023. On the investment side, higher interest rates had a negative impact on telecom stocks like Telus. Higher savings rates meant that investors seeking income had a plethora of solid options over the past year. Fixed-income investment vehicles fell back into favour in this higher-rate environment. Even Guaranteed Investment Certificates (GICs), which had offered paltry rates of return through the 2010s, now offer rates that rival the current dividend yield of Telus and its peers.

Telecoms have also been under fire from regulators. Francois-Phillipe Champagne, the current minister of Innovation, Science and Industry, handed down a mandate in 2023 that required the Canadian Radio-television and Telecommunications Commission (CRTC) to prioritize consumer rights, affordability, competition, and universal access.

With that in mind, the coming year is shaping up to be one of transition for the Canadian telecom industry.

Should investors be encouraged by Telus’s recent earnings?

Telus is expected to release its fourth-quarter (Q4) and full-year fiscal 2023 earnings in the first half of February. Meanwhile, it released its Q3 FY2023 earnings on November 3, 2023. The company reported operating revenues of $4.99 billion — up 7.5% compared to the previous year. Moreover, adjusted net income was reported at $373 million or $0.25 per share — down 20% and 26%, respectively, compared to the third quarter of fiscal 2022.

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. This measure aims to give a clearer picture of a company’s profitability. In Q3 FY 2023, Telus delivered adjusted EBITDA of $1.82 billion. That was up 5.5% in the year-over-year period.

Bottom line

Shares of this top telecom stock currently possess a price-to-earnings ratio of 44. That puts Telus in favourable value territory compared to its industry peers. Moreover, this telecom stock last paid out a quarterly dividend of $0.376 per share. That represents a tasty 6.1% yield. Telus has delivered dividend growth for 20 consecutive years, which makes this stock a Dividend Aristocrat.

The post Is it Too Late to Buy Telus Stock? appeared first on The Motley Fool Canada.

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Fool contributor Ambrose O’Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends TELUS. The Motley Fool has a disclosure policy.

TD Bank stock is a Canadian financial powerhouse

Royal Bank of Canada is the largest financial institution in Canada and the largest stock on the S&P/TSX Composite Index by market capitalization, boasting a market cap just above $185 billion at the time of this writing. Meanwhile, TD Bank is the second-largest financial institution in the country. It boasted a market cap of $145 billion at the time of this writing. Moreover, TD Bank possessed total assets of nearly $2 trillion at the end of fiscal 2023.

The bank unveiled its fourth-quarter (Q4) and full-year fiscal 2023 earnings on November 30, 2023. In Q4 2023, TD Bank reported adjusted net income of $3.50 billion or adjusted earnings per share (EPS) of $1.83 — down from $4.06 billion, or $2.18 per share, in Q4 fiscal 2022. For the full year, TD Bank achieved adjusted net income of $15.1 billion, or $7.99 in adjusted EPS. That was down from adjusted net income of $15.4 billion, or $8.36 per share, for the full year in fiscal 2022.

In Q4 fiscal 2023, the bank revealed that its Canadian Personal and Commercial Banking segment delivered net income of $1.67 billion, which was down 1% compared to the previous year. It attributed the decline to higher provisions for credit losses (PCL) and increased expenses. However, revenue was reported at $4.75 billion for the full year — up 7% compared to fiscal 2022.

This top Canadian bank is also a huge player in the United States

TD Bank boasts the largest retail footprint in the United States compared to its Big Six counterparts. Indeed, it is the 10th largest bank in the U.S. at the time of this writing. That extensive footprint may entice investors who are on the hunt for diversification in a blue-chip stock.

In its Q4 report, TD Bank unveiled the results of its U.S. Retail Bank. TD’s U.S. retail banking reported adjusted net income of $1.28 billion. That was down 19% compared to the previous year. Moreover, the TD Bank U.S. Retail Bank reported adjusted net income of $1.08 billion — down 15% in the year-over-year period.

Despite the year-over-year adjusted net income decline, there were several positives to glean that could boost TD stock going forward. Its total average loan balances increased 10% compared to Q4 2022 and were up 2% compared to Q3 2023. TD Bank has posted solid customer acquisition for its U.S. banking operations.

TD Bank is a Dividend Aristocrat

A Canadian Dividend Aristocrat is a stock that has delivered at least five consecutive years of dividend growth. TD Bank has achieved 13 straight years of dividend growth coming into January 2024. This top bank stock last paid out a quarterly dividend of $1.02 per share. That represents a strong 5% yield. Stocks that have long dividend-growth histories are typically bastions of dependability. When a Dividend Aristocrat is on sale, investors might want to take notice.

Shares of TD Bank have dropped 8.3% year over year as of close on Thursday, January 11, 2024. TD stock currently possesses a price-to-earnings ratio of 14. That puts this top bank stock in favourable value territory at the time of this writing. It is trading at a superior value compared to most of its industry peers in early 2024.

The post 3 Things About TD Stock Every Smart Investor Knows appeared first on The Motley Fool Canada.

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Fool contributor Ambrose O’Callaghan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Royal Bank (TSX:RY) is the largest financial institution in Canada by market capitalization. The bank is also the top stock on the S&P/TSX Composite Index by market cap. Canadian investors of all stripes should be interested in the trajectory of Canada’s top financial institution. Where will Royal Bank stock be in five years? Should investors be optimistic? Let’s dive in.

How has Royal Bank performed over the last year?

Shares of Royal Bank have climbed 7.8% month over month as of close on Thursday, January 4, 2024. That vaulted its stock performance into positive territory in the year-over-year period. Royal Bank stock has now increased 3.8% compared to the same period in January 2023. Readers can see more of its recent performance, as they toggle the interactive price chart below.

Where do Canadian banks stand as we approach the middle of the 2020s?

The first half of this decade has provided major challenges and opportunities for investors in the Canadian financial space. Royal Bank and its peers were forced to contend with a generational pandemic in the opening months of this new decade. Domestic and global markets were throttled in February and March 2020. However, the Bank of Canada (BoC) and its central bank peers in the developed world moved quickly to push forward radical monetary and fiscal stimulus.

Royal Bank stock, for example, fell from a triple-digit price point to under $80 in the second half of March 2020. The bank stock was back above the $100 mark by the middle of November of that same year.

Canada’s top financial institutions have also been tested in the aftermath of the COVID-19 pandemic. Radical spending gave way to runaway inflation. Indeed, inflation rates rose to levels not seen in decades. This spurred the BoC to pursue its most aggressive interest rate tightening policy since the early 2000s. Royal Bank and its peers have seen profit margins improve due to higher rates, but investment and credit growth have been hindered in this climate.

Fortunately, there is optimism in early 2024. BoC Governor Tiff Macklem said that interest rates were likely to come down this year.

Should investors be happy with Royal Bank’s recent earnings?

Royal Bank unveiled its fourth-quarter (Q4) and full-year fiscal 2023 earnings on November 30, 2023. Canada’s top bank reported adjusted net income of $16.1 billion in Q4 2023 — up marginally compared to the prior year. Meanwhile, adjusted diluted earnings per share (EPS) rose 2% year over year to $11.38.

The bank also included its full-year business segment performance. For the full year, Royal Bank reported a 1% earnings dip in its Personal & Commercial Banking segment. It attributed that dip to an increase in provisions on performing and impaired loans. Moreover, Royal Bank’s Wealth Management segment suffered a 24% earnings drop for the full year, which the bank also attributed to higher staff costs and professional fees. Insurance also suffered a 6% earnings dip for the full year.

For the full year, Royal Bank achieved 23% earnings growth in its Capital Markets segment. It attributed this gain to lower taxes that reflected changes in the earnings mix. Moreover, Royal Bank achieved improved revenue in Corporate & Investment Banking and Global Markets.

Where will Royal Bank stock be in five years?

Canadian banks have largely weathered the storm of the pandemic and the most recent interest rate tightening cycle. Central banks will aim for a soft landing as rates start to come down in 2024. Royal Bank should be a beneficiary of this transition in 2024 and beyond. Investors hungry for opportunities to open this year should consider this top bank stock today.

Shares of Royal Bank currently possess a price-to-earnings ratio of 12. That puts this top bank stock in favourable value territory at the time of this writing. In Q4 2023, Royal Bank announced a quarterly dividend of $1.38 per share. That represents a 4.1% yield at the time of this writing. The bank has delivered dividend growth for 12 straight years, making it a Dividend Aristocrat.

The post Where Will Royal Bank of Canada Stock Be in 5 Years? appeared first on The Motley Fool Canada.

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Fool contributor Ambrose O’Callaghan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The S&P/TSX Capped Utilities Index was up nearly a full percentage point in early afternoon trading on Tuesday, January 2, 2024. Canadian investors may be on the hunt for stability in their portfolios after enduring a plethora of interest rate hikes in 2022 and 2023. Indeed, the Bank of Canada (BoC) has pursued the most aggressive interest rate tightening policy since the early 2000s. The BoC has moved ahead with eight interest rate hikes since March 2022, moving the benchmark rate from 0.50% that March to 5% at the time of this writing.

Utilities have offered cover for investors looking for stability and security in previous interest rate cycles. Some economists believe that we have reached peak rates. Indeed, policymakers from the BoC and the United States Federal Reserve have both hinted at interest rate cuts in 2024. This could produce a friendly environment for the utility space. Canadian Utilities (TSX:CU) remains one of the most attractive targets in this space for Canadians. In this piece, I want to explore why Canadian investors may want to add this utility stock to their portfolios.

How has Canadian Utilities performed over the past year?

Canadian Utilities is a Calgary-based company that is engaged in the electricity, natural gas, and retail energy businesses in the United States, Australia, and around the world. Shares of Canadian Utilities have climbed 3.85% month over month as of close on Tuesday, January 2, 2024. Meanwhile, the utility stock has plunged 13% compared to the prior year. Does that mean investors should be wary of this struggling stock? Or is Canadian Utilities stock a terrific buying opportunity?

Why you can count on the utility space in 2024 and beyond

The utility sector represents companies that offer essential services like electricity, natural gas, and water. Utility companies offered to investors as part of the S&P/TSX Capped Utilities Index are private. However, while these companies strive for profit, they are part of the public service infrastructure and are subject to strict regulations. That provides some of that sought-after security and stability that investors may be hungry for after a volatile 2023.

Should investors be happy with Canadian Utilities’s recent earnings?

Investors can expect to see Canadian Utilities’s next batch of earnings in late February or early March 2024. Meanwhile, the company unveiled its third-quarter (Q3) fiscal 2023 earnings on October 26, 2023.

In Q3 2023, Canadian Utilities announced a partnership agreement between the Chiniki and Goodstoney First Nations for the Deerfoot and Barlow Solar power projects, the largest solar installation in an urban centre in Western Canada. Moreover, it entered a 12.5-year virtual power-purchase agreement with Lafarge.

The company reported adjusted earnings of $87 million — down from $120 million in the previous year. That brought its year-to-date adjusted earnings to $404 million compared to $475 million for the same stretch in fiscal 2022.

Bottom line

Shares of Canadian Utilities stock currently possess a price-to-earnings ratio of 14. That puts this utility stock in very favourable value territory compared to its industry peers. Moreover, it remains on track for solid earnings growth going forward.

A Dividend King refers to a stock that has paid out at least 50 consecutive years of dividend growth. This is an elite group with only two members in Canada. Canadian Utilities is the first to have achieved this impressive milestone.

Canadian Utilities last paid out a quarterly dividend of $0.449 per share. That represents a strong 5.6% yield at the time of this writing. This company has delivered 51 straight years of dividend growth as of January 2024.

The post Is Canadian Utilities a Buy? appeared first on The Motley Fool Canada.

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Fool contributor Ambrose O’Callaghan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The emergence of ChatGPT and several competing chat bots stirred public interest in the development of artificial intelligence (AI). Some experts and analysts have fully boarded the AI hype train; others are skeptical about how far along the technology, and a handful of pessimists are convinced that AI will spell the doom of humanity.

PricewaterhouseCoopers (PwC) recently projected that AI could contribute up to $15.7 trillion to the global economy by 2030. Moreover, the 22nd chief executive officer (CEO) survey revealed that 84% of Canadian CEOs agreed that AI will significantly change their business within the next five years.

Today, I want to zero in on three tech stocks that are players in Canada’s AI arena.

Shopify is still a top player in the AI space

Shopify (TSX:SHOP) is an Ottawa-based company that provides a commerce platform and services in Canada, the United States, Europe, and around the world. This tech stock was one of the biggest Canadian success stories in the sector since its debut on North American markets in 2015. Its shares peaked in November 2021 but suffered a steady decline in the face of turbulence for the broader sector in 2022.

This company has utilized AI to power its platform for years. Merchants rely on the resources that Shopify offers, and many of the tools that allow them to connect to their customers are AI powered. For example, the company unveiled Shopify Magic back in July 2023. This suite of AI-enabled features is integrated across Shopify’s products and workflows, making it easier for merchants to start, run, and grow their businesses.

This company has established Canada as a leader in supply chain software solutions

Kinaxis (TSX:KXS) is also based in Ottawa and provides cloud-based subscription software solutions for supply chain operations in Canada, the United States, and worldwide. This company has won contracts with top international firms like Ford, Toyota Motors, Unilever, and Sandoz. Shares of this tech stock also broke new ground in late 2021, only to succumb to the broader tech selloff in the subsequent year.

Companies around the world saw supply chains disrupted during and immediately following the COVID-19 pandemic. Kinaxis utilizes AI and machine learning to refine its supply chain RapidResponse software. As it states on its website, “Machine learning and always-on analytics ensure your supply chain is always learning to be more efficient.”

CGI is making a $1 billion push into AI

CGI Group (TSX:GIB.A) is a Montreal-based company that provides information technology (IT) and business process services throughout Canada, Europe, Australia, and elsewhere around the world. This tech stock has been one of the top performers in its sector since it was hit by the spring slump in 2022.

In the third quarter (Q3) of fiscal 2023, this company delivered revenue growth of 11% to $3.62 billion. Meanwhile, diluted earnings per share (EPS) rose 15% to $1.75. CGI Group offers several services in the AI space, including AI design and build services. These services seek to evaluate AI use cases for a specific organization, validate those use cases from a proof of value to a minimum value product (MVP), and scale successful MVPs to enterprise scale and production.

Here’s another tech giant that is betting big on AI development

Open Text (TSX:OTEX) is the fourth and final tech stock in the AI space in Canada that I want to zero in on today. This Waterloo-based company provides information management software and solutions. Shares of this tech stock have also delivered strong results over the past year.

This company has sought to utilize its huge stable of acquisitions to cast a wide net in AI development. For example, the Open Text Content Aviator aims to further modernize workplaces with the use of intelligent AI. Indeed, we have already seen the potential of AI chatbots to quickly and efficiently script press releases, emails, and other crucial yet time-consuming workplace communications.

The post Tech Titans and AI Pioneers: Who’s Who in Canada’s Artificial Intelligence Arena? appeared first on The Motley Fool Canada.

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• What the Average Canadian TFSA Balance Looks Like at Age 50
• A Once-in-a-Decade Investment Opportunity: The 2 Best AI Stocks to Buy in April 2026
• 5 Canadian Stocks Worth Buying Today and Holding for the Next 5 Years
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Fool contributor Ambrose O’Callaghan has positions in Kinaxis. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends CGI and Kinaxis. The Motley Fool has a disclosure policy.