Canadian stocks to watch amid market fluctuations

h2 Highlights/h2

• In Q3 2022, Bank of Montreal’s net income was reported at C$ 1,365 million.
• In Q2 2022, the operating income of Stelco (TSX:STLC) increased by 12 per cent to C$ 440 million.
• As of June 30, the cash and cash equivalents for Brookfield Renewable grew to C$ 823 million.

There are plenty of stocks in the Canadian market and almost all have been affected due to the uncertain market conditions. Patience and strong research are two key factors that play a role while picking stocks for your portfolio.

Due to volatility in the market many stocks are trading at lower prices in comparison to their 52-week highs. Check with the present price level of the stocks to have a better understanding and segregate them.

High inflation and interest rates have overpowered the stock market. These factors may lead to a downturn in business earnings. Try to keep your portfolio risk-proof and pick stocks after thorough research.

Let’s look at five TSX stocks and their recent performances:

Bank of Montreal (TSX: TSX:BMO)

Bank of Montreal provides diversified financial services that involve managing wealth, and commercial and personal banking. Along with this, the company is engaged in capital markets and U.S. P&C banking as well.

In Q3 2022, the net income for Bank of Montreal was reported at C$ 1,365 million compared to C$ 2,275 million in Q3 2021. The revenue was noted at C$ 6.09 billion compared to C$ 7.56 billion for the same comparative period. The quarterly dividend by the company was reported at C$ 1.39 per share with a five-year growth of 6.77. The EPS of the company is C$ 16.79.

Stelco Holdings Inc. (TSX: STLC)

Stelco Holdings Inc is based in North America and operates as a steel company. It is the producer and seller of steel products and caters to different segments such as energy construction, appliance, automotive and tube and pipe industries.

In Q2 2022, the revenue of Stelco Holdings rose to C$ 1,037 million with an increase of 13 per cent from Q2 2021. The operating income was reported at C$ 440 million which is an increase of 12 per cent for the same comparative period. The adjusted EBITDA too grew by 13 per cent to C$ 464 million.

Stelco’s net income was noted at C$ 554 million versus C$ 363 million. As of June 30, 2022, the total assets witnessed an increase to C$ 3,612 million from C$ 3,237 million on December 31, 2021.

The total liabilities decreased to C$ 1,610 million from C$ 1,799 million for the same comparative period.

Northland Power Inc . (TSX: TSX:NPI)

Northland Power deals in infrastructure assets. It is engaged in constructing and developing clean and green technologies such as solar, wind, and energy supply. The company operations are done through a regulated utility.

For Q2 2022, Northland Power's sales soared to C$ 557 million from $408 million in Q2 2021. The gross profit also rose to C$ 485 million from C$ 368 million for the same comparative period. The adjusted EBITDA grew to C$ 335 million from C$ 203 million. Northland Power reported net income of C$ 268 million versus net loss of C$ 6 million. The cash provided by operating activities decreased to C$ 312.33 million from C$ 361.07 million.

Northland pays a monthly dividend of C$ 0.10 per share followed by a dividend yield of 3.041 per cent. The price to earnings (P/E) ratio of the company is 15.9 with an EPS of C$ 2.49.

The graph below showcases the total dividends declared by Northland Power in two different time periods.

Algoma Steel Group Inc. (TSX: ASTL)

Algoma Steel Group Inc is engaged in producing clean steel. The company is based in north America and offers cold and hot rolled steel plate and sheet products. Algoma deals in only one segment i.e., steel.

For Q1 2023, the consolidated revenue of Algoma Steel Group was at C$ 934.1 million, an 18.4 per cent increase from C$ 789.1 million in the prior-year quarter. The consolidated income from operations grew to C$ 328.9 million from C$ 252.2 million for the same comparative period. Algoma reported its net income at C$ 301.4 million compared to C$ 203.6 million.

Algoma Steel distributes a dividend of US$ 0.05 on a quarterly basis to its shareholders. Further, the dividend yield was 2.698 per cent.

Brookfield Renewable Partners L.P. (TSX: BEP.UN)

Brookfield Renewable is a clean energy operator and has a total market capitalization of C$ 11.061 billion. It is engaged in MultiTechnology and diversified range. Geographically, the company's operations are in Asia, Europe, South America. Further, it has a total installed capacity of approximately 21 gigawatts.

As of June 30, 2022, the cash and cash equivalents of Brookfield grew to C$ 823 million from C$ 764 million on December 31, 2022.

Meanwhile, Brookfield’s revenue was posted at C$ 1,274 million versus C$ 1,019 billion in a year-ago quarter. The net income rose to C$ 122 million from C$ 110 million for the same period. The funds from operations (FFO) soared to C$ 294 million from C$ 268 million.

The Company pays a quarterly dividend of US$ 0.32 per share. There was a five-year dividend growth of 0.27 per cent.

Bottom Line With a long-term approach, investors can overcome the biggest hurdles. Investment strategy must be holistic followed by due diligence. Along with this, include the aspect of diversification to your portfolio.

With this, you may be able to spread out the risk in case of a wrong decision as well. Also, adding different stocks may meet your wealth goals effectively. If once stock is operating against your goal, the other one may offer you with desired returns. Therefore, every investor must be aware and conscious of the market and the factors that they are working with.

Please note, the above content constitutes a very preliminary observation based on the industry and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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