2 Canadian Stocks I’m Buying Lots of This Year

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The S&P/TSX Composite Index It rose 100 points on Thursday, January 26. Some of the best-performing sectors include energy, finance, information technology and healthcare. Today, I want to zero in on two Canadian stocks in the health care and industrials space. I would like to stack both stocks throughout 2023. I will explain why in this article. Let’s jump in.

This Canadian stock is worth buying even after the COVID-19 pandemic

VieMed Healthcare (TSX: VMD) is a Louisiana-based company that develops durable medical equipment (DME) and post-acute respiratory care at home. Health services For patients in the United States. Shares of this healthcare stock have soared 95% for the year to the close on January 26. Also, shares are up 6.6% to start the new year.

During the Covid-19 pandemic, this Canadian stock stole the headlines with good reason. It also offered its services to healthcare facilities in need of ventilators. The pandemic gave VieMed an opportunity to quickly increase its revenue. That means its revenue has fallen as the pandemic has slowed, but it still boasts a bright future.

Last year, Paradigm Research estimated the global home medical equipment market to be worth USD 35.7 billion by 2021. The North American region accounted for more than 40% of the market share during that year. The report predicts that the market will reach US$62.1 billion in revenue by 2030. This represents a compound annual growth rate (CAGR) of 6.3% during the forecast period.

The company released its third quarter (Q3) fiscal 2022 earnings on November 1. VieMed, its core business, delivered net income of $35.8 million – up 28% from the prior year. Meanwhile, its number of ventilator patients increased by 11% to 9,127. This is the highest growth rate experienced since the start of the Covid-19 pandemic.

Shares of this Canadian stock trade in favorable value territory relative to its peers. Meanwhile, it is on track for strong earnings growth going forward.

Don’t sleep on these Canadian stocks that could benefit from a steel price hike in 2023

Stelco Holdings (TSX:STLC) is a Hamilton-based company engaged in the manufacture and sale of steel products across Canada, the United States and the world. Its shares were up 46% for the year to the close on January 26. This Canadian stock is up 17% so far in the first month of 2023. Investors who want more details on its recent performance can play with the interactive price chart below.

Investors can expect Stelco’s Q4 and full-year fiscal 2022 earnings in the second half of February. In Q3 2022, the company’s revenue fell 38% year over year to $846 million. Meanwhile, it reported adjusted net income of $163 million, or $2.40 per share — down 74% from the third quarter of fiscal 2021.

EBITDA is earnings before interest, tax, depreciation and amortization. This measure aims to provide an accurate picture of a company’s profitability. Stelco had the highest adjusted EBITDA margin of any U.S. or Canadian reporting steelmaker in its seventh straight quarter.

This Canadian stock is currently very attractive Price to Earnings Ratio 2.6. Also, Stelco offers A quarterly dividend of $0.42 per share. This represents a yield of 3.2%. Steel prices have risen in the first weeks of 2023, but demand remains flat. Regardless, I’ll be looking to snag Stelco at the end of January.

Position 2 Canadian stocks I’ve been buying a lot this year appeared first Motley Fool Canada.

Should you invest $1,000 in Stelco Holdings?

You are Stelco Holdings Inc. Before you consider, you should ask this.

Our team of market-beating analysts just revealed what they believe are the 5 best stocks for investors to buy in January 2023… and Stelco Holdings Inc. Not in the list.

Motley Fool Stock Advisors Canada, their online investment service for nearly a decade, beats the TSX by 16 percentage points. Now, they think 5 stocks are better buys.

See 5 stocks
*Returns through 1/9/23

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Further reading

Fool contributor Ambrose O’Callaghan has no position in any of the stocks mentioned. Motley Fool is in charge and recommends Viemed Healthcare. A motley fool Disclosure Policy.


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