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The S&P/TSX Composite Index has risen by nearly 2% (+360.4 points) from month-end February 2023, and the momentum should continue if the Bank of Canada does not announce a rate hike this month.
Three names stand out if youâre looking to buy stocks that are moving ahead of the recovering market. Stantec (TSX:STN), Bombardier (TSX:BBD.B), and Payfare (TSX:PAY) are outperforming the broader market and are up by 23% or more year to date.
Record earnings
Stantec delivered record financial results and solid performance in 2022 to the delight of investors. The $8.9 billion international professional services company is a global leader in sustainable engineering, architecture, and environmental consulting.
In the year that ended December 31, 2022, gross revenue and net income rose 24% and 23.1% versus $5.7 billion and $247 million, respectively, versus full-year 2021. For Q4 2022, net income soared 342.8% year over year to $73.5 million. For 2023, management expects net revenue to grow between 7% and 11%.
President and CEO, Gord Johnston, said, âI am extremely pleased that we outperformed our revenue and earnings guidance for 2022 on the strength of our outstanding fourth-quarter performance.â He adds, âStantec is well positioned for another year of solid growth.â Â
The industrial stock trades at $79.82 per share (+23% year to date) and pays a modest 0.78% dividend. The Board recently approved an 8% increase in the cash dividend. Purchase Stantec shares before the ex-dividend date on March 30, 2023. Based on market analystsâ forecasts, the price could hit a high of $93 in 12 months. Â
Visible growth on the horizon
Another name on the mend is Bombardier. The $6.5-billion global leader in aviation designs, manufactures and services the worldâs most exceptional business jets. At $69.06 per share, investors are up 32.1% thus far in 2023. In Q4 fiscal 2022, total revenues climbed 49.9% to US$2.7 billion versus Q4 2021, while net income increased 1.3% year over year to US$241 million.
Management expects to continue outpacing revenue growth in 2023 due to expanding margins. It also projects aircraft deliveries to reach 138 units compared to 123 last year. The significant expansion of the service centre network and recruitment of skilled technicians are also important growth drivers.
High-flyer
Payfare, in the financial technology space, is flying high with its 43.8% year-to-date gain. Market analysts recommend a buy rating with a 12-month average price target of $13, a potential 110.7% increase from $6.17. The current share price is 63.7% higher than the 52-week low of $3.77.
The $288.8 million company powers the gig economy and provides digital banking solutions for the gig workforce. Large gig platforms like DoorDash, Lyft, and Uber are its partners. On December 7, 2022, active users reached one million, a significant milestone, and it represents 95% growth (+488,288 active user additions) over year-end 2021.
Management has yet to present the full-year 2022 results, although its guidance is 205% revenue growth versus 2021. CEO and founding partner, Marco Margiotta, said it was an exceptional year for the business. Â
Out of the slump
Due to the bullish market sentiment, Stantec, Bombardier, and Payfare could soar higher in 2023. The stocks could reward investors with better short-term returns than others that remain in a slump.
The post My 3 Top Stock Buys for March 2023 appeared first on The Motley Fool Canada.
Should You Invest $1,000 In Bombardier?
Before you consider Bombardier, you’ll want to hear this.
Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in February 2023… and Bombardier wasn’t on the list.
The online investing service they’ve run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 22 percentage points. And right now, they think there are 5 stocks that are better buys.
See the 5 Stocks
* Returns as of 2/17/23
More reading
- 2 Defence Stocks to Consider for March 2023
- Better Buy: Bombardier Stock or Air Canada Stock?
- TSX Today: What to Watch for in Stocks on Friday, February 24
- 3 Misunderstood Tech Stocks That Could Surprise Everyone
- Will Bombardierâs Stock Price Keep Soaring in 2023?
Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends DoorDash and Uber Technologies. The Motley Fool has a disclosure policy.
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By: Christopher Liew, CFA
Title: My 3 Top Stock Buys for March 2023
Sourced From: www.fool.ca/2023/03/06/my-3-top-stock-buys-for-march-2023/
Published Date: Mon, 06 Mar 2023 22:00:00 +0000
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