A red hot TSX share in the retail trade
Retailers were faced with a difficult environment during this pandemic, but forward thinking businesses have succeeded. Sleep country canada (TSX: ZZZ) belongs to this lucky group. Sleep Country shares fell 17% in 2020 at the time of writing. However, the stock has increased 34% in the past month. Sleep Country was my first pick of TSX stocks for the month of June.
The company released its first quarter 2020 results on May 4. Revenues increased 1.5% year over year to $ 151.6 million, while same store sales decreased 0.9%. Sleep Country benefited from 143% growth in e-commerce across all brands. The closure of brick and mortar retailers has accelerated the migration to digital channels. Fortunately, Sleep Country has been committed to strengthening this platform for some time now.
Sleep Country is one of the best stocks on the TSX that still holds good value. The stocks last had a favorable price / earnings ratio of 12 and a book price value of 1.9.
Keep an eye on home improvement
The Canadians have been locked up since mid-March. For this reason, many owners have chosen to deal with improvements. Richelieu Hardware (TSX: RCH) is a promising manufacturer, importer and distributor of specialized hardware and complementary products in North America. Its shares have climbed 8% in 2020 so far, and it’s another of my best TSX stocks to hang before the summer.
Richelieu released its first quarter 2020 results on April 9. Total sales increased 10.2% year-over-year to $ 249.4 million and EBITDA grew 18.9% to $ 24.9 million. In the meantime, the company has made three new acquisitions in Canada and the United States, representing sales of approximately $ 60 million. The company also has a fantastic track record.
A dividend star to be grabbed in June
At the end of February, I suggested two dividend stocks that were trading at a discount. Finning International (TSX: FTT) was one of the main stocks on the TSX. Its stock has fallen 21% in 2020 so far, but stocks have climbed 3.2% in the past three months. Finning is the largest in the world caterpillar Trader. It released its first quarter 2020 results on May 4.
The company reported lower revenues in Q1 2020, but EBITDA increased 5% year over year to $ 170 million and earnings per share increased 9% to $ 0.33 . This is mainly due to improved performance in South America, lower sales and administrative costs and the strength of its product support activities.
Finning’s stocks last had a P / E ratio of 12 and a P / B value of 1.4. This is attractive value territory compared to its industry peers. In addition, the company maintained its quarterly dividend of $ 0.205 per share. This represents a yield of 4%. Finning has generated dividend growth for 18 consecutive years. This first-rate action on the TSX has shown resilience in the face of this crisis and is one of the main dividend payers.
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