LSPD:CC - 3 of the Best TSX Stocks to Buy in June
2024-06-10 21:15:00 ET
Looking to make some money this summer? You’ve not only come to the right place, you’ve chosen the right time. While many believe that “sell in May and go away” is a good strategy until October, I’d argue against it. There are far too many companies that are likely to see growth during the summer. Especially with lower interest rates and inflation on deck.
With that in mind, let’s look at three TSX stocks due for a climb this summer, making June an ideal time to buy.
Hospitality
When it comes to growth, companies operating in the tourism and hospitality sector often see increased business during the summer months as people tend to travel more for vacations. This includes hotel chains, airlines, cruise lines, and travel booking companies.
Yet there’s a way to get in on all the action by investing in Lightspeed Commerce ( TSX:LSPD ). The company has partnerships and deals with clients all around the world in every type of hospitality service. What’s more, the company is now focusing on increasing its subscription volumes, adding even more reason to pick up the stock.
With higher gross transaction volumes (GTV), higher subscriptions, and clients that earn more revenue, it’s a great time to consider Lightspeed stock. Especially with CEO Dax Dasilva now back in the top spot.
Consumer discretionary
Another area of the market that’s likely to see a boost in summer months is consumer discretionary. Retailers selling summer-related products such as outdoor equipment, swimwear, and recreational items may experience higher sales during the summer season.
Therefore, consider an investment in a company such as BRP ( TSX:DOO ). This is a company known for its recreational vehicles and marine products, including snowmobiles, personal watercraft, boats, and off-road vehicles.
BRP’s products, especially its recreational vehicles and marine products, often experience increased demand during the summer months. As warmer weather arrives, people are more likely to engage in outdoor recreational activities such as boating, riding off-road vehicles, and jet skiing, which could boost sales and revenue for BRP.
Construction
As we like to say here in Canada, there are two seasons: winter and construction. And we are now entering the construction season. Companies involved in construction , home improvement, and landscaping tend to see increased business during the summer months as homeowners undertake renovation projects and outdoor upgrades.
That’s why a company such as Aecon ( TSX:ARE ) should continue to benefit. Governments often increase infrastructure spending during the summer months when weather conditions are more favourable for construction projects. Aecon, as a major Canadian construction and infrastructure development company, could benefit from increased contract awards and project activity during this time.
The company now has a massive backlog it’s trying to work through, and the summer is the time to get through it. As the economy continues to recover from the COVID-19 pandemic, there may be an uptick in construction and infrastructure projects as businesses reopen and government stimulus measures are implemented. Aecon’s involvement in various sectors, including transportation, utilities, and buildings, positions it to benefit from increased demand for construction services.
Add in a 4.6% dividend yield and shares trading at just 7.8 times earnings, and Aecon stock looks like a strong investment for those seeking to make some money this summer.
The post 3 of the Best TSX Stocks to Buy in June appeared first on The Motley Fool Canada .
Fool contributor Amy Legate-Wolfe has positions in Lightspeed Commerce. The Motley Fool recommends BRP and Lightspeed Commerce. The Motley Fool has a disclosure policy .
2024