ATZ:CC - 3 TSX Stocks Under $100 to Buy in June
2024-06-12 16:20:00 ET
Investing in shares of fundamentally strong companies can help you accumulate significant wealth in the long term. Moreover, one doesn’t require much capital to start investing. Even if you start with a small amount, buying stocks regularly can help grow your portfolio over time. Moreover, regular investments can reduce the impact of market volatility.
With this background, here are three TSX stocks to buy in June. Notably, these Canadian stocks are trading under $100.
Shopify
Shopify ( TSX:SHOP ) is a top stock under $100 for creating wealth in the long term. Shares of this e-commerce platform provider have gained about 116% in the last five years but remain notably below its COVID-led peak. While the near-term growth concerns remain a drag, this Canadian tech company will likely benefit from an ongoing shift towards omnichannel platforms and competitive advantages over peers.
The structural shift in selling models and increase in gross merchandise volumes will likely drive its revenue growth. Further, Shopify’s diverse product offerings, including payment processing, sales and marketing tools, and shipping solutions, and its focus on innovative product launches will likely boost its financials. Furthermore, ongoing growth in Plus merchants on its platforms will improve retention rate and stability.
Shopify is also focusing on cost-reduction measures and transitioning toward an asset-light business model, which will enable it to deliver sustainable earnings. Moreover, the integration of artificial intelligence technology into its products and improving take rate bode well for growth.
Alimentation Couche-Tard
Speaking of under $100 stocks, investors could consider Alimentation Couche-Tard ( TSX:ATD ). Its low-risk business offers stability and high growth. Further, the company consistently increases its dividend, making it a reliable income stock.
Alimentation Couche-Tard is a leading convenience store operator that also retails fuel and offers electric vehicle (EV) charging. Thanks to its resilient business model, Couche-Tard consistently generates solid revenues and earnings. For instance, the retailer’s adjusted earnings per share (EPS) increased at a compound annual growth rate (CAGR) of 18.8% in the past decade, while its revenues grew at a CAGR of 7.3% during the same period. Thanks to its strong earnings, ATD increased its dividend at a CAGR of 26.6% over the past decade.
Looking ahead, Alimentation Couche-Tard’s focus on value pricing, expansion of private label products, and improving operational efficiencies will likely support its sales and earnings. Further, its emphasis on strategic acquisitions will likely expand its network, drive traffic, and boost its financials. In addition, ATD’s growing earnings will further increase its dividend distributions in the coming years.
Aritzia
Shares of Luxury clothing company Aritzia ( TSX:ATZ ) have a stellar track record of generating impressive sales and earnings, which has bolstered its share price. For instance, its stock has gained over 109% in the past five years, delivering a CAGR of about 16%. Meanwhile, in the past five years, Aritzia’s revenues and adjusted net income have grown at a CAGR of 19% and 13%, respectively. This was supported by solid e-commerce sales, which increased at a CAGR of 37% during the same period.
While Aritzia’s growth has slowed in the recent past, its management expects its top line to increase at a CAGR of 15-17% through 2027, implying its growth rate will likely accelerate from current levels. Its focus on introducing new styles and applying data analytics and technology will likely optimize its product portfolio and accelerate its growth rate. Further, its focus on expanding its geographical footprint through new boutique openings and omnichannel offerings will likely boost its top line. Aritzia aims to launch eight to 10 new boutiques annually through fiscal year 2027.
Adding to the positives, the company’s focus on enhancing its online customer experience by expanding omnichannel offerings and broadening its product range will further contribute to its growth. Further, an improved inventory position and operational efficiencies will drive its bottom line and bolster its share price.
The post 3 TSX Stocks Under $100 to Buy in June appeared first on The Motley Fool Canada .
Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alimentation Couche-Tard, Aritzia, and Shopify. The Motley Fool has a disclosure policy .
2024