MFI:CC - The Best Canadian Food Stocks in November 2023
2023-11-15 20:15:00 ET
Canadian food stocks are perhaps some of the best options Canadians can pick up on the market today. That’s mainly because these remain consumer staples — items that we will need no matter what is going on in the world.
However, when it comes to food stocks , there are those that stick out more than others. Today, we’ll look at three of the best Canadian food stocks to consider picking up in November 2023.
Nutrien
Nutrien ( TSX:NTR ) is coming off poor earnings and a rough year or two. Nutrien stock was one of the food stocks that surged back in 2021. This came after Russia invaded Ukraine, causing sanctions on crop nutrients such as potash. Nutrien stock was then tapped to take on the decline in production and the increase in potash prices.
Yet the company then saw shares drop as the market dropped as well. Inflation and interest rates hurt the food stock just as it had with anyone else. Potash prices and nitrogen prices have now seen sales fall year over year. However, the thing is, the company has been producing more potash than ever.
So, when the market evens out, Nutrien stock could certainly be a great stock to consider. We need crop nutrients, and it remains one of the largest producers in the world. So, when prices rise again, count on Nutrien stock doing the same. For now, you can grab it with a 3.82% dividend yield.
Saputo
Then there’s one of the food stocks that’s been doing quite well! Saputo ( TSX:SAP ) remains one of the top performers, especially among food stocks. It offers dairy products that Canadians will need no matter what. In fact, it continues to either meet or beat earnings estimates quarter after quarter.
During the most recent quarter, earnings climbed to $156 million in the second quarter, up from $145 million the year before. Revenue was down to $4.3 billion from $4.5 billion due to an impact from inflation. However, overall near-term inflation costs should be moderate, according to management. Therefore, there could be continued sales uptick as the economy recovers and more revenue to come.
For now, it’s one of the food stocks that still offers value, trading down 20% in the last year! That’s while trading at just 0.66 times sales and with a responsible 56.82% debt-to-equity ratio. You can also pick it up with a dividend yield of 2.67%.
Maple Leaf Foods
Finally, most Canadians need dairy, and most also need meat. Enter Maple Leaf Foods ( TSX:MFI ), which hasn’t shown as much strength as Saputo stock. However, it’s definitely showing some improvement. The stock missed earnings estimates in the last few quarters, but there were still improvements when looking at the narrowing of its losses.
Maple Leaf Foods stock continues to focus on stabilizing the company. It reported a loss of $4.3 million in its latest quarter, compared to $229.5 million the year before. It’s a huge improvement from the same quarter last year, with the third quarter totalling $1.25 billion in sales. It’s now expecting capital expenditures to be about $200 million for 2023, down from its $250 million guidance. So, it’s definitely an improvement.
Meanwhile, you can still pick it up for a steal, trading at 0.63 times sales and 1.99 times book value. Plus, you can grab hold of a 3.34% dividend yield as of writing for this among food stocks.
The post The Best Canadian Food Stocks in November 2023 appeared first on The Motley Fool Canada .
Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Nutrien. The Motley Fool has a disclosure policy .
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