Latest news with #business sentiment
Yahoo
4 days ago
- Business
- Yahoo
What Are Some Defensive Stocks to Buy Now for Canadian Investors?
Written by Rajiv Nanjapla at The Motley Fool Canada Amid hopes that Donald Trump will strike trade deals with other countries and an improvement in business sentiment, with business owners now less pessimistic about a recession this year, the S&P/TSX Composite Index has continued its uptrend and is up 10.7% year to date. However, concerns persist about the impact of tariffs on global economic growth. Therefore, if you are worried that the equity markets could turn volatile in the coming quarters, then here are three defensive bets that you can buy right now to strengthen your portfolio. Waste Connections Waste Connections (TSX:WCN) is a waste management company operating in exclusive and secondary markets of the United States and Canada. Despite a sluggish economy due to tariff-induced uncertainties, the company posted an impressive second-quarter performance earlier this week, beating its projections. The company's topline came in at $2.41 billion, representing a 7.1% increase from the previous year's quarter. Organic growth led by a 6.6% increase in its solid waste pricing and continued acquisitions drove its revenue. As of July 23, the company has acquired assets this year that can contribute $200 million to its annualized revenue. Meanwhile, its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) grew 7.5% to $786.4 million, while its adjusted EBITDA margin expanded by 70 basis points to 32.7%. Given its healthy cash flows and solid financial position, the company's management anticipates a significant year of acquisitions. Additionally, improvements in employee retention and the adoption of technological advancements, such as robotics and optical sorters at recycling facilities, could support margin expansion in the coming quarters. Considering all these factors, I believe WCN would be an excellent defensive bet. Hydro One My second pick is Hydro One (TSX:H), a pure-play electricity transmission and distribution company with no substantial exposure to commodity price fluctuations. Additionally, around 99% of its business is rate-regulated, thereby its financials are less prone to economic cycles. Also, it has expanded its rate base through self-funded organic growth, growing its rate base at an annualized rate of 5.1% since 2018. Along with these expansions, its cost-cutting initiatives have boosted its financials, driving its stock price. Over the last five years, the company has delivered a total shareholders' return of 106% at an annualized rate of 15.6%. Furthermore, the Toronto-based utility company continues to expand its rate base, with management projecting its rate base to increase to $32.14 billion by the end of 2027, representing an annualized growth rate of 6.6% from its 2024 levels. Along with these expansions, favourable customer rate revisions and improved operating efficiency could support its financial growth in the coming quarters. Meanwhile, the company's management predicts its adjusted EPS to grow 6-8% through 2027. Additionally, the company, which currently offers a forward dividend yield of 2.73%, anticipates increasing its dividend at an annualized rate of 6% through 2027. Telus I have chosen Telus (TSX:T), a telecom giant, as my final pick. After a challenging couple of years due to higher interest rates and unfavourable policy changes, the company has experienced solid buying this year, with its stock price rising by 20%. Its solid first-quarter earnings and falling interest rates have supported its stock price growth. Moreover, Telus enjoys healthy cash flows due to its recurring revenue streams, which enable it to pay and raise its dividend consistently. The company has raised its dividends 28 times since May 2011 and currently offers an attractive dividend yield of 7.38%. Telus is also expanding its network infrastructure with a $70 billion investment over the next five years. These investments would expand TELUS PureFibre connectivity and 5G service across the country, thereby driving growth in its customer base. Additionally, the company's other business segments, Telus Health and Telus Agriculture and Consumer Goods, have delivered solid results in the first quarter and could continue the uptrend in their financial performances. Amid these growth initiatives, Telus's management expects to increase its dividend by 3-8% annually through 2028. Considering all these factors, I believe Telus would be an excellent defensive bet in this uncertain outlook. The post What Are Some Defensive Stocks to Buy Now for Canadian Investors? appeared first on The Motley Fool Canada. Should you invest $1,000 in Hydro One Limited right now? Before you buy stock in Hydro One Limited, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Hydro One Limited wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $24,927.94!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 30 percentage points since 2013*. See the Top Stocks * Returns as of 6/23/25 More reading 10 Stocks Every Canadian Should Own in 2025 3 Canadian Companies Powering the AI Revolution A Commonsense Cash Back Credit Card We Love Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends TELUS. The Motley Fool has a disclosure policy. 2025
Wall Street Journal
6 days ago
- Business
- Wall Street Journal
Canada Retail Sales Look to Rebound After 1.1% Drop in May
OTTAWA—There are early signs Canada's economy firmed coming into the summer, with advance tallies pointing to the strongest retail sales growth since the end of last year and the first rise in manufacturing sales in five months. Alongside indications consumer and business sentiment has recovered from lows early in the year, the latest data continues to point to headroom for the central bank to remain on the sidelines and continue to monitor the fallout from U.S. trade policy and higher tariffs.
South China Morning Post
7 days ago
- Business
- South China Morning Post
‘Rebalancing' needed in China-Europe relationship, chamber president says
This year marks half a century of formal diplomatic relations between China and the European Union, as well as the 25th anniversary of the founding of the European Union Chamber of Commerce in China. In this entry of our series examining ties between the two powers, Ji Siqi speaks to the chamber's president about business sentiment in a tense period for global trade. Advertisement The president of the European Union Chamber of Commerce in China – the chief non-profit organisation advocating on behalf of the continent's businesses – has said the relationship between Beijing and Brussels has reached a tipping point, encouraging the two to realign their collaborative model and distribute benefits in a more equitable manner. Jens Eskelund said there is a strong perception among the European population that China is taking most of the spoils from bilateral trade, as the EU's manufacturing sector struggles to compete with a glut of cheaper goods. 'When we look back at the past 50 years of the bilateral relationship, it has created enormous value for both sides,' Eskelund told the Post on the eve of the chamber's 25th anniversary. 'Chinese exports have created jobs and wealth in China, and given the average European higher purchasing power. 'Now the question is, if we are in a situation where very intense pressure from China leads to losses for European companies … then, of course it becomes, 'Hang on, why are we doing this?'' Advertisement The relationship between China and the EU has been fraught in recent years, despite continuous dialogue as both sides seek to avoid the sort of full-blown trade war being waged by US President Donald Trump.
