The recession-like economy is enabling Dollarama (DLMAF) to thrive. Last week, the stock gained over 10% after posting strong quarterly results.
The discount retailer posted revenue of C$1.64 billion, up by 11.3% Y/Y and exceeding inflation rates. The firm grew its total number of stores to 1,551. Comparable store sales grew by 8.7% Y/Y.
Food provider ConAgra (CAG) is a top buy today. The firm increased its operating guidance as consumers increased their eating activity at home. Its frozen food selling volumes increased. Deflation for refrigerated products drove demand higher.
The frozen vegetable sector is an area where ConAgra may grow its business. It may achieve faster vegetable growth, expanding its profits.
Inflation is still a headwind for ConAgra. It hurts profit margins. To sustain profits, the firm will adjust prices to achieve operating savings for its portfolio.
In the asset management sector, consider Blue Owl Capital (OWL). The firm acquired Kuvare Asset Management for $750 million. Kuvare’s insurance business will complement Blue Owl’s IMAs (investment management agreements).
Investors overlooked OWL stock when shares traded at $10.00. Fortunately, the firm took action to offset the damage related to the SPAC structure. The firm has a diversified portfolio that benefits its shareholders. Insurance rates are only rising, which would expand Blue Owl’s profitability.
