For over a decade, Alimentation Couche-Tard (ATD) trended higher. On June 27, 2023, it posted strong Q4 results. Expect ATD stock to keep rising.
ATD posted revenue of $16.26 billion. Non-GAAP EPS was $0.71. EPS growth is very impressive, rising from $0.46 last year to $0.68 on a diluted per share measure. Net earnings rose to $698 million, compared to $573 million Y/Y. ATD has a strong gross margin from merchandise and service. As driver volumes rise at gas stations, ATD will benefit.
Constellation Brands (STZ) is another top stock for July. In Q1, it posted revenue of $2.51 billion, up by 6.4% Y/Y. It owes its strong cash flow to healthy beer, wine, and spirits sales. It likely benefited from Budweiser’s advertising misstep. This is a permanent tailwind.
Companies that Canadian investors should be wary of and avoid include BCE Inc. (BCE). The firm recently cut 1300 jobs and closed six radio stations. The business lines are shrinking. This increases pressure on management to raise margins from the mobility unit. The stock pays a $0.9675 per-share dividend. Dividend hikes, though steady previously, risk pausing.
