3 Stocks to Watch This Week

Which retailer will come out tops?

| More on:
The Motley Fool

The Toronto Stock Exchange 300 Composite Index (^GSPTSE) lost 0.5% over the past week, dragged down by some of the major gold producers including Kinross Gold and IAMGOLD, as well as BlackBerry and Air Canada, which all lost more than 7% during week.

One of the stocks flagged last week for potentially poor results, Silver Wheaton (TSX: SLW)(NYSE:SLW) did indeed deliver a sharp decline in profits, resulting in a stock price drop of 9% over the week. The results were actually better than expected but the declining silver price dragged most silver producers down.

Watch the performance of these three companies this week…

Hudson Bay Company (TSX: HBC), the retailer that operates Hudson’s Bay and Home Outfitters in Canada and Lord and Taylor and Saks Fifth Avenue in the USA, is expected to report results for the fourth quarter of the 2013 financial year (ending 1 February) on Friday. The market consensus expectation is a profit of $0.56 per share for the quarter versus $0.86 a year ago.

Given a highly competitive trading environment and weather-induced poor trading conditions over the quarter, investors are not expecting fireworks, but will rather focus on synergies related to the Saks acquisition as well as further details on the monetisation of the real estate portfolio.

Despite a recent run of poor results from the clothing retailer Reitmans Canada (TSX: RET.A), interest will be high when it report results on Wednesday. Fairfax Financial (TSX: FFH), led by investor Prem Watsa, announced in December that it had acquired a 13.8% interest in the A shares of the company.

Apart from its current involvement in BlackBerry, Fairfax also previously became involved in ailing furniture retailer Brick where management was changed and the company eventually merged with Leon’s Furniture. The financial result is not expected to be great and with sales down by 2.5% in the first nine weeks of the current quarter, the profit expectation of $0.02 per share may be optimistic.

MTY Food Group (TSX: MTY) is an owner and franchisor of more than 2,500 fast food restaurants including Mr Sub, Extreme Pita and Mr Souvlaki. The company is expected to report on Friday a profit of $0.36 per share compared to $0.29 a year earlier.

Some major acquisitions were concluded during the previous quarter and the current quarter will reflect a full contribution for the first time. Same-store sales declined during the 2013 financial year and the sales results will be scrutinised for undue weakness over the seasonally slower period of January and February. Nevertheless, the company has performed extremely well over the past five years with profits per share up 150% and the share price increasing by 300%.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Deon Vernooy holds a position in Telus. MTY Food Group is a recommendation of Share Advisor Canada.

More on Investing

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

TFSA Investors: Buy These 3 Stocks for $3,480 Yearly Tax-Free Income

One significant benefit of a TFSA-based dividend income is that it doesn’t weigh down your tax bill.

Read more »

a-developer-typing-lines-of-ai-code-while-viewing-multiple-computer-monitors
Tech Stocks

Could Constellation Software Become the Next Berkshire Hathaway?

Constellation Software's (TSX:CSU) capital-allocation strategy is similar to that of Berkshire Hathaway (NYSE:BRK.B).

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Friday, November 8

The TSX Composite benchmark remains on track to end the week with strong optimism as it currently trades with 2.4%…

Read more »

Canadian dollars in a magnifying glass
Dividend Stocks

3 High-Yield Dividend Stocks That Are Screaming Buys Right Now

Are you looking for great income stocks? Here's a trio of high-yield dividend stocks that pay insane yields right now.

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Bank Stocks

Best Stock to Buy Right Now: TD Bank or Manulife Financial?

Manulife continues to see momentum in its business and stock price, while TD Bank stock remains down and out.

Read more »

cloud computing
Tech Stocks

3 No-Brainer Tech Stocks to Buy With $1,000 Right Now

These three Canadian tech stocks could be among the best growth opportunities in the market right now.

Read more »

Piggy bank with word TFSA for tax-free savings accounts.
Dividend Stocks

Transform a $5,000 TFSA Into a $50,000 Retirement Nest Egg

The TFSA is a powerful tool that can grow a small investment into a substantial retirement nest egg over time.

Read more »

Canadian Dollars bills
Metals and Mining Stocks

2 Cheap Canadian Stocks Under $20 to Buy This November

Cheap TSX stocks such as Endeavour Silver are trading at an attractive valuation in November 2024.

Read more »