Auto Parts Maker Linamar Emerges as Surprise Winner From Trump's Tariffs
Canadian auto parts maker Linamar Corp., once thought to be a casualty of President Donald Trump's tariffs on cars and metals, says it's now a possible beneficiary of the trade war.
'Virtually everything' Linamar ships to the US is exempt from tariffs because the parts comply with the US-Mexico-Canada trade deal, Executive Chair Linda Hasenfratz said during a conference call with analysts.
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The week in stocks: Dollarama still cashing in and silver gets buffed up
Every weekend, the Financial Post breaks down the most interesting developments in this week's world of investing, from top performers to surprising analyst calls and stocks you should have on your radar. Here's this week's edition. Shares of Dollarama Inc. (DOL) have been unstoppable since the early days of the pandemic when inflation took off and price-shocked consumers turned to dollar stores for better prices on everyday household items. Since mid-March 2020, when COVID hit, the stock is up 438 per cent, including a 10 per cent leap on Wednesday when the discount retailer released earnings that beat analysts' estimates. The report showed that consumers have continued to flock to Dollarama stores despite inflation slowing. Earnings particulars included a 27 per cent increase in profit and an 8.2 per cent increase in sales in the first quarter. Still, the company's chief financial officer said the Canadian consumer appears 'fragile' and that could pose a challenge for the Montreal-based chain. The question now: Where does Dollarama go from here? 'We believe DOL (Dollarama) has a clear pathway to deliver value for shareholders in the short, medium and long term,' Irene Nattel, an analyst with RBC Dominion Securities, said in a note post-earnings. She cited tailwinds for the stock, including a target to increase the number of stores in Canada to 2,200 by 2034, 'long-term growth opportunity in Latin America' and an agreement to purchase Australia-based discount chain The Reject Shop. 'Guidance points to another solid year of performance tempered by caution around (the) evolution of consumer spending and probable weakening economic backdrop as tariffs take a toll on economic activity,' Nattel said. Analysts who follow the stock raised their price targets following the company's earnings release and Nattel has a target price of $207, up from $198 at the end of May, according to Bloomberg. Dollarama closed Friday at $193.74. Silver has caught the eye of analysts at National Bank of Canada. 'We have an optimistic outlook on the price of silver, which supports, but isn't the only reason, we are also optimistic about silver-focused companies,' analyst Alex Terentiew and associate Marc Ferrari said in a note. Silver hasn't posted the gains gold has since investors flocked to bullion to offset the potential inflationary effects of Donald Trump's trade war. Still, silver is up 12 per cent versus 24 per cent for gold since Trump's election win. National Bank's research team said it has expanded the number of 'silver focused' stocks it tracks, adding Coeur Mining Inc. (CDE) and Endeavour Silver Corp. (EDR) to their coverage, which also includes First Majestic Silver Corp. (AG), Hecla Mining Co. (HL) and Highlander Silver Corp. (HSLV). Terentiew and Ferrari see Endeavour 'as the most undervalued and highest growth silver producer in our coverage, although it's also the company with the most to prove as it ramps up production at its newest mine, Terronera (in Mexico), and also integrates the newly acquired Kolpa mine (in Peru) into its portfolio.' Their target price for Endeavour is $9. The stock closed Friday at $6.55. Several oil companies appear to have plans for share buybacks this year, according to RBC Capital Markets. Highlights from the RBC Global Power, Energy and Infrastructure Conference earlier this month pointed to share buybacks coming down the pipeline from a slew of major oilpatch companies. This includes Suncor Energy Inc. (SU), which is on tap to distribute nearly 100 per cent of its excess free funds flow (post dividends) to share repurchases,' Greg Pardy, head of global energy research at RBC Dominion Securities, said in a note following the conference. Other companies where buybacks or dividend increases are expected include Vermilion Energy Inc. (VET), Athabasca Oil Corp. (ATH) and Canadian Natural Resources Ltd. (CNQ). In CNRL's case, the company said it will direct 60 per cent of free cash flow (minus capital and dividends) to buybacks and 40 per cent to reduce net debt. All these stocks have an outperform rating from Pardy and crew. Here are their price targets: Suncor: $65. Suncor closed Friday at $55.67. Vermilion: $14. Vermilion closed Friday at $11.19. Athabasca: $6.50. Athbasca closed Friday at $6.08. CNRL: $64. CNRL closed Friday at $45.96. Donald Trump has been in the driver's seat as far as markets are concerned since his inauguration on Jan. 20. Some stocks, such as Elon Musk's Telsa Inc., have been on a roller-coaster the entire time, subject to the president's whims. With his term nearing the five-month mark, the Financial Post started to wonder which large Canadian companies have come out on top in the early stages of Trump's second stint in the Oval Office. We screened for publicly listed companies on the S&P/TSX Composite index with a market capitalization of at least $20 billion and here's what we got for the Top 20 based on price return from Jan. 20 to June 11. For reference, the S&P/TSX composite index has returned 5.3 per cent during the same period. Wheaton Precious Metals Corp. (WPM): 43.5% Kinross Gold Corp. (K): 34.4% Dollarama Inc. (DOL): 30.9% Agnico Eagle Mines Ltd. (AEM): 29.1% George Weston Ltd. (WN): 23.5% Loblaw Cos. Ltd. (L): 23.4% Franco-Nevada Corp. (FNV): 21.5% Intact Financial Corp. (IFC): 20.8 Brookfield Renewable Partners LP (BEP-U): 20.2% Power Corp. (POW): 18.9% Barrick Mining Corp. (ABX): 18.1% Cameco Corp. (CCO): 17.5% Toronto-Dominion Bank (TD): 17.5% Metro Inc. (MRU): 16.5% Fairfax Financial Holdings Ltd. (FFH): 16.4% Thomson Reuters Corp. (TRI): 13.7% GFL Environmental Inc. subordinate (GFL): 13.4% RB Global Inc. (RBA): 12.1% Constellation Software Inc. (CSU): 12.1% Hydro One Ltd. (H): 11.6% The week in stocks: Lululemon gets stretched and is Tesla a TACO trade candidate? Being an armchair hockey critic is like judging investment performance from the sidelines • Email: gmvsuhanic@ Are you an investor looking for stock ideas and market insight? Sign up for the weekly FP Investor Newsletter here to get the best of the Financial Post's investing news, analysis and expert commentary, straight to your inbox. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Dollarama Inc. Just Beat EPS By 17%: Here's What Analysts Think Will Happen Next
Shareholders of Dollarama Inc. (TSE:DOL) will be pleased this week, given that the stock price is up 10% to CA$194 following its latest first-quarter results. It looks like a credible result overall - although revenues of CA$1.5b were in line with what the analysts predicted, Dollarama surprised by delivering a statutory profit of CA$0.98 per share, a notable 17% above expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Taking into account the latest results, the consensus forecast from Dollarama's eleven analysts is for revenues of CA$6.78b in 2026. This reflects a reasonable 3.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 4.4% to CA$4.62. Before this earnings report, the analysts had been forecasting revenues of CA$6.75b and earnings per share (EPS) of CA$4.51 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates. See our latest analysis for Dollarama The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 17% to CA$197. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Dollarama analyst has a price target of CA$223 per share, while the most pessimistic values it at CA$115. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view. Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Dollarama's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 5.2% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.1% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Dollarama. The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Dollarama's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving. With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Dollarama going out to 2028, and you can see them free on our platform here. Plus, you should also learn about the 2 warning signs we've spotted with Dollarama . Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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Andrew Peller Reports Full Year 2025 Earnings
Revenue: CA$389.6m (up 1.0% from FY 2024). Net income: CA$11.1m (up from CA$2.85m loss in FY 2024). Profit margin: 2.9% (up from net loss in FY 2024). This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. All figures shown in the chart above are for the trailing 12 month (TTM) period Looking ahead, revenue is forecast to stay flat during the next 2 years compared to a 4.6% growth forecast for the Beverage industry in North America. Performance of the market in Canada. The company's shares are up 5.9% from a week ago. Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Andrew Peller (2 are concerning) you should be aware of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
