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- 1 Many consumer goods or FMCG companies manage to remain profitable throughout the year.
- 2 The stocks of these firms emerge as lucrative investments for traders.
- 3 Experts are helping investors pick the best FMCG company stocks from Canada.
Consumer goods or FMCG products are things that people use on a daily basis. Think of toiletries, food items, electronics, cosmetics, healthcare items, etc. Since they are essential for living, their demand never really weakens. That’s why investing in FMCG stocks is a prudent thing to do. But that doesn’t mean that traders can always make a profit out of them. Remember, there are several factors that impact the market. In this case, it’s the excessive competition due to over-penetration.
There are several brands and various factors impacting their sales. Thus, traders always need to be on their toes when dealing with consumer goods stocks. Also, it’s important to find markets where there’s a good scope for such companies. Canada is undoubtedly one of the countries where every industry flourishes. However, choosing the best FMCG stocks could be easier said than done. Fret not since experts share their picks for making investors’ jobs easy.
Canadian FMCG Stock With High Profit-Making Chances
The products of these companies have remained useful for target customers. They have maintained good quality and demand.
Loblaw Company Ltd. (TSX: L)
Loblaw is a Canadian retail chain with a presence in several regions across the country. It sells household items, pharmaceuticals, groceries, baby products, clothing, general merchandise, and financial services. Its parent company is George Weston Ltd. and its brands are Joe Fresh, President’s Choice, and No Name.
George Weston Ltd. (TSX: WN)
George Weston is a Canadian holding company that operates in different segments. With the ownership of Loblaw, it has become an established player in the FMCG industry. Besides that, it also owns Choice Properties Real Estate Investment Trust. Till 2022, the company had a bakery division which it sold to FGF Brands.
Metro Inc. (TSX: MRU)
Metro is a food retailer and the third-largest grocer in Canada. It operates in Quebec and Ontario with several supermarkets and groceries. Moreover, it handles stores under other brands as well. In the past few years, the company has expanded its operations and increased its revenue.
Saputo Group Inc. (TSX: SAP)
Saputo is a Canadian dairy company offering a wide gamut of products. It offers cheese, fluid milk, shelf-life milk, cream products, cultured products, and dairy ingredients. A number of mergers and acquisitions have made it one of the top 10 dairy processors globally. It reaches more than 60 countries globally.
Premium Brands Holdings (TSX: PBH)
Originally founded as Fletcher, Premium Brands Holdings is a Canadian specialty food manufacturing and distribution company. It operates in Canada as well as the United States. The main products are seafood, beef, processed meat, and sandwiches. It also owns a large number of brands and businesses.
Conclusion
By investing in FMCG companies, traders can gain frequent profits as well as long-term gains. These stocks strengthen their portfolio and enable them to rise against all odds. Although no niche is immune to volatility, consumer goods are no exception to it. Still, these are products that have better chances of being sold than the luxury stuff. When the pandemic struck the world, these essentials were the first priority on everyone’s buying list.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
