The Best Canadian Food Stocks in November 2023

eat food

When you think of food stocks, it’s likely that we all have one or two that come to mind. Yet there is a slew of options out there to invest in, with some stronger than others. While some may lean towards grocery chains; others might want agriculture. This is why today, we’re going to look at the best of the best. Food stocks that have had a strong year should continue to be stronger in November 2023. So, let’s jump right into it.

Loblaw stock

Loblaw Companies (TSX:L) is certainly one of the top food stocks that investors should continue to consider on the TSX today. After all, Loblaw stock is the largest grocery chain in the country, with plenty of names under its umbrella these days. Consumers can purchase everything from pharmaceutical products and high-end groceries to your basic necessities. Add in the strong loyalty program, and you’ve certainly got a loyal following as well.

However, some analysts worry about the future of Loblaw stock. It’s already grown so much, so how much more could it possibly do? The answer is to acquire more business, expanding especially in the healthcare sector.

This would provide investors with exposure both to the company through food stocks as well as through healthcare stocks. Therefore, Loblaw stock may become a one-stop shop for all your health, wellness, and food needs! Meanwhile, right now, Loblaw stock trades at 18.37 times earnings, with shares steady to where they were last year and a 1.61% dividend yield.

Nutrien stock

Then there are the companies that help to create the food that we eat. This would include Nutrien (TSX:NTR), which has gone through its own issues in the last few years. The company surged, as sanctions went against Russia for its invasion of Ukraine. However, shares then plummeted as the market fell as well.

Nutrien stock now continues to struggle with less cash on hand to continue its growth path. This path has mainly been through acquisitions, but that’s not been possible as the price of potash came back down from surging highs.

Even so, Nutrien stock is one of the food stocks investors should continue to keep an eye on. After all, potash production remains high, with more production sites set to open up in the coming years. As this happens, shares should slowly climb back up. For now, the stock trades at just 7.72 times earnings, with a dividend yield of 3.77% and shares down 33% in the last year.

Saputo stock

Last but not least, there’s food itself. For that, I would consider investing in a company such as Saputo (TSX:SAP) among food stocks — especially as its next earnings results are around the corner on November 9.

The stock continues to be a major recommendation by the majority of analysts, especially as its quarterly results continue to surge past estimates. The dairy producer also continues to expand worldwide. It’s the leading dairy producer in Canada and Argentina as well as Australia and the United Kingdom.

Management expects Saputo stock to grow even further, especially as they “make progress against [their] Global Strategic Plan initiatives.” These should start seeing “meaningful returns” once fully up and running. For now, first-quarter results saw revenue drop 2.8% in the last quarter, with net earnings increasing to $141 million from $139 million the year before. Further, adjusted earnings before interest, taxes, depreciation and amortization rose 4.3% as well.

For now, you can pick up Saputo stock among food stocks with a 2.72% dividend yield and shares down 18% in the last year.

The post The Best Canadian Food Stocks in November 2023 appeared first on The Motley Fool Canada.

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Fool contributor Amy Legate-Wolfe has positions in Loblaw Companies. The Motley Fool recommends Nutrien. The Motley Fool has a disclosure policy.