3 Top Performing Stocks That Could Continue Their Uptrend

Written by Rajiv Nanjapla at The Motley Fool Canada

Yesterday, the U.S. Department of Labor reported that first-time jobless claims were filed at a seasonally adjusted 233,000 in the week ending Aug. 3. The number of jobless claims was below analysts’ estimates of 240,000, easing recession fears and boosting stock markets. S&P/TSX Composite Index yesterday it increased by 1.6% and this year it has increased by 6%.

Given the improvement in investor sentiment, you can buy shares in the following three companies that have outperformed the broader stock market this year and are poised to continue their upward trends.

Waste connections

Thanks to the solid results achieved in the first two quarters of this year, Waste connections (TSX:WCN) is up more than 25% this year. Its top line is up 10.2% in the first six months amid organic growth and accretive acquisitions. Price growth and a 100 basis point increase in volume boosted its organic growth. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 15.6% to $1.38 billion, while EBITDA margin increased 150 basis points to 32%. In addition, adjusted earnings per share (EPS) rose 19.4% to $2.28.

After posting solid second-quarter results, WCN management said the momentum would continue into the second half of the year. It raised its 2024 guidance, with the new revenue and adjusted EBITDA guidance representing year-over-year growth of 10.3% and 14.9%, respectively. The company is building several renewable natural gas and resource recovery facilities, supporting its long-term growth potential. In addition, WCN has also raised its dividend by 14% CAGR since 2010, making it a great buy now.

Dollar

Another stock that has outperformed the broader stock market is Dollar (TSX:DOL), which has returned 32.5% year to date. In its recently reported first quarter of fiscal 2025, revenue grew 8.6% on same-store sales growth of 5.6% and a net addition of 62 stores over the past four quarters. In addition, its EBITDA increased 14% and its EBITDA margin expanded 140 basis points to 29.7%.

The story continues

Moreover, given the growth initiatives, I expect the stock to continue to rally. The company has planned to add about 430 stores over the next six years to increase its store count to 2,000 by fiscal year 2031. It has also increased its stake in Dollarcity, which operates convenience stores in Latin America, from 50.1% to 60.1%. In addition, Dollarcity has planned to increase its store count from 547 to 1,050 by the end of fiscal year 2031. The store expansion and higher stake could increase Dollarcity’s stake in Dollarama. Considering all these factors, I believe Dolalrama would be an ideal addition to your portfolio despite the significant increase in the stock price.

WELL Medical Technologies

WELL Medical Technologies (TSX:WELL), a technology-enabled healthcare company, has returned 18.4% this year, outperforming the broader stock market. Impressive first-quarter results and a raised 2024 guidance have boosted investor confidence, which has boosted the stock price. Despite the gains, the company still trades at an attractive NTM (next 12 months) price-to-earnings multiple of 18.2.

In addition, the growing popularity of virtual services, the increased use of software services in the healthcare segment, and the digitization of medical records have created multi-year growth potential for the company. In the meantime, the company is developing innovative AI-based products and entering into strategic partnerships and acquisitions that can increase its market share and boost its stock price.

The article 3 Best-Performing Stocks That Could Continue Their Uptrend first appeared on The Motley Fool Canada.

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Fool contributor Rajiv Nanjapla has no position in any stocks mentioned. The Motley Fool has no position in any stocks mentioned. The Motley Fool has a disclosure policy.

2024