2 Stocks That Might Benefit from the Canada-US Trade Wars

The ongoing trade tensions between Canada and the United States have created uncertainty for many industries. However, some Canadian companies are positioned to benefit from this evolving landscape. With tariffs impacting imported goods and trade flows, businesses with strong domestic operations and resilient supply chains stand to gain.

Two stocks that could benefit from these trade shifts are Canadian Tire Corporation (CTC.A) and Fortis Inc. (FTS). Canadian Tire has a well-established domestic retail network with minimal reliance on U.S. imports, while Fortis operates as a utility company largely shielded from trade policy disruptions.

Canadian Tire Corporation (TSE: CTC.A) – A Strong Domestic Retailer

Canadian Tire Corporation (CTC.A) is one of Canada’s largest and most recognizable retail brands. With a diversified portfolio of retail businesses, including Canadian Tire, SportChek, Mark’s, and Party City Canada, the company operates primarily within the Canadian market.

Key Products and Services

1. Retail Operations

• Operates over 1,700 stores across Canada under various brands.

• Product categories include automotive, sports, apparel, home improvement, and outdoor essentials.

2. Financial Services

• Provides Canadian Tire Bank credit cards and financial products.

• Generates revenue from credit card interest, making it a stable cash flow segment.

3. E-Commerce and Loyalty Programs

• Offers an expanding e-commerce platform with home delivery and in-store pickup options.

• The Triangle Rewards Program strengthens customer retention and spending.

Canadian Tire (CTC.A): Positioned Above Key SMAs

With a strong domestic presence and consistent revenue growth, Canadian Tire's stock has performed well despite broader market volatility.

Why Canadian Tire Could Benefit from Trade Tensions

• Higher Demand for Canadian-Sourced Goods – With potential tariffs on U.S. imports, consumers may turn to Canadian-based retailers for better pricing and availability.

• E-Commerce Growth – Increased online shopping activity helps Canadian Tire capture more market share in the domestic retail space.

• Stable Financials – Strong earnings growth, consistent dividend payouts, and efficient cost management make CTC.A an attractive investment.

Stock Performance Analysis: Canadian Tire Corporation (TSE: CTC.A)

Metric	Value
1-Year Stock Growth	+21.4%
Dividend Yield	3.8%
Forward P/E	12.64x
Price/Book	2.14x

Peer Comparison: Canadian Tire Corporation (CTC.A) vs. Competitors

Code	Name	GIC Sector	Market Cap	Beta	52-Week High	52-Week Low	50-Day MA	200-Day MA	Shares Short	Short Ratio	Short Percent
MNS	Royal Canadian Mint - Canadian Silver Reserves	Consumer Discretionary	--	0.33	27.75	15.69	24.58	23.74	0	0.00	--
ATD	Alimentation Couchen Tard Inc A	Consumer Discretionary	72.76B	0.889	86.88	71.31	78.82	77.86	4,476,052	4.73	--
QSR	Restaurant Brands International Inc	Consumer Discretionary	40.28B	0.962	109.50	86.06	93.56	95.77	1,909,322	1.53	0.0069
DOL	Dollarama Inc	Consumer Discretionary	38.58B	0.543	152.87	97.87	140.53	133.41	1,715,334	3.34	0.0114
QSP-UN	Restaurant Brands International LP	Consumer Discretionary	30.00B	0.865	107.80	87.11	93.83	95.53	59	1.31	--
MG	Magna International Inc	Consumer Discretionary	15.53B	1.604	77.59	51.34	60.79	59.59	5,626,883	6.59	0.0127
GIL	Gildan Activewear Inc.	Consumer Discretionary	11.57B	1.604	76.20	43.58	69.83	60.15	921,830	2.59	0.0069
CTC-A	Canadian Tire Corporation Ltd.	Consumer Discretionary	9.34B	1.329	168.00	120.39	157.05	149.05	833,373	3.84	0.0205
CTC	Canadian Tire Corporation Ltd.	Consumer Discretionary	8.74B	1.329	268.98	190.64	220.44	225.87	1,031	1.92	--
ATZ	Aritzia Inc	Consumer Discretionary	7.70B	1.844	73.44	31.82	56.56	45.64	1,526,040	4.14	0.0271

This peer comparison table provides an overview of Canadian Tire Corporation (CTC.A) and its competitors in the Consumer Discretionary sector. The table includes market capitalization, stock volatility (Beta), recent stock performance, and short interest data. Canadian Tire Corporation remains a key player in this sector alongside companies such as Dollarama, Aritzia, and Restaurant Brands International, showcasing strong financial positioning within the industry.

Valuation Metrics: Canadian Tire Corporation (TSE: CTC.A)

Metric	Current	9/30/2024	6/30/2024	3/31/2024	12/31/2023	9/30/2023
Market Cap	10.5B	9.7B	9.3B	8.9B	8.6B	8.2B
Enterprise Value	12.7B	11.4B	10.8B	10.2B	9.9B	9.4B
Price/Sales	1.52x	1.41x	1.38x	1.35x	1.31x	1.29x
Price/Book	2.14x	2.02x	1.98x	1.93x	1.89x	1.85x

Fortis Inc. (TSE: FTS) – A Resilient Utility Play Amid Trade Volatility

Fortis Inc. (FTS) is a leading North American electric and gas utility company, operating primarily in Canada. The company's regulated business model ensures stable revenue generation, making it a safe haven investment during economic uncertainty and trade disruptions.

Key Advantages in the Trade War Scenario

1. Limited Exposure to Trade Risks – Fortis operates in the domestic utilities sector, meaning tariffs and cross-border trade tensions have minimal impact on its operations.

2. Stable and Growing Dividends – Fortis has a 50-year dividend growth streak, making it an attractive income-generating stock.

3. Strong Balance Sheet – The company maintains low debt levels and consistent earnings growth, ensuring long-term financial health.

Stock Performance Analysis: Fortis Inc. (TSE: FTS)

Metric	Value
1-Year Stock Growth	+8.9%
Dividend Yield	4.5%
Forward P/E	17.94x
Price/Book	1.78x

Peer Comparison: Fortis Inc. (FTS) vs. Competitors

Code	Name	GIC Sector	Market Cap	Beta	52-Week High	52-Week Low	50-Day MA	200-Day MA	Shares Short	Short Ratio	Short Percent
FTS	Fortis Inc.	Utilities	31.09B	0.226	63.75	49.49	60.95	58.38	8,035,851	5.12	0.0119
H	Hydro One Ltd	Utilities	27.12B	0.341	48.05	36.73	44.69	43.13	3,021,141	3.59	0.0335
BIP-UN	Brookfield Infrastructure Partners L.P.	Utilities	22.03B	1.053	49.99	33.07	46.96	43.95	598,784	1.45	0.0029
BEP-UN	Brookfield Renewable Partners L.P.	Utilities	20.93B	0.895	40.84	27.00	32.96	34.68	812,728	2.85	0.0036
EMA	Emera Inc.	Utilities	16.17B	0.339	56.33	42.88	53.81	50.41	11,206,202	4.48	0.0389
CPX	Capital Power Corporation	Utilities	7.27B	0.646	68.04	32.61	61.08	48.44	2,276,863	2.67	0.0111
BIPC	Brookfield Infrastructure Corp	Utilities	7.22B	1.417	63.52	38.79	58.63	53.71	1,100,722	7.75	0.0154
BEPC	Brookfield Renewable Corp	Utilities	6.95B	1.008	48.28	28.80	40.46	40.60	1,335,355	5.12	0.0128
CU	Canadian Utilities Limited	Utilities	6.91B	0.66	36.98	28.18	34.91	33.32	2,061,177	2.98	0.0461
ACO-Y	ATCO Ltd.	Utilities	5.20B	0.732	53.46	36.46	49.37	45.79	3,909	49.48	--

This peer comparison table provides an overview of Fortis Inc. (FTS) and its competitors** in the Utilities sector. It includes market capitalization, stock volatility (Beta), recent stock performance, and short interest data. Fortis Inc. stands among leading utility providers like Hydro One, Brookfield Infrastructure, and Emera, showcasing its stability and growth potential in the industry.

Final Thoughts

Both Canadian Tire (CTC.A) and Fortis Inc. (FTS) are well-positioned to weather trade tensions and continue delivering strong financial performance. Canadian Tire benefits from domestic retail strength, while Fortis remains a stable defensive play in the utilities sector. Investors seeking resilient Canadian stocks should consider both companies as long-term investment opportunities.