Top TSX Food Stocks: What to Watch in July 2023

the S&P/TSX Composite Index rose 10 points in early afternoon trading on July 11. Food prices were the main driver of inflation in the early part of this decade. Today, I want to highlight three food stocks on the TSX that you should pay attention to in July 2023. Let’s jump in.

This TSX food stock looked dirt cheap in the first half of July

Long Liner Food (TSX:HLF) is a Nova Scotia-based company that processes and markets frozen seafood products in North America. Its shares were down 1.4% month-on-month in early afternoon trading on July 11. The stock remains low so far in 2023.

This company released its first quarter of fiscal 2023 earnings on May 16. The High Liner put together a solid quarter, as it posted sales growth of 11% to $329 million. Meanwhile, gross revenue jumped 10% year over year to $68.4 million. EBITDA stands for earnings before interest, taxes, depreciation, and amortization. High Liner reported adjusted EBITDA of $31.2 million – up 10% compared to last year. Adjusted net income increased 8.6% to $16.4 million.

Shares of this TSX food stock currently have an excellent price-to-earnings (P/E) ratio of 6.7. High Liner last paid a quarterly dividend of $0.13 per share. That represents a 3.7% yield.

Should you ride the wave of Premium Brands?

Premium Brands (TSX:PBH) is a Vancouver-based company that manufactures and distributes food products primarily in Canada and the United States. This TSX food stock is up 5.3% in the past month. Its shares are up 26% year to date.

In the first quarter of fiscal 2023, Premium Brands delivered revenue growth of 14% to $1.43 billion. Meanwhile, adjusted EBITDA increased 15% annually to $110 million. Both of these hit record levels in the first quarter of fiscal 2023. Adjusted earnings per share (EPS) rose 27% to $0.64. Premium Brands sandwich group has opened a new 67,000 square food state-of-the-art sandwich plant in Edmonton, Alberta. In addition, it boasts a promising pipeline that prompted the company to reaffirm its sales and revised EBITDA for the full year.

This TSX food stock is trading in attractive territory compared to its industry peers. Premium Brands last paid a quarterly dividend of $0.77 per share, representing a 2.9% yield.

Why I’m still bullish on this TSX food stock in the long haul

Maple Leaf Foods (TSX:MFI) is the third and final TSX food stock I’m looking at getting, as we approach mid-July. This Mississauga-based company manufactures food products in North America, China, Japan, and around the world. Shares of Maple Leaf Foods are up 2.6% year to date in 2023.

Investors saw the earnings of the first quarter of the company’s fiscal 2023 on May 11. It gave a total sales growth of 4.3% to $ 1.17 billion. Maple Leaf delivered Meat Protein Sales Group growth of 5% to $1.14 billion. On the other hand, its Plant Protein Group achieved sales of $37.4 million — up 60% compared to last year. Plant-based alternatives have gained significant ground in recent years. This group has great potential in the long term.

Maple Leaf shares are also trading in favorable value territory compared to its competitors. It offers a quarterly dividend of $0.21 per share, representing a 3.2% yield.