In the wake of recent turbulence in global equity markets, investors are seeking refuge in quality stocks that promise stability and superior returns. While uncertainties loom large, strategic investments in resilient companies can pave the way for long-term wealth accumulation. Here, we present two compelling stock picks poised to weather market volatility and deliver robust returns.


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Waste Connections Driving Growth Amidst Challenges

Waste Connections (TSX:WCN) emerges as a beacon of resilience amidst market turmoil. As a leading waste management company, Waste Connections specializes in collecting, transferring, and disposing of non-hazardous solid waste, alongside its recycling endeavors. Despite the prevailing economic headwinds, Waste Connections has demonstrated commendable performance, outpacing broader market indices with returns of 12.4% this year.

Solid Financial Performance and Growth Prospects

In the first three quarters of 2022, Waste Connections witnessed an impressive 18% surge in revenue, reaching a commendable US$5.3 billion. This robust revenue growth can be attributed to solid execution, favorable pricing dynamics, and strategic acquisitions. Moreover, the company's adjusted earnings per share (EPS) soared by an impressive 22.6%, underscoring its strong operational efficiency and financial health.

Dividend Growth and Stability

A testament to its stability and commitment to shareholders, Waste Connections recently announced a 10.9% increase in its quarterly dividend, marking the 12th consecutive year of double-digit hikes. This underscores its reputation as a dividend stock on the TSX, emphasizing the company's dedication to rewarding investors while maintaining a stable payout ratio. With its resilient business model and promising growth trajectory, Waste Connections remains an attractive investment amidst market volatility.

Cargojet

Cargojet (TSX:CJT) emerges as another compelling investment opportunity in the current market landscape. Specializing in time-sensitive air cargo transportation services, Cargojet serves as a critical link in Canada's logistics chain, facilitating the swift movement of goods across domestic and international markets. Despite the prevailing challenges, Cargojet has exhibited robust financial performance, underpinned by its resilient business model and strong market positioning.

Steady Revenue Growth and Market Outlook

In the first nine months of this year, Cargojet witnessed a remarkable 36.5% increase in revenue, accompanied by a staggering 56.7% surge in adjusted EPS. This stellar financial performance underscores Cargojet's resilience and adaptability in navigating turbulent market conditions. Moreover, with the continued growth of e-commerce and the anticipated expansion of the air cargo market, Cargojet is well-positioned to capitalize on emerging opportunities.

Future Growth Potential and Market Dynamics

Analysts project a steady uptrend in the air cargo market, with an anticipated annualized growth rate of 4% through 2030. This growth trajectory is fueled by the escalating adoption of online shopping and the consequent surge in demand for expedited logistics services. However, amidst the backdrop of constrained freighter fleet growth, Cargojet stands to benefit from a potential supply-demand imbalance, bolstering its market position and revenue growth prospects.

Conclusion

In conclusion, amidst the prevailing market volatility and economic uncertainties, investing in quality stocks remains a prudent strategy for long-term wealth creation. Both Waste Connections and Cargojet exemplify resilience, growth potential, and shareholder value creation, making them compelling additions to any investor's portfolio. By focusing on companies with solid fundamentals, promising growth prospects, and a commitment to shareholder returns, investors can navigate volatile markets with confidence and reap the rewards of their strategic investments.