Stock markets were turbulent in March.
The S&P/TSX Composite Index had a weak start to the month, declining 4.7 per cent over the first nine trading days. However, nearly all these losses were erased by March 25. The Index ended the month down 1.87 per cent with four of the 11 sectors closing out the month in the green.
The materials, energy, consumer staples and utilities sectors realized gains of 6.98 per cent, 3.35 per cent, 2.29 per cent, and 1.46 per cent, respectively. Sectors with the largest declines were technology, industrials and health care reporting losses of 12.73 per cent, 4.81 per cent and 4.65 per cent, respectively.
Year-to-date, the S&P/TSX Composite Index is struggling to stay in positive territory and finished the first quarter of the year with gain of 0.77 per cent.
The top 10 performers in the TSX Index during the month were:
- Fortuna Mining Corp. (FVI-T), rallying 40 per cent
- New Gold Inc. (NGD-T), up 35 per cent
- Orla Mining Ltd. (OLA-T), up 33 per cent
- K92 Mining (KNT-T), up 29 per cent
- Torex Gold Resources Inc. (TXG-T), up 26 per cent
- Terravest Industries Inc. (TVK-T), up 26 per cent
- First Majestic Silver Corp (AG-T), up 24 per cent
- OceanaGold Corp (OGC-T), up 24 per cent
- G Mining Venture Corp (GMIN-T), up 23 per cent
- Sandstorm Gold Ltd (SSL-T), up 22 per cent
Earnings estimates have been coming down, declining 1.8 per cent over the past four weeks with earnings growth of 7.5 per cent now expected over the next 12 months.
The S&P/TSX Composite Index is trading at a price-to-earnings multiple of 15.3 times the 2025 consensus earnings estimate, below its 10-year historical average forward P/E multiple of 16.6 times.
Now, here’s a look at analysts’ current target prices, recommendations, forecast returns and yields for all 218 securities in the S&P/TSX Composite Index grouped by sector and ranked according to their expected price returns (excluding dividend and distribution income). The posted target price for each security is an average of all available target prices from analysts. A target price typically reflects an expected share or unit price 12 months from now based on an analyst’s financial modelling, such as a discounted cash flow or sum-of-the-parts model. For the yield provided, Bloomberg calculates this figure by annualizing the most recent announced dividend or distribution value.
It’s important to note that high target prices, which imply stellar returns that seem unbelievable may be just that - unrealistic. At times, when a stock price falls analysts may maintain their bullish expectations, inflating the forecast return. In addition, an outlier (extreme target price) can skew the average target price, to the upside or downside, particularly when the number of analysts covering a stock is low. Don’t let a huge projected gain lure you into a position – it is critical to look at the company and industry fundamentals.
Click here to download an Excel version of the report.
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