In October, the S&P/TSX Composite Index rallied for a sixth consecutive month, advancing a respectable 0.79 per cent.
In terms of sector performance, it was a mixed month for the S&P/TSX Composite Index with six sectors posting gains and five sectors realizing losses.
Amongst the sector leaders were technology, health care and utilities with price returns of 13.82 per cent, 4.14 per cent and 3.96 per cent, respectively. Sector laggards included materials, real estate and consumer staples with declines of 4.97 per cent, 4.29 per cent and 1.29 per cent, respectively.
Year-to-date, the S&P/TSX Composite Index was up 22.37 per cent as of Oct. 31.
The top 10 performers in the TSX Index during the month were:
- Celestica Inc. (CLS-T), up 41 per cent
- Energy Fuels Inc. (EFR-T), up 35 per cent
- TransAlta Corp. (TA-T), up 30 per cent
- Aecon Group Inc. (ARE-T), up 30 per cent
- Cameco Corp. (CCO-T), up 23 per cent
- Badger Infrastructure Solutions Ltd. (BDGI-T), up 20 per cent
- Perpetua Resources Corp. (PPTA-T), up 20 per cent
- Brookfield Renewable Partners LP (BEP.UN-T), up 19 per cent
- Shopify Inc. (SHOP-T), up 18 per cent
- Enerflex Ltd. (EFX-T), up 18 per cent
Last month, nearly 40 stocks in the S&P/TSX Composite Index realized positive revisions to their target prices by 20 per cent or more, the majority of which were gold stocks including Equinox Gold Corp. (EQX-T), IAMGOLD Corp. (IMG-T), SSR Mining inc. (SSRM-T) and G Mining Venture Corp. (GMIN-T), whose average target prices increased 52 per cent, 49 per cent, 47 per cent and 46 per cent, respectively.
Amongst stocks with large negative revisions to their target prices over the past month were Allied Properties REIT (AP-UN-T) and CGI Inc. (GIB.A-T), whose average target prices declined 12 per cent and 8 per cent, respectively.
As of Oct. 31, the S&P/TSX Composite Index was trading at a price-to-earnings multiple of 16.1 times the 2026 consensus earnings estimate, according to Bloomberg. Earnings estimates have increased over the past four weeks. Earnings growth of 13 per cent is anticipated over the next 12 months.
Looking ahead, historically November has been a positive month for the TSX Index. In the month, the S&P/TSX Composite Index has rallied in eight of the past 10 years, and in 14 of the past 20 years. Most recently, the S&P/TSX Composite Index rallied 6.17 per cent in 2024, climbed 7.22 per cent in2023, advanced 5.29 per cent in 2022, declined 1.79 per cent in 2021 and increased 10.33 per cent in 2020.
Now, here’s a look at analysts’ current target prices, recommendations, forecast returns and yields for all 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. Data is as of Oct. 31.
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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