2025 ended on a positive note with the S&P/TSX Composite Index advancing 1.05 per cent in December, closing out the year with a 28.3 per cent price return.
In December, there were five sectors with positive price returns and six sectors reported losses. Sectors that rallied were financials, materials, health care, consumer discretionary and industrials with price returns of 4.2 per cent, 2.6 per cent, 1.8 per cent, 1.4 per cent and 0.3 per cent, respectively. Sectors with the largest declines were technology, utilities, energy and communication services with negative price returns of 2.8 per cent, 2.7 per cent, 2.4 per cent and 1 per cent, respectively.
The top 10 performers in the TSX Composite Index in December were:
- TerraVest Industries Inc. (TVK-T), up 30 per cent
- G Mining Venture Corp. (GMIN-T), up 25 per cent
- EQB Inc. (EQB-T), up 20 per cent
- Laurentian Bank of Canada (LB-T), up 18 per cent
- TFI International Inc. (TFII-T), up 16 per cent
- First Quantum Minerals Ltd. (FM-T), up 16 per cent
- Aecon Group Inc. (ARE-T), up 15 per cent
- Hudbay Minerals Inc. (HBM-T), up 14 per cent
- Lundin Mining Corp. (LUN-T), up 13 per cent
- NFI Group Inc. (NFI-T), up 13 per cent
Stocks with material positive revisions to their average target prices over the past month include:
- Laurentian Bank of Canada (LB-T) increased 34 per cent from $40.38 to $30.22
- Discovery Silver Corp. (DSV-T) increased 16 per cent to $8.83 from $7.58
- Skeena Resources Ltd. (SKE-T) increased 15 per cent to $35.85 from $31.29
- Canadian Imperial Bank of Commerce (CM-T) increased 10 per cent to $130.15 from $118.27
As of Dec. 31, the S&P/TSX Composite Index was trading at a price-to-earnings multiple of 16.7 times the 2026 consensus earnings estimate, according to Bloomberg. Earnings estimates have been rising with earnings growth of 15 per cent expected over the next 12 months.
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.
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.
Editor’s note: Editor’s note: In an earlier version of the stock tables accompanying this story, North West Co. and Northwest Healthcare Properties REIT were listed in incorrect sectors. This version has been corrected.