February was a remarkable month for the S&P/TSX Composite Index, which surged 7.6 per cent. Importantly, it was a broad-based rally.
In February, nine sectors delivered positive price returns and just two sectors reported losses. Sectors that rallied were materials, consumer discretionary, consumer staples, energy, health care, utilities, industrials, communication services, and financials with price returns of 21.6 per cent, 10.4 per cent, 10 per cent, 8.5 per cent, 8.4 per cent, 8.1 per cent, 6.3 per cent, 2.8 per cent and 2.5 per cent, respectively.
Sectors detractors were real estate and technology with negative price returns of 0.6 per cent and 6.3 per cent, respectively.
The top 10 performers in the S&P/TSX Composite Index in February were:
- First Majestic Silver (AG-T), up 54 per cent
- Novagold (NG-T), up 53 per cent
- Alamos Gold (AGI-T), up 47 per cent
- Orla Mining (OLA-T), up 44 per cent
- SSR Mining (SSRM-T), up 41 per cent
- Fortuna Mining (FVI-T), up 40 per cent
- Seabridge Gold (SEA-T), up 40 per cent
- Perpetua Resources (PPTA-T), up 39 per cent
- Silvercorp Metals (SVM-T), up 38 per cent
- IAMGOLD (IMG-T), up 36 per cent
Stocks with material positive revisions to their average target prices over the past month include:
- Enerflex (EFX-T), increased 36 per cent to $34.35 from $25.17
- 5N Plus (VNP-T), increased 25 per cent to $35 from $27.92
- Sprott (SII-T), increased 24 per cent to $196.35 from $157.80
- Magna (MG-T), increased 24 per cent to $93.88 from $75.66
As of February 27, the S&P/TSX Composite Index was trading at a price-to-earnings multiple of 17.8 times the 2026 consensus earnings estimate, up from 16.9 times last month, according to Bloomberg. Earnings estimates have been rising with earnings growth of 16.1 per cent expected over the next 12 months, up from 15.3-per-cent forecast last month.
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.
Click here to download an Excel version of the report.