In April, the S&P/TSX Composite Index staged an impressive rally, rebounding 3.7 per cent and nearly recovering the 4.6 per cent drawdown in March.
There were eight sectors that closed out the month with positive price returns. Sector leaders were health care, financials, industrials, consumer discretionary and technology with gains of 13 per cent, 10.1 per cent, 6.3 per cent, 6.1 per cent and 5.4 per cent, respectively. Sectors laggards included communication services, materials, and consumer staples with losses of 6.6 per cent, 5.3 per cent and 0.9 per cent, respectively.
Year-to-date, the TSX Index is up a respectable 7.1 per cent with positive price returns in eight of the 11 sectors. There are two sectors with double-digit returns - energy and utilities - with gains of 31.5 per cent and 10.3 per cent, respectively.
The top 10 performers in the S&P/TSX Composite Index in April were:
- BlackBerry Ltd. (BB-T), up 63 per cent
- Curaleaf Holdings Inc. (CURA-T), up 59 per cent
- Celestica Inc. (CLS-T), up 42 per cent
- Lithium Americas Corp. (LAC-T), up 41 per cent
- TFI International Inc. (TFII-T), up 28 per cent
- Abrasilver Resource Corp. (ABRA-T), up 28 per cent
- Aritzia Inc. (ATZ-T), up 26 per cent
- Bird Construction Inc. (BDT-T), up 26 per cent
- Enerflex Ltd. (EFX-T), up 25 per cent
- Mullen Group Ltd. (MTL-T), up 20 per cent
Stocks with material positive revisions to their average target prices over the past month include three energy stocks:
- Vermilion Energy Inc. (VET-T), increased 31 per cent to $22.2 from $16.89
- Parex Resources Inc. (PXT-T), increased 29 per cent to $32.5 from $25.28
- Strathcona Resources Ltd. (SCR-T), increased 22 per cent to $46.4 from $37.9
Along with two industrial stocks:
- Bird Construction Inc. (BDT-T), increased 21 per cent to $52.75 from $43.63
- TFI International Inc. (TFII-T), increased 20 per cent to $207.83 from $172.52.
As of April 30, the S&P/TSX Composite Index was trading at a price-to-earnings multiple of 16.4 times the 2026 consensus earnings estimate, down from a multiple of 17.8 times last month, according to Bloomberg. Earnings estimates have jumped with earnings growth of 24.9 per cent expected over the next 12 months, up from 16.1 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.
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