In June, the S&P/TSX Composite Index advanced 0.25 per cent, ending the month less than 2 per cent away from the record closing high set on June 16.
There were seven sectors that closed out the month with positive price returns. Sector leaders were financials, consumer staples, health care, industrials and real estate with gains of 8.62 per cent, 7.79 per cent, 5.83 per cent, 2.92 per cent and 2.7 per cent, respectively. Sectors laggards included materials, communication services and energy with losses of 12.21 per cent, 11.15 per cent and 4.61 per cent, respectively.
Year-to-date, the TSX Index is up 9.92 per cent with positive price returns in eight of the 11 sectors. There are three sectors with double-digit returns. Energy, financials and utilities have gains of 21.53 per cent, 21.4 per cent and 15.7 per cent, respectively. Technology is the worst performing sector, posting a loss of 17.64 per cent.
The top 10 performers in the S&P/TSX Composite Index in June were:
- BlackBerry Ltd. (BB-T), up 45 per cent
- Jamieson Wellness Inc. (JWEL-T), up 18 per cent
- Alimentation Couche-Tard Inc. (ATD-T), up 16 per cent
- Waste Connections Inc. (WCN-T), up 15 per cent
- IA Financial Corp Inc. (IAG-T), up 14 per cent
- Definity Financial Corp. (DFY-T), up 14 per cent
- EQB Inc. (EQB-T), up 14 per cent
- Primaris REIT (PMZ-UN-T), up 13 per cent
- GFL Environmental Inc. (GFL-T), up 13 per cent
- RB Global Inc. (RBA-T), up 13 per cent
Stocks with material positive revisions to their average target prices over the past month include:
- BlackBerry Ltd. (BB-T), up 97 per cent to $14.16 from $7.19
- MDA Space Ltd. (MDA-T), up 13 per cent to $67.06 from $59.40
- Badger Infrastructure Solutions Ltd. (BDGI-T), up 13 per cent to $92.44 from $81.88
- Royal Bank of Canada (RY-T), up 11 per cent to $280.62 from $252.07
- Alimentation Couche-Tard Inc. (ATD-T), up 11 per cent to $102.26 from $92.11.
As of June 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 16.5 times last month, according to Bloomberg. Double-digit earnings growth is expected over the next 12 months with current expectations pegged at 23 per cent.
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.