In June, small-cap outperformance sharply reversed course. The S&P/TSX SmallCap Index declined 4.17 per cent, underperforming the S&P/TSX Composite Index, which advanced 0.25 per cent.
Despite this large setback, the SmallCap Index remains the year-to-date performance leader with a 17.01 per cent price return in the first half of 2026, compared to a 9.92 per cent return for the S&P/TSX Composite Index.
Last month, only five sectors in the S&P/TSX SmallCap Index posted positive price returns: information technology, consumer staples, real estate, health care and financials with gains of 17.50 per cent, 3.04 per cent, 2.98 per cent, 2.21 per cent and 1.88 per cent, respectively.
The largest sector detractors to performance were materials and energy with negative returns of 11.66 per cent and 7.14 per cent, respectively.
The top 10 performers in the TSX SmallCap Index in June were:
- BlackBerry Ltd. (BB-T), up 45 per cent
- Andrew Peller Ltd. (ADW-A-T), up 40 per cent
- VersaBank (VBNK-T), up 31 per cent
- Knight Therapeutics Inc. (GUD-T), up 20 per cent
- Neo Performance Materials Inc. (NEO-T), up 19 per cent
- Interfor Corp. (IFP-T), up 19 per cent
- Kneat.com Inc. (KSI-T), up 19 per cent
- Polaris Renewable Energy Inc. (PIF-T), up 18 per cent
- Jamieson Wellness Inc. (JWEL-T), up 18 per cent
- Adentra Inc. (ADEN-T), up 17 per cent.
Stocks with large positive revisions to their average target prices over the past month include:
- BlackBerry Ltd. (BB-T), increased 97 per cent to $14.16 from $7.19
- VersaBank (VBNK-T), increased 37 per cent to $29.86 from $21.81
- Canopy Growth Corp. (WEED-T), increased 27 per cent to $2.20 from $1.73
- Magellan Aerospace Corp. (MAL-T), increased 23 per cent to $38.75 from $31.42
- Diversified Royalty Corp. (DIV-T), increased 17 per cent to $5.90 from $5.03
Now, here’s a look at analysts’ current target prices, recommendations, forecast returns and yields for all securities in the S&P/TSX SmallCap 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.