Sid Mokhtari, chief market technician at CIBC Capital Markets.Supplied
In April, the S&P/TSX Composite Index rebounded 3.65 per cent, nearly recapturing its 4.58 per cent loss realized in March. Investors were rewarded for remaining invested in the market and maintaining a diversified portfolio.
CIBC’s chief market technician Sid Mokhtari helps investors identify stocks with strong technical and quantitative characteristics that may lead to portfolio outperformance.
Mr. Mokhtari publishes a monthly report with his top 10 stock ideas. He screens and selects stocks from the largest 100 members by market capitalization within the S&P/TSX Composite Index. His technically driven stock recommendations have consistently outperformed the broader index across a wide range of market conditions.
Last month, his portfolio of top picks rallied 8.53 per cent, adding 4.88 per cent of alpha relative to the S&P/TSX Composite Index. In April, four of his 10 stock picks, Enerflex Ltd. (EFX-T), Mullen Group Ltd. (MTL-T), National Bank of Canada (NA-T) and Great-West Lifeco (GWO-T), delivered double-digit returns.
In the first four months of 2026, his basket of top picks has advanced 12.75 per cent, compared to a 7.1 per cent return for the S&P/TSX Composite Index.
Importantly, his disciplined process has delivered strong long-term returns. His stock selections have outperformed the S&P/TSX Composite Index for the past four calendar years. In 2025, his portfolio of stock selections rallied 51.3 per cent, compared to a 28.3 per cent price return for the S&P/TSX Composite Index. His stock selections also outperformed the TSX Index in 2024, 2023 and 2022 by 5.8 percentage points, 6.3 percentage points and 2.7 percentage points, respectively.
For May, his diversified basket of stock selections includes nine new stocks and one carryover from the previous month. Once again, the portfolio has a significant exposure to the energy sector where he holds three stocks: Cenovus Energy Inc. (CVE-T), Keyera Corp. (KEY-T) as well as Whitecap Resources Inc. (WCP-T). The portfolio holds three financial stocks: Bank of Montreal (BMO-T), Manulife Financial Corp. (MFC-T) and Power Corp of Canada (POW-T). In industrials, Magna International Inc. (MG-T) made the list. In consumer discretionary, Restaurant Brands International Inc. (QSR-T), the sole carryover, was selected. In materials, Methanex Corp. (MX-T) was added. Lastly, in the real estate sector, Granite REIT (GRT-UN-T) was selected.
According to Mr. Mokhtari, over the past 30 years, the S&P/TSX Composite Index has delivered an average return of 1 per cent in May with strength in consumer staples, utilities and financials, which have average gains of 1.7 per cent, 1.3 per cent and 0.8 per cent, respectively.
In his best ideas report published on April 30, Mr. Mokhtari stated, “Our factor mapping for the TSX Index is more positively skewed towards quality, value and free cash flow yield with less emphasis on the AI-growth factor compared to our SPX [S&P 500 Index] mapping. In today’s narrow breadth environment, high grading and barbell strategies may serve as effective diversifiers. Combining momentum and trend factors for capital appreciation with value and yield for cheapness and income can support risk management.”
Next week, watch for an in-depth Q&A featuring Mr. Mokhtari’s insights on equity markets, stocks and ETFs.
If you have a question that you would like me to ask Mr. Mokhtari, you can email me at jdowty@globeandmail.com and in the subject line state, “question for Mr. Mokhtari”. Unfortunately, not all questions submitted can be covered.