Yahoo Finance Here are Tuesday's top 3 performers on the TSX
The S&P/TSX composite index was bleeding red on Sept. 26, falling 1.2 per cent to 19,556.15.
Following a flat Monday, the index picked up where it left off last week when it closed down 3.5 per cent after being roiled by the United States Federal Reserve, which said it expected higher interest rates to stick around as the U.S. economy continued to resist the full weight of hikes.
All sectors pulled back. The materials and utilities sectors fell 1.9 per cent, followed by information technology at 1.7 per cent, financials at 1.1 per cent, consumer staples at 0.3 per cent and energy at 0.2 per cent.
Only 22 stocks closed up versus 204 decliners.
Here are the index’s top three performers for Sept. 26.
MEG Energy Corp.
One-day change: 4.09 per cent
Year-to-date change: 36.4 per cent
The energy sector has been keeping the market aloft this year as oil prices continue to surge. West Texas Intermediate (WTI) is now up 12.6 per cent year to date.
Oilsands producer and exploration company MEG Energy also got a boost from Fitch Ratings Inc., which recently upgraded it on expectations for ongoing debt reduction and “abundant” cash flow.
“MEG’s rating reflects its improving credit metrics, material gross debt reduction and improved visibility on additional debt reductions over the next few quarters, below-average refinancing risk with no bond maturities until 2027 and abundant liquidity,” Fitch said.
Of the 13 analysts who cover the company, seven have a buy rating on the stock and six have a hold, with a 12-month average target price of $27.75, according to Bloomberg.
MEG Energy closed at $25.70.
West Fraser Timber Co. Ltd.
One-day change: 2.41 per cent
Year-to-date change: -0.04 per cent
Pulp and paper company West Fraser announced a deal that has caught analysts’ attention. The Vancouver-based company on Sept. 22 said it signed a deal to sell two pulp mills in Western Canada to Atlas Industries Holdings LLC for US$120 million.
“We view this as positive for WFG,” BMO Capital Markets analyst Ketan Mamtora said in a note on Sept. 25, adding that the deal “significantly reduces (the company’s) exposure to pulp — a segment where it has struggled in recent years.”
Of the six analysts covering the company, five have buy ratings and one has a hold. The 12-month average target price is $144.50.
West Fraser closed at $97.73.
Canadian Natural Resources Ltd.
One-day change: 2.36 per cent
Year-to-date change: 15.9 per cent
Canadian Natural has a WTI break-even price of US$40 per barrel. Given that, Bloomberg analysts said the Calgary-based oil and natural gas producer “holds a significant long-term advantage that will drive free cash flow.”
Bloomberg estimates fresh-cash generation could hit $8.7 billion in 2023.
Of the 23 analysts covering the company, 15 have buy ratings and eight have holds. The 12-month average target price is $93.01.
Canadian Natural closed at 87.11.
• Email: gmvsuhanic@postmedia.com
