Yahoo Finance TSX Recap: What Happened to Canadian Stocks Yesterday?
Written by Amy Legate-Wolfe at The Motley Fool Canada
The TSX Composite Index moved slightly higher Thursday morning after three days of losses. So, what happened yesterday that has investors a bit more positive? Today, I’m going to take a look at what happened on the markets yesterday to help Motley Fool investors decide where they should be focusing their attention on the TSX today.
Earnings news
There were multiple earnings reports that had investors and analysts looking towards a rebound — especially in retail but also in construction sectors. But it wasn’t all good news. In particular, Dollarama (TSX:DOL), Transat AT (TSX:TRZ), Empire (TSX:EMP.A), Lululemon Athletica (NASDAQ:LULU) and Aecon Group (TSX:ARE) were watched by analysts.
Dollarama reported a 2.6% year-over-year increase in profit, with sales increasing to $1.03 billion. However, comparable store sales fell 5.1% in Ontario due to lockdowns, causing a decrease from the ban on non-essential products. So, management is convinced sales will return to normal now that the province is out of lockdowns.
Transat tripled its losses in its earnings report compared to the same quarter the year before, losing $3.66 per diluted share. Revenue was up to $12.5 million — a year-over-year increase of 32% increase. But just like all other airlines, the pandemic continues to weigh heavily on the stock on the TSX today.
Empire, the parent of Sobeys, reported strong profit of $188.5 million, but it’s down from a year before at $191.9 million. However, management stated that the year earlier there was a benefit from a real estate transaction from a lump-sum payment collected. So, really, earnings per share for this quarter increased by 4.5%.
Lululemon saw shares soar 14% after a strong earnings report that included bumping the annual forecast. Consumer demand remains high, and it now expects revenue between US$6.19 and US$6.26 billion!
Upgrades
This recent Lululemon news led to a slew of upgrades for the stock. The earnings report topped estimates, and with total sales up 64%, it was far ahead of expectations. Analysts increased their potential share price by almost US$100 in some cases, with the average jumping to US$432. The stock at the time of upgrades Wednesday became a “buy” almost across the board.
But Lululemon wasn’t the only upgrade. Aecon continues to be an attractive option, even as shares climb. It has a solid and diverse backlog of $6.5 billion, with $40 billion in active pursuits. Long-term contracts also make it a solid long-term buy, and the rebound during the pandemic is a perfect time to see it jump on the TSX today.
What to watch
Stocks are great on the TSX today, but Motley Fool investors should also pay attention today to some major Bank of Canada announcements. On Wednesday, the central bank announced it would leave rates and bond purchases unchanged. This comes from economic reports continuing to be weak.
On Thursday, the Bank of Canada will further discuss details, but stated there shouldn’t be “any big headlines.” That’s due to the upcoming election, so there won’t be any major changes until the Bank of Canada knows exactly what party it will be dealing with.
So, today’s takeaway? Continue to watch these top stocks on the TSX today, and if you want some changes in the markets, get out and vote!
The post TSX Recap: What Happened to Canadian Stocks Yesterday? appeared first on The Motley Fool Canada.
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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Lululemon Athletica.
2021
