| Stock | Price | 52 Week Range | Marketcap | EPS | Dividend Yield | Chart (24H) | Sector | Employees | Last Updated |
|---|---|---|---|---|---|---|---|---|---|
 7044 MTY | $0.0000 | 0.0000 | 0.00 | 0.00% | 0 | 5 years ago | |||
| $102.78 | 1.92B | 2.67 | 0.00% | Technology | 3,300 | 22 hours ago | |||
| $42.42 | 12.19B | 3.75 | 4.50% | Consumer Cyclical | 168,000 | 22 hours ago | |||
| $8.99 | 138.77M | 3.74 | 0.00% | Technology | 157 | 19 hours ago | |||
 Enbridge Inc ENB | $41.87 | 91.19B | 2.04 | 6.49% | Energy | 11,500 | 22 hours ago |
Topic and Theme
As summer unfolds in 2024, the Canadian stock market stands at a fascinating vantage point. Amidst muted investor sentiments, the **Toronto Stock Exchange (TSX)** has underperformed compared to the **S&P 500**. With the TSX clocking in at 4.5% gains against the S&P 500’s impressive 14.5%, it appears Canadians aren’t exactly popping champagne corks. However, this prevailing apathy is more than just a dull note—it’s an opportunity in disguise. For astute investors, this indifference has set the stage ripe for strategic forays into undervalued assets, available at substantial discounts.
Market Comparisons
The performance disparity between the TSX and the S&P 500 tells a broader story. While the S&P 500 benefitted from the explosive growth of a few tech giants, aptly named the “Magnificent Six,” the TSX trudged along at a modest pace. This tepid performance has resulted in the TSX gaining a mere 4.5%, contrasted starkly by the S&P 500’s 14.5% surge. Yet, the total return for the TSX, including dividends, slightly improves the picture, pushing the figure to about 6%.
Interestingly, when comparing the TSX to an equal-weighted S&P 500, where the returns are more evenly spread out across all 500 companies, Canada actually holds its own. This should serve as a reminder that sometimes, the devil is in the details. The S&P 500’s dazzling performance is heavily skewed by contributions from a few mega-cap stocks.
Low Investor Engagement
Investor engagement in Canadian markets is undeniably low, but observing this through a contrarian lens reveals lucrative prospects. The market’s general sentiment is one of apathy, driven by underwhelming performance and overshadowed by American counterparts. However, undervaluation is historical in nature, and undervalued markets coupled with substantial yield offerings can present a breeding ground for high returns.
Stocks Mentioned
With a backdrop of undervaluation and muted enthusiasm, let’s delve into some standout Canadian stocks poised to offer considerable returns.
Editor's Note: Analysis and insight for this article were originally sourced from our friends at **[The Motley Fool](https://www.fool.com/investing/2024/07/08/canadas-stock-market-apathy-means-opportunity/)**
MTY Food Group (MTY): Served Gains with 32.14% Potential!
Investment Rationale: MTY Food Group isn’t just another restaurant operator. Holding a portfolio of over 80 brands, it showcases formidable diversity and market reach.
Relevance: The food sector continues to display stable consumer demand. MTY’s strategic expansion and varied brand offerings establish it as a robust investment, even amidst broader market apathy. This consistent performance makes MTY a low-risk yet rewarding investment prospect.
Analyst Ratings for MTY Food Group
| Consensus Rating | Moderate Buy |
| Average Price Target | $51.03 |
| Current Price | $38.62 |
| Potential Gain | 32.14% |
| Number of Ratings | 7 |
Summary of Analyst Outlook: The analysts’ consensus rating for MTY Food Group is Moderate Buy, with a strong upside potential averaging 32.14%. The average forecast price target is $51.03, indicating a significant increase from the current price of $38.62.
Kits Eyecare (KITS): Eye-Catching Returns in the Making
Investment Rationale: Kits Eyecare is an emerging leader in online eyewear retail. It’s well-positioned to capitalize on the burgeoning trend towards e-commerce.
Relevance: As consumers increasingly shift to online shopping, Kits Eyecare capitalizes on personalized consumer experiences, enhancing its growth prospects. This focused market strategy marks Kits Eyecare as an under-the-radar gem.
Analyst Ratings for Kits Eyecare
| Consensus Rating | Strong Buy |
| Average Price Target | C$9.3 |
| Current Price | N/A |
| Potential Gain | 13.22% |
| Number of Ratings | 4 |
Summary of Analyst Outlook: The analysts have a consensus rating of “Strong Buy” for Kits Eyecare, indicating a very positive outlook. The average price target is C$9.3, which implies a potential gain of approximately 13.22% based on the current price.
Quebecor (QBR.B): A Telecom Titan Expecting Gains Up to 27.91%!
Investment Rationale: Quebecor is a telecommunications titan, demonstrating consistent earnings and robust operational growth.
Relevance: Trading at discounted multiples compared to historical averages, Quebecor offers a compelling value-driven investment opportunity. Its solid financial footing and operational resilience make it an attractive choice among undervalued assets.
Analyst Ratings for Quebecor
| Consensus Rating | Moderate Buy |
| Average Price Target | CAD 36.81 |
| Current Price | CAD 29.05 |
| Potential Gain | 27.91% |
| Number of Ratings | 8 |
Summary of Analyst Outlook: The analysts have a moderate buy consensus rating for Quebecor (QBR.B). The average price target is CAD 36.81, indicating a potential gain of 27.91% compared to the current price of CAD 29.05. The stock has received 12 buy ratings, 5 hold ratings, and 1 sell rating, with an average price target of CAD 35.00.
Rogers Communications (ROG): Telecom Behemoth Providing 21.01% Potential Return!
Investment Rationale: Rogers maintains a strong position in the telecommunications sector with substantial growth potential.
Relevance: Combining fundamental strengths with undervaluation and a stable dividend yield, Rogers stands out as a long-term investment suitable for those seeking reliable returns amidst market volatility.
Analyst Ratings for Rogers Communications
| Consensus Rating | Buy |
| Average Price Target | $150.00 |
| Current Price | $123.96 |
| Potential Gain | 21.01% |
| Number of Ratings | 3 |
Summary of Analyst Outlook: The consensus rating for ROG is a Buy. The average price target is $150.00, compared to the current price of $123.96, indicating a potential gain of 21.01%.
Cogeco Communications (CCA): Bargain Telecom Stock with a 36.67% Upside!
Investment Rationale: Known for its broadband and telecommunications services, Cogeco exhibits impressive financial health and market reach.
Relevance: Trading at significant discounts on earnings multiples, Cogeco offers considerable bargain potential, making it a prime candidate for those seeking undervalued yet steady investments.
Analyst Ratings for Cogeco Communications
| Consensus Rating | Hold |
| Average Price Target | C$69.92 |
| Current Price | C$51.59 |
| Potential Gain | 36.67% Upside |
| Number of Ratings | 9 |
Summary of Analyst Outlook:
- Current Quarter (May 2024): Analysts estimate earnings per share (EPS) at C$2, with a range of C$1.61 to C$2.3.
- Next Quarter (Aug 2024): Analysts forecast EPS at C$2.28.
- Current Year (2024): Revenues of C$2.97B are expected.
- Next Year (2025): Forecasted revenues of C$2.98B.
- Earnings History (2023-2024): EPS estimates for 2023 ranged from C$1.84 to C$8.77.
Magna International (MGA): Drive Ahead with Technological Advancements
Investment Rationale: Magna, a leading global automotive supplier, benefits from diversified revenue streams and technological advancements.
Relevance: Despite the cyclical nature of the automotive industry, Magna’s consistent performance and discounted valuation provide a solid investment thesis with promising upside potential.
Analyst Ratings for Magna International
| Attribute | Value |
| Consensus Rating | Moderate Buy |
| Average Price Target | $57.42 |
| Current Price | $41.76 |
| Potential Gain | 37.50% upside |
| Number of Ratings | 22 |
Summary of Analyst Outlook: Moderate Buy, based on 5 buy ratings, 8 hold ratings, and 0 sell ratings. The average 12-month price target for Magna International is $57.42, with a range of $46.00 to $69.00. MGA has beaten its EPS estimate 50.00% of the time in the past 12 months. Compared to its industry, MGA has underperformed in the last calendar year.
National Bank of Canada (NA): Powerful Growth Potential Awaiting U.S. Listings
Investment Rationale: The National Bank of Canada boasts a strong market position bolstered by strategic acquisitions.
Relevance: While not yet cross-listed in the U.S., potential future listings could increase its appeal. National Bank’s growth narrative and solid performance make it a notable candidate in the banking sector.
Analyst Ratings for National Bank of Canada
| Consensus Rating | Moderate Buy |
| Average Price Target | C$118.45 |
| Current Price | C$108.51 |
| Potential Gain | 9.16% |
| Number of Ratings | 9 |
Summary of Analyst Outlook:
- Analyst Ratings: 7 Buy Ratings, 15 Hold Ratings, and 0 Sell Ratings.
- Forecast: Next quarter’s earnings estimate for NA is C$2.44.
- Sales Forecast: Next quarter’s sales forecast for NA is C$2.86B.
- Consistency: NA beat its EPS estimate 75.00% of the time in the past 12 months.
Enbridge (ENB): Significant Market Presence Ready to Reward Investors
Investment Rationale: Enbridge remains a significant player in Canada’s energy sector, despite facing operational challenges.
Relevance: Although facing critiques, Enbridge’s market presence cannot be ignored. It exemplifies the selective approach needed when navigating an otherwise opportunistic market environment.
Analyst Ratings for Enbridge
| Metric | Value |
| Consensus Rating | Moderate Buy |
| Average Price Target | $40.21 |
| Current Price | $36.58 |
| Potential Gain | 13.46% |
| Number of Ratings | 10 |
Summary of Analyst Outlook: ENB has a consensus rating of Moderate Buy, which is based on 4 buy ratings, 5 hold ratings, and 1 sell rating. The average price target for ENB is $40.21 based on 10 Wall Street analysts’ 12-month price targets issued in the past three months.
