Quebec-based flight simulator maker CAE was recently on our list of stocks that hit a new 52-week low. But the release of its first-quarter 2025 results in the middle of last week finally allowed it to leave this unenviable list.
Those results slightly exceeded analysts’ expectations, notes Cameron Doerksen of National Bank Financial. In a report, he concludes that while the firm is currently facing a short-term slowdown in the pilot training sector, it will eventually benefit from the recovery that will translate into several years of growth for its civil aviation segment.
The producer of wind, solar and hydroelectric energy Boralex reported solid second-quarter results, thanks in part to its development in France, says Rupert Merer of National Bank Financial. Cash of more than $600 million puts it in a comfortable position to finance its growth, he says in his most recent research report. Brent Stadler, an analyst at Desjardins, points out that the firm has several very interesting projects coming up, which will provide returns at the top of its expected range of between 10% and 15%. The two analysts set their target price for the next 12 months at $46. Remember that Boralex’s share price rose from $26 to $36 between mid-April and early June.
The publication of the results for the third quarter of 2024 of Metro appears to have breathed new life into the grocer’s stock, which hit a new 52-week high on Thursday. However, while he calls Metro a solid company that has delivered excellent returns for several years, Vishal Shreedhar of National Bank Financial believes that its excellent attributes are now adequately reflected in the stock price, which has gained more than 20% in just three and a half months. As a result, he limits his price target to $88. The stock was trading just above $83.85 on Friday afternoon in Toronto.
Canadian banks will begin reporting their third-quarter results this week. And based on the available data, it appears that their capital markets activities have contributed well to their profitability. Both new equity and bond issues and arbitrage trading volumes are showing healthy increases compared to the same quarter last year, both in Canada and the United States, notes Doug Young of Desjardins. TD Bank will open the results season on August 22. The others will run in the following days.
It is not often that we see strong volatility on the stock markets in August. Historically, the stock markets experience the most significant fluctuations in September and October. The first two weeks of August took investors and holidaymakers by surprise. The Dow Jones index lost more than 1,100 points in a single session and more than 4.5% during the first three trading days of the month. But two weeks later, the markets had almost completely recovered their losses. A prelude to a turbulent autumn? Stay tuned.
At the heart of this recent stock market volatility are three economic statistics that are likely to complicate the upcoming decisions of the U.S. Federal Reserve and the Bank of Canada. The weakness of the labor market at the beginning of the month precipitated the stock market decline, but better figures for inflation first and retail sales later allowed the indices to rise. However, an increase in retail sales does not necessarily go hand in hand with a fragile labor market. Economists and investors will certainly pay close attention to the data for the coming month.