Posted at 7:00 a.m.
After seven months of stock market decline that began at the start of the year, it is clear that the energy sector has tempered the drop in the Canadian stock market. So far, the S&P/TSX index is down 7.2%, while the S&P500 is down 13.3% and the NASDAQ is down 20.8%.
In this general decline of the markets, only the energy sector of the S&P/TSX presents a significant gain, that is to say of 29.7%. The Consumer Staples and Utilities sectors also offered more modest gains of 5.0% and 3.2% respectively. The other eight sub-indexes fell, including two, health care and information technology, by more than 50%. Shopify, Nuvei and Converge Technology Solutions were the main victims of this disinterestedness of investors towards the techno sector.
The share price of Saputo seems on the way to achieving a spectacular trend reversal. Between June 2021 and June 2022, the stock had depreciated by 40%, as distortions in supply chains and inflation of inputs such as milk significantly affected profit margins. But investors seem to have sensed recently that the situation was changing and that a return to a more favorable environment was beginning. The quarterly results released Thursday, and especially the words of management, confirmed that investors were right. Here’s what management said: “Despite inflation and supply chain disruptions that are likely to persist, we expect a substantial rebound in earnings in fiscal 2023 driven by the full impact of announced price increases. recently, to improved productivity and fixed cost absorption, a return to historic order fill rates and the benefits of our global strategic plan. During Thursday’s trading session, the stock price jumped 9%.
It was a busy week in disclosing quarterly results for several companies in Quebec Inc., and those of Bomber seemed to please investors as the stock price jumped more than 10% on Thursday. Free cash flow that exceeded expectations and a well-stocked order book are the highlights. Enthusiasm is not lacking among analysts. National Bank Financial’s Cameron Doerksen is raising its target price from $46 to $53, meaning he believes the stock that hit a 52-week low just three weeks ago could at least double in price. a year from now. Benoit Poirier, from Desjardins, goes much further and sets his at $82. The business jet manufacturer would be partly immune to a recession, because several of its orders carry significant penalties in the event of cancellation, notes Cameron Doerksen.
Although in the week preceding the release of quarterly results, an upward rally in the share price of Lightspeed led to believe that the news would be good, it seems that such has not been the case, the title of the maker of e-commerce software has fallen about 13% since the announcement Thursday. Richard Tse, analyst at National Bank Financial, reminds that Lightspeed remains a growth stock in the early stage of its development and that the company is gaining market share. Management indicates that sales increased by 50% during the three-month period ended June 30.
At the house of Quebecor, which is also looking to regain an uptrend, earnings rose last quarter, but sales fell. The company is awaiting a decision regarding the acceptance of its offer to acquire Freedom Mobile, which would allow it to continue its growth on a Canadian scale, according to its president Pierre Karl Peladeau.
The recent results of the Lion Electric Company shows that it continues to struggle with supply chain distortions. Deliveries for the 2e quarter totaled 105 vehicles, including 90 school buses and 15 trucks. In an analysis, Desjardins had forecast deliveries of 126 vehicles, or 20% more. The company reports adjusted losses before interest, taxes and amortization of 14.4 million, while expectations were around 10 to 11 million.