Analysts’ forecast returns and recommendations for all stocks in the S&P/TSX Composite Index

The S&P/TSX Composite Index has staged a strong comeback so far in the third-quarter. Quarter-to-date, the TSX Index is up 6.6 per cent with 10 of the 11 sectors in positive territory. There is broad strength with seven of the 11 sectors delivering gains of 7 per cent or more led by the industrials, consumer discretionary and consumer staples sectors.

The Index has been rallying for several weeks, bouncing off of a 2022 low set in July, thanks to positive earnings results as well as low stock valuations. According to Refinitiv, of the 89 per cent of companies that have reported their quarterly earnings results, 54 per cent have beat the Street’s expectations. In terms of valuation, the S&P/TSX Composite Index is currently trading at a forward P/E multiple of 12.2 times the 2023 consensus estimate, below its 10-year historical average of 14.4 times, according to Bloomberg. Last month, the P/E multiple declined to a 10-year low of just over 11 times.

Year-to-date, the S&P/TSX Composite Index is currently down by just 5 per cent.

To help investors navigate this challenging market, this report includes a link to a list of analysts’ target prices, recommendations, and forecast returns for all securities in the S&P/TSX Composite Index grouped by sector and ranked according to their expected price returns (excluding dividend and distribution income). The posted target price for each security is an average of all available target prices from analysts. A target price typically reflects an expected share or unit price 12 months from now based on an analyst’s financial modelling, such as a discounted cash flow or sum-of-the-parts model.

All data is as of the close on Friday, Aug 19.

It’s important to note that high target prices, which imply stellar returns that seem unbelievable may be just that - unrealistic. At times, when a stock price falls analysts may maintain their bullish expectations, inflating the forecast return. In addition, an outlier (extreme target price) can skew the average target price, to the upside or downside, particularly when the number of analysts covering a stock is low. Don’t let a huge projected gain lure you into a position – it is critical to look at the company and industry fundamentals.

Editor’s note: An earlier version provided an incorrect date for the data provided.

Click here to download an Excel version of the guide.