Canada’s S&P/TSX Composite Index closed higher on Friday—with energy and financial stocks leading the market. Strong corporate earnings and rising commodity prices lifted key players, while positive sentiment in global markets provided additional support.
Here’s a look at the top-performing stocks on the TSX and what analysts expect for the year ahead.
ARC Resources (TSX: ARX) – Up 5.07%
ARC Resources surged 5.07% to $25.90, making it the top gainer of the day. The stock’s rally came amid a rise in natural gas prices, as colder weather drove demand.
Year-to-date, ARC is up 12.3%, benefiting from strong production growth and capital returns. Analysts at CIBC Capital Markets maintain an outperform rating, citing low-cost operations and a robust balance sheet.
Power Corporation of Canada (TSX: POW) – Up 2.31%
Shares of Power Corp gained 2.31% to close at $47.85, extending its year-to-date gain to 8.5%. Investors responded to optimism around financial services earnings, with expectations that higher fee income and strong insurance results will drive 2024 performance.
RBC Capital Markets sees moderate upside in POW, maintaining a sector perform rating with a price target of $50.
First Quantum Minerals (TSX: FM) – Up 2.79%
First Quantum Minerals rose 2.79% to $19.92, benefiting from a rebound in copper prices. The stock had been under pressure due to concerns over its Panama mine closure, but analysts believe the worst may be priced in.
Despite a 14% decline year-to-date, TD Securities sees potential upside, maintaining a buy rating with a $24 price target, citing long-term demand for copper in clean energy investments.
Canadian Imperial Bank of Commerce (TSX: CM) – Up 0.54%
CIBC climbed 0.54% to $89.00, marking a 4.2% gain year-to-date. The stock is benefiting from expectations that interest rate cuts later this year will drive loan growth and mortgage demand.
BMO Capital Markets remains neutral, with a $91 price target, citing stable dividend yields and resilient consumer lending.
BetaPro Natural Gas Inverse Leveraged ETF (TSX: HND) – Up 4.29%
The leveraged inverse ETF on natural gas rose 4.29% to $8.75, tracking continued volatility in the energy sector. The ETF benefits when natural gas prices decline, and traders are using it as a hedge against market fluctuations.
Suncor Energy (TSX: SU) – Up 0.64%
Suncor shares rose 0.64% to $55.34, reflecting strength in oil prices and ongoing optimism around higher production levels.
With year-to-date gains of 7.2%, analysts at Scotiabank maintain an outperform rating, expecting stronger cash flows and shareholder returns in 2024.
Lundin Mining (TSX: LUN) – Up 2.09%
Lundin Mining gained 2.09% to $12.23, recovering alongside base metals. While the stock is down 5.4% year-to-date, analysts at Canaccord Genuity believe its copper and zinc production outlook remains solid, keeping a buy rating with a $14.50 price target.
Capstone Copper (TSX: CS) – Up 3.00%
Capstone Copper climbed 3.00% to $8.59, as copper prices rebounded after hitting recent lows. The stock is still down 2.1% year-to-date, but analysts at National Bank Financial expect a gradual recovery, citing strong operational execution.
Manulife Financial (TSX: MFC) – Up 0.35%
Manulife edged up 0.35% to $43.06, with year-to-date gains of 3.8%. Investors are betting on higher insurance sales and capital returns, with CIBC maintaining an outperform rating, setting a $46 price target.
BlackBerry (TSX: BB) – Up 1.76%
BlackBerry rose 1.76% to $7.51, extending its year-to-date gain to 5.2%. The stock has been volatile as investors wait for updates on its cybersecurity and IoT business turnaround.
Analysts at BMO remain cautious, maintaining a market perform rating, while waiting for signs of a sustained revenue recovery.
Looking ahead
With energy and financial stocks driving gains, analysts see continued opportunities in oil producers, insurers, and select miners. The TSX’s outlook will depend on commodity trends, interest rate policy, and corporate earnings growth in the coming months.
Investors will closely watch upcoming earnings reports and global economic data to determine whether these stocks have more room to run.