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Highlights
- Canada's main stock index was in the red on Thursday, June 30
- The TSX energy index gained almost 40 per cent in 2022
- The utility sector surged by 0.13 per cent this day
Canada's main stock index dropped below the 19,000-mark on Thursday, June 30, down by 217.28 points to 18,861.36, as concerns over interest rate hikes pushing the global economy into recession increased. Equity investors searching for resilient TSX stocks to endure recessionary pressure at this point could explore TC Energy (TSX: TRP) and Boralex (TSX:BLX).
The TSX energy index has mostly been in the green this year, with a gain of almost 40 per cent in 2022, primarily due to surging energy prices resulting from the Russian invasion of Ukraine.
Macroeconomic factors have also accelerated focus and shift towards renewable energy sources. The utility sector, generally considered a safe venture, surged by 0.13 per cent in the Thursday session.
On that note, let us discuss TC Energy and Boralex.
TC Energy Corporation (TSX:TRP)
TC Energy owns and operates power generation assets and pipeline infrastructure across Canada, Mexico and the US. The Canadian midstream energy company improved its bottom line in Q1 2022 by posting a net profit of C$ 358 million attributable to common shares in the latest quarter compared to a loss of C$ 1.05 million a year ago.
In April, TC Energy announced a collaboration with renewable natural gas (RNG) company GreenGasUSA to develop RNG transportation hubs.
TRP stock clocked a 52-week high of C$ 74.44 per share on June 3 and rose by over 13 per cent in six months. According to EODHD/Others, TRP's Relative Strength Index (RSI) value was 37.46 on June 30, slightly above the oversold mark.
Boralex Inc (TSX:BLX)
Surging energy prices have put renewable energy stocks like Boralex in focus. Boralex is said to have an operations capacity of 1.1 Gigawatt (GW) in France and 5.5 GW globally. On June 30, the renewable power producer commissioned three 53-Megawatt (MW) wind farms in France.
Boralex increased its total production by three per cent in Q1 2022, four per cent higher than the production outlook. BLX stock zoomed by nearly 24 per cent year-to-date (YTD). EODHD/Others data shows that BLX's RSI value was 58.66 on June 30.
Bottomline
As inflation-triggered rate hikes can threaten the global economy, investors can explore healthy equities like TC Energy and Boralex to tackle economic downturns. Further, these Canadian stocks pay quarterly dividends and widen exposure to the energy and utility sector.
Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
