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Summary
- Suncor Energy (TSX:SU), Air Canada (TSX:AC) and Manulife Financials (TSX:MFC) stocks are the most active stocks on the TSX currently
- Suncor stock’s high trade volumes followed after Warren Buffet’s Berkshire Hathaway acquired a stake in the C$ 28-billion energy giant.
- Air Canada stocks are surging as lockdown measures are eased across Canada.
- Manulife Financial is a high dividend yield stock, making it an investors’ favorite.
As the Canadian markets prep for yet another week of trading, three stocks on the Toronto Stock Exchange – Suncor Energy (TSX:SU), Air Canada (TSX:AC) and Manulife Financials (TSX:MFC) – have piqued investors interest in the last couple of days. These stocks have garnered the largest trade volumes in the past 10 days on the key Canadian bourse – S&P/TSX Composite Index. Battered by COVID pandemic, the index is down 5.65 per cent this year. However, it has gained 3.77 per cent quarter-to-date (QTD), reflecting a positive momentum in the stock market. Without any further ado, let us dive into the stock performance and fundamentals of the three stocks.
Suncor Energy Inc (TSX:SU)
Current Share Price: C$ 18.81
Industry: Oil & Gas
Sector: Energy
Shares of Suncor Energy surged in August after the news of Warren Buffet’s holdings group Berkshire Hathaway acquiring stocks in the energy company emerged in the media. Despite being the most actively traded stock on the TSX, Suncor shares are currently down 56 per cent year-to-date (YTD). In the last one month, the scrips declined by nearly 13 per cent. The numbers are no better on the quarterly scales. The shares have dropped nearly 30 per cent value in the last three months.
One of the key reasons in Suncor stock’s high trade volumes in Berkshire Hathaway’s 1.3 per cent stake in the C$ 28-billion energy giant. Canadian investors seem to be emulating the Buffet’s investment decision.
Another reason for the high trade volumes is commodity prices. Suncor shares YTD decline was caused due to volatile oil prices caused by COVID conditions and Saudi Arabia-Russia oil price war earlier this year. These factors also impacted Canada’s largest integrated oil producer’s second quarter 2020 results. Suncor posting an operating loss of C$ 1.489 billion. It also lowered quarterly dividend payments by 55 per cent to C$ 0.21 per share.
Suncor’s current dividend yield is 4.54 per cent while the price-to-book (P/B) ratio is 0.77 and price-to-cash flow (P/CF) ratio is 5.6.
Investors’ bullish bet on Suncor is also propelled by the hope that commodity prices are likely to rise once world enters the post-pandemic era and the demand for oil picks up.
Air Canada (TSX:AC)
Current Share Price: C$ 18.21
Industry: Transportation
Sector: Industrials
Air Canada, a hot favorite of stock market investors, has been through a rollercoaster ride in 2020, the year of the pandemic. After emerging as one the best performing stocks on the TSX in 2019, Air Canada stocks were ravaged by the pandemic. At the height of the COVID-led market crash, the scrips lost nearly 75 per cent of its value by mid-March, dropping from C$ 52.71 on January 14 to C$ 9.27 on March 18. Canada’s largest carrier continues to fight strict travel restrictions imposed by the federal government, along with low air traffic. Meanwhile, the airline posted an operating loss of C$ 1.555 billion in Q2 FY20 and lost 89 per cent of its revenue. As of writing this story, Air Canada (AC) stocks are down by 62 per cent YTD.
However, as lockdown measures ease across Canada, Air Canada stocks are witnessing a slow rebound. AC stocks have now gained over 2 per cent in the last three months and surged by 12 per cent in a month.
Air Canada is currently valued at C$ 5.4 billion. Its current return on equity 115.86 per cent and return on assets is nearly 12 per cent. The P/B ratio is 2.64 and P/CF ratio is 18.7.
Manulife Financial Corporation (TSX:MFC)
Current Share Price: C$ 19.29
Industry: Insurance
Sector: Financial Services
The third most traded stock on the TSX is Toronto-based insurance and wealth management company Manulife Financial Corporation, which has current P/E ratio of 9.8 along with 8.15 per cent of return on equity. In its second quarter 2020 results, the financial stock’s revenue went up 23.7 per cent year-over-year to C$27.5 billion. The net income stood at C$ 0.7 billion.
Manulife stocks are down nearly 27 per cent this year. However, the scrips advanced by three per cent in three months. The company’s current market capitalization is C$ 37 billion and per share (EPS) is C$ 1.96. The insurance company distributed C$ 0.28 quarterly dividends and posted an impressive dividend yield of 5.88 per cent.
Manulife operates under John Hancock wing in the United States. In Canada, its retail wing offered group benefits, retail insurance, retail segregated funds, and digital banking facilities. Manulife’s Asian business picked up well amid pandemic times, posting 3.8 per cent rise in profits to C$ 489 million in the second quarter.
Apart from Suncor Energy (TSX:SU), Air Canada (TSX:AC) and Manulife Financials (TSX:MFC), some of the other top trending stock on the TSX includes Barrick Gold, Northern Dynasty Minerals and Enbridge.
