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Headlines
- CIBC Capital Markets identifies 31 TSX-listed stocks as candidates for 2024 tax-loss selling, providing investors with a strategic view.
- December 30 marks the last trading day to record losses for 2024, with stocks needing a 30-day wait period to offset capital gains.
- The list highlights stocks across sectors, with consumer discretionary, energy, and industrials sectors showing notable declines.
As the year closes, investors on the Toronto Stock Exchange (TSX) often look to sell off underperforming stocks to balance out capital gains for tax purposes. CIBC Capital Markets has pinpointed 31 such TSX-listed stocks that may align with tax-loss selling strategies for 2024.
For investors aiming to apply losses against gains, the deadline for recording these transactions is December 30. Importantly, for a tax loss to be applicable, there is a requirement that the stock sold must not be repurchased within a 30-day window. CIBC’s list for 2024 is notably shorter than previous years, which saw 51 and 118 stocks identified, respectively.
This year’s list includes four companies from the TSX-60 large-cap index: Magna International (TSX:MG), CAE (CAE.TO), Nutrien (TSX:NTR), and Algonquin Power & Utilities (AQN.TO). CIBC’s Sid Mokhtari, a technical analyst, identified these stocks using a framework of criteria, which included both negative year-to-date and quarter-to-date returns as of mid-October, along with a decline of at least 20% from the 52-week high.
Consumer discretionary stocks form the largest portion of the 2024 list, comprising 22%. Following this are energy and industrials, making up 18% and 17%, respectively. In the consumer segment, notable names like BRP Inc. (DOO.TO), Canada Goose (GOOS.TO), and Magna have faced the steepest three-month declines.
Energy sector stocks on this list include Parex Resources Inc. (TSX:PXT), Mattr (MATR.TO), and Africa Oil (AOI.TO), all of which have shown significant declines over the past 90 days. Among industrials, TELUS International Inc. (TSX:TIXT), Ballard Power Systems (BLDP.TO), and Boyd Group Services (BYD.TO) were identified for similar performance dips.
With the final trading day for tax-loss considerations approaching, this list offers a lens into strategic stock decisions for offsetting capital gains.
