Can summer cheer boost these 5 TSX midcap stocks?

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Can summer cheer boost these 5 TSX midcap stocks?

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 Can summer cheer boost these 5 TSX midcap stocks?
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Highlights

  • The TSX Composite Index is on a roll and has not had a day in the red since May 19
  • Its performance this year is much better than the major Wall Street indices
  • Four out of the five on this list are commodity stocks

Summer is here and there is a sense of optimism in the air. The TSX Composite Index is on a roll. It has not had a day in the red since May 19.

Canada’s benchmark index is down 2.23 per cent year-to-date (YTD). That is a much better performances than the major Wall Street indices.

So, lets take a look at five TSX midcap stocks.

Crescent Point Energy Corp (TSX:CPG)

The S&P/TSX Capped Energy Index is up a whopping 65 per cent YTD and the factors like the Russian war in Ukraine, that likely boosted it, continue to remain true.

CPG had gained 149 per cent in nine months and 25 per cent month-to-date when it closed at C$11.19 Friday, May 27.

It may still be undervalued and it has a price-to earnings (P/E) ratio of 1.9. This suggests just C$1.90 in investment for each dollar of profit.

Its dividend yield is 2.32 per cent.

Filo Mining Corp (TSX:FIL)

FIL closed on Friday at C$25.06. It has risen 182 per cent in nine months and 96 per cent this year.

Its growth in May stands at 25 per cent. It is 221 per cent higher than its 52-week low of C$7.81 that came on September 20, 2021.

Lithium Americas Corp (TSX:LAC)

LAC ended Friday at C$35.78 and has lost 21 per cent in six months but has been recovering this month. It’s up 13.4 per cent in the last week and 10.5 per cent in May.

However, on a one-year basis, LAC has surged over 98 per cent. It is 123 per cent better than its 52-week low of C$16.03 seen on November 30, 2021.

Also read: ICYMI, investors! Best 10 TSX stocks for June 2022

Lightspeed Commerce Inc (TSX:LSPD)

LSPD has lost 75 per cent in nine months. For 2022, it is down 35.5 per cent, comparable to the S&P/TSX Capped Information Technology Index’s YTD loss of 34.83 per cent.

LSPD closed out Friday at C$32.96, having gained 12 per cent in the week. In May, it has surged 15 per cent. It may be said to be on the rebound as it enters June.

Vermilion Energy Inc (TSX:VET)

VET has returned 232.5 per cent in nine months. It closed the week on Friday at C$27.93 with a weekly gain of nearly 13 per cent.

YTD, it has surged about 76 per cent and is almost 300 per cent higher than its 52-week low C$7.06 seen on August 19, 2021. Its P/E ratio is 4.8. It has a dividend yield of 2.58 per cent.

Bottom line

Midcap stocks usually are a balance between the stability of largecap stocks and the growth possibility of smallcap stocks.

The TSX has weathered this year better than many others. Much of that may have to do with the fact that it is a commodity-heavy market.

Four out of the five on this list are commodity stocks. LSPD is a technology stock that seems to be on the rebound. They have all gained in double-digit percentage points in May.

Also read: FFN, DF, DGS, LCS & FTN: 5 top TSX dividend stocks under $10

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.

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