3 Canadian Stocks That Went up on Wall Street’s Worst Day!

Dollarama Inc (TSX:DOL) was the rare stock that soared while Wall Street fell into the abyss last week.

| More on:

Global markets had an absolutely terrible week last week, with the Dow plunging 3,600 points from Monday to Friday. On Thursday alone, the Dow plummeted 1,190 points, its largest net (not percentage) drop in history. That day, the vast majority of stocks in most industries tumbled on fears that the new coronavirus (COVID-19) would shatter the global economy. Canadian stocks were less affected than their American counterparts; however, the TSX halted trading early and resumed a more dramatic slide on Friday. All told, the TSX just barely evaded a correction last week in a slide that many investors are still reeling from. Nevertheless, some stocks managed to rise on Thursday, Wall Street’s worst day since 2011. The following are three Canadian stocks that did just that.

Air Canada

Before going any further, I should clarify that Air Canada (TSX:AC)(TSX:AC.B) did not have a good week last week. Falling 14.5%, it was one of the stocks hardest hit by the selloff. Further, it’s one of the TSX stocks most likely to continue falling if virus-related travel cancellations continue.

However, the stock did rebound on Thursday, rising 10.78% before the TSX closed at 2:00 pm due to a technical error. The reasons for the dramatic rebound aren’t immediately clear. Airlines stand to lose money from continued virus-related panic, probably more than other categories of companies that were sold off last week. For example, they could lose revenues from customers voluntarily deciding not to fly or from government travel restrictions. Just recently, Air Canada had to pull its 737 Max 8 jets off the runways due to Transport Canada closing Canadian airspace to the jet; it’s not inconceivable that other regulatory actions could affect travel to virus-impacted countries.

CargoJet

CargoJet is a small cargo jetliner that, like Air Canada, got absolutely crushed in the markets last week. Also like Air Canada, it staged a surprise comeback on Thursday, when it rose 4.55%. CargoJet fared better than Air Canada last week overall, falling only 12.73% to the latter’s 14.5%. This may be because cargo airlines are less likely to be impacted by people cutting out travel compared to passenger airlines. Its Thursday rally may be explained by investors seeing it as oversold, since it, along with other airlines, got absolutely destroyed earlier in the week — I mean more than the broader markets did.

Dollarama

Dollarama is one stock that fared well for the entire week last week, rising 1.15% from its closing price on Monday to its closing price on Friday. It had its best day of the week on Thursday, when it rose 4.3%. Dollarama is one stock that stands to benefit if the coronavirus panic spills over to a broad recession. When consumers get laid off or take pay cuts, one of the first things they do is try to cut back on their spending. Dollar stores have low-priced items in many indispensable categories, including food items at cheaper prices than you’ll find at grocery stores. Dollarama specifically has very low-priced items in many categories, which positions it well to thrive in a future recession.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Andrew Button has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends CARGOJET INC.

More on Dividend Stocks

profit rises over time
Dividend Stocks

A Dividend Giant I’d Buy Over TD Stock Right Now

TD stock has long been one of the top dividend stocks for investors to consider, but that's simply no longer…

Read more »

analyze data
Dividend Stocks

Top Financial Sector Stocks for Canadian Investors in 2025

From undervalued to powerfully bullish, quite a few financial stocks might be promising prospects for the coming year.

Read more »

Canada national flag waving in wind on clear day
Dividend Stocks

3 TFSA Red Flags Every Canadian Investor Should Know

Day trading in a TFSA is a red flag. Hold index funds like the Vanguard S&P 500 Index Fund (TSX:VFV)…

Read more »

Paper Canadian currency of various denominations
Dividend Stocks

1 Magnificent Canadian Stock Down 15% to Buy and Hold Forever

Magna stock has had a rough few years, but with shares down 15% in the last year (though it's recently…

Read more »

Man holds Canadian dollars in differing amounts
Dividend Stocks

Earn Steady Monthly Income With These 2 Rock-Solid Dividend Stocks

Despite looming economic and geopolitical uncertainties, these two Canadian monthly dividend stocks could help you generate reliable income in 2025…

Read more »

A worker gives a business presentation.
Dividend Stocks

2024’s Top Canadian Dividend Stocks to Hold Into 2025

These top Canadian dividend stocks are worth holding into 2025 to generate steady and growing passive income.

Read more »

A train passes Morant's curve in Banff National Park in the Canadian Rockies.
Dividend Stocks

1 Magnificent Canadian Stock Down 12% to Buy and Hold Forever

This top stock may be down 12% right now, but don't see that as a problem. See it as a…

Read more »

Confused person shrugging
Dividend Stocks

Passive Income: How Much Do You Need to Invest to Make $625 Per Month?

This retirement passive-income stock proves why investors need to always take into consideration not just dividends but returns as well.

Read more »