Earnings season is here, and this quarter will be one of the most-watched quarters of earnings in the last decade. Investors of all TSX stocks want to know how their investments have been impacted and what the future is going forward.
Each stock is different, so the degree of impact will depend on the industry that it’s in and the location of its businesses. Despite that, there are some businesses that we will want to watch extra close.
By seeing how different stocks across industries are being impacted and how consumers are changing their habits, it will give us insight into what we can expect, at least until things go back to normal.
TSX aviation stock
Chorus Aviation reports earnings Friday morning. The company is an airline stock with significant potential to weather this crisis. There has been a lot of talk about the risk of airline stocks in the current economic environment.
Chorus, however, has an advantageous business model. Through already agreed-upon rates, the company leases aircraft to Air Canada. This provides Chorus with relatively stable cash flow.
Plus, Chorus cut the dividend to give it extra financial flexibility. The conservative move to temporarily suspend the dividend is prudent, especially if the impact on aviation stocks persists into 2021.
The one segment of its business that is being most impacted is its aircraft leasing business. So, investors will want to see how badly it’s being impacted, and how long management expects the pain to last.
Chorus is one of the most attractive value stocks on the TSX. Potential investors will be watching closely to see what impact its business has faced so far and what management expects to see going forward before they make an investment.
TSX financial stock
Brookfield Asset Management is a massive diversified financial company with assets in multiple industries spanning the globe. The company is reporting earnings Thursday before the market opens.
First and foremost, investors will want to see the numbers and how badly the company has been impacted. Brookfield announced earlier this month its intention to invest in distressed retailer tenants of its malls. So, it will be useful to get an idea of how much of its business has been hit.
It will also be just as important to see what the company’s plan is going forward. Brookfield historically makes some of its best long-term investments during market environments like this, so it will be crucial to see what the company is looking to do going forward.
Brookfield is one of the best investment companies there is, which makes it such a great TSX stock to buy. However, it also makes it a stock to watch, so investors can get an idea of what one of the world’s largest asset managers thinks of the current market conditions.
Health and wellness stock
Jamieson Wellness is a massively popular health and wellness company that’s been a top TSX growth stock for years. The company is reporting earnings Wednesday after the market closes.
Since the coronavirus pandemic hit the stock market and stocks began to selloff in late February, Jamieson stock has been one of the best performers on the TSX. Shares have appreciated by more than 25% since late February. Investors will be watching the earnings to see how the business has actually been impacted.
Jamieson was already a popular brand and stock, with rapidly growing sales. But now, with coronavirus creating a secular tailwind for health and wellness stocks, investors have been betting on a massive increase in business.
Investors will be waiting eagerly to see just how strong the results actually are.
Earnings season is a busy time for investors, as numerous companies report their results every day for the next few weeks.
These three TSX stocks can give us a good insight into the shape of the economy. However, investors should also pay close attention to the businesses you want to invest in, as well as its industry. This way, you’ll protect yourself and minimize any negative surprises.
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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 Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Brookfield Asset Management. The Motley Fool recommends BROOKFIELD ASSET MANAGEMENT INC. CL.A LV.