Earlier today, American pharmaceutical giant Pfizer announced its COVID-19 vaccine candidate was showing 90% effectiveness in trials. While there’s more testing to be done, this is unquestionably positive news for people everywhere.
While there’s still a ways to go between now and the potential distribution of a vaccine, there’s now some light at the end of the tunnel. So, naturally, this positive sentiment has made its way to the stock market.
With COVID-19 vaccine news in tow, the stock market as a whole has rebounded in a major way. With investors more confident in the economy going forward, many stocks have been taking off.
Today, we’ll look at two TSX stocks Canadian investors can keep an eye on following this important announcement.
Enbridge
Enbridge (TSX:ENB)(NYSE:ENB) is a major Canadian energy distribution company. While the stock has struggled recently, it’s due for a turnaround.
If the economy starts to open up even more with a COVID-19 vaccine, Enbridge is in line to benefit. After all, without much action in the economy there has been much less demand for energy.
Enbridge had a great start to 2020 before being derailed by the pandemic. It traded as high as $57.13 in February and is trading at $37.52 as of this writing.
So, even though it’s been experiencing a near-5% jump today, it still has a long ways to go to even get back to previous levels. With a stronger economy surrounding it, Enbridge could be a prime rebound candidate.
As for its dividend, the payout ratio of 329% certainly isn’t encouraging. It’s possible Enbridge has to cut its dividend sooner than later, but a speedy recovery would go a long way in quelling those fears.
If you’re looking to pick up a solid blue-chip TSX stock with rebound potential in light of a COVID-19 vaccine, Enbridge is a solid choice.
Air Canada
Air Canada (TSX:AC) is Canada’s largest airline and as such has been in a peculiar position as of late. Its stock has been down around 70% on the year at various points recently.
Of course, some tighter new restrictions haven’t helped the case for Air Canada either. However, the government has also been in talks for some sort of stimulus relief for airlines as well.
Now, with a COVID-19 vaccine on the horizon, things could be looking up for Air Canada. This TSX stock would stand to benefit greatly from a more active and open economy.
It’s clear the stock market has hope for Air Canada, as it’s up 24.40% today as of this writing. That’s a massive bump and is directly related to Pfizer’s big announcement.
Of course, a full-fledged recovery could take a fair amount of time and require more good news. However, TSX investors looking for a rebounding stock definitely won’t want to miss Air Canada’s liftoff.
COVID-19 vaccine possibly ahead
With Pfizer’s major breakthrough announced today, there is serious hope for an imminent COVID-19 vaccine. This is fantastic news for everyone’s safety and well-being.
For Canadian investors, it also means stock rebounds could be on the way. Enbridge and Air Canada are just two stocks due for a recovery — and a healthy economy can help facilitate that.
These investors should be sure to keep an eye on these two stocks and other top TSX gainers going forward.
