4 TSX Stocks to Make Big Moves Next Week

The next week is the time for some important earning releases. Four Canadian stocks could see big moves pre- and post-earnings.

Puja Tayal

Author Bio

Puja Tayal grew up in a small-business family where dinner conversations often centred on working capital and savings. Her early experiences with investing, particularly during the 2008 financial crisis, shaped her approach to understanding markets and evaluating investment opportunities. She began her career at a mutual fund company before moving into investor education and financial writing for asset and wealth management firms. Before joining The Motley Fool, Puja wrote for Market Realist, where she extensively covered the semiconductor industry. Her published work has also appeared in The Indian Express. Puja believes every stock has a story that can help investors understand its potential returns. She combines business analysis with different investing approaches to help investors make informed decisions and align their portfolios with their long-term financial goals. Outside of finance, Puja enjoys long drives, catching up with friends, watching superhero and science-fiction movies, and managing her family portfolio. She also has a keen interest in artificial intelligence and its potential to reshape the world.

Education

Bachelor's degree in Accounting and Finance, University of Mumbai (2007)
CFA Level I

Areas of Expertise

Qualitative company analysis, management strategy, risk assessment, long-term investing, portfolio diversification and rebalancing, dividend reinvestment, cyclical growth opportunities, compounding strategies, growth stocks, and dividend stocks.

Social Media Profiles

Favorite Investment Quote

"Risk comes from not knowing what you're doing." — Warren Buffett

Published August 2, 2021 11:30 am EDT

The earnings season is here. Earnings are like the open house where a stock’s quarterly performance is mapped and expectations are reset. Next week is important for four companies, as they release their second-quarter earnings. While their earnings figure may not quite be the apple of the eye, their guidance could revive confidence of recovery in the second half.

BCE stock

Canada’s telecom giant BCE (TSX: BCE)(NYSE: BCE) will release its quarterly earnings on August 5. The company reported positive revenue growth in the first quarter itself. This momentum is expected to continue in the second quarter. BCE is accelerating its broadband and 5G infrastructure investing, so I am hoping for some positive numbers in the wireless and wireline business.

BCE is not a growth stock, but still, it surged 3% a month after its previous quarterly earnings. I expect a positive stock momentum even after the second-quarter earnings and some higher numbers for the second half if it is on track to meet its full-year guidance of 2-5% revenue growth.

Bombardier stock

Bombardier (TSX: BBD.B) will release its second-quarter earnings on August 5 too. Throughout the quarter, the company has been repaying debt. So the key highlight of the earnings would be the 2021 and 2022 debt. I also expect to see some positive revenue numbers as it secured one of its biggest business jet orders for the year in this quarter.

I don’t expect a sea change in its earnings but some signs towards breakeven after several years of losses. What makes me optimistic about Bombardier is its share price recovery of over 214% that reflects the strengthening of fundamentals.

Magna stock

Magna International (TSX: MG)(NYSE: MGA) will report its second-quarter earnings on August 6. The company reported a strong recovery in the first-quarter earnings with an 18% sales growth. It saw a recovery in light vehicle production. The automotive market has been gradually recovering, and I expect another double-digit revenue growth in the second quarter.

Magna stock surged 3.8% in the week it released its first-quarter earnings. There could be some stable growth in the stock price next week. However, Magna is a stock to buy and hold for the long term. Don’t judge the company for its quarterly performance but look at its full-year growth. It is set to report accelerated growth as electric vehicle sales pick up.

Kinaxis

Supply chain planning solutions provider Kinaxis (TSX: KXS) will report its second-quarter earnings on August 6. Unlike other stocks, Kinaxis stock saw a slump after the first quarter earnings even though it saw a surge in subscriptions. I expect the positive momentum in subscription to continue as it secures new customers and the demand returns from manufacturing and other segments.

Just like Magna, don’t judge Kinaxis’s quarterly performance. It signs long-term contracts with its customers, so there could be a deviation in cash flow depending on payments.

Final thoughts

The above stocks could benefit from the recovery as the pandemic impacted their earnings significantly. They have already shown early signs of recovery in the first quarter. The second quarter could bring more positive news for fundamental investors that invest for the long term.