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What to Watch for on the TSX Today

TSX Today

Canadian stocks were down overall slightly last week, though the S&P/TSX Composite Index is still hovering close to the 52-week highs set earlier this month. Motley Fool investors have a lot to watch this week, so let’s get started with what to watch on the TSX today.

Top TSX movers and active stocks

Uranium and gold mining companies continue to be hot topics of conversation for investors. Uranium and mining companies saw a lot daily trading volume over the last few weeks. A company that Motley Fool investors should watch is Cameco, which is up 93% year to date and 53% in the last month alone!

Much of this comes from yet another round from Reddit’s WallStreetBets. The undervalued company is being seen as a strong contender for future growth on the TSX today. The price of uranium continues to climb, and if it hits US$60 per pound, that will be the tipping point for this and other uranium companies.

Investors should also watch out for Cineplex this week. The company has been in a merger and acquisition battle with U.K.-based Cineworld Group. The pair head to the Ontario Superior Court of Justice on Monday. Cineplex stock is declaring Cineworld acted in “bad faith” in breaching the terms of the deal, and vice versa. Therefore the loser will be stuck with a $2.18 billion bill for the dissolution of the deal. Shares of Cineplex stock are up 40% year to date and down 20% in the last three months.

Top TSX stocks to watch today

Railway stocks will be a major discussion point on both the TSX today and throughout the week. Kansas City Southern announced it plans to accept the deal from Canadian Pacific Railway (TSX:CP)(NYSE:CP). It therefore is dropping the Canadian National Railway (TSX:CNR)(NYSE:CNI) bid.

The decision comes after the U.S. Surface Transportation Board (STB) concluded that the CP stock bid simply made more sense, with no parallel lines in place compared to CNR stock. It also comes on the heels of hedge fund TCI Management stating the deal was doomed from the start. In fact, leader Chris Hohn stated he would like to oust the company’s directors to lead it in a more lucrative direction.

CNR stock has yet to make any statement on the decision and has until Friday to respond. A week from now, the drama that has been this Kansas City deal could be over on the TSX today. And whoever the winner is may have a massive bill in the short term, but, long term, this is a dramatic deal.

CP stock or otherwise, the railway can boast the first rail line that travels from Canada through the United States to Mexico, passing massive agriculture and oil assets there and back. So, Motley Fool investors should pay close attention to movement here this week.

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 Amy Legate-Wolfe owns shares of Canadian Pacific Railway Limited. The Motley Fool recommends CINEPLEX INC. and Canadian National Railway.

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