TSX Today: Top 7 Canadian Stocks to Watch on Wednesday, September 29

Here are seven top TSX stocks that Canadian investors should keep on their watchlists on Wednesday, September 29.

TSX Today

Canadian stocks plunged Tuesday, as globally rising long-term treasury bond yields worried investors. The TSX Composite Index tanked by 1.4%, or 289 points, to settle at 20,174 in the last session. Also, the declining commodity prices pressurized Canadian stocks further. While shares across industries saw a sharp selloff, most high-flying tech stocks took the worst beating, as investors worried about their lofty valuations. Apart from tech, consumer cyclicals, healthcare, industrials, and real estate were among the worst-performing sectors on the TSX benchmark.

On Wednesday, TSX investors may want to keep a close eye on weekly changes in the U.S. crude oil inventories. This data could give direction to oil prices and Canadian energy stocks today. Now, let’s take a look at the top seven stocks that you may want to watch on the TSX today.

Kirkland Lake Gold stock

Yesterday, the shares of Kirkland Lake Gold (TSX:KL)(NYSE:KL) tanked by nearly 8%, as it announced a merger with its home market rival Agnico Eagle Mines (TSX:AEM)(NYSE:AEM). After the announcement, Agnico Eagle stock also shed 1.2%. With this deal worth about $13.5 billion, Agnico expects to become the world’s one of the top senior gold producers with low unit costs and high margins. This merger will also likely drive synergies and help the combined company save costs in the long run.

While investors might have reacted negatively to this deal in the last session, I expect the deal to boost the combined company’s long-term financial growth prospects.

Aurora Cannabis stock

The shares of Canadian cannabis firm Aurora Cannabis (TSX:ACB)(NYSE:ACB) posted nearly 7% gains for the second consecutive day. ACB stock opened the Tuesday session on a negative note after reporting much weaker-than-expected Q4 revenue Monday evening. But the stock reversed by the afternoon to settle at $8.64 per share. Analysts MKM Partners upgraded their rating on Aurora Cannabis stock a day after Aurora CEO made positive comments about its EBIDTA profitability during its Q4 earnings conference call. This upgrade could be the primary reason for ACB stock’s recent rally.

Nonetheless, I find Aurora’s declining consumer segment demand and contracting gross margins worrisome. That’s why I recommend investors avoid buying ACB stock — at least for now.

TSX tech sector selloff

Some of the tech shares like Shopify (TSX:SHOP)(NYSE:SHOP), Nuvei (TSX:NVEI), and Lightspeed (TSX:LSPD)(NYSE:LSPD) were among the worst-performing TSX tech stocks in the last session. While Nuvei and Shopify shed nearly 5% yesterday, Lightspeed stock dived by about 4.6%.

A recent increase in long-term bond yields is seemingly making investors exit risky bets and take profits in high-flying tech shares. Notably, stocks like Shopify, Nuvei, and Lightspeed have outperformed the broader market by a wide margin lately, as they’ve yielded about 31%, 99%, and 89% positive returns in the last 26 weeks.

Nuvei’s remarkable sales and earnings growth in the last few quarters could be the reason for its big rally lately. Similarly, Shopify and Lightspeed have seen massive financial growth in the last couple of years — including during the pandemic phase — driving their stocks higher. However, concerns about their high valuations might trigger a short-term correction in these tech stocks. But it could be an opportunity for long-term investors to buy these fundamentally strong tech stocks at a bargain.

Canadian earnings today

The Canadian gold miner NovaGold Resources (TSX:NG)(NYSE:NG) will release its August quarter results Wednesday evening. Street analysts expect the company to report adjusted net loss of US$0.04 per share in the third quarter of its fiscal year 2021 — higher than compared to its adjusted net loss of US$0.03 per share in the previous quarter.

NovaGold stock is currently trading with 31% year-to-date losses after yielding positive returns in the previous three years in a row. Its far better-than-expected Q3 results could help NG stock recover.

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.

The Motley Fool owns shares of and recommends Lightspeed POS Inc. and Shopify. The Motley Fool recommends Nuvei Corporation and recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Tech Stocks

woman retiree on computer
Tech Stocks

2 Top TSX Growth Stocks to Buy Today and Hold for 10 Years

Given their long-term growth prospects and discounted valuations, these two growth stocks could deliver multi-fold returns in the long run.

Read more »

hot air balloon in a blue sky
Dividend Stocks

3 Roaring Stocks to Hold for the Next 20 Years

Sure, there are stocks roaring upwards in the last year, but these three can claim doing it for decades.

Read more »

A chip in a circuit board says "AI"
Tech Stocks

How to Invest in C3.ai Stock in Canada

Are you looking for growth from our neighbours to the south? This tech stock has it, but how can Canadians…

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Tech Stocks

Better Buy in July: Passive-Income Plays or Growth Stocks?

Will July mark the beginning of an economic recovery? Should you consider investing in passive income or growth stocks ahead…

Read more »

A chip in a circuit board says "AI"
Tech Stocks

This is the Best AI Stock to Buy Right Now

When it comes to AI stocks, Nvidia stock should jump to mind. But don't forget about the absolute dominance of…

Read more »

Choose a path
Tech Stocks

BB Stock’s Dismal Earnings: I’ll Stay Away

BlackBerry Inc (TSX:BB) stock crashed after earnings. Here's why I'm still staying away.

Read more »

sad concerned deep in thought
Tech Stocks

Is the Worst Over for BlackBerry Stock?

BlackBerry stock has been burning investors' money for the last four years. Is the worst over for this stock? Here…

Read more »

Person uses a tablet in a blurred warehouse as background
Tech Stocks

1 Super Tech Stock (Besides NVIDIA) to Buy Hand Over Fist in 2024

A TSX super tech stock could deliver comparable or far better returns than the AI king across the border.

Read more »