What to Watch for in the TSX Today

Investors should watch out for more volatility on the TSX as well as stocks like Dollarama Inc. (TSX:DOL) that could hurt due to a low loonie.

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TSX Today

The S&P/TSX Composite Index plunged 184 points on Wednesday, September 21. Investors have been met with bad news in North American and global markets in recent weeks. Today, I want to discuss what Canadians should be watching out for on the Toronto Stock Exchange (TSX) in the first days of the fall season. Let’s jump in.

The TSX sheds triple-digit points AGAIN

As I’d stated to start this article, the TSX index opened the autumn with yet another triple-digit point drop. This was the second triple-digit decline over the past three trading sessions. It has been difficult for investors to find refuge in any one sector in the face of this volatility.

goeasy (TSX:GSY) is a Mississauga-based company that provides non-prime leasing and lending services to consumers in Canada. Its shares have plunged 34% in 2022 as of close on September 21. The stock is down 45% in the year-over-year period.

In the second quarter (Q2) 2022, goeasy saw its loan portfolio increase 32% to $2.37 billion. Meanwhile, adjusted diluted earnings per share (EPS) increased 8% to $2.83. This TSX stock possesses a favourable price-to-earnings (P/E) ratio of 11. Meanwhile, it offers a quarterly dividend of $0.91 per share. That represents a 3.1% yield.

TD Bank (TSX:TD)(NYSE:TD) is the second-largest stock on the top Canadian index by market cap. This top bank stock has dropped 13% in the year-to-date period. Its shares are still up 4.6% compared to the same time in 2021.

Canadians may want to snatch up this bank stock, as it offers an attractive P/E ratio of 10. It last paid out a quarterly dividend of $0.89 per share, which represents a solid 4.1% yield.

Base metals and energy sectors suffer a dip

The base metals and energy sectors dropped 3.1% and 2.2%, respectively, on Wednesday, September 21. These were the worst-performing sectors on the day.

Ivanhoe Mines is a Vancouver-based company that is engaged in the exploration, development, and recovery of minerals and precious metals. It primarily holds operations in South Africa. This mining stock dropped 0.34% on September 21. The stock has declined 15% so far in 2022.

Meanwhile, Canadian Natural Resources, a top oil and natural gas producer, saw its stock drop 2.37% on the same day. Its shares are still up 27% in the year-to-date period. The stock has climbed 60% year over year as of close on September 21.

Loonie at a two-year low: What TSX stocks will be impacted?

The Canadian dollar sat at $0.75 compared to the U.S. dollar benchmark as of close on Tuesday, September 20. That represented a two-year low for the loonie. Some TSX stocks will face headwinds due to this dip, while others should thrive in this climate.

Dollarama (TSX:DOL) could encounter additional turbulence due to a historically low loonie. Indeed, the top dollar store retailer has traditionally performed better with a strong Canadian dollar to free up its ability to provide discounts to shoppers. The stock dropped 1.86% on September 21. Shares of Dollarama are still up 21% in the year-to-date period.

Gildan Activewear (TSX:GIL)(NYSE:GIL) is a Montreal-based company that manufactures and sells various apparel products in North America and around the world. This company boasts a significant presence in the United States. That means it is well positioned to benefit when the loonie is low.

Shares of this TSX stock slipped 2.1% at yesterday’s close. The stock is down 25% so far in 2022. Shares of Gildan currently possess a very favourable P/E ratio of 8.8. It offers a quarterly dividend of $0.169 per share, representing a 2.1% yield.

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 Ambrose O'Callaghan has positions in TORONTO-DOMINION BANK and goeasy Ltd. The Motley Fool recommends CDN NATURAL RES and GILDAN ACTIVEWEAR INC. The Motley Fool has a disclosure policy.

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