There are a few TSX stocks trending today that saw a strong couple of day last week. Yet these TSX stocks continue to climb higher, as we enter the second week in May. But what’s caused the climb, and should investors be prepared for a fall or get in now before these stocks climb higher?
Shopify stock
Shopify (TSX: SHOP) shares climbed higher, as the company announced it would be letting go of 20% of its workforce. The decision would mainly impact higher-paying managerial roles, according to Chief Executive Officer Tobi Lütke.
While it was sad news seeing so many employees without jobs, shareholders reacted positively to the news. Shares of Shopify stock climbed 27% in a day after the news, along with another strong earnings report.
The earnings report also led to an increase in share price, as the company announced it would be more focused on what it’s good at, rather than its expansion for world domination. Instead of operating within the logistics side of the business, it’s going to direct its attention back to e-commerce.
With more cash on hand, investors may want to consider picking up the stock again in the near future. Shares of Shopify stock are up 70% year to date and 88% in the last year.
TD stock
Another stock that did quite well last week was Toronto-Dominion Bank (TSX: TD). TD stock climbed higher as its merger with First Horizon bank went under last week. It could be argued this was a bad thing, as it dampens TD stock’s ability to expand in the American west. However, it also puts a ton of cash back in the hands of TD stock.
This would have been the largest merger by a Canadian bank in the United States to date. However, it’s since gone under, with TD stock having less exposure to the U.S. than planned. That being said, it still is one of the top 10 banks in America, and with plenty of cash on hand now for provisions for loan losses.
If you’re wanting the stock to improve sooner as opposed to later, this recent move is a good one. However, if you’re hoping TD stock will continue to expand in the U.S., you may have to wait a while longer. As for now, shares are down 5% year to date, climbing 4% in the last month as well. It also provides a dividend yield at 4.61%.
Could more climbs be coming?
With the recent movement from TD stock and Shopify stock on investors’ minds, there could be other TSX stocks that see some strong moves as well. Investors might want to keep an eye on Lightspeed Commerce (TSX: LSPD), especially with earnings right around the corner. This e-commerce company has also taken a large expansion project on; however it’s remained financially sound. What’s more, its acquisitions over the last few years are paying dividends, with the company turning profitable by 2024, management hopes.
In the banking sector, Bank of Montreal (TSX: BMO) may see some growth as well in the near future. That’s because this company managed to expand with its acquisition of Bank of the West in California. So, when America eventually recovers, BMO stock may see a large increase in revenue as well. Meanwhile it trades at just 5.93 times earnings, offering a dividend yield at 4.82% as of writing.
