The stock market in Canada and the United States turned negative in August with concerns about rising treasury bond yields, weak labour market data, and renewed possibilities of more interest rate hikes keeping investors on their toes. Canada’s TSX Composite Index slid 1.6% last month after posting 2.3% and 3% gains in July and June 2023, respectively.
Nonetheless, some TSX stocks defied the bear market gravity to post strong gains in August. In this article, we’ll look closer at the two top-performing TSX stocks from last month and find out whether they could keep gaining in September and beyond.
Wesdome Gold Mines stock
Wesdome Gold Mines (TSX: WDO) was the top-performing stock TSX Composite component in August, as its share prices rallied by 20.5% during the month. It’s a Toronto-based gold miner with a market cap of $1.2 billion that primarily focuses on operating two high-grade assets: Eagle River mine and Kiena mine. After the recent rally, WDO share prices are now up 13% on a year-to-date basis at $8.45 per share.
Last month’s rally in Wesdome stock mainly started after the company announced its latest quarterly results on August 10. In the second quarter of 2023, the Canadian gold miner’s total revenue increased by 36.5% year over year to $84.6 million with the help of consistent positive contributions from the Eagle River mine, while it continued to ramp up the Kiena mine. In its earnings report, the company also reaffirmed its full-year 2023 production and cash cost outlook.
More importantly, Wesdome accelerated the “development of the ramp to the 129 level” last quarter, which is likely to contribute positively to its production levels next year. These expected gains in 2024 production also brighten WDO’s financial growth outlook, which can help its share prices keep rising in the coming quarters.
Tilray stock
Tilray Brands (TSX: TLRY) was another shining star on the Toronto Stock Exchange, as its share prices jumped 20.2% in August after posting eye-popping 61.5% gains in the previous month. If you don’t know it already, Tilray is a New York-headquartered cannabis giant with a market cap of $2.8 billion, as its stock trades at $3.98 per share with about 8.4% year-to-date gains.
There were two main reasons behind TLRY stock’s strong gains last month. First, its share prices jumped more than 30% on August 8, a day after Tilray revealed its intentions to acquire eight beer and beverage brands from the popular American brewing firm Anheuser-Busch. This acquisition is likely to expand Tilray’s U.S. beverage alcohol portfolio and contribute positively to its financial growth in the coming years.
Second, TLRY’s share prices jumped more than 22% in the final two trading sessions of August after reports about the U.S. authorities trying to ease restrictions on marijuana in the United States came out. As Tilray already has a strong distribution and branch network across the U.S. market, the company is expected to significantly benefit from easing restrictions in the country.
Moreover, these recent updates reflect how Tilray is consistently focusing on diversifying its portfolio, which should help it expand the revenue base and strengthen the balance sheet in the future. Considering its improving fundamental outlook, you can expect TLRY stock to also keep soaring in the coming months.
