If you’ve been keeping an eye on the TSX, you might have noticed some exciting trends among certain stocks — even amid all this volatility. In this article, we’ll dive into three TSX stocks that are showing promising signs of climbing back to their 52-week highs. In fact, it could happen before the end of 2024.
CAE (TSX:CAE), a global leader in aviation training and simulation technologies, has been soaring high lately. Over the last year, CAE stock has surged by a remarkable 31%. What’s more, it has a potential upside of 13% to reach its 52-week high in the coming months.
In the recent earnings report, CAE stock revealed impressive figures. It reported a substantial increase in revenue, with $1,054.4 million for the first quarter of fiscal 2024, compared to $933.3 million in the first quarter last year. The growth is not just in revenue either. The company’s earnings per share (EPS) also saw a significant jump. First-quarter diluted EPS was $0.20, compared to a mere $0.01 last year. Adjusted EPS reached $0.24, up from $0.06 in the previous year.
The icing on the cake was CAE stock’s operating income, which stood at $130.1 million, accounting for 12.3% of revenue this quarter. In contrast, the previous year’s figures were $39.4 million, representing only 4.2% of revenue. This shows CAE’s financial health is robust and steadily improving — hence why it’s such a strong stock to consider among TSX stocks.
Open Text stock
Open Text (TSX:OTEX), the powerhouse in information management solutions, is another of the TSX stocks worth watching. With a 26% increase in shares over the last year, it boasts a potential upside of 23% to hit its 52-week high.
Open Text stock’s fiscal progress and results for 2023 have been nothing short of extraordinary. The company achieved a remarkable 28% growth in total revenue, reaching $4.5 billion, of which 81% ($3.6 billion) is annually recurring revenue.
Open Text stock’s operating performance is equally impressive. They reported adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $1.5 billion. Furthermore, it reported free cash flows of $655 million. The balance sheet remains robust, boasting a cash balance of approximately $1.2 billion and a net leverage ratio of 3.5.
The company’s strategic focus on artificial intelligence (AI) is noteworthy. Open Text stock introduced opentext.ai and Open Text Aviator, signalling its commitment to being a trusted partner for its customers’ AI journey. The future appears bright for Open Text stock, as it aims to help its customers unlock the value of their information.
Teck Resources (TSX:TECK.B), a major player in the mining industry, has also been making waves among TSX stocks. With a 24% surge in shares over the past year, it has an 18% potential upside to reach its 52-week highs.
Teck stock’s recent financial performance demonstrates its strength in the market. In Q2 2023, the company reported an adjusted profit attributable to shareholders of $643 million, equivalent to $1.24 per share. Their profit from continuing operations amounted to $510 million, or $0.98 per share, in the same quarter.
The company’s diversified portfolio includes operations in copper and steelmaking coal, contributing to its robust financials. Teck stock’s continued deleveraging of its balance sheet is a positive sign for investors. Its liquidity stands strong at $7.0 billion as of July 26, 2023, including $1.7 billion in cash.
Teck Resources also made strategic moves, such as forming a joint venture for the San Nicolás copper-zinc project in Mexico and receiving regulatory approval for the Zafranal copper-gold project in Peru.
These three TSX stocks are on the rise, and there’s a good chance they could hit their 52-week highs in the next few months. While investing always carries some level of risk, these companies’ impressive financial performances and promising growth prospects make them attractive candidates for investors seeking opportunities in the Canadian market. So, keep an eye on these stocks, and who knows? You might be in for a pleasant surprise in the near future.