The TSX today continues to show signs that there could be a sustainable rally in the near future. However, we’re certainly not out of the woods yet. Canadian investors have also been burned several times in the last two years. So, it’s clear that Canadians should remain vigilant when it comes to investing — bear or bull market.
Today, let’s look at what analysts believe the immediate future holds for the TSX today. What’s more, we’ll discuss how Canadian investors can prepare if we continue in this bear market territory.
Best since 2022
There was a lot of positive news last month for the TSX. United States data, as well as the data from Canada and around the world, led to a future with perhaps lower interest rates and falling inflation. November saw a sustained rally that was the best we’ve seen in years.
Total profit for the TSX also has risen in the last month or so. Third-quarter profits were $362 per share, which was higher than estimates. Furthermore, eight out of 11 sectors beat out analyst estimates, with 68% of companies beating expectations. This marked the best result the TSX has seen since the first quarter of 2022.
Add to this the improvement coming from financial institutions and Canadian banks as well. Bank stocks reported higher profits; however, this came after banks put out lower forecasts heading into earnings. And this is just part of the reason why the outlook might be lower in the near future.
Outlook “remains poor”
In the words of one analyst, the outlook “remains poor” for the TSX today. After all, only 40% of TSX stocks beat revenue expectations, which could be a sign that the economy is slowing down. So, for now, analysts believe that 2024 projections should continue to be adjusted downwards.
But is this necessarily a bad thing for today’s investors? There are some incredibly valuable stocks that can be considered on the TSX today — ones with low debt, low valuations, and high profit and that are deemed essential to everyday life.
This is why now we’re going to turn our head over to a great option to consider on the TSX today.
Get essential
Waste Connections (TSX:WCN) is a strong option for investors to consider these days after hitting a record high during the last week. The high occurred because the essential stock announced the acquisition of 30 energy waste treatment plants for $1 billion.
And WCN stock certainly doesn’t show signs of slowing down. The company is essential and continues to expand throughout North America. It’s likely to continue bringing in cash and making these larger acquisitions for as long as it can.
Meanwhile, it still offers value and a secure dividend. Shares are only up 4% in the last year, even after these highs, and it holds a strong balance sheet. It would take just 98% of its equity to pay all outstanding debts, and its dividend holds a payout ratio of just 34%. So, if you’re looking for secure income on the TSX today, both from returns and dividends, I would certainly consider WCN stock right now.
