3 TSX Stocks With No Signs of Slowing Down

These three stocks are compelling options for investors seeking momentum plays.

Investing in momentum stocks can be a savvy strategy, especially when focusing on companies that have demonstrated consistent growth. On the TSX, Manulife Financial (TSX: MFC), Loblaw Companies (TSX: L), and Canadian Imperial Bank of Commerce (TSX: CM) have all shown impressive performance over the past year, making them compelling options for investors seeking momentum plays.

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Manulife stock

Manulife stock a leading Canadian multinational insurance company, has experienced significant growth in its stock price over the past year. As of writing, the TSX stock’s price stands at $43.97, reflecting a substantial increase from its 52-week low of $28.06. This upward trajectory is supported by strong financial performance, with a trailing 12 months (TTM) revenue of $30.08 billion and a net income of $5.1 billion, resulting in a profit margin of 18.98%. The TSX stock’s return on equity (ROE) is an impressive 11.86%, indicating efficient management and profitability.

In the third quarter of 2024, Manulife reported a 19.50% year-over-year increase in revenue, showcasing its robust growth. The TSX stock’s diversified operations across Canada, Asia, and the United States, primarily through its John Hancock Financial division, have contributed to its resilience and expansion. With total assets under management and administration reaching approximately $1.4 trillion, Manulife’s strong financial position supports its continued growth prospects.

Looking ahead, Manulife’s future outlook remains positive, bolstered by its global presence and diversified portfolio of financial products and services. The TSX stock’s commitment to innovation and customer-centric solutions positions it well to capitalize on emerging market opportunities and navigate potential challenges in the financial services industry.

Loblaw stock

Loblaw stock, Canada’s largest food retailer, also demonstrated strong momentum over the past year. The stock is currently trading at $196.16, nearing its 52-week high of $196.49 and significantly above its 52-week low of $118.20. This performance is underpinned by solid financials, including a trailing price-to-earnings (P/E) ratio of 27.15 and a forward P/E of 20.53, suggesting investor confidence in the company’s future earnings growth.

In the third quarter of 2024, Loblaw reported revenue of $18.54 billion, up from $18.27 billion in the same period the previous year. Adjusted earnings per share stood at $2.50, exceeding analysts’ expectations. Despite a slight slowdown in demand for non-essential goods, Loblaw’s discount banners, such as No Frills and Maxi, have attracted value-conscious consumers, thus contributing to the company’s resilience in a challenging retail environment.

Loblaw’s strategic focus on expanding its discount offerings and exiting low-margin electronics categories enabled it to maintain profitability and adapt to changing consumer preferences. The TSX stock’s strong market position and commitment to meeting customer needs position it well for sustained growth in the competitive retail sector.

CIBC stock

Finally, CIBC stock, one of Canada’s leading banks, has shown remarkable stock performance. Shares are at a current price of $93.94, up from a 52-week low of $59.53. The bank’s trailing P/E ratio is 12.97, with a forward P/E of 12.20, indicating favourable investor sentiment towards its earnings potential.

In the fourth quarter of 2024, CIBC reported an adjusted net income of $1.89 billion, or $1.91 per share. Up from $1.52 billion, or $1.57 per share, in the same quarter the previous year. This increase was partly due to a 22.5% reduction in provisions for credit losses. Reflecting improved credit quality and economic conditions. The TSX stock’s diversified operations across personal and business banking, wealth management, and capital markets contributed to its robust financial performance.

CIBC’s strategic initiatives, including investments in digital transformation and customer experience enhancements, have strengthened its competitive position. The TSX stock’s prudent risk management practices and focus on sustainable growth are expected to support its continued success in the evolving financial services landscape.

Foolish takeaway

Momentum investing involves capitalizing on the continuation of existing market trends. Manulife stock, Loblaw stock and CIBC stock all exhibited strong upward momentum over the past year. Supported by solid financial performance and strategic initiatives. Investors seeking to leverage momentum strategies may find these TSX stocks to be attractive options, especially given their demonstrated resilience and growth prospects.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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