Kalkine Media explores TSX stocks to explore in a bearish market trend

h2 Highlights/h2

• As of June 30, 2022, the reported revenue for TransAlta Renewables Inc. was C$ 139 million.
• On September 27, 2022, Royal Bank of Canada (TSX:RY) announced its acquisition of Brewin Dolphin Holdings PLC.
• Cargojet's total revenues for Q2 2022 were C$ 246.6 million.

In recent months, the Canadian economy has gone through several ups and downs. There is a constant fear of a greater financial crisis in the future. With the latest Inflation report by Statistics Canada, there are many sectors that are on the verge of going down.

According to the Inflation report, the Consumer Price Index (CPI) rose to 6.9 per cent in September 2022 leading to a monthly slowdown. Reportedly, the Bank of Canada (BoC) is expected to make a rise in the interest rate. This can strain the market and influence the overall monetary and financial policy.

In addition to this, there are several other macroeconomic factors that play a role in the overall performance of the stock market.

Going through a bear market, can be uncomfortable for the investor. However, you can turn the tables by reconsidering your strategy. To sail through a bearish market, investors must deal with alertness. Reposition your portfolio with diversification. This can prove to be a defense against the falling market.

Amid a bearish market, let us explore five TSX stocks and look at their recent performances:

TransAlta Renewables Inc. (TSX: RNW)

TransAlta Renewables Inc. owns and runs energy generation and transmission facilities. The company is known to be an electric utility company. There are several operating businesses under the company. Some of them are US Solar and Wind, Canadian Hydro, Canadian Gas, Canadian Wind, and Australian Gas.

For Q2 2022, the adjusted EBITDA of TransAlta Renewables was reported at C$ 126 million, an increase of 30 per cent compared to Q2 2021. The free cash flow (FCF) was posted at C$ 87 million, which witnessed an increase of 23 per cent for the same comparative period.

Conversely, cash flow from operating activities was noted at C$ 28 million which saw a decrease of 65 per cent than the same quarter a year ago.

For the quarter that ended June 30, 2022, TransAlta Renewables Inc. reported revenue of C$ 139 million compared to C$ 92 million in Q2 2021.

The company distributes a monthly dividend of C$ 0.078 and has a dividend yield of 7.116 per cent. The five-year dividend growth was reported at 1.45 per cent.

Cargojet Inc. (TSX: TSX:CJT)

Cargojet Inc. operates in 16 major cities and has a domestic air cargo co-load network. The Canada-based company provides aircraft to customers on a Crew, Aircraft, and insurance basis. The operating points of the company are in Europe, Canada, USA, and Mexico.

Cargojet's total revenues for Q2 2022 were C$ 246.6 million compared to C$ 172.1 million in Q2 2021. The adjusted EBITDA also witnessed an increase and was noted at C$ 81.1 million as against C$ 67.4 million in the year-ago quarter.

Cargojet Inc. pays a quarterly dividend of C$ 0.286. It has a dividend yield of 0.951 per cent. The earnings per share (EPS) of the company is 11.20.

The graph below displays the market capitalization of the stocks discussed.

Fortis Inc . (TSX: TSX:FTS)

Fortis Inc. serves more than 3.4 million gas and electricity customers. The company operates in US and Canada and owns 10 utility transmission and distribution assets.

The net earnings for Fortis Inc. in Q2 2022 were C$ 284 million compared to C$ 253 million in the corresponding quarter a year ago. The cash and cash equivalents witnessed a decrease in the June quarter, 2022, and were reported at C$ 338 million compared to C$ 599 million in the year-ago quarter.

The operating cash flow for the same period increased for the period Q2 2022 and was noted at C$ 759 million compared to C$ 740 million in Q2 2021.

Royal Bank of Canada (TSX: RY)

Royal Bank of Canada is based in Canada and is also the second largest. The company has a diversified portfolio including financial services. It offers commercial and personal banking along with corporate banking. Other services include wealth-management services, and capital markets services.

For Q3 2022, the net income was posted at C$ 3.6 billion.

On September 27, 2022, Royal Bank of Canada announced of its acquisition of Brewin Dolphin Holdings PLC.

Canadian Natural Resources Limited (TSX: TSX:CNQ)

Canadian Natural Resources is a producer of natural gas and oil. The company operates in western Canada. It also has operations in the Africa’s offshore and North Sea.

In Q2 2022, net earnings for Canadian Natural Resources Limited were C$ 3,502 million compared to C$ 3,101 million as on March 31, 2022. The cash flow from operating activities was noted at C$ 5,896 million as against C$ 2,853 million compared to March 31, 2022.

The EPS paid by Canadian Natural Resources Limited is C$ 9.73 with a price to earnings (P/E) ratio of 7.80.

As on October 19, 2022, the stock price of Canadian Natural Resources Limited was C$ 76.22.

Bottom Line Stock markets have a consistent exposure to major events such as a pandemic or inflation. Some of the factors that may affect stock market are healthcare related events, geo-political events, changes in government policies, economic changes and many more. Any factor out of these can lead to a bearish trend in the market.

Analyze and assess the past and current performances of your stocks along with the changes in the macroeconomic factors. This overall analysis will give you a clear picture for your next move. Hence, be in constant touch with the market trends and tap on the best stocks.

Please note, the above content constitutes a very preliminary observation based on the industry and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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