TSX at All-Time High: Here Are Two Stocks That Still Offer Long-Term Upside
The S&P/TSX Composite rose 3.3% to a record 36,381, its best week in four months. The article highlights Manulife Financial (MFC) with Q2 core earnings up 12% to C$1.9B, core EPS up 16%, ROE 16.3%, and a C$61.78 price. It also cites Air Canada (AC) with Q1 revenue C$5.8B and free cash flow C$1.6B, trading near C$26.58.
How this was made
The 30-second read
Why it matters
Manulife’s reported earnings growth and a specific long-term-care risk transfer are the clearest fundamental positives. Air Canada’s record revenue and free cash flow plus a low trailing P/E are positioned as a potential earnings-driven re-rating, but the piece is still primarily a long-term setup.
Market read
This is a stock-selection article tied to a broad Canadian market rally, with two company-specific fundamentals highlighted rather than a new, time-critical corporate event.
What to watch
For Manulife, the market may focus on execution and remaining risk sensitivity beyond the transferred biometric component. For Air Canada, trailing P/E can look cheap even if earnings quality or forward margins are pressured.
Background
The TSX Composite Index hit a weekly high and a record close, prompting FOMO, but the article argues some individual stocks remain attractively valued.
Ticker impact
Manulife reports Q2 core earnings up 12% and agrees to transfer C$3.2B of long-term-care biometric risk to Munich Re, reducing legacy uncertainty.
Mildly positive bias; likely supports dips rather than driving a one-day repricing.
The text provides specific earnings growth and a concrete balance-sheet/risk reduction transaction, but it is presented as a long-term compounding setup, not a fresh surprise print or immediate guidance change.
Market effects
Supports a “second-stage” rotation thesis into quality earnings growers within Canadian financials and travel/transport.
Reinforces positive sentiment around Canadian equities following a strong weekly TSX move.
Limited direct global spillover; mainly a Canada-specific stock selection narrative.
Counterpoint
The article’s “still offers upside” framing may underweight that both names are exposed to macro and cost shocks (insurance risk sensitivity, airline fuel and labor).
Key entities
- public_companyManulife Financial
Q2 core earnings and EPS growth, plus a C$3.2B biometric risk transfer to Munich Re to reduce long-term-care risk sensitivity.
- public_companyAir Canada
Record Q1 revenue and free cash flow, trading near 52-week highs with about a 10x trailing earnings multiple.
- indexS&P/TSX Composite Index
Closed at a record 36,381 after gaining 3.3% on the week.
