Earnings reports can serve as significant catalysts for growth in stocks listed on multiple exchanges. On average, stocks on multiple exchanges may experience price fluctuations of 5% to 10% in the days following the release of earnings reports, especially when performance exceeds or falls below analyst expectations. Let’s now take a look at two stocks listed on multiple exchanges.
First, let’s focus on the aerospace company CAE (TSX: CAE), a Canadian aerospace and defense company specializing in training and simulation solutions. The company faced a challenging year, with its stock dropping by 28% last year. Despite this, CAE has a forward price-to-earnings ratio of 19.4, indicating analysts anticipate an improvement in the company’s earnings over the next few quarters.
Analysts have varied earnings expectations for CAE, particularly given the company’s profit challenges. The company reported a net loss of $325.3 million over the past 12 months, equivalent to earnings per share (EPS) of -1.02 CAD. Nevertheless, CAE’s earnings before interest, taxes, depreciation, and amortization (EBITDA) amount to 721.2 million CAD, signaling robust operational cash flow. This could potentially support future profit growth.
Even though the stock does not currently offer dividends, the potential for capital appreciation along with anticipated earnings growth might attract investors willing to take on a certain level of risk in the aerospace and defense sector.
Hydro One (TSX: H) is one of Canada’s largest electricity transmission and distribution companies, with a market capitalization of 26.3 billion Canadian dollars. It has been a key player in the utilities sector. The stock has displayed stable performance over the past year, with a 19.2% increase in value.
Analysts anticipate steady performance for Hydro One in its next earnings report. The company’s revenue over the past 12 months amounted to 7.9 billion Canadian dollars, resulting in a net income of 1.1 billion Canadian dollars, reflecting strong profitability. Additionally, the company’s return on equity stands at 9.5% and its operating profit margin at 22.8%, indicating high management and operational efficiency, which are crucial factors for long-term investors considering the stock.
Hydro One’s stock is considered valuable for several reasons, particularly for income-focused investors. Its expected annual dividend yield is 2.9%, with a payout ratio of 64.8%.
Both of these stocks on the Toronto Stock Exchange, after a challenging year, may see substantial growth as earnings increase.
