The S&P/TSX Composite is on track to report a 36% surge in corporate profits this quarter, a pace of growth that substantially exceeds expectations for the S&P 500, according to Bloomberg.
The divergence highlights a broadening strength in Canadian equities, driven by robust performance across key sectors including financials and energy.
This earnings momentum builds on a strong recent performance for Canadian lenders, which have delivered an average return of 67% over the past 12 months.
This earnings momentum builds on a strong recent performance for Canadian lenders, which have delivered an average return of 67% over the past 12 months.
The rally in the banking sector has been so pronounced that it now rivals the gains seen in leading artificial intelligence equities, suggesting a shift in capital flows toward value and financial stability.
Strategen has recently published a market outlook arguing that equity markets have further room to run, citing the persistent performance gap between US and European stocks as a key driver.
The bank’s analysis highlights the widening disparity in valuation and earnings growth as a catalyst for continued outperformance in non-US markets.