Investors who held three sectors or groups in Canadian-based firms fared well. The three are Canadian banks, pipeline/energy, and some of the Brookfield firms.
This week, Canadian banks will post second-quarter results. Despite a slowdown in the real estate sector, banks may rely on fees, credit card revenue, and net interest income to post strong profitability.
Scotiabank (BNS) reports results tomorrow. KeyCorp, where it has an ownership interest, should add CAD 77 million in revenue.
CIBC (CM) has a strong retail banking unit that should boost its revenue growth by 11.5% Y/Y.
Royal Bank (RY) should report net income growing by nearly 20%. Watch out for its net interest margin growth slowing to the 1.5% Y/Y level.
TD Bank (TD) will post results this Thursday.
In the energy sector, Enbridge (ENB) and TC Pipelines (TRP) are steady dividend-income stocks to own.
Among the Brookfield firms, both Brookfield (BN) and Brookfield Infrastructure (BIPC) recently bounced off a 52-week low. Brookfield Asset Management (BAM), however, is not attractive at this time. Private credit risks are rising, which hurts asset management firms like KKR (KKR) and Price T. Rowe (TROW). Investors who prefer exposure to the U.S. equities might consider BlackRock (BLK), whose shares already rebounded, Apollo Management (APO), or State Street (STT).
