5 Companies That are Outpacing the CSE So Far in 2023

The year 2022 was a difficult one for global stock markets, with the CSE Composite Index, which tracks the performance of securities listed on the Canadian Securities Exchange, dropping by nearly 57% by December 2022. This lackluster performance was driven by rising interest rates and the fear of an economic recession in early 2023.

Years like 2022 can be viewed as temporary deviations and also provide opportunities for long-term investments. Despite the possibility of further interest rate hikes in 2023, there is good news for investors.

This year, investors are already looking forward to lower inflation and a pause in interest rate hikes. Despite ongoing challenges, the CSE Composite Index has shown signs of recovery, with a 2.5% increase last month, and some companies are performing well due to their unique offerings.

Performance Comparison of Selected Companies and CSE in January

Some of the top-performing companies on the CSE since the begging of 2023 have been: Constellations Software Inci. (CSU), InnoCan Pharma Corporation (INNO), Goeasy Ltd. (GSY), TFI International Inc. (TFII), Neovasc Inc. (NVCN)

Constellations Software Inci. (CSU)

Constellation Software Inc. is a Canadian multinational software company that specializes in the development, acquisition, and sale of software for various industries, including government, healthcare, and financial services.

The company’s focus is on acquiring and growing niche software businesses that serve specific markets and industries. In January 2023, Constellations saw its stock price rise by 11%.

InnoCan Pharma Corporation (INNO)

InnoCan Pharma Corporation is an Israeli-Canadian pharmaceutical technology company that specializes in the development of innovative CBD delivery methods for the treatment of CNS cell damage, muscle, and rheumatic pain.

With a primary research focus on LPT CBD-loaded liposomes, the company aims to enhance CBD’s bioavailability in the body and establish itself as the leading developer of CBD-based pharmaceutical solutions.

Thanks to its robust product pipeline and significant R&D investments, InnoCan’s stock price saw a rise of 24% last month.

Goeasy Ltd. (GSY)

Goeasy Ltd. is a Canadian alternative financial services company that operates in the consumer goods financing sector, providing lease-to-own and easy financial solutions to under-served consumers.

The company is expanding its business into auto finance, contributing to its growth. Given the expansion strategy and gradually improving economic picture, the company saw its stock price rise by 19.4% in the last month.

TFI International Inc. (TFII)

TFI International Inc. is a Canadian transportation and logistics company that operates in North America and Europe.

The company provides a range of services, including trucking, logistics, and transportation management, and serves a diverse range of industries. The company’s financial performance has been strong, with steady revenue growth and strong profitability. TFII was up 12.4% in January.

Neovasc Inc. (NVCN)

Neovasc Inc. is a Canadian specialty medical device company that specializes in the development, manufacturing, and marketing of innovative cardiovascular devices.

The company’s products include heart valve replacement devices and minimally invasive products for the treatment of refractory angina. Neovasc’s financial performance has been volatile, reflecting the challenges faced by many small and mid-cap medical device companies. However, the company has shown strong revenue growth and has made significant investments in R&D to support its growth strategy. The stock was up 67% in January.

Conclusion

Although the market continues to be unsteady and economic difficulties persist, some Canadian-listed companies have started 2023 on the right foot aided by a demonstrated resilience to economic and market shocks. Given that these companies will continue to improve their financial performance, more gains are likely this year.