Canadian bank stocks' reputation for outperformance takes a beating

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Canadian bank stocks' reputation for outperformance takes a beating
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ICYMI Canadian bank stocks' reputation for outperformance takes a beating

could raise the domestic stability buffer yet again.

RBC is currently the only one he has rated outperform, but he acknowledged that this view could change if valuations start to reflect greater downside, if central banks pivot and if the outlook for the credit cycle becomes clearer.Canaccord Genuity analyst Scott Chan Adapted to the banks, that would mean going overweight Scotiabank, which had the lowest price return in 2022, and underweighting the top performer, RBC.

Chan argued that the bank stocks were still a fundamentally strong play over the long-term with diversified businesses and dividend yields; it’s just a matter of getting past the current downturn in the sector.

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