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iShares MSCI Canada ETF upgraded to buy on strong value and technical momentum despite recession.

Analyst Insights
30 May 2026
Seeking Alpha
View Source
Bullish
pluang ai news

The iShares MSCI Canada ETF (EWC) has been upgraded to a buy due to its attractive valuation, strong momentum, and technical strength, even as Canada faces a technical recession with two quarters of negative GDP growth. Trading at a low price-to-earnings ratio of 16.4 and a 15.5% long-term earnings growth rate, the ETF offers a compelling PEG ratio just above 1. Its heavy exposure to Financials, Materials, and Energy sectors, along with favorable interest rate policies and metals momentum, supports its outperformance compared to the S&P 500. Technical analysis shows a bullish ascending triangle pattern with a $65 price target, backed by strong seasonal trends and price support in the $50 range through July.

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