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With both gold and oil prices pausing on Monday, today's TSX Breakouts report is abbreviated with just 28 securities on the positive breakouts list (securities with positive price momentum), and seven stocks on the negative breakouts list (stocks with negative price momentum).

Discussed today is a stock that has been steadily climbing higher, rallying ahead of its first-quarter earnings release slated for next Thursday, Canadian Tire Corp. (CTC.A-T).

A brief outline is provided below that may serve as a springboard for further fundamental research.

The company

Canadian Tire has approximately 1,700 retail stores and gas stations across the country under banners such as Canadian Tire, Mark's, Sport Chek and Sports Experts.

Canadian Tire's retail segment offers investors a diversified platform with exposure to a variety of consumer markets such as automotive, home living, home repair, sporting goods and clothing. In addition to the retail segment, Canadian Tire operates a Financial Services segment, which offers products such as credit cards and in-store warranties. Canadian Tire also has a significant stake in CT Real Estate Investment Trust, providing further diversification to the company's revenues.

The company is expected to report its first-quarter results on Thursday May 12, the consensus earnings per share estimate (EPS) is 85 cents. For the past two quarters, the company has delivered better-than-anticipated earnings results, sending the stock price higher each time. On Feb. 18, the company reported a solid beat, delivering earnings of $3.01 in the fourth-quarter, well above the consensus estimate of $2.61, sending the stock higher by over 7 per cent that day.

Returning capital to shareholders

Management has remained committed to returning capital to its shareholders, increasing its dividend frequently over the years. Last November, the company announced a 9.5-per-cent increase to its dividend, raising its quarterly dividend to 57.5 cents per share from 52.5 cents per share. This equates to a yearly dividend of $2.30 per share, or an annualized dividend yield of 1.65 per cent.

The company has also been active with its share buyback program. On Feb. 18, when the company released its fourth-quarter earnings results for the period ended January 2, 2016, management indicated that it had repurchased over 3.95-million shares at a weighted average price of $123.90 to date.

Valuation

The stock is valued on sum-of-the-parts calculation. Analysts' target prices range from a low of $127 to a high of $165, with target prices scattered between these two points. The average one-year price target is $147, suggesting the stock price could appreciate 6 per cent. However, if the company delivers another better-than-expected earnings result, as it has for the past two quarters, target prices could be lifted.

Analysts' recommendations

According to Bloomberg, there are nine buy recommendations and six hold recommendations. There are no sell recommendations.

The consensus EPS estimate is $8.71 in 2016 and $9.52 in 2017.

Chart watch

Year to date, the stock price has appreciated an impressive 18 per cent, and the stock is the second best performing stock in the consumer discretionary sector (second only to Rona).

The stock price is nearing overhead resistance at $140; however, if the company delivers a first-quarter earnings beat next week, the share price could breakthrough this resistance level.

Shares of Canadian Tire have downside support around $134, close to its 50-day moving average (at $133.91), and failing that at $130.

The Breakouts file is a technical analysis screen intended to identify companies that are technically breaking out. In addition, this report highlights a company's dividend policy, analysts' recommendations, and provides a brief technical analysis for a security to provide readers with more information.

If a stock appears on the positive breakouts list, this indicates positive price momentum, and that a company may be worthwhile for investors to look at the fundamentals in order to determine if the recent price strength is warranted and will continue. If a security appears on the negative breakouts list, this indicates negative price momentum, and may be indicative of either deteriorating fundamentals or perhaps indicates a buying opportunity.

A technical analysis screen does not replace fundamental analysis, but can help identify companies worth having a closer look at.

Below is a list of securities principally from the S&P/TSX composite index and the S&P/TSX Small Cap index that are technically breaking out, reaching new 55-day highs or lows. Securities on the positive breakouts list have displayed positive price momentum during this period. Securities on negative breakouts list have experienced negative price momentum.

Positive Breakouts
AC-TAir Canada
AQN-TAlgonquin Power & Utilities Corp
AKG-TAsanko Gold Inc
ATP-TAtlantic Power Corp
CTC.A-TCanadian Tire Corp Ltd
CUS-TCanexus Corp
CLR-TClearwater Seafoods Inc
CNL-TContinental Gold Inc
DC.A-TDundee Corp
DPM-TDundee Precious Metals Inc
FSV-TFirstService Corp
MIC-TGenworth MI Canada Inc
GEI-TGibson Energy Inc
GUY-TGuyana Goldfields Inc
HLF-THigh Liner Foods Inc
III-TImperial Metals Corp
ITP-TIntertape Polymer Group Inc
KGI-TKirkland Lake Gold Inc
MBT-TManitoba Telecom Services Inc
NVU.UN-TNorthview Apartment REIT
OGC-TOceanaGold Corp
QSR-TRestaurant Brands International Inc
SPB-TSuperior Plus Corp
TH-TTheratechnologies Inc
TXG-TTorex Gold Resources Inc
TRP-TTransCanada Corp
TFI-TTransForce Inc
VSN-TVeresen Inc
Negative Breakouts
ALA-TAltaGas Ltd
BB-TBlackBerry Ltd
CCO-TCameco Corp
CIX-TCI Financial Corp
XTC-TExco Technologies Ltd
FFH-TFairfax Financial Holdings Ltd
NWC-TNorth West Co Inc