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Number Cruncher

Screens that break down the numbers from our investment reporters

Entry archive:

13 attractive Canadian industrial stocks

RON MEISELS AND MONICA RIZK

What are we looking at?

Attractive Canadian industrial stocks.

The screen

We limited our pool to the S&P/TSX composite index.

We looked at each stock’s 40-week moving average (40wMA). This is the average closing price over a period of 40 weeks. Charting the moving average week by week gives us a sense of investors’ behaviour. Are they growing more (or less) enthusiastic about the company’s outlook and are they more (or less) likely to purchase the stock? Generally speaking, stocks that trade above their rising 40wMAs are the best candidates for investments; they are the ones that show bullish investor behaviour. We listed the Canadian industrial stocks and identified the status and level of each stock’s 40wMA in the adjoining table.

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Ten energy stocks for value investors betting on an oil rebound

IAN TAM

What are we looking for?

Value picks with low price-to-book ratios in the Canadian energy sector.

The screen

Investors who feel that the price of crude oil is poised to show an upward trend will find this read an interesting one.

In this week’s screen, I focus on the price-to-book ratio of energy stocks in Canada. Remember that the book value measures the theoretical value of a company’s equity should the company be liquidated. The price-to-book ratio is a value metric that investors can use to show whether a company is over- or undervalued relative to peers. (The lower the number, the better.)

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These 18 industrial stocks crank out profits

MICHAEL BOWMAN

What are we looking for?

Profitable North American industrial companies.

The screen

My colleague, Rob Belanger, and I started with North American-listed companies larger than $1-billion (U.S.) in market capitalization and sorted them from the largest to the smallest.

The EV/EBITDA is the enterprise value (market value of debt plus equity minus cash) divided by earnings before interest, taxes, depreciation, and amortization, and is one of the most commonly used valuation metrics. We are looking for a low number.

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Fifteen Canadian stocks for the contrarian investor

TIM SHUFELT

What are we looking for?

The outcasts of Bay Street.

There is some research supporting the argument that investing in what analysts dislike can generate superior returns.

The idea that the consensus is wrong informs contrarian investing, and the first step in trying to exploit popular mistakes is to identify ill-regarded stocks.

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Seven dividend-paying telecom stocks for the defensive investor

PETER ASHTON

What are we looking for?

U.S.- or Canadian-listed telecom stocks with strong yields, reasonable valuations and good prospects for growth.

With the prospects of a low-interest-rate environment for the foreseeable future, investors are being lured to dividend-paying stocks to provide income in their portfolios. With U.S. markets also at record highs, many investors are also cautious about the future direction for equities. Telecom stocks are often thought of as a defensive sector that should be somewhat insulated in the event of a market correction.

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Canadian and U.S. bank stocks: How they stack up

MICHAEL BOWMAN

What are we looking for?

Last month U.S.-based Merrill Lynch recommended investors make bets against Canadian banks in favour of U.S. banks. Since then, the short interest in the Big Six Canadian banks has risen dramatically. My colleague Rob Belanger and I thought we would take a look at the banking sector on both sides of the border.

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These 16 consumer stocks have shown solid dividend growth

NICK WINCH

What are we looking for?

Well-priced consumer discretionary companies with positive earnings momentum and dividend growth.

With Citigroup announcing last week its expectation for oil prices to remain at or near current levels through the first three quarters of 2015, we are looking for resulting opportunities in other market sectors. The consumer discretionary sector is well positioned for 2015, as consumers may benefit from increased levels of disposable income.

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Fifteen media stocks for the value investor

SAMUEL OUBADIA

What are we looking for?

Media darlings.

In spite of their mixed financial results, social media stocks (such as Facebook and Twitter) have undoubtedly captured a lot of attention over the past couple of years. However, the valuations of these stocks are not particularly attractive to value investors. At Lorne Steinberg Wealth Management, we decided to take a look at “traditional” media stocks and see whether that group offers any appealing alternatives. This sector includes companies whose primary area of business lie in either television, radio or print media (or a combination of these).

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Ten Canadian large-cap stocks poised for growth

IAN TAM

What are we looking for?

Large cap Canadian companies that have growing earnings, and are reinvesting these earnings for future growth.

The screen

As the markets continue to speculate on an eventual turnaround for oil prices, and our currency sits at historically lower levels, investors looking for exposure to companies that continue to grow can use this screen to generate some ideas.

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Keep these 15 airline stocks on your radar

MICHAEL BOWMAN

What are we looking for?

Most airline companies posted solid gains in 2014 despite the Ebola outbreak and unfavourable economic conditions. With lower fuel prices, most airlines may be poised for strong growth in the near future. My colleague Rob Belanger and I thought we would take a look at the sector.

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Seventeen Canadian stocks the Street loves

TIM SHUFELT

What are we looking for?
Bay Street’s latest top picks.

For all the volatility seen in the Canadian market since late November, when OPEC declined to cut crude oil production, the S&P/TSX composite index is basically flat over that time.

But the headline figure conceals a shuffling of the Canadian stock rankings, with energy and financials coming under the greatest pressure of late.

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In search of outstanding Canadian REITs

PETER ASHTON

What are we looking for?

Canadian real estate investment trusts (REITs) with outstanding yield and valuations.

The Bank of Canada’s decision on Jan. 21 to cut its key interest rate by one quarter point led to a five day rally in Canadian stocks as market participants reacted to this unexpected news. Since then, numerous sources have gone on to predict another rate cut in the spring to further protect the Canadian economy from the shock of falling oil prices. In this declining interest rate environment, high yield assets such as REITs become increasingly attractive to income seeking investors.

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Ten transportation stocks with positive earnings momentum

IAN TAM

What are we looking for?

U.S. airline and ground transportation companies with positive earnings momentum.

Although the most recent rally in crude oil prices may have some investors hoping that a bottom is in sight, others may feel that there will be more disappointment to come. The latter group may look to industries that benefit from the overall reduction in oil prices. Airlines, for example, have benefited through the reduction of input costs – fuel being the major one.

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Eighteen high yield stocks that look safe

MICHAEL BOWMAN

What are we looking for?

Companies that have a high dividend yield where the dividend looks sustainable.

The screen

My colleagues Rob Belanger, Neil Wickham and I wanted to find Canadian companies with a market capitalization greater than $1-billion, a dividend yield of at least 4 per cent and a dividend payout ratio of less than 65 per cent. We sorted them from the largest to the smallest.

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These information technology stocks surface in screen for wealth creators

NICK WINCH

What are we looking for?

Efficient wealth creators in the information technology sector.

The screen

We searched for IT companies in the S&P 500 index and S&P/TSX composite index and looked at the following metrics:

– Highest economic value added (EVA) per share. EVA is a measure of true economic profit created by a company; it is calculated by subtracting capital charges from the net operating profit after tax. EVA per share shows us, on a relative scale, how effective a company is in creating value for its shareholders. We filtered for a minimum of $1.50 EVA per share;

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These U.S. large caps show a bullish pattern

RON MEISELS and MONICA RIZK

What are we looking at?

Attractive U.S. stocks as defined below.

The screen

We limited our pool to the S&P 100 index.

To find the most promising, we looked at each stock’s 40-week moving average (40wMA). This is the average closing price for the stock over a period of 40 weeks.

Charting the moving average week by week gives us a sense of investors’ behaviour. Are they growing more (or less) enthusiastic about the company’s outlook and are they more (or less) likely to purchase the stock? Generally speaking, stocks that trade above their rising 40wMAs are the best candidates for investments; they are the ones that show a bullish pattern. Accordingly, we listed the positive-looking stocks and identified the status and level of each stock’s 40wMA in the adjoining table.

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Portfolio sizes up 10 low-beta, large-cap U.S. stocks

IAN TAM

What are we looking for?

Low-beta, large-cap U.S. stocks with a history of growing dividends and earnings.

Recall that beta measures the sensitivity of a stock or portfolio to an underlying benchmark. The benchmark beta is equal to one. Portfolios with beta greater than one will move more than the benchmark, and portfolios with beta less than one will move less than the benchmark.

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Eighteen dividend stocks with low volatility, high returns

MICHAEL BOWMAN

What are we looking for?

Value companies with low volatility and high returns.

The screen

My colleague Rob Belanger and I started with North American companies greater than $5-billion in market capitalization and we sorted them from the largest to the smallest.

The price-to-book ratio (P/B) is the current share price divided by the book value per share. A low P/B could mean the company is undervalued, and we are only showing companies with a P/B of two times or less.

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The 20 biggest losers in the oil patch over the past two months

TIM SHUFELT

What are we looking for?

The walking wounded of the oil patch.

The crash in oil prices has left the Canadian energy sector teeming with casualties. Few have been spared. Of the 66 stocks included in the S&P/TSX energy index, just five have advanced in the two months since the Organization of Petroleum Exporting Countries announced it would not be cutting back on crude oil production in response to declining global benchmark prices.

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Nine profitable U.S. health-technology stocks

PETER ASHTON

What are we looking for?

U.S. health-technology stocks with strong profitability and growth prospects.

Over the past year, the U.S. health care market was the best performing market segment with year-over-year growth of 20.1 per cent. Health care is seen as a defensive sector that may be attractive again in 2015 as investors size up an aging bull market. However, investors should be aware that many of these stocks have already seen very strong gains in the past year – caution and further research is warranted.

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