The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

Number Cruncher

Stock screens for investment ideas from professional investors. Exclusive to subscribers of Globe Unlimited.

Entry archive:

Twenty Canadian stocks favoured by institutional analysts

IAN TAM

What are we looking for?
Companies that are widely favoured by institutional analysts.

The screen
With the third-quarter earnings season essentially completed, institutional analysts have factored in the latest company information and have updated their pricing models and recommendations. This week, I take a snapshot of companies for which analysts have a positive forward-looking view. To reduce the effect of any analyst biases, I’ve also factored in historical growth rates of earnings to accommodate a backwards looking view. The strategy I created ranks stocks on the best combination of the following factors:

More »

Fifteen companies to combat volatility

CHARLES MARTIN

What are we looking for?
The Volatility Index (VIX), a measure of market fear and uncertainty, spiked above 40 last week and sent investors flocking out of equity markets. Typically, a value above 30 is associated with a large amount of market volatility. I’m looking for U.S. and Canadian companies with a market cap greater than $10-billion that can withstand volatile markets.

More »

Thirteen companies with the best profits and payout growth

JEAN-DIDIER LAPOINTE

What are we looking for?

The companies on the S&P/TSX that generate the highest economic profits for the shareholders while offering above-average dividend growth rates.

The screen

Although we have screened the S&P/TSX composite index with only five criteria, do not be fooled, as they are very challenging.

More »

Insiders see opportunities in these 15 TSX stocks

TED DIXON

What are we looking for?

We are halfway to the next semi-annual rebalancing of the INK Canadian Insider Index, which will be implemented on Nov. 20. Today, we look for the stocks that are leading candidates for inclusion in the 50-stock index used by the Horizons Canadian Insider Index ETF. A stock already in the index before rebalancing date stays so long as it is in the top 30 per cent of all stocks ranked on the basis of the INK Edge V.I.P. criteria (valuations, insider commitment, price momentum). We replace index drop-outs with the top ranked V.I.P. stocks which are not already index members. To identify where insiders see the best opportunities right now, we focus on the top 15 INK Edge ranked TSX stocks.

More »

Nineteen upward-trending Canadian and U.S. stocks

MONICA RIZK and RON MEISELS

What are we looking at?

Upwardly trending Canadian and U.S. stocks.

The screen

We limited our pool to the S&P/TSX 60 index and the S&P 100 index.

To find the most positive, 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 investor’s behaviour: Are they growing more (or less) enthusiastic about the company’s outlook and are they more (or less) likely to purchase the stock?

More »

Twenty stable stocks in a stormy market

IAN TAM

What are we looking for?

Companies with steady, growing earnings and low price volatility amid stormy markets.

The screen

For the cautious investor, the recent volatility in the equity markets has been a cause for concern. This week I focus on companies that have shown a history of consistent and growing earnings, but also exhibit low price volatility, particularly over the past 90 days. A fairly common metric used to measure volatility is the standard deviation of daily price return (lower standard deviations imply lower volatility).

More »

Five Canadian energy companies with sustainable payouts

PATRICK GATTUSO

What are we looking for?

Oil and gas companies in Canada currently paying dividends that are less likely to cut these payouts due to their positive free cash flow.

The screen

As the struggles continue for Canada’s energy sector, more and more companies are cutting dividends as fundamentals deteriorate.

More »

Twenty high-quality stocks with stable profitability

CRAIG MCGEE

What are we looking for?

Global firms with high growth and profitability.

The screen

Recent selloffs around the world have been broadly based, taking down the good and the bad without much discrimination. Any signs of weakness or even caution have been interpreted negatively and many investors have been moving away from risky equities. Investors favouring high-quality companies with stable profitability, increasing expectations and growing earnings may be rewarded when markets move forward again.

More »

Seven manufacturing stocks poised to benefit from a lower loonie

PETER ASHTON

What are we looking for?

Manufacturing has been an underperforming sector of the Canadian market, down 2.9 per cent over the past 12 months. Only basic materials and cyclical consumer goods have performed more poorly. Meanwhile, the Canadian dollar is down more than 16 per cent versus the greenback in this same period. A lower dollar makes Canadian manufactured exports less expensive and should boost the fortunes of the manufacturing sector in the coming quarters.

More »

20 stocks with a history of growth

IAN TAM

What are we looking for?

Companies with a history of growth.

The screen

In a recent ROB article, reporter and Streetwise columnist Tim Kiladze commented about the inherent fallacies of quarterly earnings reports. The key point was that short-term fluctuations in earnings and estimate revisions can cause unnecessary volatility in stock prices and market perception, and may not reflect the often longer operating cycle of each company.

More »

Companies that lost out after China’s yuan devaluation

Ryan Gottschalk

What are we looking for?

North American-listed companies exposed to China as their “primary country of risk,” ranked according to recent momentum characteristics and how they have been affected by the recent devaluation of the Chinese yuan.

The screen

Last week, the People’s Bank of China allowed the yuan to fall to a new four-year low, a singular decision for a central bank that is synonymous with tightly controlling its currency. Having underperformed estimated growth prospects so far this year, the currency devaluation proved a logical step in order to boost exports and shift national growth back on trajectory.

More »

How Canadian regions measure up on shareholder returns

JEAN-DIDIER LAPOINTE

What are we looking for?

With most of the second-quarter earnings results now in the books, we decided to screen Canadian companies for different criteria and to calculate the average results by region.

The screen

Our goal is to find out which regions offered the best shareholder returns, as well as sales growth, dividend growth and cash-flow stability, both in the short and long term.

More »

Low-cost gold producers trading at attractive valuations

SAMUEL OUBADIA

What are we looking for?

Gold producers operating at lower costs.

As we have seen with the sharp drop in gold prices in recent months, all that glitters is not gold stocks. At the current price of gold, it is difficult for many producers to meet their all-in sustaining costs, a common measure of how much it costs the company produce gold on a per-ounce basis. In fact, many companies are actually losing money and faced with the decision of whether to close certain mines.

More »

Searching for surprise earners

IAN TAM

What are we looking for?

Companies that have surpassed analyst expectations in the most recent quarter of reported earnings.

The screen

At this point in the quarter, roughly two-thirds of the stocks on the S&P/TSX composite index have reported their latest quarter of earnings. Companies that surprise analysts often show positive price momentum after the report date as the market adjusts to new information. Recall that the earnings surprise is measured as the percentage difference between the latest consensus estimate from analysts just prior to the company reporting and the actual results.

More »

Financial stocks that can benefit from higher rates

CHARLES MARTIN

What are we looking for?

Solid U.S. July jobs numbers were released last Friday, signalling that a central bank rate hike in September is becoming a likely scenario. Rising rates are a positive indicator for financial companies that earn revenue based on the difference of the interest income generated from loans to their cost on borrowed funds, called net interest margin (NIM). I am looking for U.S. banks that could benefit from a hike in interest rates.

More »

Twenty possible undervalued global companies with room to grow

CRAIG McGEE

What are we looking for?

Potentially undervalued companies from around the globe.

The screen

Global markets have been mixed recently with many regions considered to be fairly valued. The eurozone has shown relative strength over the past month, bouncing back following uncertainty with Greece’s place in the European Union. In order to uncover potentially undervalued global companies with room to grow, my colleague Lawrence Ullman and I used Bloomberg to list the top 20 stocks from around the world with market cap above $1-billion (U.S.) and the best mix of:

More »

Ten U.S. large cap stocks poised for a rebound

PETER ASHTON

What are we looking for?

U.S. large cap stocks that have sold off in the past quarter that are looking to rebound.

Over the past quarter, many U.S. large cap darlings have sold off heavily. Apple Inc., Twitter Inc., Walt Disney Co., Wal-Mart Stores Inc. and others have all declined sharply based on poor earnings, a Chinese economic slowdown, a strong U.S. dollar and other factors. Some large cap stocks now find themselves in oversold territory with a possibility of seeing a strong rebound.

More »

How you can tell these 20 companies are serious about asset growth

IAN TAM

What are we looking for?

Canadian companies investing for future growth – and winning.

Investors who have been rewarded over the past year for good picks in the Canadian equity markets will recognize names such as Valeant Pharmaceuticals International Inc., Dollarama Inc. and Alimentation Couche-Tard Inc. These companies have consistently shown positive price momentum over the multiple time periods over the past year. One common trait amongst these companies is the fact that they have high reinvestment rates.

More »

Ten companies with a history of growing dividends

Patrick Gattuso

What are we looking for?

Mid and large cap companies in Canada with sound financial health that are viewed as solid yield plays as Canada’s economy weakens.

The screen

The Bank of Canada lowered interest rates twice so far in 2015. This trend could continue if economic growth in Canada continues to decrease. In fact, on July 31, Statistics Canada released its monthly GDP figure for May, which showed that real GDP contracted 0.2 per cent for the month – a fifth consecutive monthly decrease in real GDP. Although investing in bonds tends to be favourable during times of economic hardship, corporate and government bond yields in Canada are currently at depressed levels and therefore considered unattractive to investors. Finding stocks with sound financial stability that have a history of growing dividends are an alternative to investing in debt during periods of negative economic growth.

More »

Watching the charts: Strength seen among these health care stocks

MONICA RIZK and RON MEISELS

What are we looking at?

Canadian and U.S. health care stocks.

The screen

We limited our pool to the S&P/TSX 60 index and 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 investor’s 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. We identified the status of each stock’s average (rising, falling or flat) in the adjoining table.

More »

Number Cruncher Contributors

Ted Dixon, CFA

E-mail this writer

Ted Dixon is co-founder of INK Research. INK stands for Insider News and Knowledge and through www.inkresearch.com is Canada's first on-line financial news and research service providing investor insight into what public company executives and significant shareholders are doing with their ownership interests.

Follow Ted on Twitter @TedDixon

Charles Martin, CFA

E-mail this writer

Charles Martin, CFA, works in the Financial and Risk unit of Thomson Reuters and specializes in asset management.

Craig McGee, CFA

E-mail this writer

Craig McGee, CFA, is a portfolio manager with The Ullman Group at Richardson GMP in Toronto.

Products
  • The Globe and Mail Newspaper

    Newspaper delivered to your doorstep. subscribe

  • Globe Unlimited

    Digital all access pass across devices. subscribe

  • The Globe and Mail App

    The New Globe and Mail App for iPhone®, iPad® and Apple Watch download

  • Globe2Go

    The digital replica of our newspaper. subscribe

  • Globe eBooks

    A collection of articles by the Globe. subscribe

See all Globe Products

Advertise with us

GlobeLink.ca

Your number one partner for reaching Canada's Influential Achievers. learn more

The Globe at your Workplace
Our Company
Secure Service
Customer Service
Advertising Privacy
Globe Recognition
Mobile Apps
NEWS APP
Other Sections