What are we looking for?
Stocks that seem poised to do well, from top to bottom, in 2013.
Today, with the help of Jamie Hynes, sales director with S&P Capital IQ, we scour the TSX for companies with increasing estimates for the top line (revenue), the bottom line (profit) and payout to shareholders.
How we did it
Mr. Hynes used the S&P Capital IQ Screener to search for stocks that analysts have been increasing estimates on over the past three months. To qualify, estimates must have gone up in 2013 for:
-earnings per share;
-revenue per share;
-dividends per share.
Mr. Hynes also specified that the average analyst recommendation must be a “buy” and that there could not be a “sell” recommendation from any analyst.
More about S&P Capital IQ
S&P Capital IQ offers a comprehensive set of tools for fundamental analysis of global securities as well as idea generation and work flow management. Its Web- and Excel-based platform provides access to both real-time and historical information on companies, markets, transactions and people around the world.
What we found
Twenty stocks meet the criteria. Not only do analysts recommend them all as “buys,” but their average dividend yield for 2013, based on consensus estimates, is a healthy 3.7 per cent.
The average price change, year to date, for the names on the list is 28 per cent – handily beating the 6.1-per-cent total return for the S&P/TSX composite index. Just one of these stocks is down year-to-date.
Remember, though, that there is no guarantee that these shares will continue to go up. As always, you should do your own research before buying any of the stocks listed here.
Stocks where analysts are hiking profit, revenue and dividend estimates
| Company | Ticker | Market Cap ($-mil) | EPS (% chg) * |
|---|---|---|---|
| WestJet Airlines Ltd. | WJA-T | 2,683 | 12.0 |
| Alimentation Couche-Tard Inc. | ATD.B-T | 9,067 | 0.8 |
| Franco-Nevada Corp. | FNV-T | 8,381 | 17.9 |
| Stantec Inc. | STN-T | 1,788 | 5.3 |
| Dorel Industries Inc. | DII.B-T | 1,094 | 0.5 |
| Primaris Retail REIT | PMZ.UN-T | 2,676 | 8.4 |
| Canexus Limited Partnership | CUS-T | 962 | 14.0 |
| Equitable Group Inc. | ETC-T | 487 | 2.0 |
| Dollarama Inc. | DOL-T | 4,180 | 0.9 |
| Brookfield Cda Office Properties | BOX.UN-T | 2,751 | 4.2 |
* % change in 2013 consensus analyst estimate over last 3 months; ** Average broker recommendations: 1=Buy; 3=Hold; 5=Sell; *** Expected dividend yield based on 2013 consensus dividend per share estimates. Source: S&P Capital IQ
| Company | Ticker | Market Cap ($-mil) | EPS (% chg) * | Rev./shr (% chg) * | Div./shr (% chg) * | Avg Broker Recom.** | Expected Div. Yld %*** | % Total Return YTD (Dec. 18) |
|---|---|---|---|---|---|---|---|---|
| WestJet Airlines Ltd. | WJA-T | 2,683 | 12.0 | 3.8 | 2.5 | 1.8 | 1.7 | 73.4 |
| Alimentation Couche-Tard Inc. | ATD.B-T | 9,067 | 0.8 | 2.7 | 0.5 | 2.0 | 0.6 | 53.5 |
| Franco-Nevada Corp. | FNV-T | 8,381 | 17.9 | 14.7 | 15.5 | 2.5 | 1.1 | 49.2 |
| Stantec Inc. | STN-T | 1,788 | 5.3 | 3.9 | 43.7 | 2.4 | 1.6 | 43.4 |
| Dorel Industries Inc. | DII.B-T | 1,094 | 0.5 | 1.2 | 8.3 | 2.4 | 3.7 | 39.6 |
| Primaris Retail REIT | PMZ.UN-T | 2,676 | 8.4 | 2.6 | 0.4 | 2.3 | 4.6 | 36.2 |
| Canexus Limited Partnership | CUS-T | 962 | 14.0 | 2.1 | 2.4 | 2.0 | 7.1 | 31.2 |
| Equitable Group Inc. | ETC-T | 487 | 2.0 | 1.5 | 1.2 | 1.9 | 1.8 | 31.2 |
| Dollarama Inc. | DOL-T | 4,180 | 0.9 | 0.2 | 6.3 | 2.2 | 0.8 | 29.0 |
| Brookfield Cda Office Properties | BOX.UN-T | 2,751 | 4.2 | 5.3 | 0.1 | 2.8 | 4.0 | 25.9 |
| Cineplex Inc. | CGX-T | 1,928 | 6.7 | 1.0 | 0.5 | 2.5 | 4.5 | 25.9 |
| Freehold Royalties Ltd. | FRU-T | 1,477 | 20.3 | 11.5 | 2.9 | 2.8 | 7.5 | 24.6 |
| Home Capital Group Inc. | HCG-T | 2,038 | 0.3 | 3.8 | 8.9 | 1.9 | 1.8 | 21.9 |
| Silver Wheaton Corp. | SLW-T | 12,549 | 4.7 | 5.3 | 2.9 | 1.8 | 1.4 | 21.4 |
| Pure Industrial Real Estate Trust | AAR.UN-T | 400 | 2.6 | 8.5 | 2.2 | 1.8 | 6.5 | 21.1 |
| Dundee REIT | D.UN-T | 3,758 | 147.1 | 9.1 | 1.0 | 2.0 | 6.0 | 20.8 |
| Genworth MI Canada Inc. | MIC-T | 2,168 | 1.5 | 0.9 | 5.4 | 2.6 | 5.9 | 13.7 |
| Algonquin Power & Utilities Corp. | AQN-T | 1,134 | 8.6 | 10.9 | 0.7 | 1.5 | 4.8 | 7.4 |
| Alamos Gold Inc. | AGI-T | 2,099 | 0.7 | 1.2 | 0.3 | 1.9 | 1.0 | 0.1 |
| Bonterra Energy Corp | BNE-T | 862 | 20.1 | 71.8 | 5.9 | 2.4 | 7.5 | -10.0 |
Stocks where analysts are hiking profit, revenue and dividend estimates
- WJA-T
- ATD.B-T
- FNV-T
- STN-T
- DII.B-T
- PMZ.UN-T
- CUS-T
- ETC-T
- DOL-T
- BOX.UN-T
- CGX-T
- FRU-T
- HCG-T
- SLW-T
- AAR.UN-T
- D.UN-T
- MIC-T
- AQN-T
- AGI-T
- BNE-T
