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Number Cruncher

Commodity stocks show best growth Add to ...

WHAT ARE WE LOOKING FOR?

The best growth stocks in Canada.

MORE ABOUT TODAY'S SCREEN

Let's look for stocks that analysts believe will have at least 20-per-cent earnings-per-share growth for the current year and next. In order to avoid companies that are experiencing profit growth through cost cutting, let's look for stocks that are showing 20-per-cent sales growth for this year and next as well.

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We'll look for stocks with market caps of greater than $250-million and sort all stocks by next year's EPS growth.

WHAT DID WE FIND OUT?

Growth investors don't usually look at commodity stocks because they're cyclical, but the best growth stocks in the country are all commodity based now. Just four stocks passed the thresholds of this screen in December, whereas 18 made it now, but almost every one of them is a commodity stock. Even Sprott Inc. is heavily tied to commodity stocks, given how the money manager favours resources.

Linamar stands out for its industrial exposure as it rides the recovery of the auto sector. Last week, UBS raised its target on the stock to $24 from $21 after a quarter which beat expectations.

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