What are we looking for?
The best of breed in each sector of the Canadian stock market, based on a combination of fundamental factors and improving outlooks for growth.
More about today’s screen
Craig McGee, senior consultant at Morningstar Canada, prepared today’s offering. He scoured the CPMS Canadian equity database to find the best stock in each industrial sector, based on a combination of their estimated returns on equity, their annualized five-year growth rates for earnings, and recent increases to analysts’ estimates of their future earnings.
To make the list, a stock had to have a market capitalization of more than $1-billion and each of the yardsticks above had to be greater than the median industry value.
More about Morningstar
Morningstar Inc. provides independent investment research in North America, Europe, Australia, and Asia. Its investment research tool, Morningstar CPMS, provides quantitative North American equity research and portfolio analysis to institutional clients and financial advisors. CPMS data covers more than 95 per cent of the investable North American stock market.
What did we find?
A dandy dozen of stocks, ranging in size from relative pipsqueaks such as Paladin Labs and Poseidon Concepts to leviathans such as Rogers Communications and Canadian National Railways.
While this collection of stocks represents a diversified Canadian equity portfolio, readers should do their own research before buying any of the names listed here.
Keep in mind that the Canadian stock market is thick with resource and financial service companies, but relatively sparse in areas such as technology and consumer products. Investors who want exposure to these sectors should also look at the U.S. market for candidates.
The dandy dozen: Canadian stocks that shine in their respective sectors
|1||Paladin Labs Inc.||PLB-T||Biotech & IT|
|2||First Capital Realty||FCR-T||Real Estate|
|3||Poseidon Concepts Corp.||PSN-T||Oil & Gas|
|6||High River Gold Mines||HRG-T||Gold|
|7||Agrium Inc.||AGU-T||Industrial Products|
|8||West Fraser Timber Co.||WFT-T||Paper/Forest Prdts.|
|9||Gildan Activewear||GIL-T||Consumer Products|
|10||Cdn. National Railway||CNR-T||Transportation|
|Rank||Company||Symbol||Sector||Market Cap ($ mil.)||Estimated ROE||5-yr EPS growth rate||90-day chg. in EPS estim.||Total return YTD|
|1||Paladin Labs Inc.||PLB-T||Biotech & IT||1,034||13.70%||137.70%||38.00%||22.20%|
|2||First Capital Realty||FCR-T||Real Estate||3,340||10.30%||185.30%||26.20%||9.00%|
|3||Poseidon Concepts Corp.||PSN-T||Oil & Gas||1,123||187.30%||35.40%||8.80%||16.30%|
|6||High River Gold Mines||HRG-T||Gold||1,202||22.40%||29.30%||10.00%||19.20%|
|7||Agrium Inc.||AGU-T||Industrial Products||15,376||24.60%||15.90%||12.00%||43.00%|
|8||West Fraser Timber Co.||WFT-T||Paper/Forest Prdts.||2,142||4.90%||20.60%||57.90%||29.80%|
|9||Gildan Activewear||GIL-T||Consumer Products||3,459||22.60%||6.00%||4.50%||49.30%|
|10||Cdn. National Railway||CNR-T||Transportation||38,576||21.80%||9.00%||2.30%||11.20%|
|11||Aimia Inc.||AIM-T||Comm. & Media||2,279||21.00%||10.10%||0.70%||13.50%|
|12||Intact Financial Corp.||IFC-T||Financial Services||8,096||18.70%||7.10%||3.40%||8.10%|