It is a light day in terms of news releases.
There are no Canadian economic announcements due out today.
In the U.S., weekly mortgage application data was solid, showing an increase of 5.8 per cent from the prior week. Later this morning, weekly oil inventory data reported by the U.S. Energy Information Administration will be released at 10:30 a.m. (ET).
Returning capital to shareholders
The company pays its shareholders a quarterly dividend of 4.5 cents per share, or 18 cents on a yearly basis. This equates to an annualized dividend yield of 0.47 per cent. Over the past two years, management has announced a dividend increase in May.
Management has been active with its share buyback program, repurchasing 233,200 shares during the first nine months of 2016.
Analysts commonly value the stock using a net asset value approach. The average one-year target price is $43.45, implying the share price may appreciate over 13 per cent over the next 12 months. Target prices range from a low of $41 to a high of $45.25.
The consensus EBITDA estimate is $1.44-billion in 2016, expanding to $1.51-billion in 2017, and $1.64-billion in 2018. The Street is forecasting earnings per share of $2.38 in 2016, rising 13 per cent to $2.70 in 2017, and expected to climb over 10 per cent to $2.99 in 2018.
Earnings estimates have been revised slightly lower over the past year. For instance, last year, on January 12, the Street was forecasting EBITDA of $1.53-billion for 2016 and $1.62-billion for 2017.
According to Bloomberg, the stock is covered by 14 analysts, all of whom have ‘buy’ recommendations on the stock. Several analysts have this stock as their “top pick”.
This month, Drew McReynolds, the analyst at RBC Capital Markets, revised his recommendation to “top pick” from “outperform” and raised his target price to $44 from $43. Last month, analyst Neil Fonseca from EVA Dimensions lifted his recommendation to an ‘overweight’ from a ‘hold’.
Year to date, the share price is up 2.6 per cent, extending its 10 per cent price return realized in 2016.
Looking at a long-term chart, the stock looks attractive, remaining in a multi-year uptrend.
This week, the share price broke above $38, a resistance level, on high volume. On Tuesday, over 400,000 shares traded, and on Monday, over 600,000 shares traded, above the two-month historical daily average trading volume of approximately 360,000 shares.
In terms of key resistance and support levels, the share price faces initial overhead resistance between $40 and $41. There is initial downside support around $37, which is close to its 200-day moving average (at $37.42) and its 50-day moving average (at $37.17). Failing that, there is support around $35.
The Breakouts file is a technical analysis screen intended to identify companies that are technically breaking out. In addition, this report highlights a company’s dividend policy, analysts’ recommendations, and provides a brief technical analysis for a security to provide readers with more information.
If a stock appears on the positive breakouts list, this indicates positive price momentum, and that a company may be worthwhile for investors to look at the fundamentals in order to determine if the recent price strength is warranted and will continue. If a security appears on the negative breakouts list, this indicates negative price momentum, and may be indicative of either deteriorating fundamentals or perhaps indicates a buying opportunity.
Securities screened are from the S&P/TSX composite index, the S&P/TSX Small Cap index, as well as Canadian small cap stocks outside of these indexes that have a minimum market capitalization of $200-million.
A technical analysis screen does not replace fundamental analysis, but can help identify companies worth having a closer look at.
|Positive Breakouts||Jan. 10 close|
|AW.UN-T||A&W Revenue Royalties Income Fund||$38.82|
|AOI-T||Africa Oil Corp||$2.69|
|ALC-T||Algoma Central Corp||$13.00|
|CFW-T||Calfrac Well Services Ltd||$5.24|
|CS-T||Capstone Mining Corp||$1.41|
|CJR.B-T||Corus Entertainment Inc||$13.27|
|DML-T||Denison Mines Corp||$0.90|
|DRT-T||DIRTT Environmental Solutions||$6.51|
|EFR-T||Energy Fuels Inc||$2.89|
|FN-T||First National Financial Corp||$29.75|
|GPR-T||Great Panther Silver Ltd||$2.47|
|IGM-T||IGM Financial Inc||$40.52|
|III-T||Imperial Metals Corp||$6.99|
|IVN-T||Ivanhoe Mines Ltd||$3.01|
|LUN-T||Lundin Mining Corp||$7.78|
|MRD-T||Melcor Developments Ltd||$15.27|
|NXE-T||NexGen Energy Ltd.||$2.97|
|QSR-T||Restaurant Brands International Inc||$65.63|
|RME-T||Rocky Mountain Dealerships Inc||$10.07|
|RY-T||Royal Bank of Canada||$92.97|
|SJR.B-T||Shaw Communications Inc||$27.94|
|S-T||Sherritt International Corp||$1.51|
|SVI-T||StorageVault Canada Inc.||$1.54|
|TKO-T||Taseko Mines Ltd||$1.37|
|TXG-T||Torex Gold Resources Inc||$27.22|
|TCW-T||Trican Well Service Ltd||$5.21|
|WRG-T||Western Energy Services Corp||$3.50|
|ARX-T||ARC Resources Ltd||$21.79|
|AAV-T||Advantage Oil & Gas Ltd||$8.38|
|CLR-T||Clearwater Seafoods Inc||$10.13|
|HBC-T||Hudson's Bay Co||$10.16|
|PEY-T||Peyto Exploration & Development Corp||$30.04|
|SCC-T||Sears Canada Inc||$2.18|
|VII-T||Seven Generations Energy Ltd||$27.00|
|TOU-T||Tourmaline Oil Corp||$31.69|
Follow Jennifer Dowty on Twitter: