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Ten Canadian consumer stocks with consistently strong performances Add to ...

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What are we looking for?

Canadian consumer defensive and consumer cyclical stocks that remain profitable and are growing earnings.

The screen

Dollarama Inc., one of Quebec’s star retailers, on Wednesday reported a substantial increase in profit in its first quarter. However, Dollarama has not been alone in its strong performance, and as investors know, robust earnings are often tied to stock appreciation. Over the trailing 90 days, of the 89 stocks in the consumer sectors (defensive and cyclical), 45 showed total returns greater than 5 per cent, and 35 showed gains greater than 10 per cent. To find stocks in these two sectors that have shown consistent growth in earnings I’ve created a strategy that ranks stocks on the following factors:

Consumer-oriented stocks

RankCompanyTickerMorningstar IndustryMarket Cap. ($Mil)Trailing ROE (%)Latest Reported EPS ($)5Yr EPS Growth Rate (%)Earnings VariabilityDividend Yield (%)
1CCL Industries Inc.CCL.B-TPackaging & Containers 11,597.0 23.82.3749.77.40.7
2Dollarama Inc.DOL-TDiscount Stores 14,539.5 203.33.7631.111.80.3
3Linamar Corp.LNR-TAuto Parts 4,058.4 21.88.5847.810.60.8
4New Flyer IndustriesNFI-TAuto Manufacturers 3,498.7 22.82.99302.514.42.3
5Aliment'n Couche-TardATD.B-TGrocery Stores 36,579.8 21.72.7035.47.70.6
6Magna Int'l. Inc. MG-TAuto Parts 23,424.4 21.57.3030.07.32.4
7BRP Inc.DOO-TLeisure 1,220.8 301.92.1910.710.50.9
8Great Cdn. Gaming Corp.GC-TGambling 1,461.1 23.11.4330.810.80.0
9Goeasy Ltd.GSY-TSpecialty Retail 420.6 18.52.6831.77.92.3
10AGT Food & IngredientsAGT-TFarm Products 624.2 15.32.0649.216.82.3

Source: Morningstar Canada

Note: All stocks shown here are considered consumer stocks as defined by both GICS and Morningstar Sector classification schemes.

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