These days, any association with the oil patch counts as a black mark against a company.
While oil and gas stocks have taken a beating, the global energy rout has also seeped into other Canadian sectors, weakening stocks with indirect or partial exposure to crude producers.
That collateral damage speaks of the energy sector's reach in Canada, said James Telfser, a partner and portfolio manager at Aventine Management Group. "It's a big chunk of our economy, it affects the banks, it affects the number of deals that are happening," he said.
The reversal of fortunes in energy has been abrupt and severe. Oil prices have dropped by 35 to 40 per cent since global crude futures peaked in June.
Up to that point, the energy sector was the year's top performer on the S&P/TSX composite index, gaining 20 per cent on a total return basis. The ensuing five months more than wiped out those gains, taking oil and gas to last place on the index since June with a 22-per-cent decline.
Consensus earnings forecasts for the sector have been slashed, with analysts now expecting a decline of 2.7 per cent in 2015 for the energy space, compared with the 6.3-per-cent increase in profits next year expected just one month ago, David Rosenberg, chief economist at Gluskin Sheff + Associates, said in a note to clients this week.
The damages have been distributed liberally to other sectors. So we rounded up some of the non-energy losers of the energy selloff, showing their share price declines from their respective November peaks, as well as Thursday's close.
Boardwalk REIT (BEI.UN)
Down 11.5 per cent since Nov. peak
Thursday close: $63.17, down $1.07
Significant assets in the Edmonton, Calgary and Regina residential real estate markets have made this stock a target for its exposure to a decline of the Western Canadian economy.
"We own Boardwalk and like it at these levels," said Derek Warren, portfolio manager at Morguard Corp.
"While I have to assume that rent growth is not going to be as strong as it was in the past, it is also safe to assume that people in Western Canada will still live in apartments."
AutoCanada Inc. (ACQ)
Down 29.6 per cent
Close: $48.81, down $1.48
Also concentrated in Western Canada, this auto dealership group has sold off sharply over concerns that its pickup truck sales might decline if the energy downturn persists over the long term, analysts have said.
Canadian Western Bank (CWB)
Down 12.8 per cent
Close: $33.15, down $1.61
Lower expected economic growth in the West could result in a significant slowdown in loan growth at this regional bank, Credit Suisse analyst Kevin Choquette said in a note this week.
"We believe the stock has further downside risk."
Canadian Pacific Railway Ltd. (CP)
Down 7.3 per cent
Close: $220.79, down $4
The decline in this stock is excessive, considering that moving crude oil by rail accounts for only about 7 per cent of revenues, Mr. Telfser said.
"The company can shift volumes around to other areas that are doing well." Plus, the oil downturn reduces the cost of fuel, which accounts for a large portion of the railway's operating costs.
Greenbrier Cos. Inc. (GBX)
Down 22.5 per cent
Close: $51.46 (U.S.), down $1.49
This U.S. rail car manufacturer builds tank cars for the transportation of crude oil, which helps explain its sharp selloff, but it also has three other divisions.
"In talking with the company about their share price decline they use words like 'head-scratcher' and 'dumbfounded,' said Michael Bowman, portfolio manager at Wickham Investment Counsel.
Aecon Group Inc. (ARE)
Down 26.5 per cent
Close: $10.78, down 71¢
For several years, Aecon has been shifting away from the construction of buildings and toward energy projects, which accounted for much of its recent downside, said Robert Lauzon, managing director at Middlefield Group. "It's not a top pick," he said.
"But I think it's cheap down here."
Finning International Inc. (FTT)
Down 17.1 per cent
Close: $24.50, down 14¢
Analysts and investors had been counting on the expansion of the Western Canadian oil and gas sectors for much of the potential upside in the Vancouver-based distributor of Caterpillar equipment. "We expect Finning shares to trade range-bound in the current tough commodity environment," RBC Dominion Securities analyst Sara O'Brien said in a note this week.
Russel Metals Inc. (RUS)
Down 15 per cent
Close: $28.79, down 4¢
This distributor and processor of metal products was sold off as a result of its line of business supplying tubular products to oil and gas drillers. "It's been treated as an energy services stock," said Ryan Bushell, a portfolio manager at Leon Frazer. "But the rest of their business is increasingly geared towards the U.S. economy and manufacturing."