Skip to main content
Access every election story that matters
Enjoy unlimited digital access
$1.99
per week for 24 weeks
Access every election story that matters
Enjoy unlimited digital access
$1.99
per week
for 24 weeks
// //

What are we looking for?

Canadian momentum stocks that are outperforming the S&P/TSX.

The S&P/TSX Composite Index continues to rally after hitting the pandemic bottom back in March, 2020, with the index up 16 per cent year-to-date, outperforming the tech-heavy, growth-oriented Nasdaq Composite Index, which is up about 15 per cent in the same period. With the S&P/TSX hovering within 1 per cent of its all-time high, we decided to look for Canadian equities that are indicating the most bullish price momentum. The results were quite interesting.

The screen

We will be using Trading Central Strategy Builder to search for Canadian large-cap stocks that have demonstrated strong upward price momentum and have been outperforming the S&P/TSX over the past month.

Story continues below advertisement

We begin by setting a minimum market capitalization threshold of $5-billion. This will focus our search on mid- to large-cap Canadian stocks while avoiding smaller companies with less stable streams of revenue.

Next, we will limit our search to stocks currently trading within 15 per cent of their 52-week highs, which helps us find stocks that are trending higher.

Finally, in order to find stocks that are outperforming the broad market, we want companies that have gained at least 5 per cent or more over the past four weeks.

Stocks are ranked based on the results of all search criteria combined. We have also included the price-to-earnings ratio, dividend yield, year-to-date and one-year price performance for your reference.

More about Trading Central

Trading Central is a global leader in financial market research and investment analytics for retail online brokers and institutions. Trading Central’s product suite provides actionable trading ideas based on technical and fundamental research covering stocks, exchange-traded funds, indexes, forex, options and commodities. Strategy Builder, our stock screener, is available through leading retail brokers in Canada and worldwide.

What we found

Seeking top-performing Canadian stocks with upward price momentum

RankCompanyTickerMkt. Cap. ($ Bil.)Chg. from 52W High (%)4W Price Perf. (%)YTD Price Perf. (%)1Y Price Perf. (%)Div. Yld. (%)Recent Price ($)
1TFI International Inc.TFII-T12.9-5.022.1110.9142.80.8138.21
2Thomson Reuters Corp.TRI-T64.8-0.96.225.540.21.5130.76
3Loblaw Cos. Ltd.L-T28.2-0.68.131.318.11.882.44
4Colliers Int'l Group Inc.CIGI-T6.8-1.511.336.4114.60.1154.51
5Metro Inc.MRU-T15.6-4.66.411.38.51.663.23
6FirstService Corp.FSV-T10.3-1.710.534.948.80.4234.97
7Brookfield Asset Mgt.BAM-A-T110.20.06.428.849.81.067.30
8Alim. Couche-Tard Inc.ATD-B-T52.6-1.97.413.84.70.748.93
9George Weston Ltd.WN-T19.4-0.37.934.123.71.7127.50
10Franco-Nevada Corp.FNV-T36.6-13.16.620.1-11.10.8191.69
11Progressive Waste Sol.WCN-T41.0-1.25.319.515.10.6155.93
12Boyd Group ServicesBYD-T5.2-3.46.49.324.10.2240.00

Source: Trading Central

To our surprise, no energy stocks made the list even though the S&P/TSX Capped Energy Index remains the top performing sector year-to-date with a gain of 27.9 per cent. A sector rotation may be taking place into consumer staples stocks with the S&P/TSX Capped Consumer Staples Index up 6.5 per cent over the past month, followed by the S&P/TSX Capped Materials Index, up 4.4 per cent. The S&P/TSX Capped Energy Index has slipped 3.8 per cent in the same period.

Topping our list is TFI International Inc., a transportation and logistics company headquartered in Saint-Laurent, Que. The stock price has been in a strong uptrend for more than a year and posted a new record high this week, after second-quarter profit rose almost fivefold as revenue from its acquisition of United Parcel Service’s freight business doubled. The company has the best year-to-date and four-week price performance on our list at 110.9 per cent and 22.1 per cent, respectively.

Story continues below advertisement

Global alternative investment firm Brookfield Asset Management Inc. has the largest market cap on our list at $110.2-billion. Its stock, which also posted a new record-high this week, has an impressive year-to-date and one-year performance of 28.8 per cent and 49.8 per cent, respectively.

Franco-Nevada Corp., a resource royalty and investment company based in Toronto, is trading about 13 per cent below its record high from late July last year, which is the biggest decline on our list and may be interesting to investors looking for a discount. The stock is down 11.1 per cent over the past year, however its four-week performance is up 6.6 per cent, indicating a momentum shift to the upside.

Trading Central Strategy Builder provides a back-testing capability to evaluate how well an investing strategy would have worked in the past. Using a five-year historical period with quarterly rebalancing, the screen described had a 10.7 per cent annualized total return compared with 6.7 per cent for the S&P/TSX Composite.

The investment ideas presented here are for information only. They do not constitute advice or a recommendation by Trading Central in respect of the investment in financial instruments. Investors should conduct further research before investing.

Gary Christie is head of North American research at Trading Central in Ottawa.

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow the author of this article:

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error Editorial code of conduct
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies