With thousands of analyst recommendations published every day, the key question for investors is: how do you know who to trust?
TipRanks is a website that tracks and ranks analyst recommendations. Investors can skip recommendations from underperforming analysts, and focus exclusively on best-performing analysts with a proven track record of success.
Using this data, TipRanks has now published a list of the best-performing Canada-focused stock pickers right now. To compile the list, TipRanks algorithms calculated the average return and statistical significance of each rating, as well as the overall success rate i.e. the percentage of profitable ratings.
Here is TipRanks' list of the Top 10 Canadian analysts, and their top “buy” recommendations for 2019:
Martin Landry, GMP FirstEnergy
Industry: Consumer Goods
Success Rate: 70%
Average Return: 44.6%
Noteworthy recommendation: OrganiGram Holdings Inc (OGI-X)
Mr. Landry reiterated his “buy” recommendation for OrganiGram on Jan. 29. With a price target of $10, Mr. Landry indicates that shares can surge over 30 per cent from current levels.
OrganiGram is a licensed producer of medical cannabis, and recently branched out into the recreational cannabis market. Shares have surged 61 per cent year-to-date, boosted by strong earnings results and optimistic guidance.
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David Hynes, Canaccord Genuity
Industry: Technology
Success Rate: 76%
Average Return: 30.7%
Noteworthy recommendation: Shopify Inc. (SHOP-T)
On Feb.12, Mr. Hynes reiterated his “buy” recommendation for the Canadian e-commerce stock. Based in Ottawa, Shopify is designed to help people build their own, scaleable online stores.
Following “another stellar growth quarter and year,” the analyst called Shopify’s spending “offensive, not defensive, which is a good thing.”
According to Mr. Hynes, investors should use any weakness in shares to add positions. He believes the company can reach $5-billion-plus revenue in the next five-to-six years.
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Walter Spracklin, RBC Dominion Securities
Industry: Services
Success Rate: 75%
Average Return: 17.8%
Noteworthy recommendation: Canadian Pacific Railway Ltd. (CP-T)
Canadian Pacific Railway operates a network of 22,000 kilometres from Montreal to Vancouver and the U.S. Northeast and Midwest regions.
“Valuation remains attractive, making CP a very compelling investment opportunity, in our view” Mr. Spracklin wrote in a Jan. 24 report.
Citing strong momentum into 2019, the analyst ramped up his price target from $331 to $334. From current levels, this translates into upside potential of 22 percent.
“We reiterate CP as our preferred name in the railroad sector today” Mr. Spracklin said.
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Fadi Chamoun, BMO Nesbitt Burns
Industry: Services
Success Rate: 84%
Average Return: 17.5%
Noteworthy recommendation: Air Canada (AC-T)
Air Canada is the largest airline of Canada by fleet size and passengers carried.
Mr. Chamoun reiterated his “buy” recommendation for the stock on Feb. 15. He also boosted his price target from $42 to $45 (37-per-cent upside potential).
The analyst refers to strong fourth-quarter results, the company’s Investor Day and the Aeroplan loyalty program as supportive of his bullish call.
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Matt Bottomley, Canaccord Genuity
Industry: Consumer Goods
Success Rate: 70%
Average Return: 30%
Noteworthy recommendation: Aurora Cannabis Inc. (ACB-T)
Mr. Bottomley published a “buy” recommendation on this cannabis stock on Feb. 12, following the company’s first full quarter results.
Aurora now has the second-highest market share in the Canadian recreational space, says the analyst.
He is modeling for 41-per-cent upside from current levels, and advises investors to keep a close eye on the integration of recent acquisitions including MedReleaf and Anandia Labs.
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Paul Quinn, RBC Dominion Securities
Industry: Consumer Goods
Success Rate: 66%
Average Return: 14.6%
Noteworthy recommendation: Interfor Corp. (IFP-T)
Vancouver-based Interfor is one of the largest lumber producers in the world.
Mr. Quinn reiterated his “buy” rating on Feb. 10, while taking his price target from $20 to $21 (31-per-cent upside potential).
“We continue to favor IFP’s heavy US south exposure in addition to their strong balance sheet and prudent capital allocation” the analyst explained in his report.
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Orest Wowkodaw, Scotiabank Financial
Industry: Basic Materials
Success Rate: 56%
Average Return: 19.3%
Noteworthy recommendation: Teck Resources Ltd. (TECK.B-T)
Despite a disappointing Q4 earnings report, Mr. Wowkodaw reiterated his TECK.B “buy” recommendation on Feb.13.
From current levels, the analyst believes the stock can rise 30 per cent to $39.
Teck Resources is Canada's largest diversified resources company. It was formed from the amalgamation of Teck and Cominco in 2001.
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Robert Kwan, RBC Dominion Securities
Industry: Basic Materials
Success Rate: 75%
Average Return: 11.7%
Noteworthy recommendation: Fortis Inc. (FTS-T)
Utility holdings company Fortis Inc. is a top stock holding for Mr. Kwan. He reiterated his “buy” recommendation on Feb. 19, writing “core growth message remains solidly intact.”
“We continue to view Fortis as the ‘go to’ large-cap Canadian utility stock for investors seeking a defensive investment” the analyst stated. He has a $53 price target on the stock (14-per-cent upside potential).
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Phillip Huang, Barclays
Industry: Technology
Success Rate: 79%
Average Return: 10.4%
Noteworthy recommendation: Open Text Corp. (OTEX-T)
OpenText helps digitize processes and supply chains through analytics and AI powered intelligence solutions.
Mr. Huang reiterated his “buy” recommendation on Feb. 3 after the company reported second-quarter results above expectations on stronger license and cloud revenue.
Mr. Huang has a Street-high $64 price target. From current levels, this indicates 28-per-cent upside potential lies ahead.
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Paul Treiber, RBC Dominion Securities
Industry: Technology
Success Rate: 71%
Average Return: 16.7%
Noteworthy recommendation: Constellation Software (CSU)
Following strong Q4 earnings results, Mr. Treiber reiterated his “buy” rating on this technology giant on Feb. 14. He also bumped up his price target from $1250 to $1,350 (17-per-cent upside potential).
“We believe that Constellation Software is likely to generate one of the highest returns for shareholders over the long term in our coverage universe” the analyst told investors.
The company acquires, manages and builds industry specific software businesses.