In anticipation of better days to come for stock markets, RBC Dominion Securities canvassed its research analysts Tuesday for their best ideas on long-term plays that have been hammered by short-term problems.
The investment banking arm of Royal Bank of Canada, home to the country's largest team of stockbrokers, came out with a list of 35 companies that should do well over a one-year-plus time horizon and are changing hands at prices "which represent attractive entry points."
This wasn't an attempt to call a bottom to the market. Rather, the investment dealer tried to identify companies that have solid long-term fundamentals. A mix of resource, financial, tech, consumer product and retail plays made this list.
From the resources sector, RBC Dominion analysts highlighted Goldcorp, Kinross, AngloGold Ashanti, Cameco, Mount Gibson, Potash and Agrium.
In the utilities space, TransCanada and Enbridge got the nod. In energy and energy services, the picks were Shawcor, EnCana, Husky Energy, Niko Resources, Gran Tierra and Pro-Ex Energy.
Banks, conglomerates and money managers that featured prominently included Toronto-Dominion Bank, Bank of Nova Scotia, Manulife, Industrial Alliance, Gluskin Sheff, Brookfield Asset Management, Investors Group, Power Corp. and Power Financial. The retailers and consumer product plays on this list were Shoppers Drug Mart, Canadian Tire, Gildan and North-West Co., along with cable company Shaw Communications and Quebecor.
Tech stocks with attractive valuations included Research in Motion, CGI, MDA, Neo Materials and Evertz Technologies.