In an earlier article I wrote about why Canadian stocks are projected to offer the best returns this year based on a research report by CIBC. In this post, lets take a quick look at some of the top Canadian stocks as identified by MoneySense magazine in the beginning of this year.
1) Top Value Stocks
MoneySense evaluated all Canadian stocks based on many factors such as price-to-book-value ratio, price-to-tangible-book-value ratio, price-to-earnings ratio, leverage ratios, dividend payments, etc. and awarded a grade of A to the best firms. This methodology yielded the following 21 ranked value stocks:
2) Top Growth Stocks
Using factors like earnings-per-share, sales-per-share growth over the past three years, etc. the following top ranked growth stocks were identified:
3) All-Star Stocks
For this category, only 12 stocks earned at least one A and one B on MoneySense’s value and growth tests. In 2010, these all-stars beat the market with a huge gain of 19.7%. In the last five years, this All-Stars list has outperformed every Canadian equity mutual fund.
The All-Star stocks for 2011 are:
- ALIMENTATION COUCHE-TARD (ATD-B.TO)
- ATCO (ACO-X.TO)
- AUTOCANADA (ACQ.TO)
- DOMTAR (UFS)
- DOREL INDUSTRIES (DII-A.TO)
- FAIRFAX FINANCIAL (FFH.TO)
- GOODFELLOW (GDL.TO)
- GROUPE AEROPLAN (AER.TO)
- HIGH LINER FOODS (HLF.TO)
- LEON’S FURNITURE (LNF.TO)
- MAGELLAN AEROSPACE (MAL.TO)
- TVA GROUP (TVA-B.TO)
In addition to Domtar, some of the above-mentioned stocks trading on the US exchanges include BCE Inc (BCE), Telus (TU), Sun Life Financial (SLF) and Agrium (AGU).
Disclosure: No Positions
