The Globe and Mail attempts to identify momentum names outside of the
energy and materials sectors in its Thursday edition. The Globe's Ian Tam writes in the Number Cruncher column that of the 50 top performers in the
S&P/TSX index over
the trailing 30 days, 23 are in the
energy sector, and eight are in
the materials sector. Short-term
momentum investors are watching closely, but may look to
diversify away from these two
sectors as views differ on where
commodity prices are heading. Looking outside of commodities
and energy, Mr. Tam screened for the best combination
of the following metrics:
three-month earnings-per-share
estimate revision (today's
consensus estimate versus what
it was three months ago); quarterly earnings momentum
(latest four quarters reported EPS
versus the same figure lagged by
one quarter); current price compared with the
trailing 12-month high; nine-month and 12-month price
changes; and latest quarterly earnings surprise
(latest reported EPS figure
versus the consensus estimate
prior to the company reporting).
Mr. Tam's picks needed to have a
market cap of $700-million or above. Mr. Tam recommends EnerCare, Altus Group, Onex, TMX Group and Northland Power.
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