The Globe and Mail attempts to identify stocks that climb more in an
advancing market than they fall
in a declining market in its Wednesday, Oct. 22, edition. The Globe's Michael Bowman writes in the Number Cruncher column that he only looked at companies
with a market capitalization greater than $1-billion. Mr. Bowman considered five-year bear and bull
sensitivities of a stock's performance
to the negative or positive
changes in the benchmark, in
this case the S&P/TSX composite
index. Return on equity (ROE) measures
a corporation's profitability
by revealing how much profit a
company generates with the
money shareholders have invested.
Companies had to have an
ROE greater than 5 per cent to be
included in Mr. Bowman's recommended list.
Stocks that show upside in a volatile market are Canadian National Railway, Brookfield Asset Management, Agrium, ARC Resources, Silver Wheaton, Vermilion Energy and Cameco. Over the past five years Canadian
National Railway gained 1.1
per cent when the index was up 1
per cent, and only fell 0.8 per
cent when the index was down 1
per cent.
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