The Globe and Mail attempts to identify stocks with earnings momentum in its Tuesday, July 8, edition. The Globe's Tim Shufelt writes in the Number Cruncher column that he looked for Canadian
companies that are entering
the latest reporting season
poised to build on earnings
strength.
Mr. Shufelt limited his search to Canadian-listed companies with market
capitalizations of at least
$200-million. He sorted the companies by
their growth in basic earnings
per share over the past year,
which he says had to be positive.
He compared that measure to
the company's one-year change
in share price, which also had to
be greater than zero. Share
price growth, however, had to be less than
growth in EPS over that period,
one possible indication that
investors had not fully valued
earnings growth.
Eligible companies also had to
have beaten the Street last quarter
by posting earnings that
exceeded consensus estimates. Companies posting
negative average annual growth
in profit margin over the prior
five years were excluded.
Companies with growing earnings per share are Veresen, OceanaGold, Sprott, Celestica, Canaccord Genuity Group and Canadian Natural Resources.
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