The Globe and Mail attempts to identify value stocks that are not
carrying high debt levels and are
less sensitive to interest rates
hikes in its Friday edition. The Globe's guest columnist Julie Michaels writes that as 2016 comes to an end, investors turn their focus to their
investment strategies for next
year. The Federal Reserve hiked
the key rate by a quarter percentage
point in December, with
many anticipating the trend to
continue next year. While the
Bank of Canada has not followed
suit, that might very well
change in 2017. With that in
mind, Ms. Michaels wanted to identify
value buys that also have low sensitivity to interest-rate hikes. To achieve
that, she focused on stocks that carry
low levels of debt and generate
sufficient earnings to pay their
interest. She ranked stocks on the best combination of three-month analyst revisions, price-to-trailing earnings, price-to-forward earnings, price to book and price-to-trailing cash flow. Companies had to have a market cap greater than $330-million. Stocks carrying lower levels of debt are Industrial Alliance Insurance and Financial Services, Sun Life Financial, Laurentian Bank of Canada, WPT Industrial REIT and Allied Properties REIT.
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