The Globe and Mail attempts to identify Canadian companies showing
strong economic performance as
well as revenue growth, trading
at least 10 per cent below their
52-week high in its Tuesday, July 19, edition. The Globe's Jean-Didier LaPointe writes in the Number Cruncher column that he screened all Canadian stocks
covered by StockPointer (1,600)
by looking at the following
metrics: An upside potential between
the stock price and its 52-week
high of 10 per cent or greater;
an economic performance index,
or EPI (return on capital
divided by cost of capital) above
1. An EPI ratio of 1 or more indicates
a company's capacity to
create wealth for its shareholders
(a higher EPI displays a greater
rate of wealth creation);
a return on capital of 10 per
cent or greater;
a positive sales growth over the
past 12 months;
and an annualized dividend growth
rate of 5 per cent or higher over
one, two, three and four years.
Canadian companies showing strong economic performance are Alimentation Couche-Tard, Magna International, Constellation Software, Gildan Activewear, CI Financial, Stella-Jones, Stantec, Enghouse Systems and Exco Technologies.
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