The Globe and Mail attempts to identify Canadian momentum stocks that are on
the rise in its Thursday, Jan. 5, edition. The Globe's Ian Tam writes in the Number Cruncher column that in 2016, one of the best-performing
Morningstar CPMS model
portfolios was the Canadian
Momentum strategy. Most of the returns in
2016 were driven by rallies in the
materials and energy sectors,
which often produce momentum-driven equity markets. The CPMS Canadian Momentum
model ranks stocks on positive three-month estimate revisions
(today's consensus estimate for
earnings per share [EPS], versus
what it was three months ago), positive earnings surprise (latest reported
EPS versus the consensus estimate
just prior to the company
report), upbeat quarterly earnings momentum
(latest four quarters of reported
EPS versus the same figure one
quarter ago) and positive three-month and six-month price
changes.
To qualify, stocks needed to have an
average monthly trading volume
greater than $1-million. Mr. Tam's recommended picks are Condor Petroleum, Athabasca Oil, Colabor Group and West Fraser Timber.
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