The Globe and Mail attempts to identify beaten-up stocks that analysts
believe will grow profits this year in its Wednesday edition. The Globe's Luke Kawa writes in the Number Cruncher column that with the S&P500 within 1.4 per
cent of its record highs (and the
S&P/TSX composite further
away, thanks to the oil rout), investors might be finding
it difficult to find value in equity
markets.
The share prices of Mr. Kawa's recommended stock picks are all within
5 per cent of their 52-week
lows.
A stock's decline in price does
not necessarily make it less
expensive. Canadian energy producers,
which have seen earnings
estimates collapse due to tumbling
oil prices, are a good example
of this point.
Mr. Kawa says analysts expect his picks
to produce positive year-over-year
growth in earnings per share
in 2015.
Since earnings growth
will be hard to come by for the
benchmark American index,
firms that are able to boost
profits this year stand a solid
chance of being rewarded by the
market if they are able to make
good on projected growth.
Mr. Kawa's Canadian picks are Home Capital Group, Bank of Montreal, Bank of Nova Scotia, Laurentian Bank of Canada, Capital Power and Enerflex.
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