The Globe and Mail reports in its Monday edition that successful security selection is
crucial when investing in small caps. The Globe's Jennifer Dowty writes that she looked for stocks within the S&P/TSX small-cap index
that are expected to deliver
the highest returns over the next
year, with one caveat: They must
also have realized positive returns
during the first half of the year.
Ms. Dowty says this exclusion eliminates underperforming
stocks. The three stocks within
the consumer discretionary sector with the
highest expected returns over the
next 12 months are Intertain
Group, Yellow Pages
and Great Canadian Gaming.
Yellow Pages is a stock that
has performed well year-to-date
and analysts on the Street have
bullish expectations with the
one-year target prices ranging
from $24 to $30. Given declining
print revenue, management is
focused on growing its digital revenue.
While analysts have high
expectations for this company, Ms. Dowty cautions long-term investors,
as the firm's transition to
greater digital revenue may have
its challenges.
For investors seeking income,
EnerCare is forecast by analysts
to deliver a modest, single-digit
price return over the next
year.
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