What are we looking for?<\/p>\n
Top Canadian-listed stocks using Trading Central\u2019s quantamental rating methodology.<\/p>\n
Canadian stocks surged to fresh all-time highs Wednesday, with the S&P\/TSX Composite Index rallying on broad-based strength across technology, basic materials, health care and financial-sector names, a clear signal of continued investor confidence. The rally underscores how resilient Canada\u2019s economy has remained, even as trade tensions linger with the United States. <\/p>\n
Against that backdrop, growth watchers expect modest further upside, with many forecasts now suggesting that real GDP will tick up slightly in the next report. <\/p>\n
Meanwhile, with inflation easing and the economy holding steady, markets are putting the odds that the Bank of Canada will keep interest rates unchanged in December at 80 per cent, a view that\u2019s helping support continued interest in stocks over bonds. <\/p>\n
The screen<\/p>\n
We used Trading Central Strategy Builder to identify Canadian-listed stocks that meet a balanced mix of value, quality and fundamental strength. We focused on stocks with a TC quantamental rating of 60 or higher to filter out companies showing weaker underlying factors. The TC quantamental rating evaluates a company using valuation, growth, quality, price momentum and income as its core inputs. Factor investing is a rules-based approach that builds portfolios around specific characteristics that have historically been shown to drive returns or reduce risk.<\/p>\n
Additionally, we required a minimum market capitalization of $2-billion to focus on larger, more established companies and screened for price-to-earnings ratios below 20 to highlight stocks trading at valuations cheaper than the broader S&P\/TSX Composite. <\/p>\n
Athanassakos: Three ugly truths that are keeping me up at night these days<\/a><\/p>\n For reference, we included dividend yield, year-to-date performance and one-year price performance.<\/p>\n More about Trading Central<\/p>\n Trading Central is a global leader in financial market research and investment analytics for retail online brokers and institutions. Its product suite provides actionable trading ideas based on technical and fundamental research covering stocks, exchange-traded funds, indexes, forex, options and commodities. Strategy Builder, our stock screener, is available through leading retail brokers in Canada and worldwide.<\/p>\n What we found<\/p>\n Topping our list is Toronto-Dominion Bank TD-T<\/a>, one of Canada\u2019s largest and most diversified financial institutions. As the largest company in our screen, with a $200-billion market cap and a strong quantamental rating of 66, TD posts a compelling P\/E ratio of 10.03, a 3.6-per-cent dividend yield and a 53.1-per-cent year-to-date gain, underscoring strengthening sentiment toward Canadian financials. <\/p>\n Next on the list is Centerra Gold CG-T<\/a>, a Canadian-based gold producer with operations in Turkey and North America and a growing development pipeline. Centerra carries the highest quantamental rating on the screen at 76, supported by an attractive P\/E ratio of 7.99 and impressive performance, up 113.8 per cent year-to-date and 116.1 per cent over the past year. <\/p>\n Also notable is DPM Metals DPM-T<\/a>, a midtier precious metals producer known for its high-quality mining operations and strong execution. DPM has a quantamental rating of 64 and delivers the best overall price performance, with a 183.6-per-cent year-to-date gain and 191.2-per-cent return over the past year, underscoring the continued leadership of the materials sector.<\/p>\n