Stelco and Capstone in, BRP and Lundin out, in Scotia’s list of top 30 stock picks
Scotiabank strategist Jean-Michel Gauthier updated the group’s list of top 30 Canadian equities chosen using a combination of 16 factors covering fundamental valuations, growth, momentum and credit quality. “Financials and Energy appears to be peaking in rankings at elevated levels. Meanwhile, Tech, Industrials, and Materials are forging a bottom, leaving overall Cyclical bias over Defensives relatively stable. Among defensives, Real Estate continues to rebound, but poor Growth rankings remains a negative in our view. Sector-wise, Financials, Energy ex-pipes, and Real Estate are the highest-ranked sectors… STLC and CS are in, replacing DOO and LUN. Financials have the largest presence, followed by E&Ps, Base Metals, and Lumber. Discretionary and Industrials complete the list. "
The final list of top 30 companies (ex-new additions Stelco Holdings Inc. and Capstone Mining Inc.) are Tourmaline Oil , MEG Energy, Crescent Point Energy, Enerplus, Parex Resources, Whitecap Resources, Centerra gold, Teck Resources, Dundee Precious Metals, Labrador Iron Ore Royalty, Interfor, Canfor, West Fraser Timber, Intertape Polymer Group, Russell Metals, Transcontinental, Richelieu Hardware, Magna, Linamar, North West Co., Home Capital Group, Equitable Group, CIBC, Cannacord Genuity Group, Power Corp., IA Financial Corp., Manulife Financial, and Celestica.