Mr. Belski developed a stock screen to uncover contrarian buying opportunities with the biggest upside potential if domestic stocks begin to outperform. TSX stocks with market capitalizations above $600-million were filtered to find those with year-to-date price changes ranging between a gain of 10 per cent and a loss of 20 per cent, less than half of analyst earnings revisions were positive, forward price to earnings ratios were below 20 times, and less than 50 per cent of analyst ratings were buys.
The end result is a list of 18 companies representing what BMO calls “Canadian True Contrarian” stocks. These are, in alphabetical order: BCE Inc., Birchcliff Energy Ltd., Bank of Nova Scotia, Cogeco Communications Inc., Canadian Imperial Bank of Commerce, Canadian National Railway Company, Capital Power Corporation, CT REIT, Canadian Tire Corporation, Canadian Utilities Limited, Dream Office REIT, Empire Co. Ltd., Enghouse Systems Limited, Canada Goose Holdings Inc., H&R REIT, IGM Financial Inc., Labrador Iron Ore Royalty Corp, and Richelieu Hardware Ltd.