BMO chief investment strategist Brian Belski still sees value in domestic equity markets and provides examples,
“With the recent rally and valuation surpassing long-term historical averages, many investors have voiced concerns that there is no longer value in Canadian markets. We strongly disagree. In fact, our work shows that despite revitalized outperformance, there remains significant breadth of absolute and relative value in Canada. we find that almost all sectors are showing relative value versus the US. Only Canadian Consumer Staples look expensive. Additionally, according to our models, the Communication Services, Energy, Financials, and Real Estate sectors remain at, or below, historical valuation levels. As such, we believe there remains significant value opportunities in Canadian equities and expect further valuation expansion as earnings momentum continues to rebound and ultimately converge with the US”
His list of stocks offering both value and positive earnings momentum are: Advantage Energy Ltd, ATCO Ltd, Boardwalk REIT, Brookfield Corp, B2Gold Corp., Choice Properties REIT, Dream Industrial REIT, Eldorado Gold Corp, Equinox Gold Corp., Fairfax Financial Holdings, Finning International Inc., Fortuna Mining Corp. Galiano Gold, Inc. Granite Real Estate Investment Trust, goeasy Ltd. Headwater Exploration, K92 Mining Inc., Linamar Corp, Mattr Corp, Magna International Inc., MARTINREA International Inc., Mullen Group Ltd., New Gold Inc., North American Construction Group Ltd., NuVista Energy Ltd., OceanaGold Corp, Orla Mining Ltd., Parkland Corp, Paramount Resources Ltd., Stingray Group, Rogers Communications Inc., Surge Energy Inc, Taseko Mines Ltd, Trisura Group Ltd., Tamarack Valley Energy Ltd., Torex Gold Resources Inc. and Wesdome Gold Mines ltd.