Value stocks dominate Scotiabank’s list of top Canadian stock picks as 2021 begins,
“Value has Rarely Scored as High [against] Other Factors. Value has been broadening its strength, with rising Momentum/Growth rankings. Momentum Shifts Away from Quality. Momentum lists dumped Quality names (Tech and defensives) in Q4/20, highlighting sector and theme rotation. [Quantitiative recommendations] Canada Top 30 Additions/Deletions: CPG, WCP, PXT, MX, MG, TCL/A, HBM, and ELD are in. REAL, WDO, STN, AGI, BTO, MRU, GRT-U, and CJT are out. Miners maintained six names, though Gold (four names) fell to its lowest level since early 2020. The model went all in auto parts (MG, LNR, MRE) and reached its highest Energy content (five names) since 2018.’
Other stocks on the recommended list not names above are Seven Generations Energy, Tourmaline Oil, Dundee Precious Metals, First Quantum Minerals, Yamana Gold, Equinox Gold, Canfor, Interfor, West Fraser Timber, Intertape Polymer, TFI, Ritchie Brothers Auctioneers, Richelieu Hardware, Sleep Country Canada, BRP, North West Co., Celestica, Northland Power , Artis REIT and H&R REIT.