North American indices have been witnessing huge selloffs during the past one month after recording strong gains during 2013, due to concerns of slowing Chinese economy, European deflation, currency troubles in emerging markets and reduced Federal Reserve bond-buying. The VIX index, a measure of stock market volatility, jumped 14.6% to its highest levels of 21.44, not seen since December 2012.
Ubika Research has shortlisted twelve low beta stocks across sectors which provide a safe investment during the declining market, reflected in their consistent history of earnings growth, attractive dividends payments and below market price/earnings ratios. The beta of these stocks is below 1 according to Bloomberg calculations. Moreover, the shortlisted stocks have recorded strong and consistent earnings growth during the past two years and are estimated to record strong earnings growth during 2014. Moreover, a majority of the stocks are currently trading at relatively low forward price-to-earnings (PE) multiples compared to the index and provide an attractive dividend yields. During the past three months, most of these stocks have accumulated gains with average daily traded volume in excess of 100,000 shares.
Index Performance
| Index |
Last Index Value |
Value Change (5-Day) |
Value Change |
Index Forward PE |
|
S&P 500 Index |
1,741.89 |
-2.2% |
-4.9% |
14.8 |
|
NASDAQ Composite Index |
3,996.96 |
-2.1% |
-3.3% |
19.4 |
|
Russell 2000 Index |
1,094.58 |
-2.9% |
-5.3% |
22.3 |
|
S&P/TSX TSXV Composite Index |
940.77 |
-1.2% |
-0.4% |
29.4 |
|
S&P/TSX Composite Index |
13,486.20 |
-0.7% |
-0.5% |
14.8 |
Stocks List
| Company Name |
Exchange |
Ticker |
Sector |
Market Cap |
Last Price |
Average Volume |
Price Change |
EPS Growth |
EPS Growth |
EPS Growth |
1Yr- Forward PE |
Beta |
TTM Dividend Yield |
|
Granite Real Estate Investment Trust |
TSX |
GRT-U |
Financial |
1.8 |
38.01 |
127,705 |
3.3% |
21.9% |
173.3% |
162.6% |
9.5 |
0.8 |
5.6% |
|
UIL Holdings Corp |
NYSE |
UIL |
Utilities |
2.2 |
38.52 |
234,773 |
-1.6% |
4.1% |
75.6% |
9.7% |
17.4 |
0.8 |
4.5% |
|
Empire District Electric Co |
NYSE |
EDE |
Utilities |
1.0 |
22.63 |
149,357 |
-0.6% |
0.8% |
8.5% |
4.0% |
16.5 |
0.8 |
4.4% |
|
Jean Coutu Group PJC Inc |
TSX |
PJC/A |
Retail |
3.6 |
19.16 |
322,902 |
6.1% |
32.1% |
4.0% |
12.8% |
17.5 |
0.4 |
4.4% |
|
ShawCor Ltd |
TSX |
SCL |
Energy |
2.4 |
39.86 |
252,238 |
-8.8% |
220.3% |
134.6% |
57.0% |
10.9 |
0.9 |
3.7% |
|
NorthWestern Corp |
NYSE |
NWE |
Utilities |
1.7 |
44.80 |
172,475 |
-2.8% |
4.7% |
35.5% |
8.4% |
17.4 |
0.7 |
3.4% |
|
Toromont Industries Ltd |
TSX |
TIH |
Industrial |
1.9 |
25.27 |
184,221 |
9.7% |
18.0% |
21.8% |
6.9% |
15.2 |
0.8 |
2.1% |
|
Canadian Western Bank |
TSX |
CWB |
Financial |
2.9 |
35.96 |
350,533 |
7.2% |
8.2% |
3.5% |
12.7% |
13.4 |
0.9 |
2.0% |
|
Enerflex Ltd |
TSX |
EFX |
Energy |
1.2 |
15.13 |
116,260 |
4.5% |
45.2% |
2.2% |
157.1% |
16.8 |
0.9 |
1.9% |
|
Westjet Airlines Ltd |
TSX |
WJA |
Airlines |
3.1 |
24.85 |
426,231 |
-9.0% |
68.9% |
23.8% |
14.4% |
12.2 |
0.4 |
1.6% |
|
Home Capital Group Inc |
TSX |
HCG |
Financial |
2.6 |
76.12 |
138,159 |
-7.6% |
16.8% |
15.1% |
14.2% |
10.4 |
0.7 |
1.4% |
|
West Fraser Timber Co Ltd |
TSX |
WFT |
Basic Materials |
4.7 |
54.38 |
352,722 |
11.0% |
220.6% |
578.9% |
134.7% |
14.4 |
0.7 |
0.5% |
Source: Bloomberg
TTM: Trailing Twelve Months
Company Description:
Granite Real Estate Investment Trust (TSX: GRT-U)
Granite Real Estate Investment Trust is a global real estate operating Trust. The Trust is engaged principally in the acquisition, development, construction, leasing, management and ownership of a predominantly industrial rental portfolio of properties in North America and Europe leased primarily to Magna and its automotive operating units.
UIL Holdings Corp (NYSE: UIL)
UIL Holdings Corporation provides for the transmission and delivery of electricity and other energy related services. The company’s subsidiaries are natural gas distribution companies.
Empire District Electric Co (NYSE: EDE)
The Empire District Electric Company generates purchases, transmits, distributes, and sells electricity. The company supplies electricity to parts of Missouri, Kansas, Oklahoma, and Arkansas. Empire also provides water service to several towns in Missouri.
Jean Coutu Group PJC Inc (TSX: PJC/A)
The Jean Coutu Group (PJC) Inc. distributes and retails pharmaceutical and para-pharmaceutical products in North America. The company operates PJC clinics and drugstores, primarily in the New England states in the United States.
ShawCor Ltd (TSX: SCL)
ShawCor Ltd. is an energy services company focusing on technology-based products and services. The company serves exploration and production, pipeline, petrochemical, and industrial markets around the world. ShawCor operates through its partial interest in Bredero-Shaw, and through its OMSCO, Guardian, Shaw Pipeline Services, Canusa-CPA, DSG-Canusa, and ShawFlex business units.
NorthWestern Corp (NYSE: NWE)
NorthWestern Corporation, doing business as North-Western Energy, provides electricity and natural gas in the Upper Midwest and Northwest serving customers in Montana, South Dakota, and Nebraska.
Toromont Industries Ltd (TSX: TIH)
Toromont Industries Ltd sells, rents, and services Caterpillar construction equipment and power systems in the provinces of Ontario, Manitoba, Newfoundland, Labrador and Nunavut, Canada. The company also manufactures and distribute refrigeration and process systems throughout North America.
Canadian Western Bank (TSX: CWB)
Canadian Western Bank is a Schedule I chartered bank which operates in western Canada. The Bank provides commercial loans, energy loans, construction and real estate project financing, and industrial equipment financing. Canadian Western’s retail services include a variety of mortgages, consumer loans, and deposit products.
Enerflex Ltd (TSX: EFX)
Enerflex Ltd. provides oilfield services for natural gas and petroleum producers. The company markets its services for natural gas compression, oil and gas processing, refrigeration systems, and power generation equipment to customers worldwide.
Westjet Airlines Ltd (TSX: WJA)
WestJet Airlines Ltd. is a low-fare airline that provides scheduled passenger jet service across Canada and to United States destinations. The company also provides charter service for Transat A.T. to destinations in the United States, Mexico, and the Caribbean.
Home Capital Group Inc (TSX: HCG)
Home Capital Group Inc. is a holding company operating through its principal subsidiary, Home Trust Company. Home Trust is a federally regulated trust company offering deposit, mortgage lending, and credit card issuing services. Licensed to conduct business across Canada, Home Trust has offices in Ontario, Alberta, and British Columbia.
West Fraser Timber Co Ltd (TSX: WFT)
West Fraser Timber Co. Ltd. produces dimension lumber and related wood products, fiberboard, pulp, linerboard, kraft paper, and newsprint. The company has operations in British Columbia, Alberta and in the southern United States.
