Ubika Research has shortlisted ten Canadian stocks across sectors which appear to be undervalued offering an attractive investment opportunity for 2014. These stocks are estimated to register strong earnings growth in 2014, based on consensus data compiled by Bloomberg. Moreover, these stocks are trading at relatively low forward PE, price to book and price to cash-flow multiples with low PEG ratio with attractive return on equity. We note that the shortlisted stocks have recorded gains during the past one month with daily average traded volume in excess of 100,000.
|
Company Name |
Exchange |
Ticker |
Sector |
Market Cap |
Last Price |
Average Volume |
Price Change (1-Month) |
EPS Growth |
Current PE Ratio |
1 Yr- Forward PE Ratio |
1 Yr- Forward P/B Ratio |
1 Yr- Forward P/CF Ratio |
Return on Equity |
|
Western Forest Products Inc |
TSX |
WEF |
Basic Materials |
919.2 |
2.35 |
4,179,736 |
-9.6% |
10.0% |
8.7 |
7.9 |
2.0 |
6.2 |
33.9% |
|
Home Capital Group Inc |
TSX |
HCG |
Financial |
3,092.2 |
44.50 |
366,426 |
2.4% |
14.2% |
12.1 |
10.7 |
2.2 |
10.5 |
23.9% |
|
Corus Entertainment Inc |
TSX |
CJR/B |
Communications |
2,070.7 |
24.38 |
272,768 |
-2.7% |
16.3% |
14.1 |
12.7 |
1.5 |
11.5 |
20.8% |
|
West Fraser Timber Co Ltd |
TSX |
WFT |
Basic Materials |
4,459.2 |
50.13 |
344,360 |
-7.6% |
23.0% |
12.3 |
10.7 |
1.9 |
6.8 |
20.3% |
|
TransGlobe Energy Corp |
TSX |
TGL |
Energy |
630.4 |
8.45 |
558,830 |
8.1% |
36.8% |
11.6 |
6.4 |
1.1 |
3.8 |
19.4% |
|
Linamar Corp |
TSX |
LNR |
Industrial |
3,277.1 |
50.59 |
188,533 |
11.5% |
13.2% |
15.3 |
13.4 |
2.4 |
6.9 |
19.1% |
|
WestJet Airlines Ltd |
TSX |
WJA |
Airlines |
3,057.6 |
23.75 |
662,945 |
-9.0% |
2.2% |
11.6 |
11.4 |
1.7 |
5.8 |
17.6% |
|
Bauer Performance Sports Ltd |
TSX |
BAU |
Consumer Goods |
443.5 |
14.12 |
255,509 |
1.0% |
2.9% |
15.6 |
12.5 |
1.7 |
14.4 |
16.9% |
|
McCoy Corp/Canada |
TSX |
MCB |
Energy |
158.6 |
5.78 |
151,853 |
2.5% |
34.4% |
15.6 |
11.9 |
1.6 |
8.2 |
15.5% |
|
Canadian Western Bank |
TSX |
CWB |
Financial |
2,876.3 |
36.00 |
357,832 |
-0.6% |
12.9% |
14.8 |
13.3 |
1.9 |
13.0 |
14.1% |
Source: Bloomberg
Company Description:
Western Forest Products Inc (TSX: WEF)
Western Forest Products Inc. (T.WEF) is an integrated forest products company and a coastal woodland operator located in British Columbia, Canada. The company’s activities include timber harvesting, reforestation, sawmilling logs into lumber and wood chips, value-added remanufacturing, and producing NBSK pulp. Western Forest’s products are sold in various countries worldwide.
Home Capital Group Inc (TSX: HCG)
Home Capital Group Inc. (T.HCG) 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.
Corus Entertainment Inc (TSX: CJR/B)
Corus Entertainment Inc. (T.CJR.B) is a Canadian-based media and entertainment company. The company’s core business includes radio, specialty and pay television, as well as children’s publishing and animation, which is sold internationally.
West Fraser Timber Co Ltd (TSX: WFT)
West Fraser Timber Co. Ltd. (T.WFT) 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.
TransGlobe Energy Corp (TSX: TGL)
TransGlobe Energy Corporation (T.TGL) is an oil and gas exploration, development, and production company. The company owns interests in production sharing agreements in Yemen, producing properties in Alberta, Canada, and interests in exploration properties in Yemen, Canada, and Egypt.
Linamar Corp (TSX: LNR)
Linamar Corporation manufactures precision machine components, assemblies, and castings primarily for the automotive industry. The company also sells to the defense and aerospace industries. Linamar manufactures engines, transmissions, drivelines, steering, suspension components, and brake components.
WestJet Airlines Ltd (TSX: WJA)
WestJet Airlines Ltd. (T.WJA) 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.
Bauer Performance Sports Ltd (TSX: BAU)
Bauer Performance Sports Ltd. designs, develops, manufactures, and sells performance sports equipment for ice hockey, roller hockey, and lacrosse, as well as related apparel and accessories.
McCoy Corp/Canada (TSX: MCB)
McCoy Corporation (T.MCB) provides services and equipment internationally to the oil & gas industry through direct sales and distributors. The company manufactures drilling equipment and replacement parts. McCoy also designs and manufactures custom heavy-duty trailers and offers a range of parts and services.
Canadian Western Bank (TSX: CWB)
Canadian Western Bank (T.CWB) 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.
