The Canadian stocks we’ve identified have market-leading earnings growth momentum as well as low stock-price volatility
SmallCapPower | December 24, 2020: A company’s ability to grow its earnings has historically been a good indicator of superior stock-price performance. That being said, these types of stocks are usually best suited for investors willing to accept higher levels of volatility and risk. Today, however, we have discovered three Canadian stocks with recent earnings growth momentum that also have low stock-price volatility.
*Returns are based on closing stock prices as of December 23, 2020
Richards Packaging Income Fund (TSX:RPI.UN) – $71.60
Richards Packaging is a Canadian packaging distributor, the third largest in North America, which targets small- and medium-sized North American businesses. The Company has operated since 1912. Richards Packaging Income Fund reported third-quarter 2020 revenue that rose 24.5% year over year. Its payout ratio for the quarter, meanwhile, was 24%. RPI.UN has a current dividend yield of 1.9%.
- One-Year Return: 56%
Stella-Jones Inc. (TSX:SJ) – $47.11
Stella-Jones is a manufacturer of pressure-treated wood products, supplying North America’s electrical utilities and telecommunication companies with utility poles and railroad operators with railway ties and timbers. The Company also manufactures and distributes residential lumber and accessories to retailers for outdoor applications, as well as industrial products for construction and marine applications. Stella-Jones recently reported third-quarter 2020 sales that surged 18% year over year to $742 million, while its net income jumped 46% to $79 million. SJ has a current dividend yield of 1.3%.
- One-Year Return: 27%
CCL Industries Inc. (TSX:CCL.B) – $59.37
CCL Industries manufactures and sells labels, containers, consumer printable media products, technology driven label solutions, polymer bank note substrates, and specialty films. CCL operates through four main business units: CCL, Avery, Checkpoint, and Innovia. CCL is the world’s largest converter of pressure sensitive film materials for instructional, functional and security applications. Avery is the world’s largest supplier of labels, specialty converted media and software solutions for short-run digital printing applications. Checkpoint is a leading developer of RF and RFID based technology systems for loss prevention and inventory management applications. Innovia is a leading global producer of high-performance multi-layer films for label, packaging and security applications. CCL announced Q3 2020 net earnings that increased 20% year over year to $153.3 million. Its stock has a current dividend yield of 1.2%.
- One-Year Return: 8%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
To read our full disclosure, please click on the button below:
