The Canadian stocks on our list have low volatility and have seen stock price gains of at least 15% over the past year
SmallCapPower | April 26, 2021: Beta is a statistical value that measures the rate of change of a stock versus the price change of the overall market. It is commonly used to determine the volatility of a stock. When a stock’s beta is 1, it means the stock price moves with the market. When a stock’s beta is less than 1 but above zero it is less volatile than the overall market. Today we have identified four Canadian stocks with low volatility (a beta less than 1) that have seen stock-price gains of 15% or more during the past year.
*Share prices and other metrics as of April 23, 2021
Pan American Silver Corp. (TSX:PAAS) – $42.15
Silver Mining
Pan American Silver is the second-largest global primary silver producer. The Company owns and operates mines in Mexico, Peru, Canada, Argentina and Bolivia. PAAS’s principal products are silver and gold, although the Company also produces and sells zinc, lead, and copper. Prior to 2020, Pan American’s production has increased almost every year since 1995. In January, management provided 2021 production guidance of between 22.5 million and 24.0 million oz/Ag and between 605K and 655K oz/Au, a 35% increase over the prior year. In addition, Pan American Silver sits on proven and probable mineral reserves of ~550 million oz/Ag and ~5.2 million oz/Au, respectively.
- Market Cap: $8,862.5M
- YTD-Return: -4.0%
- 1-Year Share Price Return: +39.2%
- 30-Day Average Trading Volume: 425,230
- 1-Year Beta: 0.11
Intact Financial Corporation (TSX:IFC) – $163.51
Insurance
Intact Financial, through its subsidiaries Intact Insurance, belairdirect, and OneBeacon, provides property and causality insurance products to people and business in Canada and the United States. Intact has seen consistent financial growth in the last several years with a controlling market share in the property and casualty insurance space. In 2020, its revenue increased by 10%, while EPS increased 43% year over year. The Company’s stock price is up 23.3% over the past year and has provide an average return of 10% over the past 15 years.
- Market Cap: $23,384.9M
- YTD-Return: +8.5%
- 1-Year Share Price Return: +23.3%
- 30-Day Average Trading Volume: 214,890
- 1-Year Beta: 0.82
Cogeco Communications Inc. (TSX:CCA) – $118.29
Cable and Satellite Service
Cogeco Communications is a communication corporation that is considered within North America as the 8th largest cable operator. Cogeco Communications operates in three main segments, which include: Canadian broadband services, American broadband services and Business information and communication technology services. Its Q1/20 financial results saw a 4.5% increase in revenue to $646 million and an EBITDA increase of 10.5% to $321 million. Moreover, Cogeco Communications pays a quarterly dividend of $0.64, representing an annual yield of 2.1%.
- Market Cap: $5,610.5M
- YTD-Return: +20.9%
- 1-Year Share Price Return: +17.1%
- 30-Day Average Trading Volume: 2,440,000
- 1-Year Beta: 0.23
Dollarama Inc. (TSX:DOL) – $57.75
Dollar Stores
Dollarama is a Canadian value retailer, offering a broad assortment of consumable products, general merchandise and seasonal items through both brick-and-mortar stores and online. The Company has ~1,250 locations across Canada, providing customers with compelling value in convenient locations, such as strip malls and other high-traffic areas. The Company plans to have 1,700 stores open within 5-6 years. Dollarama’s merchandise is sold at select fixed price points up to $4.00. In 2020, Dollarama announced the acquisition of Dollar City, a chain of dollar stores operating in Latin American (Colombia and Peru), with plans to have 1,000 stores operating by 2027.
- Market Cap: $17,917.9M
- YTD-Return: +11.3%
- 1-Year Share Price Return: +35.7%
- 30-Day Average Trading Volume: 812,270
- 1-Year Beta: 0.98
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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