Latest Stock Advice
Sun Life Financial Inc. and Manulife Financial Corp. each offers a combination of solid earnings growth, ongoing share repurchases, and impressive dividend yields.
Groupe Dynamite Inc. is a high‑quality specialty retailer with gains ahead.
Teck Resources Ltd. is a solid bet on higher copper prices with its big merger winning approvals
Toromont Industries Ltd. should see continued earnings growth thanks to its leading market share and Canada’s plan to increase spending on infrastructure projects.
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A Member of Pat McKeough’s Inner Circle asked for his advice on an ETF that focuses on Canadian finance firm common shares, preferred shares and corporate bonds.
Pat likes the high distribution rate but warns that rate may be unsustainable....
Pat likes the high distribution rate but warns that rate may be unsustainable....
CANADIAN TIRE CORP., $129.83, Toronto symbol CTC.A, saw weaker sales in the latest quarter, as warmer-than-usual weather hurt demand for winter goods such as snow shovels and tires. Lower gasoline prices also dampened revenue at its gas stations. The company’s overall sales fell 7.5%, to $3.4 billion from $3.7 billion. Cost controls and lower marketing costs boosted company earnings, despite the revenue fall. In the three months ended January 2, 2016, the company earned $225.2 million, up 8.1% from $208.3 million a year earlier. Earnings per share gained 13.6%, to $3.01 from $2.65, on fewer shares outstanding, easily beating the consensus estimate of $2.55....
NORTH WEST CO. $30.64 (Toronto symbol NWC; TSINetwork Rating: Extra Risk) (604-231-1100; www.northwest.ca; Shares outstanding: 48.5 million; Market cap: $1.5 billion; Dividend yield: 4.1%) sells food and everyday products and services through 225 stores, mainly in northern communities across Canada and Alaska. It also operates stores in remote regions of Hawaii, the South Pacific and the Caribbean. North West is new to Stock Pickers Digest. Ottawa-based Giant Tiger signed a 30-year deal in 2002 that granted North West the exclusive right to open and operate Giant Tiger stores in Western Canada. Giant Tiger operates 200 general merchandise discount stores. In Canada’s north, North West operates the majority of its stores (122) under the Northern banner, followed by Giant Tiger (33), Quickstop (12) and NorthMart (6)....
FAIR ISAAC CORP. $94.35 (New York symbol FICO; TSINetwork Rating: Average) (415-472- 2211; www.fairisaac.com; Shares outstanding: 31.4 million; Market cap: $3.0 billion; Dividend yield: 0.1%) jumped to a new all-time high of $98.96 in early February 2016 after reporting much higher earnings in the latest quarter. In its fiscal 2016 first quarter, which ended December 31, 2015, revenue for the credit-score provider rose 5.6%, to $200.1 million from $189.6 million a year earlier. Sales at its applications division (60% of total sales) rose 4.0% on higher demand for marketing and fraud-detection software. Sales of credit-scoring programs (28%) jumped 27%; analytics software (12%) fell 21%....
TOROMONT INDUSTRIES LTD. $31.01 (Toronto symbol TIH; TSINetwork Rating: Extra Risk) (416-667- 5511; www.toromont.com; Shares outstanding: 77.9 million; Market cap: $2.3 billion; Dividend yield: 2.3%) distributes a broad range of industrial equipment, including machinery made by Caterpillar Inc. It also makes refrigeration systems through its CIMCO division. In the three months ended December 31, 2015, Toromont’s sales rose 1.4%, to $472.0 million from $465.7 million a year earlier. Earnings per share fell 3.4%, to $0.57 from $0.59. Toromont saw weaker demand from its mining customers. That offset gains in agriculture and construction The company had to cut its prices to compete, and that hurt its profit margins and earnings....