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Most oil royalty trusts have converted to regular corporations, but many are still worth considering as investments

The market followed up Wednesday’s big-volume turnaround with further gains yesterday—at day’s end, the Dow rose 216 points and the Nasdaq gained 40 points. The push higher by the major indexes took them above resistance levels, and gives us a clear Cabot Tides buy signal. As we mentioned on Wednesday, the market still faces many headwinds, the most important of which is that the longer-term trend remains down for the indexes and many stocks. But there’s no question the evidence has improved during the past three weeks, and with our Tides now positive, we’ll begin to put money to work in a couple of well-situated stocks with big growth expectations. The first is Sabre (SABR), which operates the most popular distribution network for air and hotel bookings in the world. Growth has been steady and should accelerate in 2016, and after a sharp correction, the stock has found huge-volume support after its recent earnings report and should do well going forward....

NEWELL RUBBERMAID INC. $38 (New York symbol NWL; Aggressive Growth and Income Portfolios, Consumer sector; Shares outstanding: 267.1 million; Market cap: $10.1 billion; Price-to-sales ratio: 1.7; Dividend yield: 2.0%; TSINetwork Rating: Average; www.newellrubbermaid.com) makes plastic storage bins, tools, pens and many other household goods. Its main brands include Sharpie markers, Parker and Paper Mate pens, Calphalon cookware, Irwin tools and Graco car seats and strollers. Newell is up 26.7% since we named it our Stock of the Year for 2014 at $30. That’s mainly because of its successful multi-year cost-cutting plan, which included closing plants and merging distribution centres. Since it began the plan in October 2011, these moves have reduced its annual expenses by $360 million. The company is also selling less-important businesses and using the proceeds to buy smaller firms with more-profitable products, such as baby strollers and reusable water bottles....

UNITED TECHNOLOGIES CORP. $94 (New York symbol UTX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 836.4 million; Market cap: $78.6 billion; Price-to-sales ratio: 1.3; Dividend yield: 2.7%; TSINetwork Rating: Above Average; www.utc.com) jumped $5 on news that rival Honeywell International (New York symbol HON) seeks to merge the two firms. Anti-trust regulators are unlikely to approve such a merger: the combined company would dominate several markets, including aerospace products (such as jet engines and landing gear) and building equipment (elevators, thermostats). Meanwhile, United Technologies earned $5.6 billion in 2015. That’s down 5.5% from $5.9 billion in 2014. The company used the $9.1 billion it received from last year’s sale of its Sikorsky helicopter operations to buy back $10.0 billion of its shares. As a result, its per-share earnings fell just 2.5%, to $6.30 from $6.46. If you factor out exchange rates, per-share earnings gained 0.5% to $6.49....

TUPPERWARE BRANDS CORP. $49 (New York symbol TUP; Conservative Growth and Income Portfolios, Consumer sector; Shares outstanding: 49.7 million; Market cap: $2.4 billion; Price-to-sales ratio: 1.7; Dividend yield: 5.6%; TSINetwork Rating: Above Average; www.tupperwarebrands.com) makes plastic food and beverage containers, as well as cosmetics and fragrances. It sells these products through 3.1 million independent dealers, which keeps its distribution costs down. We made Tupperware our Stock of the Year in 2011 when it was trading at $47. The stock got as high as $97 in 2013, but has moved down since. That’s mainly because the company gets over 80% of its revenue from outside of North America, and the high U.S. dollar has hurt the contribution of its overseas operations. Tupperware’s sales were flat at $2.6 billion in 2011 and 2012, but rose to $2.7 billion in 2013. Due to unfavourable exchange rates, sales fell to $2.6 billion in 2014, and to $2.3 billion in 2015. Without exchange rates, sales rose 3.5% in 2015....

MCDONALD’S CORP. $117 (New York symbol MCD; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 918.2 million; Market cap: $107.4 billion; Price-to-sales ratio: 4.2; Dividend yield: 3.0%; TSINetwork Rating: Above Average; www.mcdonalds.com) plans to sell 4,000 of its company-owned outlets to franchisees. As a result, franchisees will operate 93% of the chain’s 35,000 restaurants by 2018, compared to 81% today. This will lower the company’s operating expenses and free it from maintaining and upgrading these outlets. In addition, McDonald’s plans to cut $500 million a year from its administrative costs by the end of 2017. To put that goal in perspective, the company earned $4.5 billion in 2015, down 4.8% from $4.8 billion in 2014. Earnings per share fell just 0.4%, to $4.80 from $4.82, on fewer shares outstanding. If you disregard unfavourable currency exchange rates, earnings gained 5%, while per share earnings rose 10%....

YUM! BRANDS INC. $71 (New York symbol YUM; Aggressive Growth Portfolio; Consumer sector; Shares outstanding: 408.7 million; Market cap: $29.0 billion; Price-to-sales ratio: 2.2; Dividend yield: 2.6%; TSINetwork Rating: Above Average; www.yum.com) plans to spin off its operations in China as a separate, publicly traded firm. The company will hand out shares in Yum China to its own investors, who won’t be liable for capital gains taxes until they sell them. The company aims to complete the spinoff by the end of 2016. Currently, as a unit, Yum China operates 7,176 fast-food outlets (as of December 26, 2015) under the KFC, Pizza Hut and Taco Bell banners. In 2015, this division supplied 53% of Yum’s overall sales....

NORDSTROM INC. $52 (New York symbol JWN; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 173.5 million; Market cap: $9.0 billion; Price-to-sales ratio: 0.6; Dividend yield: 2.8%; TSINetwork Rating: Average; www.nordstrom.com) owns and operates 323 stores in the U.S. and Canada that mainly sell upscale clothing and footwear. Due to investments in its online business and the opening of new stores in Canada, Nordstrom’s earnings in its 2016 fiscal year, which ended January 30, 2016, fell 15.3%, to $3.15 a share from $3.72 in 2015. Sales rose 6.9%, to $14.4 billion from $13.5 billion, while same-store sales gained 2.7%. Online sales jumped 20.2%, and accounted for 19.6% of its total sales. Nordstrom is still a buy.

RESTAURANT BRANDS INTERNATIONAL INC. $33(New York symbol QSR; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 467.6 million; Market cap: $15.4 billion; Price-to-sales ratio: 1.8; Dividend yield: 1.7%; TSINetwork Rating: Average; www.rbi.com) operates 4,413 Tim Hortons coffee and donut locations and 15,003 Burger King outlets in 100 countries. If you set aside restructuring costs and other unusual items, Restaurant Brands earned $561.1 million, or $1.18 a share, in 2015. That’s up 20.0% from $467.6 million, or $0.98, in 2014. Sales fell 3.5%, to $4.05 billion from $4.20 billion. If you exclude the impact of the U.S. dollar on Restaurant Brands’overseas operations, sales gained 9.2%....

ARCHER DANIELS MIDLAND CO. $34 (New York symbol ADM; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 593.9 million; Market cap: $20.2 billion; Priceto- sales ratio: 0.3; Dividend yield: 3.5%; TSINetwork Rating: Above Average; www.adm.com) processes corn, wheat, soybeans, canola, flax seed, peanuts and other crops into a variety of food ingredients, such as flour, oils and sweeteners. The company has agreed to pay an undisclosed sum for a controlling stake in Iowa-based Harvest Innovations. This private firm makes soy proteins and oils for gluten-free pastas and other foods. Harvest’s expertise will help Archer Daniels profit as increasingly health-conscious consumers eat products made with organic and non-genetically modified ingredients. Archer Daniels Midland is a buy.

GENUINE PARTS CO. $91 (New York symbol GPC; Conservative Growth and Income Portfolios, Manufacturing & Industry sector; Shares outstanding: 150.8 million; Market cap: $13.7 billion; Price-to-sales ratio: 0.9; Dividend yield: 2.9%; TSINetwork Rating: Average; www.genpt.com) gets 52% of its sales and 57% of its earnings by selling replacement auto parts: Genuine operates 1,100 outlets under the NAPA banner, and its distribution business serves 4,900 independent stores in North America, Australia and New Zealand. The company also sells industrial parts (30% of sales, 27% of earnings), office products (13%, 11%) and electrical equipment (5%, 5%). In 2015, Genuine’s overall sales fell 0.4%, to $15.28 billion from $15.34 billion in 2014. Leaving out currency exchange rates, sales rose 2.5%, due to acquisitions (up 1%) and higher growth at its existing businesses (up 1.5%)....

SNAP-ON INC. $146(New York symbol SNA; Conservative Growth and Income Portfolios, Manufacturing & Industry sector; Shares outstanding: 58.1 million; Market cap: $8.5 billion; Price-to-sales ratio: 2.3; Dividend yield: 1.7%; TSINetwork Rating: Average; www.snapon.com) makes tools for auto mechanics and sells them through a fleet of franchised vans that visit garages. It also makes specialized tools for industrial customers. In 2015, Snap-On’s revenue gained 2.3%, to $3.4 billion from $3.3 billion in 2014. Excluding exchange rates and acquisitions, sales gained 7.1%. Earnings per share rose 13.4%, to $8.10 from $7.14. The company continues to benefit as carmakers add new features to their vehicles such as automatic parking and braking systems. That has forced repair shops to invest in new tools and upgrade their diagnostic equipment. Most of these clients borrow the funds they need to buy new tools and equipment, which has increased earnings at Snap-On’s financing division....

BAXTER INTERNATIONAL INC. $39(New York symbol BAX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 547.0 million; Market cap: $21.3 billion; Price-to-sales ratio: 2.1; Dividend yield: 1.2%; TSINetwork Rating: Average; www.baxter.com) earned $755 million, or $1.38 a share, in 2015 before unusual items. That’s up 7.5% from $702 million, or $1.28, in 2014. Revenue fell 7.0%, to $10.0 billion from $10.7 billion. However, without the negative impact of currency exchange rates, revenue gained 3%. The company continues to spend about 6% of its revenue on research. That has let it launch several successful new products, including its Sigma Spectrum pump for injecting drugs and fluids into a hospital patient. New products like this should lift Baxter’s revenue in 2016 by 3% to 4%. In addition, cost cuts will help push up earnings to $1.50 a share. The stock trades at 26.0 times that estimate. That’s an acceptable multiple, considering Baxter’s strong reputation and its high research costs. The $0.46 dividend yields 1.2%....

BAXALTA INC. $39(New York symbol BXLT; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 679.3 million; Market cap: $26.5 billion; Price-to-sales ratio: 4.3; Dividend yield: 0.7%; TSINetwork Rating: Average; www.baxalta.com) plans to merge with Ireland-based Shire (Nasdaq symbol SHPG), which makes drugs for rare and life-threatening diseases. Taken together, the companies are developing new treatments that should boost their combined annual revenue from $14 billion in 2015 to $20 billion by 2020. Plus the new firm will save $500 million a year by eliminating overlapping operations. Also, the merged company will be based in Ireland, so its income tax rate will be 16% to 17%— compared to the 23% Baxalta currently pays. Under the proposal, Baxalta investors would receive $18.00 a share in cash and 0.1482 of a Shire American depositary receipt (ADR) for each share they hold, giving them 34% of the combined company. Based on current prices, Shire’s offer is worth $41.78 per Baxalta share....

C.R. BARD INC. $194(New York symbol BCR; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 73.7 million; Market cap: $14.3 billion; Price-to-sales ratio: 4.2; Dividend yield: 0.5%; TSINetwork Rating: Above Average; www.crbard.com) has acquired Liberator Medical Holdings for $181 million. This firm distributes a variety of medical products such as urological catheters and diabetic supplies, directly to consumers’homes. Under the deal, Bard plans to expand the availability of its own medical devices. That should add $70 million to its annual sales of $3.4 billion, and $0.05 to $0.10 a share to its annual earnings in 2017; Bard will probably earn $9.97 a share in 2016. The stock trades at a reasonable 19.5 times that forecast. C.R. Bard is a buy.

FAIR ISAAC CORP. $96(New York symbol FICO; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 31.4 million; Market cap: $3.0 billion; Price-to-sales ratio: 3.5; Dividend yield: 0.1%; TSINetwork Rating: Average; www.fico.com) is best known for its FICO Scores computer program, which helps lenders make better decisions about customer creditworthiness. It also makes software that helps credit card issuers control fraud and analyze cardholders’spending patterns. The company is now applying its banking expertise to other areas of cybersecurity. It recently won a patent for a system that monitors corporate networks for suspicious activity or online attacks. It received another patent for a similar program that helps power, gas and water utilities detect unusual consumption patterns. However, the stock trades at a high 29.4 times the $3.26 a share that Fair Isaac will probably earn in its 2016 fiscal year, which ends September 30, 2016....

IDEXX LABORATORIES INC. $72(Nasdaq symbol IDXX; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 89.6 million; Market cap: $6.5 billion; Priceto- sales ratio: 4.0; No dividends paid; TSINetwork Rating: Average; www.idexx.com) makes equipment that veterinarians use to detect diseases in pets. It also makes systems that detect contaminants in livestock and water. Idexx continues to see strong demand for its Catalyst One system, which analyzes an animal’s blood in 15 minutes. That makes veterinarians less reliant on outside labs, and cuts their costs. Idexx earned $2.11 a share in 2015, up 5.5% from $2.00 in 2014 (all per-share amounts adjusted for 2-for-1 split in June 2015). Sales rose 7.8%, to $1.6 billion from $1.5 billion....

PFIZER INC. $30(New York symbol PFE; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 6.2 billion; Market cap: $186.0 billion; Price-to-sales ratio: 3.8; Dividend yield: 4.0%; TSINetwork Rating: Above Average; www.pfizer.com) acquired rival drug maker Wyeth in October 2009. Wyeth has now agreed to pay the U.S. Medicaid system $784.6 million to settle a dispute over how it calculated rebates for its Protonix acid reflux drug between 2001 and 2006. Pfizer will have to restate its earnings for 2015 to reflect this charge. However, its earnings before unusual items of $2.20 a share remains unchanged....

MCCORMICK & CO. INC. $93(New York symbol MKC; Income Portfolio, Consumer sector; Shares outstanding: 115.4 million; Market cap: $10.7 billion; Price-to-sales ratio: 3.8; Dividend yield: 1.8%; TSINetwork Rating: Average; www.mccormick.com) makes spices, herbs, seasonings and flavours. The company earned $449.5 million in the fiscal year ended November 30, 2015, up 1.8% from $441.6 million in 2014. Due to fewer shares outstanding, per-share earnings rose 3.3%, to $3.48 from $3.37. Sales rose just 1.3%, to $4.3 billion from $4.2 billion. That’s a 6.4% gain when currency exchange rates are factored out. McCormick aims to save a total of $400 million over the next four years, mainly through job cuts and new, more efficient manufacturing equipment. However, the stock is expensive at 25.2 times the $3.69 a share that the company expects to earn in fiscal 2016....

DUN & BRADSTREET CORP. $94(New York symbol DNB; Conservative Growth Portfolio, Finance sector; Shares outstanding: 36.1 million; Market cap: $3.4 billion; Price-to-sales ratio: 2.1; Dividend yield: 2.1%; TSINetwork Rating: Average; www.dnb.com) is the world’s largest provider of credit reports on individual companies. Established in 1841, its database contains information on 240 million businesses in over 200 countries. Clients use these reports to make lending and purchasing decisions and to limit their credit losses. The company gets 60% of its revenue from credit reports. The remaining 40% comes from other information products, such as software businesses use to manage websites and customer data....

BUCKEYE PARTNERS L.P. $60(www.buckeye.com) operates 9,600 kilometres of pipelines in the northeastern and midwestern U.S. Its network pumps gasoline, jet fuel and other petroleum products. The partnership also owns oil and gas storage terminals. Buckeye continues to benefit from oil producers that opt to store their crude instead of selling it at today’s low prices....

CEDAR FAIR L.P. $57(www.cedarfair.com) has increased its quarterly distribution by 10.0%, to $0.825 a unit from $0.75. The new annual rate of $3.30 yields 5.8%. Buy.

AMEREN CORP. $47(www.ameren.com) provides power and natural gas to 3.3 million clients in Illinois and Missouri. The company’s revenue rose just 0.7% in 2015, to $6.10 billion from $6.05 billion in 2014. That’s mainly because warmer-than-usual weather hurt gas demand....

Energy Fuels Inc. is struggling along with other commodity producers but its cash flow and revenue stream are steady despite market uncertainty

Telus and its wireless network must compete against Shaw Communications and subsidiary Wind Mobile