Buy just one of these extra-risk picks

Article Excerpt

STANTEC INC. $31.13 (Toronto symbol STN; TSINetwork Rating: Extra Risk) (780-917-7288;; Shares o/s: 113.9 million; Market cap: $3.5 billion; Divd. yield: 1.8%) sells consulting, project management, design and technology services. Most of its clients operate in the oil and gas, transportation and construction industries. For the three months ended September 30, 2018, revenue rose 5.7%, to $901.8 million from $853.1 million a year earlier. Earnings, excluding one-time items, fell 17.0%, to $50.7 million, or $0.44 a share, from $61.1 million, or $0.54. The lower earnings stem from problems with a number of contracts that resulted in unexpected higher costs. The company recently sold its construction division, MWH Constructors, for an undisclosed sum. That business, which is focused on the water infrastructure industry, joined Stantec through the company’s $795 million purchase of MWH Global in 2016. With the sale of MWH Constructors, as well as its 2017 sale of Innovyze, Stantec will now focus exclusively on its core consulting services business worldwide. Meanwhile, the company continues to grow…

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