Four undervalued Canadian stocks

These companies are gathering steam as their markets turn around.

Vikram Barhat 12 April, 2017 | 5:00PM
Facebook Twitter LinkedIn

The sharp bull run in the Canadian market in 2016, when the S&P/TSX Composite Index racked up a 21.1% total return, raised the bar of expectation for many investors. But strategists and portfolio managers worry things may be different this year. In fact, the market appears to be cooling off so far in 2017 with the index returning just 2.4% over the first three months, compared to a 6.1% gain for the S&P 500 Index in the United States, as of March 31.

For that reason, market analysts have been asking investors to temper their enthusiasm. The issue is further compounded by what many consider to be lofty valuations. Investors who prefer local equities or are just looking to add more Canadian exposure to their portfolio may be struggling to find attractive picks in a domestic market that is expensive at current levels.

This means investors need to pay greater attention to the characteristics of individual stocks and be less focused on the macro environment. It's time to look for companies that can create value relative to their peers -- companies that have strong balance sheets and durable businesses that can weather challenging market conditions.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free
Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Air Canada Class B27.76 CAD-1.03Rating
Cameco Corp23.27 CAD-2.39Rating
Canfor Corp26.86 CAD1.02
West Fraser Timber Co.Ltd85.99 CAD2.20

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a Toronto-based financial writer specializing in investing, stock markets, personal finance and other areas of the financial services industry. He also writes for CNBC, BBC, The Globe and Mail, and Toronto Star.

© Copyright 2021 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies