What are we looking for?
Top Canadian-listed stocks using Trading Central’s quantamental rating methodology.
The S&P/TSX Composite Index is relatively flat this year even with Thursday’s global selloff.
Our team employed our proprietary factor investing methodology to identify top Canadian stocks that have strong ratings in overall quantitative factors with an emphasis on Quality and Value.
The screen
We used Trading Central Strategy Builder to identify Canadian-listed stocks trading within 10 per cent of their 52-week price high and have above-average ratings against their industry peers using Trading Central’s Quantamental Factor investing methodology.
We targeted stocks with a TC Quantamental Rating between 60 and 100 to filter out those with weaker quantamental factors. This approach integrates quantitative and fundamental analysis to potentially enhance returns, improve portfolio diversification or mitigate risk. The TC Quantamental Rating evaluates companies based on a blend of valuation, growth, quality, price momentum and income factors. Given the current market volatility, we emphasized stocks with minimum Quality and Value factor ratings of 60, highlighting their strong fundamentals and attractive valuations.
Additionally, we set a minimum market capitalization threshold of $1-billion to target larger, established companies.
For reference, we included the price-to-earnings ratio, dividend yield, year-to-date and one-year price performance.
Data are of late morning Thursday.
More about Trading Central
Trading Central is a global leader in financial market research and investment analytics for retail online brokers and institutions. Its product suite provides actionable trading ideas based on technical and fundamental research covering stocks, exchange-traded funds, indexes, forex, options and commodities. Strategy Builder, our stock screener, is available through leading retail brokers in Canada and worldwide.
What we found
Topping our list is Sagicor Financial Co. Ltd. SFC-T, a leading financial services provider operating in 19 countries across the Caribbean, Latin America and North America. The stock boasts a TC Quantitative Rating of 77, with a Quality Factor Rating of 88 and a Value Factor Rating of 85, reflecting its strong fundamentals and attractive valuation. Year-to-date, Sagicor Financial has achieved a gain of 29.5 per cent, indicating positive price momentum. Additionally, the company offers a dividend yield of 4.81 per cent, supported by a price-to-earnings (P/E) ratio of 8.22, making it appealing to investors seeking both growth and income.
Kinross Gold Corp. K-T, a senior gold-mining company with operations in the Americas and West Africa, stands out this week for its impressive growth and momentum. The company delivered a remarkable 111.8-per-cent return over the past year, with a year-to-date gain of 28.8 per cent. It holds a strong overall TC Quantamental rating of 72 out of 100 and one of the highest TC Quality factor ratings on our list at 84 out of 100. The stock trades at a P/E of 16.68 while maintaining a solid TC Value factor rating of 66. As gold prices continue to trend higher, Kinross continues to outperform in the mining sector.
Trading Central Strategy Builder provides a back-testing capability to evaluate how well an investing strategy would have worked in the past. Using a five-year historical period with quarterly rebalancing, the screen described had a 23-per-cent annualized return compared with 13 per cent for the S&P/TSX Composite Index.
The investment ideas presented here are for information only. They do not constitute advice or a recommendation by Trading Central in respect of the investment in financial instruments. Investors should conduct further research before investing.
Gary Christie is head of North American research at Trading Central in Ottawa.