The number of stocks on the positive breakouts list (stocks with positive price momentum) is now up to 97 companies as the S&P/TSX composite index staged its eighth day of consecutive gains on Monday.
The list of positive breakouts remains concentrated in resource stocks with 30 per cent of the stocks with positive price momentum from the energy sector, and gold and silver stocks representing approximately 20 per cent. However, the list is broadening out to stocks levered to global economic growth, such as Canadian National Railway Co. (CNR-T), which is discussed below.
A brief outline is provided that may serve as a springboard for further fundamental research.
CN Rail is an industry leader, operating a rail network across the country and down to the Gulf coast of the United States.
On Jan. 26, the company reported better-than-expected fourth-quarter results after the market closed. Earnings per share came in at $1.18, above the consensus forecast of $1.11, and the stock price moved marginally higher, up just 0.6 per cent the following day.
Claude Mongeau, the company's chief executive officer, provided a cautious outlook stating, "Although the economic environment remains challenging, CN will continue to leverage its franchise strength and industry-leading efficiency. For 2016, the Company expects to deliver mid-single digit EPS growth."
Management remains committed to its dividend. In January, the company announced a 20 per cent hike in its quarterly dividend, raising it to 37.5 cents per share from 31.25 cents per share. On a yearly basis, this amounts to $1.50 per share, equating to an annualized yield of 1.9 per cent.
The stock is trading at a price-to-earnings multiple of 17.1 times the 2016 consensus estimate. According to Bloomberg, shares of CN Rail are trading at discount to its three-year historical average of 18.4 times, and relatively in-line with its five-year historical average of 17.2 times.
According to Bloomberg, there are 12 buy recommendations and 15 hold recommendations. There are no sell recommendations. The average one-year price target is $81.38, suggesting that the share price is nearly fully valued.
The consensus earnings per share forecast is $4.67 in 2016, up from $4.44 in 2015, and forecast to rise nine per cent to $5.11 in 2017.
Over the last year, the share price has been trading sideways, consolidating largely between $70 and $80.
The stock's next resistance level is around $80, then around $83 and after that around $85. There is downside support around $76, close to its 200-day moving average ($76.18). Failing that, there is support at $75.50, near the stock's 50-day moving average ($75.52), and there is large support at $70.
The Breakouts file is a technical analysis screen intended to identify companies that are technically breaking out. In addition, this report highlights a company's dividend policy, analysts' recommendations, and provides a brief technical analysis for a stock to provide readers with more information.
If a stock appears on the positive breakouts list, this indicates positive price momentum, and that a company may be worthwhile for investors to look at the fundamentals in order to determine if the recent price strength is warranted and will continue. If a stock appears on the negative breakouts list, this indicates negative price momentum, and may be indicative of either deteriorating fundamentals or perhaps indicates a buying opportunity.
A technical analysis screen does not replace fundamental analysis, but can help identify companies worth having a closer look at.
Below is a list of stocks in the S&P/TSX composite index and the S&P/TSX Small Cap index that are technically breaking out, reaching new 55-day highs or lows. Stocks on the positive breakouts list have displayed positive price momentum during this period. Stocks on negative breakouts list have experienced negative price momentum.
|AGF.B-T||AGF Management Ltd|
|AGT-T||AGT Food & Ingredients Inc|
|AGI-T||Alamos Gold Inc|
|AD-T||Alaris Royalty Corp|
|ARX-T||ARC Resources Ltd|
|AKG-T||Asanko Gold Inc|
|BAD-T||Badger Daylighting Ltd|
|BNS-T||Bank of Nova Scotia|
|BNK-T||Bankers Petroleum Ltd|
|BTE-T||Baytex Energy Corp|
|BEI.UN-T||Boardwalk Real Estate Investment Trust|
|BNE-T||Bonterra Energy Corp|
|BXO-T||Boulder Energy Ltd|
|BEP.UN-T||Brookfield Renewable Energy Partners LP/|
|CNR-T||Canadian National Railway Co|
|CNQ-T||Canadian Natural Resources Ltd|
|COS-T||Canadian Oil Sands Ltd|
|REF.UN-T||Canadian Real Estate Investment Trust|
|CCL.B-T||CCL Industries Inc|
|CCA-T||Cogeco Cable Inc|
|CPG-T||Crescent Point Energy Corp|
|DDC-T||Dominion Diamond Corp|
|DPM-T||Dundee Precious Metals Inc|
|ELD-T||Eldorado Gold Corp|
|EMP.A-T||Empire Co Ltd|
|ENF-T||Enbridge Income Fund Holdings Inc|
|EDR-T||Endeavour Silver Corp|
|FSZ-T||Fiera Capital Corp|
|FTT-T||Finning International Inc|
|FR-T||First Majestic Silver Corp|
|FN-T||First National Financial Corp|
|FM-T||First Quantum Minerals Ltd|
|FVI-T||Fortuna Silver Mines Inc|
|GTE-T||Gran Tierra Energy Inc|
|HSE-T||Husky Energy Inc|
|IGM-T||IGM Financial Inc|
|INE-T||Innergex Renewable Energy Inc|
|IPL-T||Inter Pipeline Ltd|
|KGI-T||Kirkland Lake Gold Inc|
|KDX-T||Klondex Mines Ltd|
|KPT-T||KP Tissue Inc|
|LIF-T||Labrador Iron Ore Royalty Corp|
|LSG-T||Lake Shore Gold Corp|
|L-T||Loblaw Cos Ltd|
|LUN-T||Lundin Mining Corp|
|MDI-T||Major Drilling Group International Inc|
|DR-T||Medical Facilities Corp|
|MST.UN-T||Milestone Apartments Real Estate Investm|
|MRT.UN-T||Morguard Real Estate Investment Trust|
|MSI-T||Morneau Shepell Inc|
|NGD-T||New Gold Inc|
|NIF.UN-T||Noranda Income Fund|
|NBZ-T||Northern Blizzard Resources Inc|
|NPI-T||Northland Power Inc|
|NG-T||Novagold Resources Inc|
|PPY-T||Painted Pony Petroleum Ltd|
|PAA-T||Pan American Silver Corp|
|POU-T||Paramount Resources Ltd|
|PPL-T||Pembina Pipeline Corp|
|PGF-T||Pengrowth Energy Corp|
|PWT-T||Penn West Petroleum Ltd|
|PSK-T||PrairieSky Royalty Ltd|
|PD-T||Precision Drilling Corp|
|RET.A-T||Reitmans Canada Ltd|
|RIC-T||Richmont Mines Inc|
|REI.UN-T||RioCan Real Estate Investment Trust|
|RSI-T||Rogers Sugar Inc|
|RUS-T||Russel Metals Inc|
|SEA-T||Seabridge Gold Inc|
|SES-T||Secure Energy Services Inc|
|SLW-T||Silver Wheaton Corp|
|SNC-T||SNC-Lavalin Group Inc|
|SOX-T||Stuart Olson Inc|
|STB-T||Student Transportation Inc|
|SGY-T||Surge Energy Inc|
|TCK.B-T||Teck Resources Ltd|
|X-T||TMX Group Ltd|
|TOG-T||TORC Oil & Gas Ltd|
|TIH-T||Toromont Industries Ltd|
|TOU-T||Tourmaline Oil Corp|
|TET-T||Trilogy Energy Corp|
|VET-T||Vermilion Energy Inc|
|WPT-T||Westport Innovations Inc|
|WTE-T||Westshore Terminals Investment Corp|
|YRI-T||Yamana Gold Inc|
|Y-T||Yellow Pages Ltd|
|SCC-T||Sears Canada Inc|
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