What are we looking for? We've been looking at earnings momentum for Canadian sectors and companies this week, finding out where analysts are raising or cutting their earnings estimates the most. Today, let's find out what sector has suffered the deepest earnings cuts in the past two months and which stocks have suffered the most in that sector.
How we did the screen We used StarMine, which gathers earnings estimates data from analysts. We looked at how much earnings estimates have risen or fallen in the past 60 days for all 10 main Canadian sectors. The health care sector suffered the sharpest earnings estimate cuts, but there's not many stocks in that sector so we'll look at the industrial sector instead.
Earnings estimates for the industrial sector have fallen 11.5 per cent in the past two months and 6.3 per cent in the past month. We'll accept companies of all market capitalizations and sort by the ones that have suffered the sharpest cuts in the past two months.
What did we find out? Airline and travel stocks have suffered the most, with Air Canada, Transat Inc., WestJet Airlines and Jazz Air Income Fund all near the top of the list.
These stocks are being hit by the rebound in oil, not to mention the slow economy.