WHAT ARE WE LOOKING FOR? As the economy tries to get out of the recession ditch, let's look for cheap stocks with revenue and earnings growth.
MORE ABOUT TODAY'S SCREEN We'll start with members of the S&P/TSX composite index. We'll look for stocks that are profitable and are showing revenue and earnings per share growth in the latest 12 months, and the latest quarter over the previous quarter. We're looking for revenue and earnings growth so we can find those companies that are doing more than just increasing profits through cost cutting. Finally, we'll sort the remaining list of stocks and trusts by the lowest price-to-earnings ratios.
WHAT DID WE FIND OUT? There aren't many stocks that passed through our filter and not many are cheap, either. There are only nine stocks that passed our growth tests and trade under a price-to-earnings ratio of 20. That said, one trend has emerged in that consumer stocks are showing growth, as Empire, North West, Metro, Alimentation Couche-Tarde, Shoppers Drug Mart and Cineplex are all on the list.