What are we looking for?
Canadian companies with positive growth outlooks despite macroeconomic uncertainty.
The screen
Global markets have been in turmoil since U.S. President Donald Trump announced unprecedented tariffs on April 2. The new measures targeted dozens of trade partners, cratering stock markets around the world as investors grappled with ambiguity around demand, supply chains, and potential trade wars.
Despite the volatility, some Canadian stocks have not only held their own but also continue to be viewed favourably by analysts. These companies may be benefiting from the same uncertainty that has damaged others, offering a potential haven for cautious investors.
Using FactSet’s screening tool, I identified Canadian stocks with positive outlooks by applying the following criteria:
- Market capitalization greater than $1-billion
- Projected sales growth above 10 per cent and earnings growth above 20 per cent over the next two years
- Traded on the S&P/TSX Composite
- Positive total return since the April 2 tariff announcement
The 10 companies that passed were sorted by a multifactor ranking of earnings growth, sales growth, and post-tariff announcement performance.
What we found
Interestingly, seven of the 10 companies on our screen operate in the metals and mining sector. As confidence in the U.S. dollar wanes, gold has regained its haven appeal. These companies benefit directly from higher commodity prices and a shift in investor sentiment toward hard assets.
Calibre Mining Corp. CXB-T, a Canadian gold mining and exploration company with international operations, ranked No. 1 on our screen with impressive growth projections across the board. While it has only returned 1.6 per cent following Mr. Trump’s tariff announcements, analysts project 219.7-per-cent earnings growth and 62.4-per-cent sales growth over the next year. The company is benefiting from increased gold prices driven by global uncertainty and a weakening U.S. dollar. With gold prices on the rise and cost structures improving, Calibre Mining remains a potential beneficiary of continued volatility in currency and commodity markets.
TerraVest Industries Inc. TVK-T, an Alberta-based industrial manufacturing company, ranked No. 3 on our screen with an impressive 10.7-per-cent total return since April 2. The company operates in niche segments including energy processing, agriculture, and HVAC manufacturing, providing diverse exposure to multiple sectors. That said, investors should note that close to 50 per cent of TerraVest’s revenues are derived from the United States, leaving the company exposed to trade uncertainty and currency fluctuations.
Investors should stay tuned for further updates on both Calibre Mining and Terravest’s earnings releases projected on May 7.
The information in this article is not investment advice. The author assumes no liability for any consequence relating directly or indirectly to any action or inaction taken based on the information contained above.
Arjun Deiva, CFA, is an MBA Candidate at the University of California, Berkeley, Haas School of Business.
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