In a recent screen using the company’s “Strategy Builder” product, Gary Christie of Trading Central, writing for the Globe and Mail, identified Canadian-listed stocks that he believes combine value, quality, and fundamental strength.
The screen focused on companies with what he called a “TC quantamental” score of 60 or higher, a metric that blends valuation, growth, quality, momentum, and income factors. A minimum $2-billion market cap was required to keep the list to larger issuers, and a P/E cap of 20 was applied to surface names trading at relative discounts to the S&P/TSX Composite.
Dividend yield, year-to-date returns, and one-year price performance were included for context.
“We used Trading Central Strategy Builder to identify Canadian-listed stocks that meet a balanced mix of value, quality and fundamental strength,” Christie wrote. “We focused on stocks with a TC quantamental rating of 60 or higher to filter out companies showing weaker underlying factors. The TC quantamental rating evaluates a company using valuation, growth, quality, price momentum and income as its core inputs. Factor investing is a rules-based approach that builds portfolios around specific characteristics that have historically been shown to drive returns or reduce risk. Additionally, we required a minimum market capitalization of $2-billion to focus on larger, more established companies and screened for price-to-earnings ratios below 20 to highlight stocks trading at valuations cheaper than the broader S&P/TSX Composite.”
The top result was Toronto-Dominion Bank (Toronto-Dominion Bank Stock Quote, Chart, News, Analysts, Financials TSX:TD), which carries a quantamental score of 66 and is the largest company in the screen at roughly $200-billion in market value. TD trades at 10.03 times earnings, yields 3.6%, and is up 53.1% year-to-date, reflecting improving sentiment toward the Canadian banking sector.
Rod Weatherbie is a journalist based in Prince Edward Island. Since 2004, he has written extensively about the Canadian property and casualty insurance landscape. He was also a founder and contributing editor for a Toronto-based arts website and a PEI-based food magazine.
His fiction and poetry have been featured in The Fiddlehead, The Antigonish Review, and Juniper.
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