in our last Number Cruncher we discussed how Onex Corporation (ONEX), Quebecor (QBR.B) & Manulife (MFC) could be good candidates if we want to protect our portfolio from an economic downturn.
Here is the screener we used to find these stocks and that you can add to your personalized screeners.
Let’s start with ONEX
The company has a decent SP score of 58 with a 90 days decrease of 3. The SP score is derived from the high performance (55.6) and very low risk (35) score. The company has a high exposure to value (90). Its momentum score is acceptable. The strong increase in its fundamentals in the recent 3 to 12 months could explain the score even if the share price momentum shows some weakness. Sales and earnings growth are not necessarily relevant for this company given its volatility.
We se that the company is a top performer compared to its peers, but is maybe not the best performer for a given risk score.
Let’s continue with QBR.B
The company has a robust score of 74 with a stable 90 days score. The SP score is derived from the performance (77.6) and risk (26.9) score. The company has a quality bias with a score of 74. The company achieved moderate five-year sales of 2.5%, but still generated annualized EPS growth of 12.2%.
Quebecor has a stable profitability and this chart shows it well. The company not only increased its NOPAT, it also increased its EVA which mean the company didn’t just inflated their numbers, they created value for shareholders. Despite the stable uptrend in the NOPAT and EVA, the share price seems to have lost a bit of momentum which could signal an attractive entry point.
The company has a score of 71 in our system with a stable 90 days score. The SP score is derived from the performance (66.5) and risk (14.8) score. The company has a value bias with a moderate exposure to the yield factor. MFC achieved much lower sales in the last year, down 23.9%, but EPS are up 20.8%. The company registered respectable annualized EPS growth of 45.9% in the last 5 years.
MFC seems to trade at a reasonable price and based on our Market value added metrics, we come also to this conclusion. The MVA shows market expectation and see that currently, those are quite low for MFC which suggest that the company could be undervalued based on its historical pricing.
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