5 Canadian Large Caps Pressing Their 52-Week Highs

It’s not been all bad for Canadian investors thus far in 2013.

| More on:
The Motley Fool

It’s been well-documented that the Canadian market has been left in the dust by its U.S. peers.  Day after day, whether it’s the S&P 500 or the Dow Jones Industrial Average, the U.S. market seems to be setting a new all-time high.

The reason for the discrepancy has been the poor performance of resource stocks, which account for about 50% of the S&P/TSX Composite Index.

If, however, we look away from the train wrecks that exist in the resource space, Materials especially, we find a collection of stocks that are doing very well.  In fact, 15 of the 60 companies that make up the large cap S&P/TSX 60 currently trade within 2% of their 52-week high (as of May 7th).  A large majority of the remainder are resource based.

Who?

Tabled below are 5 of these well-performing companies along with their year-to-date returns (as of May 7th).

Company Name

YTD % Return

Magna Int’l (TSX:MG)

26.7%

Tim Horton’s (TSX:THI)

20.1%

Manulife Financial   (TSX:MFC)

17.5%

BCE Inc. (TSX:BCE)

11.8%

Enbridge (TSX:ENB)

10.5%

S&P TSX Composite

0.9%

Source:  Capital IQ

The tailwind created by a rebounding North American auto market has grabbed Magna and lifted it to the top of our list.  As long as economic fundamentals remain in-tact, there’s little reason to believe this momentum will stop anytime soon.  Magna’s valuation metrics however are beginning to approach the top end of their range.  A similar theme throughout this collection of names.

Tim Horton’s stock received a recent bump when a U.S. based hedge fund indicated it wants the Canadian icon to alter its course.  Manulife reported better than expected results which boosted its shares and BCE and Enbridge just keep doing what great blue chip stocks do – go up.

Foolish Takeaway

The Canadian market has become even more difficult than usual for investors to navigate in recent months.  Resource oriented stocks are clearly in a funk, however, it seems like everything else is performing very well.  For those seeking value-oriented opportunities, it’s a frustrating time to say the least.

If you’re an investor who would love to own the world’s greatest businesses, you need to click here to receive our special FREE report “3 U.S. Stocks Every Canadian Should Own”.  Your portfolio will thank you!

Follow us on Twitter and Facebook for the latest in Foolish investing.

Fool contributor Iain Butler owns shares in Magna International.  The Motley Fool has no positions in the stocks mentioned above.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

More on Investing

data analytics, chart and graph icons with female hands typing on laptop in background
Investing

1 Strong Momentum Stock to Buy on the Current Dip

Waste Connections (TSX:WCN) stock is holding its own and is worthy of buying on any small (or large) dips.

Read more »

A Canada Pension Plan Statement of Contributions with a 100 dollar banknote and dollar coins.
Retirement

Retirees: What Is the CPP Enhancement and How Does it Work?

The CPP enhancement will increase your pension payout in retirement. But you still need other income sources to supplement the…

Read more »

Nuclear power station cooling tower
Energy Stocks

Should Investors Buy the Dip in Cameco Stock?

Cameco (TSX:CCO) stock recently experienced a slight dip, and with earnings around the corner, it might be time to pick…

Read more »

Path to retirement
Retirement

Invest in These TFSA Stocks to Sail Into a Serene Retirement

Is your TFSA set for safety or growth? Having these solid TFSA stocks provides a blend of both.

Read more »

A close up image of Canadian $20 Dollar bills
Investing

3 No-Brainer Stocks to Buy With $200 Right Now

The criteria for no-brainer stock varies among investors. For conservative investors, the list is usually small and rigid. In contrast,…

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

TFSA Passive Income: 4 Stocks to Buy and Never Sell

These four TSX dividend stocks could boost your passive income.

Read more »

Family relationship with bond and care
Dividend Stocks

Invest in These TSX Stocks Now and Retire With Peace of Mind

Canadian stocks like Brookfield Asset Management (TSX:BAM) offer long term investment potential.

Read more »

growing plant shoots on stacked coins
Dividend Stocks

2 Risky Dividend Stocks to Avoid (and 2 Safe Ones)

Looking for dividend income? Here are two stocks to avoid and two stocks to readily buy for safe and steady…

Read more »