5 Canadian Large Caps That Had Analysts Scratching Their Heads

Find out if this confusion translated into big time stock moves.

| More on:
The Motley Fool

About a month ago, before Canadian earnings season began, we put together a collection of 5 companies that had the widest range of quarterly earnings estimates of any in the S&P/TSX 60, Canada’s large cap index.  Basically, we were curious to see if this wide range of estimates translated into volatility for the stocks once actual earnings were released.

With Bombardier’s (TSX:BBD.B) release out of the way, all 5 have now reported and it’s time to go back and see if we can glean any insights from this little trial.

Tabled below are the 5 companies, their actual earnings, their estimated quarterly EPS range from the original post, and the stock price move in the first full day of trading after the release.

Company Name


Est. EPS

EPS High


Stock Move







Bombardier (TSX:BBD.B)






Encana Corp. (TSX:ECA)






Cameco (TSX:CCO)






Crescent Point Energy   (TSX:CPG)






Source:  Capital IQ

There were a couple of big moves but I wouldn’t say there’s anything here in terms of volatility that you could hang your hat on.

Aside from volatility, it’s interesting to see that the stock that had the best reaction to quarterly earnings, IAMGold, actually missed the consensus estimate of $0.16 by a penny (can we still use that word?).

The company that blew out estimates, Encana, however suffered a loss of 1.1% during the trading day after its results were released.

What’s going on here?

Though the occasional valuable insight can be gleaned from a company’s earnings report, for the most part, they are noise.  And this noise contributes to one of the basic truths of investing.  Over the short-term, the stock market is completely random.  Had you bought Encana knowing they would beat, and sold IAMGold knowing they would miss you would have been exactly right, and yet, exactly wrong.

Foolish Takeaway

Fools know that betting on earnings is a mug’s game.  Use these reports for what they are – a periodic glimpse into a company’s performance.  They are not a reliable way to make a quick buck.

If you own, or are thinking of purchasing a Canadian index fund, you need to click here to receive our special FREE report “Buy These 5 Companies Instead of Following a Flawed Piece of Advice”.  Your portfolio will thank you for reading this report!

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

Fool contributor Iain Butler does not own any of the companies mentioned in this report at this time.  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

Canadian stocks are rising
Dividend Stocks

1 Dividend-Growth Stock You Won’t Want to Miss in the Real Estate Sector

A growth-oriented REIT is a strong buy today after raising its dividend by more than 5% in each of the…

Read more »

Hand arranging wood block stacking as step stair with arrow up.

Retirement Investors: 3 TSX Stocks That Could Rally With the Economy 

Always buy stocks you are bullish on when they trade below their 52-week highs. A recovery rally can enhance your…

Read more »

some canadian stocks rose

3 Stocks I’ll Load Up on in 2023

Toronto-Dominion Bank (TSX:TD) is one stock I'll load up on in 2023. There are others, too.

Read more »

Dividend Stocks

Better Buy: Emera Stock vs. Hydro One

Higher-risk utility Emera should provide higher returns over the next five years, given the dip and its higher yield.

Read more »

Growing plant shoots on coins
Tech Stocks

3 Growth Stocks That Look Ready to Double in 1 Year

These three growth stocks are "sleeping giants" ready to blast off in 2023 and beyond for investors who pick them…

Read more »

Payday ringed on a calendar
Dividend Stocks

Passive-Income Hat Trick: 3 TSX Stocks to Buy for Monthly Cash

Investors seeking passive income can invest in these Canadian dividend stocks and earn attractive monthly passive income.

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

Get Passive Income of $435/Month With This TSX Stock

Here’s how dividend investing in Canada could help you get reliable monthly passive income.

Read more »

Money growing in soil , Business success concept.
Dividend Stocks

2 Undervalued Growth Stocks to Buy Right Now

Once a growth stock becomes too heavily discounted or undervalued, investors begin to wonder about its ability to bounce back,…

Read more »