3 Stocks to Watch This Week

Look out for the results of Shaw, Cogeco, and Dollarama.

| More on:
The Motley Fool
You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

The Toronto Stock Exchange 300 Composite Index (^GSPTSE) gained a solid 0.9%  last week despite ending the week slightly on the back foot.

Air Canada was the outstanding performer, adding 42% during the week after management announced that the first quarter operational performance was better than expected. At the bottom of the weekly pile was the highly volatile BlackBerry, with a 5.8% decline after investors had time to digest the most recent results.

Of the 245 companies currently included in the broader Toronto market index, 76% managed to post a positive performance during the week. This is much better than the year-to-date average, confirming the positive trend in the Canadian stock market so far this year.

Watch the performance of these three companies this week

Dollarama (TSX: DOL) is expected to report results for the fourth quarter (end of January) of the 2014 financial year on Wednesday. The market consensus expectation is a profit of $1.11 per share for the quarter compared to $1.06 a year ago. Poor weather conditions hampered sales in December and the early part of January leading to results below expectations for a number of the other Canadian retailers.

If the consensus forecast is correct, this will be the slowest growth in many quarters for the company. Given the rich valuation (2014 price/earnings ratio of 25 times), the share price may come under pressure should the actual results not achieve the modest growth expectations.

Cogego Cable (TSX: CCA) is expected to report results for the second quarter of the 2014 financial year on Wednesday. A profit of $1.14 per share compared to $1.19 a year earlier is expected. The company reports its business activities in two distinct units, namely cable services (television, internet, and telephony) and the enterprise division (data centre, managed IT and connectivity services).

Key focus points will be on the subscriber growth in the cable division, where all categories except internet experienced net subscriber losses in the previous quarter, as well as progress from the integration and performance of recent acquisitions Atlantic Broadband and Peer 1.

Shaw Communications (TSX: SJR.B)(NYSE: SJR) will report quarter two results on Thursday; consensus expectation is for a profit of $0.41 compared to $0.38 a year ago. The year-over-year comparisons will be somewhat difficult as Shaw benefitted from a one-time broadcasting license fee adjustment in the previous year and would have received a net smaller contribution from the sale of Mountain Cable versus the acquisition of ENMAX Envision.

The main focus will therefore be on the net growth in subscribers to the various services, price adjustments, capital expenditure, and free cash flow. The company pays a juicy monthly dividend which currently yields 4.7%, trades at a discount to U.S. cable companies and could be a takeover target at some point. This is a result to look forward to.

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.

Fool contributor Deon Vernooy holds a position in Potash Corporation.

More on Investing

A solar cell panel generates power in a country mountain landscape.
Top TSX Stocks

3 TSX Stocks You Can Hold for the Next 3 Decades

While the market faces significant headwinds, it's crucial to ensure that you can commit to the TSX stocks you're holding…

Read more »

energy oil gas
Dividend Stocks

2 High-Yield Energy Stocks to Buy as Recession Approaches

Energy stocks such as TC Energy and Canadian Natural Resources allow investors to generate income even in recessionary times.

Read more »

green power renewable energy
Dividend Stocks

3 Top Dividend Stocks to Drive Your Passive Income

These three high-yielding, safe dividend stocks could boost your passive income.

Read more »

Dial moving from 4G to 5G
Tech Stocks

TFSA Investors: 2 Canadian Stocks With Unbelievable Staying Power 

Amid economic uncertainty, investors look for stocks that can thrive in any crisis and grow long term. Here are two…

Read more »

protect, safe, trust
Dividend Stocks

TFSA Wealth: How to Earn $363 in Monthly Passive Income for Life

Canadian investors can harness the power of the TFSA to generate steady tax-free passive income for decades.

Read more »

Canadian Dollars
Dividend Stocks

TFSA Millionaire: How to Turn $40,000 Into $1.2 Million for Retirement

Here's how TFSA investors are using the power of compounding to buy top Canadian dividend stocks to build retirement wealth.

Read more »

potted green plant grows up in arrow shape
Stocks for Beginners

3 Superb Income and Growth Stocks for Every Portfolio

The market is full of superb income and growth stocks, but not all belong in your portfolio. Here are three…

Read more »

stock market
Stocks for Beginners

Worried About Stagflation? 2 Canadian Stocks for All Market Cycles 

Stagflation delays economic recovery. You can keep your portfolio stagflation ready with these Canadian stocks that are suitable for all…

Read more »