The Motley Fool

Top Stock Picks for January

We asked our best analysts to share their favourite stocks this month. Here are their picks.

Robert Baillieul: Inter Pipeline Ltd (TSX: IPL) 

Inter Pipeline Ltd (TSX: IPL) is about as worry-free as they come. In short, if you’re tired of the market’s ups and downs, this is the sort of stock you want to own. Not only does the business see less volatility than most other companies, but it also can be counted on to pay big fat dividends.

Inter Pipeline owns energy pipelines, terminals, and storage facilities. These assets are like a toll bridge, shipping commodities across Western Canada. No matter which direction energy prices go, this company still gets paid.

In return for moving and storing these products, Inter Pipeline earns growing fees that are passed on to investors. Maanagement has hiked its payout 10 times over the past decade. And today, the stock yields a tidy 4.4%.

Fool contributor Robert Baillieul has no positions in any of the stocks mentioned in this article.

Joseph Solitro: WestJet Airlines Ltd. (TSX: WJA)

WestJet Airlines Ltd. (TSX: WJA) is one of the largest airlines in North America and increased demand for its services led it to significant financial growth in 2014. In fact, in the first three quarters of fiscal 2014, the company grew earnings per share by 16.6% and revenue by 9%, and these results led to its stock rising nearly 15% over the course of the year.

Even after the strong rally WestJet Airlines stock experienced in 2014, it still trades at very inexpensive valuations, including less than 14 times fiscal 2014’s earnings per share estimates of $2.37 and less than 11 times fiscal 2015’s earnings per share estimates of $3.03. In addition, the company currently pays an annual dividend of $0.48 per share, giving it a yield of about 1.5% and making it both a value and dividend play today.

I think WestJet Airlines will be one of the market’s best performing stocks in 2015, so long-term investors should take a closer look and strongly consider initiating positions today.

Fool contributor Joseph Solitro has no position in any of the stocks mentioned.

Jacob Donnelly: BlackBerry Ltd. (TSX: BB)(NASDAQ: BBRY)

For me, the top stock of the month is BlackBerry Ltd. (TSX: BB)(NASDAQ: BBRY) because of its awesome quarterly results. For the first time in quite a while, the company reached positive cash flow and experienced a small profit. That psychological victory is a big step to turning around the company.

But it’s not just that. BlackBerry is making the right moves by partnering with Samsung and Boeing Co. to offer security for their mobile devices. In my opinion, if BlackBerry focuses on Enterprise Hardware and Software—and forgets the average consumer—the company will succeed.

Therefore, I think BlackBerry is the stock of the month and you should consider adding it to your portfolio.

Fool contributor Jacob Donnelly owns no shares in any of the stocks mentioned.

Andrew Walker: Suncor Energy Inc. (TSX: SU)(NYSE: SU)

Suncor Energy Inc. (TSX: SU)(NYSE: SU) is Canada’s largest integrated oil company. Its diversified mix of production, refining, and retail assets provides the company and its investors with a nice hedge against volatility in the oil market.

Saudi Arabia is basing its 2015 budget on an average oil price of $80 per barrel. Investors should take this as a sign that prices will likely move higher during the year.

In the meantime, Suncor’s shareholders can collect a comfortable 3% dividend yield as they wait for the energy sector to stabilize.

Fool contributor Andrew Walker has no position in Suncor Energy Inc.

Adam Mancini: CGI Group Inc. (TSX: GIB.A)(NYSE: GIB)

CGI Group Inc. (TSX: GIB.A)(NYSE: GIB) is a globally diversified information technology company with a market cap of $14 billion. CGI offers investors strong financials and opportunities for both organic and inorganic growth, and at a very reasonable multiple.

In 2012 CGI purchased British IT firm Logica for $2.7 billion. Despite doubts by analysts, the integration of Logica has been highly successful, yielding CGI $400 million in cost synergies, strong margins of 14.9%, and a record EPS of $2.80 per share in 2014, a 22% increase from 2013.

With $500 million of cash on the balance sheet, analysts are widely speculating CGI will make another large acquisition in 2014, which could be hugely accretive for earnings. With a low forward-price-to-earnings ratio of 13, below its peer group, CGI appears quite undervalued and poised for multiple expansion as its growth potential is factored in.

Fool contributor Adam Mancini owns shares of CGI Group Inc.

Benjamin Sinclair: Brookfield Asset Management Inc. (TSX: BAM.A)(NYSE: BAM)

Brookfield Asset Management Inc. (TSX: BAM.A)(NYSE: BAM) invests money – both its own and that of clients – into assets such as real estate, infrastructure, and alternative energy projects. Over time, it has done a fantastic job, as evidenced by the 20% annual return to common shareholders over the past 20 years.

Looking ahead, the future looks just as bright. Cash-strapped governments around the world are selling assets, providing Brookfield with plenty of buying opportunities. And Brookfield is ready to pounce, with $8 billion of client capital still uninvested. So the next 20 years should also be very fruitful for the company.

Fool contributor Benjamin Sinclair holds no position in any of the stocks mentioned.

Cameron Conway: WestJet Airlines Ltd. (TSX: WJA)

A new year is upon us and my top stock pick for January and perhaps all of 2015 is also WestJet Airlines Ltd. (TSX: WJA). Thanks to the crashing price of oil, WestJet can finally see some relief in its operating margins which have been steadily climbing. This combined with the new first checked bag fee could turn a very good year for the airline’s bottom line, as long as the loonie remains stable.

These internal savings combined with an aggressive expansion strategy will continue to narrow the market share gap with its competitor and could take your portfolio to new heights.

Fool contributor Cameron Conway does not own any shares in the companies mentioned.

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