We asked our best analysts to share their favourite stocks this month. Here are their picks.
Adam Mancini: Transforce Inc. (TSX:TFI)
Transforce Inc. (TSX:TFI) is a Canada’s largest trucking and logistics company, offering Package & Courier, Less-Than-Truckload, and Truckload services. Transforce has been expanding aggressively through acquisitions, with three major acquisitions in 2014 alone.
With Transforce now taking time to digest its acquisitions—the most recent being the $495 million takeover of rival Contrans Group Inc.—the company has available several catalysts to boost share price. The Contrans acquisition alone is expected to be 17% accretive to EPS once fully integrated. In addition, Transforce is considering spinning off its Truckload segment, so it can focus more on its rapidly growing Package & Courier segment. This spin-off should unlock significant value.
With fuel prices dropping, Transforce has tailwinds in its favour. Transforce is trading at a low forward price-to-earnings ratio of 15, allowing you to capture its impressive 18% growth rate and 6% free cash flow yield at a cheaper price than its trucking or rail competitors.
Fool contributor Adam Mancini owns shares of Transforce Inc.
Brookfield Property Partners (TSX:BPY.UN)(NYSE:BPY) is a one-stop shop for real estate investing. Not only does the company’s assets span real estate classes like commercial, retail, industrial, multifamily, and hotel assets, but those assets are spread around the globe. The company offers investors unparalleled real estate diversification, and it really is the only core real estate holding an investor needs to own.
In addition to its broad diversification the company also offers a strong current yield of over 4.3%. That payout was recently boosted by 6% due to the company’s strong growth over the past year. Brookfield sees its growth continuing as it plans to grow its cash flow by 8%-11% per year. This will allow the company to comfortably grow its distribution by 5%-8% per year over the long term.
Brookfield Property Partners offers investors everything you could want in a real estate investment. So, for investors lacking real estate in their portfolio, Brookfield Property Partners is the stock you’ll want to buy this month.
Fool contributor Matt DiLallo owns shares of Brookfield Property Partners.
Pembina Pipeline Corp. (TSX:PPL)(NYSE:PBA) plays an integral role in the Canadian energy market. The company transports most of the conventional oil and condensate production in British Columbia, about 50% of Alberta’s conventional crude oil production, and 30% of western Canada’s natural gas liquids production.
The infrastructure projects are secured by long-term contracts and revenue is 100% derived on a fee-for-service basis. This means Pembina has no direct commodity exposure.
Pembina pays a monthly dividend of 14.5 cents per share that yields about 4.4%. Shareholders can get a 5% discount on new shares if they reinvest the dividends using the company’s DRIP.
Fool contributor Andrew Walker has no position in Pembina Pipeline Corp.
Sandra Mergulhão: BlackBerry Ltd. (TSX:BB)(NASDAQ:BBRY)
I’ve been rooting for BlackBerry Ltd. (TSX:BB)(NASDAQ:BBRY) for the past year now since John Chen started to prove himself as an effective leader to turn this once-loved tech company around.
BlackBerry continues to make progress but March is a crucial month for the company. The Waterloo-based company will release its earnings for the fourth quarter on March 27, 2015. It will be interesting to see the cash-flow figures, handset sales, and the loss amount. Chen has said BlackBerry is only a few quarters away from being profitable, so the numbers will be key. Interestingly, BlackBerry is working with Google to enable its software to manage and secure some of Google’s Android devices. This is one more sign that BlackBerry is on the right track to succeed.
Fool contributor Sandra Mergulhão does not own shares in any of the companies mentioned.
Joseph Solitro: WestJet Airlines (TSX:WJA)
WestJet Airlines (TSX:WJA) is one of the largest airlines in North America, and it has been experiencing high growth over the last few years. In fiscal 2014, the company’s earnings per share increased 21.2% to $2.46 and its revenue increased 8.6% to $3.98 billion, and analysts anticipate another year of strong growth in fiscal 2015, with consensus estimates of $3.46 in earnings per share and $4.2 billion in revenue.
At today’s levels, WestJet’s stock trades at just 12.1 times fiscal 2014’s earnings per share and a mere 8.6 times fiscal 2015’s estimates, both of which are very inexpensive compared to its five-year average price-to-earnings multiple of 13.8. Also, it pays an annual dividend of $0.56 per share, which gives its stock a solid 1.9% yield at current levels.
I think WestJet Airlines will be one of the market’s best performing stocks over the next three to five years, so Foolish investors should take a closer look and strongly consider establishing positions today.
Fool contributor Joseph Solitro has no position in any of the stocks mentioned.
Robert Baillieul: Freehold Royalties Ltd. (TSX:FRU)
Freehold Royalties Ltd. (TSX:FRU) gives you a stake in thousands of oil wells without having to buy a single acre of land. The business model is easy to wrap your head around. Freehold fronts energy companies with the cash they need to finance new oil wells. In exchange, Freehold is entitled to a cut of the profits… which are then passed on to shareholders. This means the stock is absolutely gushing dividends, pun intended.
Today, Freehold pays a monthly distribution of 9¢ per share, which comes out to an annualized yield of 5.7%. Better yet, that payout should increase as the company’s royalty portfolio continues to grow.
Fool contributor Robert Baillieul has no position in any stocks mentioned.
With the announcement that Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) has beaten analyst’s estimates by close to $0.10 a share, I had to turn my attention to this company. CIBC reported a total of $2.36 per share in profit this past quarter.
On top of that, the company is now raising its dividend by 3%. It already pays a 4.42% dividend, so adding even more is really attractive. Finally, the CEO doesn’t think this will be the last time the dividend rises. The amount it pays out, he argued, is still on the lower end of the 40% to 50% range of income to dividend. If you ask me, that sounds like one clear message: more dividends are coming.
Fool contributor Jacob Donnelly does not own shares in any of the companies mentioned.
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