Value Investors: 3 Stocks That Could Widely Outperform Their Industries

Are you looking to add a new stock to your portfolio? If so, Bank of Montreal (TSX:BMO)(NYSE:BMO), CCL Industries Inc. (TSX:CCL.B), and Enerflex Ltd. (TSX:EFX) should be atop your target list.

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The Motley Fool

One thing most of us can agree on is that it is not easy finding the right stock at the right price when we are ready to buy. In order to make things easier for all of you who are ready to buy today, I have compiled a list of three stocks that are trading at inexpensive valuations compared with their industry averages, so let’s take a closer look at each to determine which would be the best fit for your portfolio.

1. Bank of Montreal

Bank of Montreal (TSX: BMO)(NYSE: BMO) is the fourth-largest bank in Canada with approximately $633.28 billion in total assets. At today’s levels, its stock trades at 11.1 times fiscal 2015’s estimated earnings per share of $6.76 and 10.5 times fiscal 2016’s estimated earnings per share of $7.13, both of which are inexpensive compared with the industry average price-to-earnings multiple of 14.2. In addition, the company pays a quarterly dividend of $0.82 per share, or $3.28 per share annually, giving its stock a 4.4% yield.

2. CCL Industries Inc.

CCL Industries Inc. (TSX: CCL.B) is the world’s largest label company and one of the largest providers of specialty packaging products. At current levels, its stock trades at 22.4 times fiscal 2015’s estimated earnings per share of $7.49 and 20.3 times fiscal 2016’s estimated earnings per share of $8.26, both of which are inexpensive compared with the industry average price-to-earnings multiple of 37.4. Additionally, the company pays a quarterly dividend of $0.375 per share, or $1.50 per share annually, giving its stock a 0.9% yield.

3. Enerflex Ltd.

Enerflex Ltd. (TSX: EFX) is one of the world’s largest single-source suppliers of natural gas compression, oil and gas processing, refrigeration systems, and electric power equipment. At today’s levels, its stock trades at 13.2 times fiscal 2015’s estimated earnings per share of $0.98 and 12.7 times fiscal 2016’s estimated earnings per share of $1.02, both of which are inexpensive compared with the industry average price-to-earnings multiple of 19.8. Also, the company pays a quarterly dividend of $0.085 per share, or $0.34 per share annually, giving its stock a 2.6% yield.

Is now the time to add a new stock to your portfolio?

Bank of Montreal, CCL Industries, and Enerflex are three of the top value plays in their respective industries. Foolish investors should take a closer look and consider establishing positions in one or more of them today.

Fool contributor Joseph Solitro has no position in any stocks mentioned. Enerflex is a recommendation of Stock Advisor Canada.

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