MENU

Have You Overlooked These All-Weather Stocks?

Finding a defensive stock with strong all-round stats is like striking gold. However, all three of the following tickers have fully fleshed-out data in the key areas that a long-term investor would want to keep an eye on. From banking to insurance to healthcare, these are the all-weather stocks you may have missed while scouring the TSX index for downturn-ready tickers.

Canadian Western Bank (TSX:CWB)

A popular provider of personal and business banking services, with a focus on the west of the country, more shares in Canadian Western Bank have been snapped up than let go by insiders in the last six months. A positive track record illustrated by a one-year past earnings growth of 12% triples a five-year average of 4.2%

Atlhough Canadian Western Bank has a low allowance for bad loans, it has this in common with some of the best Canadian banks, including several of the Big Six, and the rest of its balance sheet data is looking good. Its dividend yield of 3.66% is perhaps the main reason to buy, with some growth (8.6% expected annual growth in earnings) adding extra incentive.

A popular provider of personal and business banking services with a focus on the west of the country, more shares in Canadian Western Bank have been snapped up than let go by insiders in the last six months. Attractive valuation is signalled by the usual fundamentals: a P/E of 10.3 times earnings and a market-beating P/B of 1.1 times book.

Savaria (TSX:SIS)

Personal mobility is big business, and Savaria has the market cornered, supplying North America and beyond. Although Savaria insiders have only let go of shares during the last three months, there are definitely reasons to buy here: a dividend yield of 3.16%, attractively matched with a projected 31.1% growth in earnings, meet a solid track record.

This stock could be paired with the previous stock, as well as the next one on the list, providing exposure to the healthcare as well as the machinery industries with just one stock. It’s not too badly valued, as we’ll see shortly, and although its balance sheet could be a touch lighter on debt, the market share that Savaria commands should definitely place it on a Canadian investor’s watchlist.

Great-West Lifeco (TSX:GWO)

Investors looking for a life and health insurance or asset management stock have a strong candidate in Great-West Lifeco. While its five-year average past earnings growth has been slow at 0.6%, the last 12 months have seen a rise of 37.8%. With a decent balance sheet typified by debt of 25.2% of net worth, and P/E of 10.8 times earnings bringing in the value stats, Great-West Lifeco tempts with a dividend yield of 4.83%.

The bottom line

Savaria’s debt level is a little out of the low-risk comfort zone at 49.6% of net worth; however, while a P/E of 26.8 times earnings and P/B of 3 times book look high, they aren’t too far above the Canadian machinery industry averages. Great-West Lifeco’s 4% expected annual growth in earnings may not tempt a TSX index growth investor, although the rest of its stats look good, such as a market-beating P/B of 1.5 times book.

Forget Apple! Buy This TSX Stock Instead…

There’s something crucial you need to know about Apple’s stock today, especially if you already own it, know someone who does, or have even thought about buying it.

This revolutionary new technology involved in “Project Titan” should make any investor’s ears perk up.

But you may want to consider investing in a TSX-traded company that’s poised to have a drastically larger role in this new tech, and yet is less than 1% the size of Apple.

Discover why we’re especially excited about this tech opportunity for Canadian investors like yourself.

Click here to learn more!

Fool contributor Victoria Hetherington has no position in any of the stocks mentioned.

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.