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