Fallen Momentum Stocks with Growth Potential

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Over the last month, markets have been rotating from momentum stocks to value names. Although it is still too early to say if this is the beginning of a long-term shift from momentum to value as a winning strategy, in the context of concern over slowing global growth, it would make sense that investors would shift from more expensive ‘growthy’ names to cheaper value names of more industries that investors flock to for safety (utilities, consumer staples, etc.). However, this could also present an opportunity to buy quality momentum stocks that the market has unfairly punished. While it is true that many momentum names have done well more so on price momentum, many companies have been priced down, but still have a solid underlying business. This is where opportunities may lie. To help identify a few names, we have created a screen for this month’s 5i stock screener (see below). What we have screened for primarily is Canadian stocks that are currently trading between 5-10% below their 52-week high while showing a projected growth in revenue of 5% or greater. Below is a sample of the screener. Log-in or sign-up to view the full list!

Company Name Ticker % Below 52 Week High Expected 1 YR Revenue Growth  Market Cap ($)
Blackline Safety Corp BLN.V 8.94 80.4% 217,247,842.94
Dream Hard Asset Alternatives Trust DRA_u.TO 8.49 60.5% 396,526,944.38
Canacol Energy Ltd CNE.TO 8.81 45.3% 621,827,044.70
True North Commercial REIT TNT_u.TO 5.11 36.0% 289,007,227.73
Teranga Gold Corp TGZ.TO 5.62 32.8% 435,757,597.85