For the third monthin a row, as I searched the list of top-rated stocks on Motley Fool CAPS, I couldn't help noticing a trend: Investors love Canadian stocks!
It is hockey playoff time, after all
Our neighbors up north deserve the recognition, too. Over the past five years, the iShares MSCI Canada Index has posted 27% annualized returns, much better than the S&P 500.
Increased global demand for commodities such as silver, oil, and copper has helped boost the Canadian markets, and tremendous five-year returns from companies including EnCana (NYSE: ECA ) and Goldcorp (NYSE: GG ) hasn't hurt, either.
Is it too late to get in on the Canadian action? CAPS investors sure don't think so. Seven of the top 150 stocks on CAPS are headquartered in Canada:
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Company
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Industry
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iShares MSCI Canada Index (EWC)
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ETF
|
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Gildan Activewear (NYSE:GIL)
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Apparel/clothing
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Canadian National Railway (CNI)
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Railroad
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Stantec (NYSE:SXC)
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Consulting services
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Nexen (NYSE:NXY)
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Oil and gas
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Rubicon Minerals (AMEX:RBY)
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Gold
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Talisman Energy (NYSE:TLM)
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Oil and gas
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Source: Motley Fool CAPS as of April 25.
Hey, we still love you
Despite the drubbing that Gildan Activewear took on Tuesday, CAPS investors remain bullish on its prospects. The stock retains its vaunted five-star CAPS rating despite its 31% one-day plunge on Tuesday.
The bloodbath followed an announcement from the apparel maker that reduced its second-quarter and full-year sales outlooks, thanks to operations inefficiencies at its Dominican Republic plant and writedowns from discontinued inventory.
On its face, this sounds like a giant mess, but the company also noted its confidence that in the second half of the fiscal year, problems in operations that hurt its earnings growth will be resolved, and that its competitive advantages and growth strategy will be what makes the difference in the long run.
Some CAPS investors weren't surprised by the pullback, though. Last September, not2eagercaught flack from other CAPS players for his analysis of Gildan:
Needs to cool off. Price is based on a lot of 'ifs'. Fighting the trend here, but I am betting on a skeptical market.
So far, at least, not2eager has to feel vindicated. Gildan shares have declined 28% since he made his bearish recommendation.
To read more about what CAPS investors think about Gildan after its lowered sales guidance announcement this week, check the stock's CAPS page.
Not just a great national anthem
Whether it's the Alberta oil sands, natural resources like timber and silver, or the banks that stand to profit from the commodity boom, Canada has great stocks that are worth researching.
What do you think about these stocks? Or any stocks, for that matter? More than 100,000 investors are waiting to hear what you have to say. To make your voice heard, simply sign up for Motley Fool CAPS. It's completely free.
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