Cabot’s 10 Best Canadian Small-Cap Stocks
Canada is home to some small-cap companies with BIG growth potential. Get in now and your profit potential is enormous. This new report tells you the best bets. But you need to act now.
Dear Fellow Investor,
One of the generally accepted wisdoms over the past couple of years has been that the U.S. stock market is where the action is.
But there are market-beating returns available to investors willing to step abroad too.
And one of the easiest steps to take is just over the border with our neighbor to the north, Canada.
For the modestly adventurous investor, there are many Canadian small-cap stocks worth a look right now.
Buying Canadian stocks is a relatively easy pitch to U.S. investors. It’s a stable, developed economy and an established trading partner.
While there are certainly a lot of differences between the U.S. and Canada, the country is friendly both for travel and investment. Also, most Canadian small-cap stocks have considerable exposure to the U.S. economy.
Growth in the Canadian economy provides a pleasant backdrop for investing. A lot of investors head to the Vancouver stock exchange for Canadian small-cap stocks. But these days, I go to the Toronto stock exchange. This exchange tends to list more mature companies and there are far more options in the sectors I follow, which are predominantly technology, consumer and health care.
So, I’m bullish on Canadian small-cap stocks and have been able to have some big winners in our portfolio in the last couple of years. This report gives you ten of my favorites that I think you can build positions in over the coming months.
Here are a few highlights from four of the stocks I cover in this report:
Canadian Small-Cap Stock #1
This one has seen revenue growth of almost 40% per year since 2015 with earnings per share quadrupling. We see a well-executed growth story in which management has said what it wanted to do and then went out and did it.
Canadian Small-Cap Stock #2
Management’s intense focus on improving profitability drove EPS to $2.02 in 2016 and to $4.49 in 2017, an increase of 122%. In Q2 2018, revenue soared 32% while EPS jumped 75% to $1.92. In 2018, analysts see revenue growing by 15% while EPS should expand by 19% to $5.34.
Canadian Small-Cap Stock #3
There is a lot to like here if you just step back and look at the numbers. The company has been around for a quarter century and grown revenue at an average annual rate of 16% since 2010. EPS growth has averaged 19% over the last three years. There are a lot of dips to the 50-day moving average line that have offered nice entry points, and the occasional deeper retreat to the stock’s 200-day line that have presented the best buying opportunities. This is a stock that investors should just start building a position in now and add to it over time.
Canadian Small-Cap Stock #4
The subscription-based software company has a roster of 100 well-known customers including Volvo, Ford, Honeywell, Micron, Raytheon, BASF, Samsung, Asics and Cisco. Revenue has grown at an average annual rate of 24% since 2014, while subscription revenue has grown at an average annual rate of 25%. Analysts see revenue growing 17% this year and 22% next year while EPS should dip by around 13% and grow 35% next year.
In all, I cover 10 high-potential stocks in this report. For each stock I provide you with a brief company profile – sector and market, management team, competitive landscape – as well as financial performance and charts so you can find the ones that are right for your interests and investing goals.
These are small companies with big revenue and growth potential – and that means they’re a great investing opportunity. If you get in soon.
Order your copy of Cabot’s 10 Best Canadian Small-Cap Stocks right now to get immediate access and download your copy today.
Yours for profitable investing,
Chief Analyst, Cabot Small-Cap Confidential