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BMO Capital Markets analyst published an update on their “Anything but the Big 3” portfolio of stocks, which is an actively traded model with strong Canadian companies excluding energy, materials, and financials.
This group of stocks outperformed the S&P/TSX 60 Index (XIU:CA) excluding materials, energy and financials by 30 basis points, however the group is down 2.5% in the second quarter.
Since the group was created, it outperformed the S&P/TSX (XIU:CA) by 0.6% annualized.
“Although Canadian equity performance has remained more sluggish than we expected, we continue to believe Canada remains well positioned for an extended period of normalization that we expect to unfold over the coming years,” wrote Strategist Brian G. Belski. “We have seen ebbs and flows with regards to broadening out of performance, which we have consistently argued will be a key tailwind for Canadian equities in the second half of the year.”
In addition, BMO Capital Markets analysts see Canada (NYSEARCA:EWC) still a contrarian call when it comes to the developed markets this year, even with the Toronto Stock Exchange hitting new all-time highs.
Here is the portfolio:
In communications service:
- BCE Inc. (BCE:CA)
- Rogers Communications Inc. Class B (RCI.B:CA)
- TELUS Corp. (T:CA)
In consumer discretionary:
- Aritzia Inc. (ATZ:CA)
- Canadian Tire Corp. Limited Class A (CTC.A:CA)
- Dollarama Inc. (DOL:CA)
- Linamar Corp. (LNR:CA)
- Magna Corp. (MG:CA)
- Restaurant Brands International Inc. (QSR:CA)
In consumer staples:
- Alimentation Couche-Tard Inc. (ATD:CA)
- Loblaw Companies Limited (L:CA)
- Premium Brands Holdings Corp. (PBH:CA)
In industrials:
- Air Canada (AC:CA)
- Badger Infrastructure Solutions Ltd. (BDGI:CA)
- Boyd Group Services Inc. (BYD:CA)
- Canadian National Railway Co. (CNR:CA)
- Canadian Pacific Kansas City Limited (CP:CA)
- Finning International Inc. (FTT:CA)
- GFL Environmental Inc. (GFL:CA)
- Stantec Inc. (STN:CA)
- Toromont Industries Ltd. (TIH:CA)
- Thomson Reuters Corp. (TRI:CA)
- Waste Connections Inc. (WCN:CA)
In information technology:
- Celestica Inc. (CLS:CA)
- Constellation Software Inc. (CSU:CA)
- CGI Inc. Class A (GIB.A:CA)
- Kinaxis Inc. (KXS:CA)
- Lightspeed Commerce Inc. (LSPD:CA)
- Open Text Corp. (OTEX:CA)
- Shopify Inc. Class A (SHOP:CA)
In utilities:
- Brookfield Infrastructure Corp. (New York) Class A (BIP)
- Boralex Inc. Class A (BLX:CA)
- Capital Power Corp. (CPX:CA)
- Emera Inc. (EMA:CA)
- Fortis Inc. (FTS:CA)
In real estate:
- Canadian Apartment Properties Real Estate Investment Trust (OTC:CDPYF)
- FirstService Corp. (FSV:CA)
- InterRent Real Estate Investment Trust (IIP.UN:CA)