According to the All-in-One Screener, a Premium feature of GuruFocus, three margin growth stocks in the Canada region that are undervalued as of Monday based on the GF Value line are Rogers Communications Inc. (TSX:RCI.B, Financial), Andrew Peller Ltd. (TSX:ADW.A, Financial) and CGI Inc. (TSX:GIB.A, Financial).
Margin Growth Screen recap
The "Margin Growth Screen" applies key criteria from Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial) co-managers Warren Buffett (Trades, Portfolio) and Charlie Munger (Trades, Portfolio)'s investing strategy, including predictable revenue and earnings growth and positive operating margin growth. The following video illustrates the application of our Margin Growth Screen to the Canadian region.
Rogers Communications
Toronto-based Rogers provides cable and wireless services to individuals and households across Canada. GuruFocus ranks the company's profitability 8 out of 10 on several positive investing signs, which include a 4.5-star business predictability rank and an operating margin that has increased approximately 4% per year on average over the past five years and is outperforming approximately 85% of global competitors.
Shares of Rogers traded around 57 Canadian dollars ($43.75) on Monday, showing that the stock is undervalued with a price-to-GF Value ratio of approximately 0.93.
Gurus with holdings in Rogers' U.S.-based shares (RCI, Financial) include Jim Simons (Trades, Portfolio)' Renaissance Technologies and Mario Gabelli (Trades, Portfolio)'s GAMCO Investors Inc. (GBL, Financial).
Andrew Peller
Shares of Andrew Peller traded around CA$10.76, showing that the stock is modestly undervalued with a price-to-GF Value ratio of 0.79.
GuruFocus ranks the Ontario-based wine producer's profitability 8 out of 10 on several positive investing signs, which include a high Piotroski F-score of 7, a four-star business predictability rank and an operating margin that has increased approximately 6.10% per year on average over the past five years and is now near a 10-year high of 12.26%.
CGI
Shares of CGI traded around CA$90.59 Canadian dollars on Nov. 9, showing that they are undervalued with a price-to-GF Value ratio of approximately 0.9.
GuruFocus ranks the Montreal-based information technology services provider's profitability 8 out of 10 on several positive investing signs, which include a three-star business predictability rank and an operating margin that has increased approximately 2.4% per year on average over the past five years and is outperforming over 80% of global competitors.
Disclosure: The author has no positions in the stocks mentioned. The stocks discussed in this article reflect price valuations as of Nov. 9 and thus do not reflect any price changes from Nov. 10.
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