U.S. Markets open in 7 hrs 44 mins
  • S&P Futures

    3,671.75
    +7.25 (+0.20%)
     
  • Dow Futures

    29,984.00
    +52.00 (+0.17%)
     
  • Nasdaq Futures

    12,505.75
    +43.50 (+0.35%)
     
  • Russell 2000 Futures

    1,850.40
    +3.20 (+0.17%)
     
  • Crude Oil

    46.33
    +0.69 (+1.51%)
     
  • Gold

    1,844.60
    +3.50 (+0.19%)
     
  • Silver

    24.23
    +0.09 (+0.36%)
     
  • EUR/USD

    1.2160
    +0.0010 (+0.0851%)
     
  • 10-Yr Bond

    0.9200
    0.0000 (0.00%)
     
  • Vix

    21.28
    +0.11 (+0.52%)
     
  • GBP/USD

    1.3463
    +0.0011 (+0.0808%)
     
  • USD/JPY

    103.8790
    +0.0190 (+0.0183%)
     
  • BTC-USD

    19,334.79
    +77.21 (+0.40%)
     
  • CMC Crypto 200

    379.64
    +5.23 (+1.40%)
     
  • FTSE 100

    6,490.27
    +26.88 (+0.42%)
     
  • Nikkei 225

    26,751.24
    -58.13 (-0.22%)
     

3 Undervalued Canadian Stocks With Strong Margin Growth

GuruFocus.com
·3 min read

- By James Li

According to the All-in-One Screener, a Premium feature of GuruFocus, three margin growth stocks that are undervalued as of Monday based on the GF Value line are Rogers Communications Inc. (TSX:RCI.B), Andrew Peller Ltd. (TSX:ADW.A) and CGI Inc. (TSX:GIB.A).

Margin Growth Screen recap


The "Margin Growth Screen" applies key criteria from Berkshire Hathaway Inc. (NYSE:BRK.A)(NYSE:BRK.B) 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.

3 Undervalued Canadian Stocks With Strong Margin Growth
3 Undervalued Canadian Stocks With Strong Margin Growth

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.

3 Undervalued Canadian Stocks With Strong Margin Growth
3 Undervalued Canadian Stocks With Strong Margin Growth

Gurus with holdings in Rogers' U.S.-based shares (NYSE:RCI) include Jim Simons (Trades, Portfolio)' Renaissance Technologies and Mario Gabelli (Trades, Portfolio)'s GAMCO Investors Inc. (NYSE:GBL).

3 Undervalued Canadian Stocks With Strong Margin Growth
3 Undervalued Canadian Stocks With Strong Margin Growth

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.

3 Undervalued Canadian Stocks With Strong Margin Growth
3 Undervalued Canadian Stocks With Strong Margin Growth

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%.

3 Undervalued Canadian Stocks With Strong Margin Growth
3 Undervalued Canadian Stocks With Strong Margin Growth

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.

3 Undervalued Canadian Stocks With Strong Margin Growth
3 Undervalued Canadian Stocks With Strong Margin Growth

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.

3 Undervalued Canadian Stocks With Strong Margin Growth
3 Undervalued Canadian Stocks With Strong Margin Growth

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.

Read more here:

  • 4 Airport and Airline Stocks to Consider on Coronavirus Vaccine Hopes

  • 3 Stocks the T Rowe Price Equity Income and Yacktman Funds Agree On

  • Steven Romick's Top 5 Holdings as of the 3rd Quarter



Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.

This article first appeared on GuruFocus.