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November 18, 2020

The 10 Best Canadian Stocks You Need to Be Looking at Today

Disclaimer: The writer of this article may have positions in the securities mentioned in this article. The fact they hold positions in securities has had no impact on the production of this article

By Dan Kent

November 18, 2020

If you're looking for some of the best Canadian stocks to buy moving forward into 2021, you've definitely come to the right article.

And, the fact that you're looking for the top Canadian stocks shows you believe there is value right here at home.

Canadian stocks and the Toronto Stock Exchange in general have had a poor reputation in terms of returns.

Why?

Well, the index is focused primarily on material, energy, and financials stocks. And prior to COVID-19, Canadian stocks in the material sector, particularly gold miners, were in a long and painful bear market.

Oil and gas was struggling prior to COVID-19, and the pandemic has put yet another nail in the coffin of a struggling industry. How much life does it have left?

And finally, financials are expected to struggle moving forward in an ultra low interest rate environment and high unemployment.

There's no doubt we're already in a recession and it's likely to take multiple years to recover. But, there's money to be made when it comes to Canadian stocks and the Canadian stock market. You just need to know where to look.

We do, and that's exactly why at the time of writing we've outperformed the TSX Index by 4X since late 2018 over at Stocktrades Premium. 

We reserve the true best of the best in terms of Canadian stocks, and research tools you will love, for Stocktrades Premium members. So, if you want to get started for free, just click here.

However, the 10 top Canadian stocks listed below aren't slouches, and have some potential to post outsized returns.

The stock market crash has changed the definition of a top Canadian stock

In the midst of a decade long bull run, it's easy to think you've got a strong appetite for risk. That is, until we hit the quickest stock market crash in history and your investment account is suddenly down 40% in a matter of weeks.

The investing landscape is changing, and if you're behind on the times, you're more than likely going to get burnt. A prime example?

As the world moves online and the shift to e-commerce continues to pick up steam, tech is now becoming more of a necessity, whereas in prior years it was reserved almost exclusively for high-growth investors.

So with these ever-changing market conditions, what do we feel are the top 10 Canadian stocks investors need to be looking at moving forward? Lets get to the list.

Keep in mind, the Canadian stocks in this article are picked primarily with a growth focus in mind. but we have thrown in a few blue-chips as we consider them too cheap to pass up right now.

**Writer Daniel Kent may own positions in multiple stocks on this list**

Our top Canadian stocks to purchase in 2020 and beyond

10. Telus (TSE:T)

Telus

 

There is limited 5G plays here in Canada. We're often forced to head down south to the American markets if we want exposure to high-growth 5G opportunities. While Telus (TSE:T) doesn't exactly boast world beating future potential, the stock is the best telecom stock to own in the country today in terms of both 5g exposure and overall growth.

Telus is part of the Big 3 telecom companies here in Canada, and is the stock you want to buy if you want exposure to a more pure-play telecom company. Unlike Rogers Communications and BCE, Telus doesn't have a media division and instead has invested in business models that drive higher margins like telehealth and security.

This should allow Telus to not only grow its dividend, which is the best dividend in the telecom sector, but should also allow it to drive top and bottom line growth.

The last 5 years have not been favorable to Canadian telecoms in terms of growth. In fact, Telus has only grown revenue by 3.7% annually over the last 5 years and earnings have remained relatively flat.

However, the environment has completely changed for these companies. Telecom infrastructure is difficult to construct and extremely costly.

On one hand, this is a huge benefit to a company like Telus. Unless they're willing to share towers, it creates a barrier to entry that is almost impenetrable. A prime example? Shaw Communications has been trying to do so for years, and has made very little progress.

On the other hand though, it makes development of new infrastructure extremely expensive, and telecom companies often carry a large amount of debt to do so. When interest rates are high, we can expect these companies to struggle. However, now that we are in a low interest rate environment, this bodes well.

Analysts are predicting double digit revenue growth for the company in 2021, which can be compared to shrinking revenue growth expected from both Rogers Communications (-3.4%) and BCE Inc (-0.8%).

One of the primary features of being a Telus shareholder is its dividend. In my opinion, the company has the best dividend in the telecom sector. Are there faster growing dividends in the sector? Absolutely. But a combination of yield (4.93%), dividend growth streak (16 years), and 5 year dividend growth rates (8.18%) make it one of the best.

Telus 5 year performance vs TSX

Telus stock performance vs the TSX

Market Cap: $30.78 billion
Forward P/E: 17.89
Price to Sales: 2.08
5 Year PEG: 3.61
Sales estimates for next year: Premium Members Only
Earnings estimates for next year: Premium Members Only
14 Day RSI: Premium Members Only

9. Parkland Fuels (TSE:PKI)

Parkland Fuel

 

Parkland Fuels (TSE:PKI) is one of Canada's largest and one of North America's fastest independent marketers of fuel and petroleum products. Parkland serves motorists, businesses, consumers, as well as wholesalers across Canada and the United States

The company’s growth is primarily driven through acquisitions, evident by its purchase of Chevron Canada’s downstream fuel business making them the sole distributor for Chevron branded fuels.

Another positive from the company's acquisition heavy strategy is the fact that a variety of brands allows it to distribute its products to a wide range of markets across North America.

Parkland has had some impressive growth rates over the last 5 years, averaging revenue growth of 20.9% annually. Over that same timeframe, the company has also grown earnings at clip of 20.3%. Considering the company pays a healthy dividend, I think it would be a mistake for Canadians not to capitalize on the stock still being down 22.6% year to date.

The company is a Canadian Dividend Aristocrat having raised dividends for 7 straight years and pays its dividend on a monthly basis, making it even more attractive to Canadian investors wanting a steady income stream.

The impacts to the oil and gas sector because of COVID-19 have resulted in Parkland's payout ratios in terms of earnings exceeding 110%, but with the dividend making up only 42% of free cash flows, we don't see a cut in the company's future.

The only negative when it comes to Parkland's dividend is the fact it has only raised it by 2.40% on an annual basis over the last 5 years. Considering the company is still spending a respectable amount of money towards acquisitions and growing its top and bottom line at a 20%+ clip, I'm willing to forgive a lack of dividend growth, as it is putting itself in a strong position to deliver dividend growth in the future.

In fact, the company recently received approval for its trademark "On the Run", one of its gas station chains, for use in the United States. This should allow the company to expand an already well established brand across the U.S., and should no doubt deliver when it comes to improving sales.

Analysts expect marginally shrinking revenue in 2021, coming in at -2.7%. This is a far cry from the company's historical averages of 20% annual growth, but we're ok with this. As long as the company can maintain its dividend and continue to be in a strong position to grow moving forward, we'll be patient and let it recover from this unprecedented pandemic.

Not to mention, the worry of short-term revenue loss has left the stock trading at a 30% discount to its historical price to earnings and an 18% discount to its historical price to sales.

Parkland Fuels 5 year performance vs TSX

Parkland Fuels 5 year performance vs TSX

Market Cap: $5.36 billion
Forward P/E: 23.34
Price to Sales: 0.33
5 Year PEG: 1.08
Sales estimates for next year: Premium Members Only
Earnings estimates for next year: Premium Members Only
14 Day RSI: Premium Members Only

8. Savaria (TSE:SIS)

TSX Healthcare Stocks - Savaria

 

Many Canadians are looking to take advantage of an aging population. And, Savaria (TSE:SIS) may not have the flash that a company like Well Health or CloudMD does, but this stock is still one Canadians should be looking at for consistent future returns.

What exactly does Savaria do and why are they a Canadian stock you need to be looking at moving forward? Savaria provides a range of mobility related products such as home elevators, wheelchair lifts, commercial elevators, ceiling lifts, stair lifts, and van conversions. They operate in 3 primary segments, Patient Handling, Accessibility, and Adapted vehicles.

It's no secret the Canadian population is getting older. In fact, by 2030, the Government of Canada estimates those aged 65 years or older will represent 23% of the population. This is nearly 50% higher than today's numbers.

So, if you weren't seeing the opportunity before, you may be seeing it now. It's a massive market, and it's a market that Savaria has a strong foothold in.

Savaria has been a mixed bag in terms of performance over the last while, and as a result this stock really hasn't lived up to its potential. It has grown revenue at a 32% clip annually over the last 5 years and earnings by 17.1% over that same timeframe. Analysts expect the company to post only 8% revenue growth, but 21% earnings growth in 2021.

It's been riddled with performance issues that have disappointed current and past shareholders, as the company has frequently missed earnings estimates and has annoyed investors with share offerings, diluting the stock price.

But in my opinion, it's only a matter of time before the company gets it together, and as a current shareholder I'm not letting recent stumbles effect my long term outlook. Even with its recent underperformance, the company still has 5 year returns in terms of share price of nearly 200%, and I really don't think the company is finished growing.

It has a strong balance sheet with a current ratio of 2.5 and currently pays out a 3.3% dividend on a monthly basis. The company's payout ratio sits at 80% of earnings, but is well covered by cash flows.

Despite the dividend increasing at a rapid clip, with inevitably shrinking earnings and revenue over the short term due to COVID-19, I'd expect the growth rate to stall. The company is an aristocrat, raising dividends for 7 straight years at a rate of 27.70% annually over the last 5. However, with a recent increase of 15.50%, it seems like growth in this department is slowing.

With what growth potential Savaria does have in terms of share price, I still don't mind low double digit growth rates in terms of the dividend. Will we see a raise this year? It's hard to say. But overall, this is a strong play on an aging population here in Canada.

Savaria 5 year performance vs TSX

Savaria 5 year performance vs TSX

Market Cap: $745.6 million
Forward P/E: 23.33
Price to Sales: 2.04
5 Year PEG: 2.8
Sales estimates for next year: Premium Members Only
Earnings estimates for next year: Premium Members Only
14 Day RSI: Premium Members Only

7. Shopify (TSE:SHOP)

Shopify Logo

 

A list of top Canadian stocks wouldn't be complete without the top performing Canadian stock in recent memory, Shopify (TSE:SHOP).

Shopify offers an e-commerce platform primarily to small and medium businesses globally. They operate in two primary segments, subscription solutions and merchant solutions. Subscription solutions allow merchants to conduct business through Shopify's tools, while merchant solutions help businesses become more efficient via Shopify Payments, Shopify Shipping, and Shopify Capital.

Since the company's IPO in 2015, Shopify has returned over 1200% to investors compared to the 28.7% returns of the TSX Index. The company has been labeled "overvalued" by analysts and investors throughout its history, but despite this it simply fails to disappoint.

Over the last 5 years, Shopify has achieved revenue growth of 64.9% annually. This type of revenue growth from a company the size of Shopify is extremely rare. Now, the company is seeing slowing growth as over the last 3 years revenue growth sits around 52% annually, but this is still a company that is growing at a rapid pace.

COVID-19 has accelerated this growth, as new stores on the platform vaulted 71% quarter over quarter. With brick and mortar businesses shut down, a solution to many is to head online to Shopify's platform. Whether or not the online merchants will stick around after COVID-19 subsides is a hot debate for many bears of the company, but I believe the bulk of stores will.

Make no mistake however, the company is expensive. On a price to book and price to sales basis, the company has never been this expensive. Trading at over 60 times sales and 30 times book value, you're paying a premium for continued growth.

Overall, the company is expensive, and could face significant volatility moving forward in terms of price, especially if the company were to post a large earnings miss. It will need to keep up with expected growth rates in order to maintain it's share price, and this isn't an investment for the defensive investor.

If you don't have a quick trigger finger in terms of selling stocks, in my opinion there will be few investors who are disappointed 5-7 years down the road if they bought Shopify even at these levels.

The stock was one of the first recommendations over at Stocktrades Premium, and members who bought when we highlighted the stock are now sitting on returns in excess of 700%.

Shopify 5 year performance vs TSX

Shopify returns vs TSX

Market Cap: $173.99 billion
Forward P/E: N/A
Price to Sales: 83
5 Year PEG: N/A
Sales estimates for next year: Premium Members Only
Earnings estimates for next year: Premium Members Only
14 Day RSI: Premium Members Only

6. Nuvei (TSE:NVEI)

Nuvei Logo

Going off the board with this pick, Nuvei (TSE:NVEI) is one of Canada’s newest IPOs.

The company went public in August and its share price has performed quite well.

As of writing, Nuvei’s share price is up by ~24% in just over two months of trading. Not a bad return for those who got in early.

Is the jump in price justified? When compare to the valuations that peers commanded, we felt that the company’s IPO pricing did not do the company justice.

As we discussed with Premium members, there was a price disconnect which offered an attractive risk to reward opportunity.

Prior to listing, Nuvei was the largest privately held fin-tech company in the country. The company provides payment-processing technology for merchants.

Their suite of products serves both online and in-store transactions and counts Stripe, Paypal, Fiserv, Lightspeed POS, Global Payments, Shift4 Payments and WorldPay among its competitors.

On a trailing twelve-month basis, Nuvei generated US$324M in revenue and US$34B in gross transaction value (GTV). Nuvei grew revenue by 64% in fiscal 2019 and through the first 6 months of 2020, revenue is up by 73%.

Since going public, the company has attracted plenty of attention. There are 13 analysts covering the company – 9 rate it a “buy” and 4 rate it a “hold”.

Although the company is not yet profitable, the expectation is for the company to turn a profit next year. They also expect 26% average annual revenue growth over the next couple of years.

It is important to note, that newly listed companies carry additional risk. For its part, Nuvei has yet to report earnings since it went public.

Can it meet lofty estimates?

New listings are particularly vulnerable to performance as compared to expectations. Given this, IPOs such as Nuvei are most appropriate for investors with a higher risk profile.

Performance of Nuvei Vs TSX since its IPO

Market Cap: $7.36 billion
Forward P/E: N/A
Price to Sales: N/A
5 Year PEG: N/A
Sales estimates for next year: Premium Members Only
Earnings estimates for next year: Premium Members Only
14 Day RSI: Premium Members Only


5. Goeasy Ltd (TSE:GSY)

Goeasy Ltd

 

Over the last half decade, there's been somewhat of an emergence in a particular niche industry in the financial sector, and that is alternative lenders. One of the best Canadian stocks in that niche? Goeasy Ltd (TSE:GSY).

Goeasy Ltd is a small-cap Canadian stock that provides non-prime leasing and lending services through its easyhome and easyfinancial divisions. The company has issued $4.5 billion in loans since its inception and continually works to increase Canadian borrower's credit scores, with 60% of customers increasing their credit scores less than 12 months after borrowing.

The company provides loans for a wide variety of products including furniture, electronics, and appliances. Goeasy has become an attractive alternative for Canadians due to strict lending restrictions placed on Canada's major financial institutions.

A lot of investors view Goeasy's business model as predatory. Which, is perfectly fine with me. If something doesn't adhere to your principles, don't invest in it. Much like tobacco or alcohol, some investors aren't willing to support companies with such products. But, you can't deny that what Goeasy is doing is working, and it's working well.

Since 2001, Goeasy has achieved a 13.1% compound annual growth rate on revenue. In fact, the company has never had a year since 2001 where revenue was flat or decreased. If we look towards recent years, from 2015 to 2019 the company doubled revenue, confirming the fact that alternative lenders are catching on in a big way.

Even more impressive is the company's earnings, as net income since 2001 has grown at a pace of 30.1% annually. To grow net income at a compound annual rate of 30% over nearly 2 decades just highlights how strong this company has been.

That's exactly why a $10,000 investment in Goeasy ltd in 2001 would be worth $770,900 today.

Adding to some crazy levels of stock growth, the company is also growing its dividend at one of the fastest rates in the country. The company has a 29.5% 5 year annual dividend growth rate and has raised dividends for 5 consecutive years.

A noteworthy bonus, because Goeasy is not part of the major financial institutions, the potential exists that it won't have to follow restrictions in terms of dividend raises due to COVID-19.

Overall if you're looking for a growth play in the financial sector, I don't think there is a better option than Goeasy Ltd. Despite a global pandemic, the stock has still provided excellent returns to current investors.

Goeasy ltd 5 year performance vs TSX

Goeasy ltd 5 year returns vs TSX

Market Cap: $1.04 billion
Forward P/E: 9.46
Price to Sales: 2.48
5 Year PEG: 0.95
Sales estimates for next year: Premium Members Only
Earnings estimates for next year: Premium Members Only
14 Day RSI: Premium Members Only

4. Agnico Eagle Mines (TSE:AEM)

Agnico Eagle Mines

 

It's  been a long time since a Canadian stock in the material sector has been featured so prominently on this list of top stocks. As the price of gold continues to surge, Canadian investors would be crazy to leave their portfolio's without any exposure to gold.

There's a few things I look for in particular when I'm looking at a long term gold play. The first one is mining jurisdictions.

Is there opportunities to make more with smaller, more speculative mining companies? Absolutely there is. In fact, we relayed both Leagold Mining and Semafo to Premium members back in 2019, and both companies were scooped up via acquisitions, resulting in some nice returns.

However, for a long term play, we want gold companies that mine in safe jurisdictions, where there is relatively little risk of political or regulatory interference.

Agnico Eagle Mines (TSE:AEM) fits that bill. The company primarily operates in Canada, Finland, and Mexico and owns 50% of the Canadian Malartic mine. In 2019, the company produced 1.8 million ounces of gold, which at $1884/oz totals $3.579 billion USD.

Agnico rarely misses earnings estimates. In fact, over the last 6 quarters it has beat analyst estimates on both top and bottom lines, and 4 of the 6 earnings beats have been by double digits.

The company is the second largest gold producer in the country with a market cap of $25.6 billion, behind only Barrick Gold.

Agnico has also achieved solid returns since the late 1990s, with a compound annual growth rate in share price of 13.05%.

The company used to be a single mine producer, but has expanded at a rapid rate since the financial crisis of 2008, adding more than 5 mines to its portfolio. Additionally, through further developments the company plans for a 25% increase in production by 2022.

Agnico is also a Canadian gold company that is close to achieving Canadian Dividend Aristocrat status, with a 4 year dividend growth streak. Over those 4 years, Agnico has grown its dividend at a pace of 11.44% annually, and its most recent increase more than doubled this rate as it pumped its dividend up by 25%.

Its yield is small at 1.01%, but with significant cash flow generation in the company's future, I expect its dividend growth rates to increase.

Agnico Eagle Mines 5 year performance vs TSX

Agnico Eagle Mines performance vs TSX

Market Cap: $24.87 billion
Forward P/E: 42.78
Price to Sales: 7.17
5 Year PEG: 0.72
Sales estimates for next year: Premium Members Only
Earnings estimates for next year: Premium Members Only
14 Day RSI: Premium Members Only

3. TFI International (TSE:TFII)

TFI International

 

TFI International (TSE:TFII) is a stock we covered extensively at Stocktrades Premium, especially during the peak of the COVID-19 pandemic, and the company is continuing to impress us.

TFI International is a trucking and logistics company. The company operates in four segments: Package and Courier, Less-Than-Truckload, Truckload, and Logistics. Along with nearly 17,500 employees, it has over 400 terminals across North America.

Although the company does have operations in the United States, the bulk of its revenue comes from here in Canada.

So why were we extremely bullish on TFI during the pandemic over at Stocktrades Premium, and why are we still bullish on them despite the price increase? While mass panic selling was occurring, TFI International's stock was not immune to the sell offs. The stock quickly plummeted in March, hitting the $24 range. Fast-forward just 7 months later and the stock is currently trading 160% above these levels.

TFI Internationals operations as a trucking and logistic company remained relatively untouched throughout the pandemic. When the company reported earnings in June of 2020, it reported a decrease in revenue of only 8.6% through the first six months of the year, and actually reported increases in both free cash flow and adjusted EBITDA.

The bulk of the company's revenue loss was attributed to its Package and Courier segment, which saw a 24% decline. However both its Less-than-truckload and Truckload operating segments saw an increase in revenue.

With the strong financial position the company was in, it went on the hunt for struggling companies, and ended up purchasing Gusgo Transport, assets of CT Transportation, and assets of MCT Transportation. TFI took advantage of the situation and bought assets at discounted rates, highlighting the ability of its management.

Although the company has struggled to increase its top line over the last 5 years (4% annual revenue growth) its become much more efficient and as a result its bottom line has improved. Earnings over the last 3 years have increased at a 61.6% clip annually.

This should allow the company to do a couple of things. First off, it will allow the company to keep picking up assets at a discount as more and more companies struggle due to COVID-19. But secondly, and most importantly, it should be able to continue growing its dividend. The company has a 9 year dividend growth streak and has raised dividends at a 10.13% clip annually over the last 5 years.

It only yields around 1.82%, but with the dividend making up only 26% of trailing earnings, it should have plenty of room to grow.

TFI International 5 year performance vs TSX

TFI International 5 year performance vs TSX Index

Market Cap: $5.84 billion
Forward P/E: 14.98
Price to Sales: 1.18
5 Year PEG: 2.93
Sales estimates for next year: Premium Members Only
Earnings estimates for next year: Premium Members Only
14 Day RSI: Premium Members Only

2. Royal Bank of Canada (TSE:RY)

Royal Bank

 

Considering this list is primarily made for growth stocks, it did feel somewhat weird including The Royal Bank of Canada (TSE:RY). However, this Canadian bank stock is simply too good right now to not be included on a list of the best stocks to buy in Canada.

Royal Bank is a global enterprise with operations in Canada, the United States, and as we'll see the importance of later, 40 other countries. It is a well diversified bank, with personal, commercial, wealth management, insurance, corporate, and capital market services.

The company is Canada's most valuable brand, and has been for the last half decade. RBC currently sits at Canada's second largest company in terms of market capitalization, falling just behind another stock on this list, Shopify.

On average over the last 5 years the company has grown revenue by 6% and earnings by 3.5% on an annual basis. With a dividend yield in the 4.5% range and an 8 year dividend growth streak, it's one of the best dividend payers in the country.

A very interesting note: RBC paid out more in dividends in 2019 than Shopify had total revenue, despite Shopify being the larger company market cap wise.

The Canadian banking industry is one of the strongest investment sectors in the world, highlighted by the fact that no Big 5 financial institution cut their dividend during the 2008 financial crisis, and no Big 5 institution has done so yet during the COVID-19 era.

And it's likely the dividends are maintained yet again, as regulatory agencies are asking the banks to preserve liquidity and not raise the dividend in 2020 as a preventative measure to both clients and shareholders. It's rare I'd consider no dividend growth a good thing, but in the situation we're in, I'll take it.

Royal Bank knocked earnings out of the park during a global pandemic, and as a result has caught the attentions of a lot of investors. In fact, the stock is now outperforming the broader markets in terms of recovery, which is outstanding considering the headwinds they've faced.

Why has Royal Bank fared better than most? Well, this is primarily due to the fact it has the most global exposure out of any of the other banks. This has allowed it to be exposed to a multitude of economies at different stages of recovery. Compare this to a bank like Toronto Dominion, who almost has all of its revenue exclusively in Canada and the United States.

Moving forward, in my opinion the Royal Bank is simply a must have in the majority of Canadian's investment portfolios.

Royal Bank 5 year performance vs TSX

Royal Bank performance vs the Toronto Stock Exchange

Market Cap: $138.91 billion
Forward P/E: 11.50
Price to Sales: 3.23
5 Year PEG: -4
Sales estimates for next year: Premium Members Only
Earnings estimates for next year: Premium Members Only
14 Day RSI: Premium Members Only

1. Enghouse Systems (TSE:ENGH)

Enghouse

 

Enghouse Systems (TSX:ENGH) is a software and services company that provides products to some of the most stable industries in the country, particularly finance, government, utilities, and telecommunications companies.

The company is organized into 2 primary segments, the Interactive Management Group and the Asset Management Group. The firm is a global enterprise with operations stretching as far as the United Kingdom, Japan, Croatia, and many other countries.

So, why do I like Enghouse Systems so much? Well for one, they have a unique combination of both growth via share price and dividend growth. And when you can find a company in the technology sector that is growing its dividend at a rapid pace, you've got to take a second look.

Enghouse has grown revenue by 13.2% annually over the last 5 years and has drove earnings growth of 26.6% over that same timeframe.

This has allowed the company to continually expand as it has a growth strategy that is highly dependent on acquisitions. It targets other tech companies with revenue in excess of $5 million, and preferably that revenue comes via recurring revenue streams like monthly subscriptions.

Since the first quarter of 2019, the company has made a total of 7 acquisitions, including 2 companies in the United States, 1 in France and the Netherlands, 2 in Sweden, and 1 in Canada.

Over the last calendar year the company has returned 108% to shareholders as of writing, and with the recent surge in popularity in the company's products, analysts now expect the company could increase revenue by 50% in 2021, representing a 15% increase from its sales growth the previous year.

This has allowed Enghouse to not only return capital to investors through an increase in stock price, but also via its dividend. Enghouse Limited has the longest dividend growth streak out of any Canadian technology company at 13 years and has a 5 year dividend growth streak of 17.19%.

Considering the company has a payout ratio in terms of earnings of only 32%, there's still a ton of room for both the share price and dividend to rise.

Enghouse is expensive right now, there's no question. But the company is expensive due to expected continued growth in the future. There has been a significant amount of potential capital lost due to Canadian investors sitting on the sidelines waiting for Canadian tech stocks to get cheaper, but they haven't yet.

Enghouse Systems 5 year performance vs TSX Index

Market Cap: $4.09 billion
Forward P/E: 40.86
Price to Sales: 8.31
5 Year PEG 2.46
Sales estimates for next year: Premium Members Only
Earnings estimates for next year: Premium Members Only
14 Day RSI: Premium Members Only

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Dan Kent


An active dividend and growth investor, Dan has been involved with the website since its inception. Dan is primarily a researcher and writer here at Stocktrades.ca, and his pieces have numerous mentions on the Globe and Mail, Forbes, Winnipeg Free Press, and other high authority financial websites. He has become an authority figure in the Canadian finance niche, primarily due to his attention to detail and overall dedication to achieving the highest returns on his investments. Investing on his own since he was 19 years old, Dan has compiled the experience and knowledge needed to be successful in the world of self-directed investing, and is always happy to bring that knowledge to Stocktrades.ca readers and any other publications that give him the opportunity to write. Dan manages his TFSA, RRSPs and a LIRA at Questrade, and has compiled a real estate portfolio of his primary residence and 2 rental properties, all before his 30th birthday.

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