Canadian Stocks For The Gurus

In his latest for, Validea CEO John Reese looks at some top buys among stocks of Canadian firms trading on US exchanges.

“While you don’t hear a lot about it in the investment world, Canada has a good deal going for it, including a stable government and abundant natural resources. (It was the world’s fifth-largest oil producer in 2013, for example.),” Reese says. “I sub-advise two Canadian mutual funds and also run Canadian model portfolios picked with my Guru Strategy investment models, so I’ve gotten to see first-hand the opportunities our neighbor to the north offers. And so far in 2014, those opportunities have been paying off.”

Reese discusses the strong recent performance of the Canadian portfolio he tracks on his Validea Professional Web site. “Going forward, given their performances over the past half decade, Canada may offer more compelling opportunities than the U.S.,” he adds. “Over the past five years, the S&P 500 is up 14.1% annualized, while the Canadian S&P/TSX 60 benchmark is up just 6% per year. That’s part of why Canadian stocks overall look a bit cheaper than U.S. equities right now. Canada’s economy doesn’t have the size or diversity of the U.S. economy, of course, but all of this makes the Canadian market a place U.S. investors may want to examine as a way to supplement their U.S. holdings.”

Reese looks at a handful of Canadian stocks that pass his Guru Strategies. Among them: Celestica.