Monday, November 30, 2015

3 Top Stocks I’d Buy With an Extra $15,000 | The Motley Fool Canada

3 Top Stocks I’d Buy With an Extra $15,000 | The Motley Fool Canada: "Transcontinental Inc. (TSX:TCL.A) is the largest printer in Canada with operations in print and digital media, flexible packaging, and publishing.

At current levels, its stock trades at just nine times fiscal 2015’s estimated earnings per share of $2.36 and only 8.8 times fiscal 2016’s estimated earnings per share of $2.42, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 158.6 and its industry average multiple of 28.2.

I think Transcontinental’s stock could consistently trade at a fair multiple of at least 12, which would place its shares around $29 by the conclusion of fiscal 2016, representing upside of more than 35% from today’s levels.

Additionally, the company pays a quarterly dividend of $0.17 per share, or $0.68 per share annually, giving its stock a 3.2% yield."



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