Nine high-flying Canadian stocks with strong momentum
What are we screening for?
Canadian-listed stocks with strong price momentum.
The Screen
Tariffs and trade wars have dominated news headlines and kept investors on their toes, and recent comments from President Donald Trump suggesting the United States might impose 30-per-cent tariffs on imports from the EU and Mexico in August could dampen market momentum. While European markets retreated slightly following these comments, the Nasdaq 100 and S&P TSX Composite Index both hit all-times highs, suggesting that investors may have accepted that tariffs will remain in place, and have shifted their focus back to market fundamentals.
The S&P TSX Composite rose by 0.65 per cent on Monday, driven higher by the information technology, industrial, and energy sectors. These gains follow a surprise drop in Canadian unemployment for June, which fell by 0.1 per cent to 6.9 per cent with the addition of 83,000 jobs. Investors can expect more economic data releases this week, with the Consumer Price Index data expected on Tuesday, which is likely to guide interest rate policy decisions for the Bank of Canada and could play a role in whether markets continue to move higher. Today, we screen for Canadian-listed companies demonstrating strong momentum amid newly minted all-time highs.
- First, we screen for Canadian-listed companies with a market capitalization greater than $1-billion.
- Next, we screen for companies that have demonstrated strong price momentum. The StarMine Price Momentum model includes a blend of short, mid-, long-term, and industry-specific components, and recognizes the tendency of long-term trends to revert to their long-term mean. Higher scores indicate stocks with the strongest price momentum. We screen for companies with a score greater than or equal to 95, with 100 being the highest score, representing the leading companies for price momentum.
- Last, we screen for companies that have closed above their 50-day simple moving average (SMA). We use the close price v. the 50-day SMA to screen for companies with a close price at least $1.00 above their 50-day SMA.
More About London Stock Exchange Group
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What We Found
The screen, ranked by StarMine Price Momentum model, produced nine companies.
Nutrien Ltd. NTR-T, which scored 96 in the StarMine Price Momentum model, is a global provider of crop inputs and services operating a network of production, distribution, and agriculture retail facilities. The Saskatoon-based company operates four business segments, which include retail, potash, nitrogen, and phosphate, and management is focused on driving operational efficiency, expanding high-return growth opportunities, and remaining disciplined with capital allocation. Nutrien completed two acquisitions in the first quarter, and maintained their 2025 full-year guidance range, with management expecting growth in potash and nitrogen sales volumes.
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While Nutrien posted a lower average net selling price for potash in the quarter, driven by a decline in North American benchmark prices, demand is expected to remain strong through 2025, which should help boost their average net selling price. Nitrogen was a strong contributor to performance, with higher average net selling prices helping to offset lower volumes. Nitrogen markets have been affected by supply disruptions from Iran and Egypt, and if these disruptions persist, prices could benefit in the short term, providing some tailwinds for the stock.
Magellan Aerospace Corp. MAL-T, which scored 100 on the StarMine Price Momentum model, is a diversified supplier of components to the aerospace industry. Mississauga-based Magellan designs, engineers, and manufactures aeroengine and aerostructure components for aerospace markets, and in the first quarter derived 62.2 per cent of revenues from commercial markets and 27.8 per cent of revenues from defence markets. The company reported first-quarter revenue of $260.9-million, an increase of 10.9 per cent from a year earlier, driven by higher casting product revenues in Canada, and higher engine shaft revenues in the United States.
It hasn’t all been clear skies for Magellan, which was affected by the 2024 strike at Boeing and a total order backlog of more than 8,000 aircraft at Airbus. The possibility of tariffs have also been looming, however the outlook for defence spending remains strong, party driven by NATO’s defence spending commitments, which could support further growth for Magellan.
Investors are advised to do their own research before trading in any of the securities shown.
Stephen Donovan, MBA, is a Sales Specialist covering commodity markets at LSEG.