| Symbol | Company | Pick history | Pick price | % Return at exit | Action | Sectors | Industries | Incentive | Rationale | hf:tax:sector |
|---|---|---|---|---|---|---|---|---|---|---|
| FOM.TO | Foran Mining Corporation | 02/01/2026 | C$5.04 | 30.8% | Removed | Basic Materials | Industrial Materials | Pre-revenue valuation stretched after rally | • Rotated out as other mining stocks offer more favorable risk-reward profiles following Foran's significant price appreciation. • Despite strong long-term performance (+166.8% over 6 months), recent momentum has slowed (-3.09% in the past week) while valuation metrics have stretched. • Current share price (7.1 CAD) trades significantly above both analyst consensus targets (5.92 CAD) and InvestingPro fair value estimates (4.44 CAD). • Fundamentals show continuing negative earnings (EPS -0.04 CAD) and negative EBITDA (-3.27M CAD), with profitability not expected until 2026. • Positive developments remain, including McIlvenna Bay Project at ~79% completion and strong analyst support (6 buy ratings), suggesting future potential. This change reflects portfolio rotation, not a sell signal. | basic-materials |
| T.TO | TELUS Corporation | 02/01/2026 | C$18.09 | 5.0% | Removed | Communication Services | Telecommunications Services | Market underperformance amid leverage concerns | • Rotated out as our model found marginally stronger alternatives in the telecom sector. • Telus has experienced negative total returns across multiple timeframes (-2.56% 1-year, -8.04% 6-month), with the stock trading ~18% below its 52-week high. • Recent pause in dividend growth and plans to phase out its DRIP discount signal balance sheet management priorities, as the company targets reducing its net debt to EBITDA ratio from 3.5x to 3.0x by 2027. • Q2 2025 results showed concerning trends including a $245 million net loss and declining adjusted EPS (-12% year-over-year). • Several strengths remain intact: growing free cash flow (+11% year-over-year), strong customer additions (198,000 new customers), and insider share purchases signaling confidence. • This change reflects portfolio rotation, not a sell signal. | communication-services |
| STN.TO | Stantec Inc. | 02/01/2026 | C$134.94 | Live | Added | Industrials | Engineering & Construction | Strong Growth With Market-Beating Returns | • Our ML engine identified Stantec Inc. as a compelling buy based on exceptional market performance (20.8% 1-year return), impressive growth metrics, and solid financial stability. • The company demonstrates remarkable revenue growth (12.5%) and outstanding EBITDA growth (21.5%), while maintaining healthy operating margins (12.2%). • Recent analyst consensus remains overwhelmingly positive (9 buy, 1 hold, 0 sell), with BMO Capital maintaining an "outperform" rating and a C$175 price target – representing significant upside potential. • Stantec's expanding project backlog, highlighted by numerous major contract wins (including multibillion-dollar infrastructure programs), provides excellent revenue visibility. • With a favorable PEG ratio of 0.72 and strategic positioning in high-growth sectors like water infrastructure and energy transition, Stantec offers growth at a reasonable valuation. | industrials |
| GOOS.TO | Canada Goose Holdings Inc. | 02/01/2026 | C$16.52 | Live | Added | Consumer Cyclical | Apparel - Manufacturers | Value Play With Growth Potential | • Our ML engine identified Canada Goose as a compelling buy opportunity based on positive market performance, attractive valuation, and growth potential. • The stock shows resilience with positive 6-month (+6.24%) and 1-year (+3.77%) returns, while trading at just 78% of its 52-week high. • Significant valuation upside exists with analyst fair value targets at 20.34 CAD and InvestingPro fair value at 21.82 CAD, representing 22-31% potential appreciation from the current 16.68 CAD price. • Growth drivers include impressive DTC channel expansion (21.8% revenue increase with 10.2% comparable sales growth), retail footprint expansion to 74 stores, and plans to double its direct retail fleet by 2028. • The company maintains exceptional 70% gross margins while improving financial discipline through inventory reduction and debt management. | consumer-cyclical |
| MTL.TO | Mullen Group Ltd. | 02/01/2026 | C$16.08 | Live | Added | Industrials | Trucking | Value Play with Impressive Performance Metrics | • Our ML engine identified Mullen Group as a compelling buy based on outstanding market performance, attractive valuation, and solid growth prospects.• The stock shows remarkable momentum with 26.6% price return over six months and trades near its 52-week high (94.9%), while analysts see further upside with BMO Capital recently raising its target to C$20.• With a reasonable P/E ratio of 15.2 and an attractive 5.2% dividend yield supported by 26 consecutive years of payments, Mullen offers excellent value.• The company targets 2026 revenue of C$2.3-2.4 billion (up from C$2.1 billion in 2025) and has demonstrated consistent growth through strategic acquisitions.• Strong liquidity position ($144.6M cash plus $525M in undrawn credit) provides flexibility for future acquisitions and weathering economic challenges. | industrials |
| CCA.TO | Cogeco Communications Inc. | 02/01/2026 | C$65.63 | Live | Added | Communication Services | Telecommunications Services | Value Play With Growth Potential | • Cogeco Communications stands out as an undervalued gem with a remarkably low P/E ratio of 9.0 and price-to-book of just 0.85, trading below its book value despite solid financial performance. • The company demonstrates impressive market momentum with a 13.8% 1-year return and positive 6-month (+8%) and 3-month (+5.9%) gains, while analyst fair value estimates suggest ~15% upside potential. • Investors benefit from an attractive 6% dividend yield with consistent growth (7% increase in latest quarter), supported by strong EBITDA margins of 50.4%. • The three-year transformation program is showing positive results despite revenue headwinds, with management highlighting significant growth opportunities in the U.S. market where penetration remains below 20% in half of its footprint. • S&P's outlook revision to stable and BMO's recent price target increase to C$75 reflect growing confidence in Cogeco's turnaround strategy and financial stability. | communication-services |
| TRI.TO | Thomson Reuters Corporation | 02/01/2026 | C$150.45 | Live | Added | Industrials | Specialty Business Services | AI-Powered Growth With Strong Fundamentals | • Thomson Reuters has been identified by our ML engine as a compelling buy opportunity based on its market performance potential, growth trajectory, and current valuation metrics.• The company's strong financial foundation is evident in its 26% operating income margin and consistent revenue growth of ~3%.• Goldman Sachs recently highlighted Thomson Reuters as well-positioned to capitalize on AI due to its proprietary data and entrenched workflows, maintaining a Buy rating on the stock.• With 82% recurring revenue and impressive customer retention rates (87-91%), the company offers stability while investing over $100 million annually in AI development.• Currently trading at just 50% of its 52-week high, Thomson Reuters presents significant upside potential with analyst fair value targets of CAD 260 (71% above the current price).• The company's 32 consecutive years of dividend increases, including recent 10% annual growth, further enhances its appeal to investors. | industrials |
| PXT.TO | Parex Resources Inc. | 02/01/2026 | C$17.94 | 14.9% | Removed | Energy | Oil & Gas Exploration & Production | Relative Performance and Liquidity Concerns | • Rotated out as ML model identified marginally stronger alternatives in energy sector.• Despite solid 61.2% 1-year price return, fundamental performance metrics show concerning trends with revenue declining ~22% year-over-year and EBITDA dropping ~36%.• Liquidity metrics (average daily volume of 0.56M shares) may limit institutional positioning flexibility compared to sector alternatives.• Failed GeoPark acquisition talks in December 2025 suggest potential growth strategy challenges, while Colombia-focused operations introduce additional geopolitical considerations.• Company maintains several strengths including attractive 7.62% dividend yield, Q3 earnings that beat estimates by 37%, and a price trading below fair value estimates (~25 CAD).• This change reflects portfolio rotation based on relative positioning, not a sell signal. | energy |
| DNTL.TO | dentalcorp Holdings Ltd. | 02/01/2026 | C$10.90 | 0.9% | Removed | Healthcare | Medical - Care Facilities | Delisted in recent update | This stock was delisted during a recent ProPicks AI monthly update and is currently not included in the list for this strategy. | healthcare |
| CSH-UN.TO | Chartwell Retirement Residences | 02/01/2026 | C$20.67 | -1.4% | Removed | Real Estate | REIT - Healthcare Facilities | Valuation concerns amid volatile performance | • Chartwell rotated out due to relative valuation concerns and recent performance metrics. • Despite strong long-term performance (+30.2% over 1 year), recent results have lagged with -1.4% over 3 months and -2.9% in the past week, suggesting momentum may be slowing. • Valuation metrics appear stretched with a P/E ratio of 236.4 and P/B of 4.2, while the significant gap between analyst fair value ($23.05 CAD) and InvestingPro fair value ($13.87 CAD) indicates valuation uncertainty. • The company maintains solid fundamentals with impressive revenue growth (~28%) and EBITDA growth (42%), along with strategic acquisitions and improved occupancy rates (93.1%). • This change reflects portfolio optimization, not a sell signal. | real-estate |
| GSY.TO | goeasy Ltd. | 01/01/2026 | C$131.29 | Live | Added | Financial Services | Financial - Credit Services | Value Play with Strong Dividend Growth | • Our ML engine has identified goeasy Ltd. as a compelling buy opportunity based on market performance potential, strong financial stability, and attractive valuation metrics. • Despite recent share price weakness (-18% year-over-year), goeasy demonstrates robust operational strength with record quarterly revenue of $440 million (up 15% YoY) and impressive 43.6% operating margin. • The stock appears significantly undervalued, trading at just 9.6x earnings and 61% of its 52-week high, while analysts maintain an average price target of $203.40 (56% upside potential). • Income-focused investors benefit from a generous 4.5% dividend yield with outstanding 25% dividend growth, supported by strong loan book expansion (32% YoY increase to $5.4 billion). • Multiple analyst firms maintain positive ratings despite recent earnings volatility, with BMO Capital's "outperform" rating and $226 price target highlighting long-term confidence. | financial-services |
| BTE.TO | Baytex Energy Corp. | 01/01/2026 | C$4.44 | Live | Added | Energy | Oil & Gas Exploration & Production | Strategic Transformation with Compelling Valuation | • Our ML engine identifies Baytex Energy as a strong buy based on exceptional market performance (84% 6-month return), attractive valuation metrics (P/B ratio of 0.82, PEG ratio of 0.1), and positive volatility catalysts. • The transformative $3.25 billion Eagle Ford asset sale positions Baytex as a focused Canadian producer with improved financial resilience (break-even reduced to $52/bbl) and net cash position. • Multiple analyst upgrades support bullishness, with BMO Capital doubling its price target to C$6.00 and Raymond James raising to C$5.50 (both well above current price of C$4.45). • Post-transaction strategy includes debt elimination, significant shareholder returns, and sustainable 3-5% annual production growth, creating a compelling investment case despite recent revenue softness. | energy |
| PET.TO | Pet Valu Holdings Ltd. | 01/01/2026 | C$27.89 | Live | Added | Consumer Cyclical | Specialty Retail | Strong Financials with Growth Runway | • Our ML engine identified Pet Valu Holdings as a compelling opportunity based on market performance, financial strength, and attractive valuation metrics. • Despite recent price volatility (-20% over three months), the stock maintains a solid 12% one-year return while trading at just 71% of its 52-week high, suggesting potential recovery. • Financial fundamentals remain robust with 5% revenue growth, 39% gross margins, and 14% operating margins, complemented by a steadily growing 1.7% dividend yield. • Significant growth runway exists with the company only two-thirds toward its 1,200 store target (currently adding ~40 stores annually) and expanding its high-margin "culinary" category. • Trading at a reasonable P/E of 20.5 and PEG of 1.5, the stock shows substantial upside potential with analyst fair value targets of $38.91 (~40% above current price). | consumer-cyclical |
| NTR.TO | Nutrien Ltd. | 01/01/2026 | C$84.25 | 1.4% | Removed | Basic Materials | Agricultural Inputs | Growth concerns amid strategic uncertainty | • Nutrien was rotated out as our model found marginally stronger alternatives in the materials sector. • Despite trading near its 52-week high, long-term revenue growth has stagnated at just 0.45%, significantly underperforming sector peers, though quarterly growth shows improvement at ~13%. • Recent strategic decisions create uncertainty: the company is reviewing its phosphate business (potential sale/restructuring), facing government criticism over its U.S. export terminal choice, and has divested ~$900 million in assets. • The company maintains solid fundamentals with 14.7% EBITDA growth, reasonable valuation (P/E: 16.7), and attractive dividend yield (3.5%) that partially offset concerns. • This change reflects portfolio rotation, not a sell signal. | basic-materials |
| EMP-A.TO | Empire Company Limited | 01/01/2026 | C$47.65 | 0.1% | Removed | Consumer Defensive | Grocery Stores | Market performance and margin pressure concerns | • Rotated out as other retail stocks show stronger near-term momentum profiles. • Recent price performance shows concerning trend: -8.2% over one month and -14.8% over six months, despite positive 1-year return of 10.6%. • Multiple analysts (Desjardins, CIBC, BMO, TD) have lowered price targets in December, indicating shifting sentiment despite maintaining neutral-to-positive ratings. • Margin pressures emerging as BMO Capital notes gross margin expansion expected to moderate to 10-20 basis points (vs. previous 47 basis points), providing less cushion against rising costs. • Labor disputes with Safeway workers in Alberta and lingering effects from a previous cyberattack ($32M impact) add operational uncertainty. • Company maintains solid dividend growth (10%) and EBITDA growth (~9%). This change reflects portfolio rotation, not a sell signal. | consumer-defensive |
| SDE.TO | Spartan Delta Corp. | 01/01/2026 | C$7.60 | -4.6% | Removed | Energy | Oil & Gas Exploration & Production | Valuation concerns amid market momentum shift | • Rotated out as our model identified more attractive energy sector alternatives with stronger combined metrics. • Despite strong yearly performance (+110% over 12 months), recent momentum has stalled with a -4.61% monthly return, while peers continue to attract institutional investment flows. • Elevated valuation metrics (P/E ratio of ~36) suggest limited near-term upside potential, with current price of $7.32 CAD approaching analyst fair value estimates of $8.05 CAD. • Trading liquidity constraints (0.52M average daily volume) may impact efficient position adjustments in rapidly changing market conditions. • Company maintains solid operational fundamentals with impressive quarterly revenue growth (+44.7%) and healthy gross margins (62.3%). This change reflects portfolio rotation, not a sell signal. | energy |
| TA.TO | TransAlta Corporation | 01/01/2026 | C$19.97 | -13.1% | Removed | Utilities | Independent Power Producers | Underperforming amid weakening fundamentals | • TransAlta rotated out due to underperformance relative to alternative energy opportunities. • Recent market performance shows concerning trends: -13% one-month return, -13.2% one-year return, and trading at just 69% of 52-week high, indicating weakening momentum. • Q3 2025 results missed expectations significantly, with revenue falling 27.6% below forecasts and an unexpected loss of -0.02 EPS, triggering a 14.9% stock drop. • Valuation metrics appear challenged with negative P/E ratio (-26.8) and declining financial metrics (EBITDA down 33.5% year-over-year). • Despite headwinds, TransAlta maintains positive aspects: a 16-year tolling agreement for its Centralia conversion project, ongoing data center strategy, and CIBC's "outperformer" rating with C$26 price target. • This change reflects portfolio rotation, not a sell signal. | utilities |