5 Stocks That Outperformed Last Month

The TSX Composite was virtually unchanged in March, but that didn’t mean there weren’t pockets of the market outperforming. Find out what sent shares in Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) and four others soaring.

| More on:
The Motley Fool

The TSX Composite was virtually unchanged last month in March — down 60 basis points, or 0.6%.

But just because the broader averages aren’t very active, it certainly doesn’t mean there aren’t pockets of the market offering you the potential for outsized returns.

These five stocks have rewarded investors handsomely over the past month.

The energy sector has been one of the stronger performing sectors in the market of late, and Suncor Energy Inc. (TSX:SU)(NYSE:SU), as Canada’s largest energy company, has been no exception with shares up 12.5% since March 2.

The price of West Texas Intermediate Crude (WTIC), the benchmark price for oil, has planted itself firmly above the US$55 mark, showing consistently positive gains over the past five months, making now a good time to be invested in the oil and gas sector.

Fortuna Silver Mines Inc. (TSX:FVI) was one of the hottest stocks in the silver space during March — up 14.3% for the month and up 23% since February 9.

Following an outstanding year in 2016, when the company’s share price more than quadrupled, the stock cooled off in 2017, but appears ready to break out again, having crossed above its 200-day moving average last month — a bullish indicator.

Dream Global REIT (TSX:DRG.UN) is up 12.8 since March 1 and is up 27.4% since November 1, as the company continues to exceed investor expectations.

What’s even more impressive is that those gains have come amid a slumping REIT sector, which is being hampered by the threat of higher rates.

Dream’s strategy is to acquire desirable office properties for its real estate portfolio, and it was a strategy that bore fruit for the company in 2017, helping to generate 19% growth in funds from operations (FFO) against a yield of 7.71%.

Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) was another integrated oil and gas name to outperform last month with the company’s shares up 29.4%.

Cenovus shareholders have suffered a 66% decline in the company’s share price since 2014, as the investment community struggles to navigate its acquisition of ConocoPhillips’s FCCL Partnership assets amid lower oil prices.

That aside, Cenovus shares trade at a 0.73 times discount to the company’s book value, making the stock a very compelling deep-value play.

Martinrea International Inc. (TSX:MRE) was up 7.5% last month, as the company continues on a roll that has seen its share price more than double since the start of 2017.

Martinrea finds itself going through a transition in the way it records its sales to automotive manufacturers, which runs the risk of misleading investors who only take a cursory review of the company’s financials.

Sales for Martinrea were down 7% in 2017, but the bigger story was the company’s 54.7% increase in operating profits and 73.2% incremental growth to the bottom line.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Jason Phillips owns shares in Cenovus Energy Inc. Dream Global is a recommendation of Dividend Investor Canada.

More on Dividend Stocks

investment research
Dividend Stocks

Best Stock to Buy Right Now: TD Bank vs Manulife Financial?

TD and Manulife can both be interesting stock picks for today, depending on your investment style.

Read more »

A worker gives a business presentation.
Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

These stocks are out of favour but could deliver nice returns over the coming years.

Read more »

Man holds Canadian dollars in differing amounts
Dividend Stocks

This 5.5 Percent Dividend Stock Pays Cash Every Month

This defensive retail REIT could be your ticket to high monthly income.

Read more »

Confused person shrugging
Dividend Stocks

Passive Income: How Much Do You Need to Invest to Make $600 Per Month?

Do you want passive income coming in every single month? Here's how to make it and a top dividend ETF…

Read more »

Canadian Dollars bills
Dividend Stocks

3 Monthly-Paying Dividend Stocks to Boost Your Passive Income

Given their healthy cash flows and high yields, these three monthly-paying dividend stocks could boost your passive income.

Read more »

Make a choice, path to success, sign
Dividend Stocks

The TFSA Blueprint to Generate $3,695.48 in Yearly Passive Income

The blueprint to generate yearly passive income in a TFSA is to maximize the contribution limits.

Read more »

hand stacks coins
Dividend Stocks

3 Ultra-High-Yield Dividend Stocks You Can Buy and Hold for a Decade

These three high-yield dividend stocks still have some work to do, but each are in steady areas that are only…

Read more »

senior man and woman stretch their legs on yoga mats outside
Dividend Stocks

TFSA: 2 Canadian Stocks to Buy and Hold Forever

Here are 2 TFSA-worthy Canadian stocks. Which one is a good buy for your TFSA today?

Read more »