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

space ship model takes off
Top TSX Stocks

My 5 Favourite Stocks to Buy Right Now

There are plenty of great stocks on the market. Here's a look at my favourite stocks to own for growth…

Read more »

Close up of an egg in a nest of twigs on grass with RRSP written on it symbolizing a RRSP contribution.
Dividend Stocks

3 Evergreen RRSP Stocks Every Canadian Investor Should Own

If you're looking into RRSP stocks, it's quite likely you've come across these on many, if not all, of the…

Read more »

A Canada Pension Plan Statement of Contributions with a 100 dollar banknote and dollar coins.
Dividend Stocks

3 Reasons Your CPP Benefits Are More Valuable Than You Think

Holding iShares S&P/TSX Capped Composite Index Fund (TSX:XIC) in a TFSA can supplement your CPP.

Read more »

open vault at bank
Dividend Stocks

Don’t Get Cute; Just Buy Stability: Top Defensive TSX Stocks to Buy Now

A healthy risk tolerance is essential for most investors, but many stray from the tried and tested, hoping to find…

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

TFSA Investors: Buy These 3 Stocks for $3,480 Yearly Tax-Free Income

One significant benefit of a TFSA-based dividend income is that it doesn’t weigh down your tax bill.

Read more »

Canadian dollars in a magnifying glass
Dividend Stocks

3 High-Yield Dividend Stocks That Are Screaming Buys Right Now

Are you looking for great income stocks? Here's a trio of high-yield dividend stocks that pay insane yields right now.

Read more »

Piggy bank with word TFSA for tax-free savings accounts.
Dividend Stocks

Transform a $5,000 TFSA Into a $50,000 Retirement Nest Egg

The TFSA is a powerful tool that can grow a small investment into a substantial retirement nest egg over time.

Read more »

A meter measures energy use.
Dividend Stocks

Is Fortis Stock a Buy, Sell, or Hold for 2025?

Fortis has increased its dividend annually for the past five decades.

Read more »