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RBC Capital has released a list of stocks on the S&P/TSX Composite Index it claims will have the most “predictable” positive performance.

“Predictability factors tend to perform well during low earnings growth environments or periods of high market volatility,” RBC analyst Chad McAlpine said in a note on Wednesday. The list was produced using RBC's proprietary computer models and boasts “defensive, high-quality names ... they offer strong growth profiles at attractive valuations,” he said.

Three sectors, namely industrials, information technology and consumer discretionary, all stood out with high representation on the screen relative to their index weightings. “On the other hand, financials don't look very appealing at this stage,” Mr. McAlpine said.

Here's the list, by sector:

  • Energy: Husky Energy Inc. (OTCQB:HUSKF) and Imperial Oil Ltd. (NYSEMKT:IMO).
  • Materials: Gerdau AmeriSteel Corp. (GNA) and Major Drilling Group International Inc. (OTCPK:MJDLF).
  • Industrials: Bombardier Inc. (OTCPK:BDRAF), Toromont Industries Ltd. (OTCPK:TMTNF), CAE Inc. (CGT) and Transcontinental Inc. (NYSE:TCL).
  • Consumer Discretionary: Dorel Industries (OTC:DIIB), Astral Media (OTC:AAIAF) Quebecor Inc. (NASDAQ:IQW), Reitman's (Canada) Ltd. (OTC:RTMNF), Corus Entertainment Inc., (CJR), Torstar Corp. (OTC:TORSF); and Shaw Communications Inc. (NYSE:SJR).
  • Consumer Staples: Metro Inc. (OTCPK:MTRAF).
  • Financials: Laurentian Bank of Canada (OTCPK:LRCDF), National Bank of Canada [NA/TSX], Home Capital Group and Power Corp. of Canada [TSE:POW]
  • Information Technology: CGI Group Inc. (NYSE:GIB), Celestica Inc. (NYSE:CLS) and Open Text Corporation (NASDAQ:OTEX).
  • Telecommunication Services: Telus Corp. (NYSE:TU).
Source: In Volatile Times, Predictable Stocks Are a Wise Move