From Canadian Business Online,

By Norm Rothery

As we mentioned above, a mere nine stocks earn at least one A and one B on both our value and growth tests. Four of the nine stocks were also on the all-star list last fall. 

Sherritt International (TSX: S) heads the list of seasoned veterans. Headquartered in Toronto, Sherritt is a diversified natural resource company that is best known for its operations in Cuba. It also happens to be the only stock this season to earn both an A for value and an A for growth. (Keep in mind that the U.S. frowns on firms doing business with Raúl. Sherritt could feel the heat if Washington decides to get tough with the Caribbean nation. Alternately, when Castro dies, tensions with the U.S. may decline. Such political questions are something that a stock screen like the Top 200 can’t take into account.)

Linamar (TSX: LNR), the auto-parts maker based in Guelph, Ont., returns to the all-star list despite hemorrhaging in the auto sector. It won its place by growing earnings and sales by double-digit amounts over the last five years.

Methanex (TSX: MX) of Vancouver has an even better growth record. The firm boosted its earnings-per-share by an astounding 77% annually over the last five years. Methanex’s primary business is making methanol, a form of alcohol used as an ingredient in plastics, plywood and paint. Who knew the stuff could be so profitable? 

TransCanada (TSX: TRP), the giant pipeline company, is a classic widows-and-orphans stock. It is a solid all-around candidate and provides a 3.7% dividend yield. TransCanada is also the last of our returning all-stars.

New to the list this summer are energy giants Petro-Canada (TSX: PCA) and Husky Energy (TSX: HSE). Should oil prices remain sky high, shareholders are likely to profit while their neighbors feel pain at the pumps.

Metro (TSX: MRU.A), a Montreal-based food conglomerate, is a stock you can sink your teeth into. It sports a low price-to-earnings ratio and solid earnings growth.  But its shares have slumped recently due to Wal-Mart’s move into the grocery business.     

Northbridge Financial (TSX: NB) is the Canadian-focused commercial property and casualty insurance subsidiary of Fairfax Financial (TSX: FFH). Northbridge is enjoying big gains from bets against the U.S. housing market and various U.S. financial firms.

Algoma Central (TSX: ALC) runs a fleet of ships out of its St. Catharines, Ontario headquarters. Algoma’s vessels haul freight throughout the Great Lakes and beyond. With earnings growth of almost 20% and a price-to-earnings ratio below 10, Algoma is one to watch.
 
Before buying any stock, you should make sure that its situation hasn’t changed in some important way. Read the firm’s latest press releases and regulatory filings. Scan newspaper stories to make sure you’ve sussed out all the important developments and breaking news. Like a good restaurant reviewer, we’ve done our best to evaluate the offerings on the menu, but you should arrive at your own decision before loading up your plate.