Top Stock of the Week: STN

Alphanso Stock Research picked STN as one of the top stocks of the week.

Alphanso Rating: 9.9/10

STN (Stantec Inc.) is a standout example of a high-quality company with solid valuation support, low risk of estimate cuts, and strong operational efficiency. 

Fundamental Metrics:

1. Strong free cash flow (FCF) yield of 7.3%, growing consistently over the past few years, shows great signs of self-sustainability and cheaper company valuation.
2. The company’s forward revenue growth is 11%, suggesting that its products/services are competitive and the industry is expanding.
3. The annual EBITDA margin growth rate of 4.2% demonstrates the company’s strides in enhancing operational efficiency and expanding its scalability.
4. Consistently surpassing earnings expectations and dividend growth clearly indicates management’s commitment to being shareholder-friendly.

Technical Metrics:

Based on the Alphanso model, the stock is trading below the expected channel (range) of 59.8 – 67.5