23 Stock Top Picks and 5 ETF (Feb 01-07)

Opinion about DIS-N: A lot going on here in recent years, but just a few years ago, the stock was nearly doubled, based on hopes for Disney+. That said, they will be a long-term winner in streaming; their content is strong around the world. Also, their theme parks keep selling, and are expanding internationally. Probably…

Opinion about SYK-N: (A Top Pick Apr 10/24, Up 0.48%) Down along with the market. About 73% of revenues from US; rest is from other parts of the world, so lots of growth internationally. Very strong demographic play. Great company.

Opinion about MFI-T: She's anticipating economic weakness, hesitant even on the consumer staples space. Consumers in Canada have seen a lot of price increases in the last 24 months; spending same $$, but taking home less. Questions ability to continue to pass on those price increases. 

Opinion about LEN-N: Sold it for Canadian tax reasons. LEN spun off the part of the company that held the land, probably a good move, but he wasn't sure about the tax hit. He still likes the US homebuilders given the shortage of housing.

Opinion about HD-N: They report Tuesday. HD isn't levered to interest rates, but rather repair and renovation trends, which is a tailwind. Is -2% for the year, well off its highs, but he likes this long term. Also, HD has the scale to absorb the tariffs on their foreign-made goods.

Opinion about TD-T: It's the best Canadian bank performing so far this year, but the worst in 2024. Their US problems are not yet behind them (they have to work through the asset cap, part of the penalty for money laundering). They have limited growth in the US, but also won't need capital to grow.…

Opinion about PGR-N: A number of P&C insurers in the US pulled back post-hurricane. Technically, not broken. Sector probably does pretty well going forward. 

Opinion about FFH-T: Has done well, and will probably continue to do so. Well positioned in its space. Also does well in an environment of higher long-term yields, whereas many companies (especially those with elevated debt) flounder. A name like this will insulate you from that.

Opinion about XLRE-US: It's all about interest rates. Probably we need to see the 30-year fall below 6.0% to trigger pent-up demand and will likely get it. We're 5 million homes short in the U.S. and have been underproducing for 14 years.

Opinion about CAR.UN-T: Most broadly balanced across the country, though it is more focused in Ontario. Largest, so it's the most liquid; very easy to get in and out of. Selling older properties with higher energy and maintenance costs. Loves the cycle of selling old, get the capital, pay down debt, buy newer properties. Buying…

Opinion about CNR-T: He got stopped out, broke support. Can't be all that bullish on it until it returns to above $150.

Opinion about WSP-T: High-quality company in a high-quality part of the value chain. Valuation is the only sticking point. Expect them to buy more of their competitors and integrate them well. Good core, long-term holding. Pick your spots.

Opinion about RTX-N: Servicing the aerospace OEM side is very profitable, with long-term recurring revenues. This makes the earnings profile less cyclical. Defense side seeing very strong demand from US and internationally. Very strong backlog in defense. Will benefit from global increases in defense spending. In the face of geopolitical turbulence, defense business should stay…

Opinion about CP-T: Things seem to be going well. The rails are such a bellwether on goods, manufacturing, and broader economy. Volume growth in mid-single digits in Q1, company says those volumes have accelerated in April and May. Noted strength in bulks (such as Canadian grain and fertilizer). Autos were steady, which is comforting. Cost…

Opinion about AC-T: (A Top Pick Apr 17/25, Up 28.8%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with AC has achieved its target at $18.  To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $9) to $13.

Opinion about ATS-T: (A Top Pick Feb 27/23, Down 28%)Disappointing growth in EV equipment. Rolled over and he got stopped out. Wasn't making higher highs and higher lows, no longer in an uptrend. In your portfolio, you have to quickly carve out the ones that aren't working before they hurt you.

Opinion about BOX-N: Last year they fended off a challenge from an activist investor. Its platform enables remote work, so share soared during Covid. But then earlier this year, the activist threatened to take it over. Instead, in April, Box struck a deal with another investor, KKR, for a $500 million investment to mostly use…

Opinion about GOOG-Q: Legal problems in US, those in India seem to be resolving. Will do well going forward. Has figured out how to monetize AI for the end user. AI does present a challenge to Search, but this company will innovate. Likes it, will continue to deliver results as a long-term play despite the…

Opinion about BYL-T: Notoriously volatile. BYL has had a rough ride in recent years, but has fixed their balance sheet after selling their money-losing mobile business based in Korea. Are now focused on embedded antennas, infrastructure and satcom. They just announced a big stadium deal in South American for their wireless antennas, in which they…

Opinion about KXS-T: An excellent tech company, one of the few tech stocks up this year because their products are in demand now. Margins are already improving. Will announce a new CEO soon which will be another catalyst. They have the best technology but sales execution was weak, but they can fix this. Is a…

Opinion about META-Q: He has been buying tech during this dip, in April particularly. We will eventually exit this volatility and find stability and confidence in the market again. Meta and Microsoft are some of his key holdings, and they affirmed their capex guidance--they are spending to make incredible investments over the next three years,…

Opinion about NOW-N: Dangerous name to be out of. Huge run, strong Q1. Reinforced leadership in enterprise AI. Guidance is in line. Concern about government cuts, but overall average deal size up by 1/3. 18% growth, but trading at 40x 2026 and 33x 2027. A bit expensive PEG ratio. Have to pay up for good…

Opinion about MA-N: Visa vs. Mastercard Both great, both enjoying growth ahead with much of the world still to adopt cashless payment. MA has seen a little higher growth, but both have good growth and both enjoy 97% gross margins and 67% operating margins. They got knocked about occasionally over fears of regulation. Prefers Visa…

Opinion about XEC-T: Tilted portfolios towards developed and emerging international. Best returns will come from here.

Opinion about EWZ-N: Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research We are not experts on Brazil, and it has certainly had some economic issues of late. Still, the Brazil market is nicely ahead of the US this year, and positive on the year. EWZ is up 10.17% YTD. Certainly for investors looking…

Opinion about IHI-N: Allan Tong’s Discover Picks IHI's MER is actually higher (at 0.39%) than the yield it pays (0.3%). Like the other names here, IHI trades at a low beta, 0.86 to be precise. So, if you're not buying this for income, what's the growth? Let's look at IHI's largest holdings. TMO offers diversity…

Opinion about XBAL-T: Balanced ETFs for a long-term hold? VBAL and XBAL are great, one-stop shops for smaller accounts. Leave it and forget it. Typically has about 40% fixed income, which would have had a tough run up till about a year ago. VBAL costs about 25 bps for the MER, XBAL costs about 20 bps.…

Opinion about EQE - NEO: (A Top Pick Jan 07/19, Up 14%) They are one of the lead orders on this. There was a technical issue where it was listed on the TSX and NEO. The fund refused to list it on the TSX. It doesn't have good liquidity due to this and so they…