23 Stock Top Picks and 5 ETF (Feb 01-07)
This week there were 23 Top Picks and 5 ETF in a wide range of industries: Consumer, Financials, Industrials, Technology and ETF.
Here are this week’s Top Picks as selected by: Bruce Campbell, Chris Stuchberr, John O´Connell, Hap (Robert) Sn, Gerard Ferguson, Colin Stewart, Gordon Reid, Cameron Hurst, Terry Shaunessy and David Burrows.
(A Top Pick Sep 23/22, Down 12%) Streaming continues to lose money. Very good content that can be applied to movies, travel, and products. Covid has created a lag, but momentum will come back. Spinout of ESPN should bode well. He'd add if it dropped lower.
They reported top and bottom line growth and organic growth was better than expected. He's bullish about medical devices, given the Covid-induced backlog in surgeries.
Meat processing business that relied on M&A in the past. Experiencing additional costs with inflation etc. People trading down to lower cost proteins. Does not own shares. Plant based protein business also suffering.
She sold it, expecting shares to come down, but they never did. Home builders continue to be strong stocks since their October lows.
The Home Depot is the world's largest home improvement specialty retailer, with 2,296 retail stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. In fiscal 2019, The Home Depot had sales of $110.2 billion and earnings of $11.2 billion. The company employs more than…
Likes it. Too bad it had to give up on First Horizon. Good footprint in the US. Will have to grow organically, which will take longer than by acquisition. Banks with US exposure will have a tougher slog. But over the longer term, that's how they'll grow because it's such a larger market than Canada.
Very fine company. One of the best property and casualty companies in the world. Relatively resilient, defensive business model. Long-term, he recommends it. But for short and medium performance, we're exiting a recession, so it makes sense to put more capital into cyclicals.
Never been a huge fan of it, because he always wondered about their growth profile, but Prem has been a mini-Buffett and has done pretty well. He has a good, long-term track record and the valuation is not outrageous. It will continue to be a fine growth stock.
The Real Estate Select Sector SPDR Fund (XLRE-US)
Bought it yesterday. Public REITs will see a mean reversion for a discount valuation vs. private markets in 2023. If there's a recession, there will be a lot of M&A, driven by private equity cash wanting to do deals. XLRE will take advantage of this mean reversion. Public REITs have outperformed private RE in the…
Canadian Apartment Properties (CAR.UN-T)
CAP REIT pays 3.4% dividend yield at a safe, low 50% payout ratio, and last month the REIT also paid a special distribution. It trades at 14.84x earnings, a premium over Killam Apartment REIT (9.04x). Casting a shadow over residential REITs is the pledge of Prime Minister Trudeau, made in August 2021 during that election…
Canadian National R.R. (CNR-T)
Allan Tong’s Discover Picks CP has been getting all the attention because it merged with Kansas City Southern, but CN trades at the better PE of 20.28x compared to its rival of 27.96x. No question that CP is a powerhouse, but it will take time to absorb KC into its operations and pay for it.…
(A Top Pick May 17/22, Up 29%) Likes its positioning. Very nice acquisitions. Transportation infrastructure has good growth potential, especially yin US. Moving into environmental space, which should grow. Wide geographical presence, with Canada only 18% of revenue. Relatively strong balance sheet. Organic growth still attractive. Didn't raise guidance, but management feels backlog can support…
Owns shares in business - has performed well.Defense sector recently pulled back on debt ceiling talks.Overall, a good name to own for the long term.Demand for defense spending not going away.
Very valuable acquisition over the long term. May take a while to realize the synergies, but they'll get there. Future acquisitions will be difficult for all rails, so this one was very timely. Can't replicate those assets. Can now service Canada, US, and Mexico directly. Will benefit from onshoring. Yield is 0.74%. (Analysts’ price target…
Does not own shares.Very tough business with high costs.Recession will not be good for travel industry.Would not recommend buying.
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. ATS is an industry-leading automation solutions provider to many of the world's most successful companies. It uses its extensive knowledge base and global capabilities in custom automation, repeat automation, automation products, and value-added services to address the sophisticated manufacturing automation systems and service needs of…
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 to buyback shares.…
Fundamentally a very strong business.High margins with excellent cash generating ability.Strong research in A.I. Online ad business very strong with recurring revenue.Would recommend for long term investors.
It makes radio frequency antennas and tags for smart phones, etc. It is well run and has an OK runway, but liquidity is low. It is worth holding and maybe adding. (Analysts’ price target is $0.50)
Strong company with good underlying economics.High share price a concern.Would wait for share price to fall before investing (max 30x cash earnings).
It is one of five or six stocks that are driving the sector. It is up 44% on a one year basis and is maybe overbought. You could start trimming and sell half now. Don't buy today because there is resistance at this level. It is part of the long term AI trend. The technical…
(A Top Pick May 18/22, Up 10%) Its product renewal rate is 99% and it has many very high spending clients. Its last report beat on both the top and bottom lines and it raised guidance. It keeps companies running smoothly. Its market cap is $92 billion. (Analysts’ price target is $509.00)
MA vs. V He prefers Visa, but both are good. MA gives more international exposure, so maybe a bit more growth. Defensive business models. Moving to the Financial sector of the S&P 500, so it will boost performance of that sector.
iShares MSCI Emerging Markets (XEC-T)
iShares MSCI Brazil ETF (EWZ-N)
Brazil is a good choice for broad emerging markets. Geopolitical risk is present with change of government. Long run, Brazil relies on commodities (oil) to fund economy which is risky.
iShares DJ Medical Devices E.T.F. (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 among lab testing,…
iShares Core Bal. ETF (XBAL-T)
All-purpose ETF for a retired senior, non-RRSP XBAL holds US, Canadian, emerging stocks and Canadian & US bonds. It's globally diversified. In addition to XBAL, he also suggests HRAA (which he manages--disclosure) which is a globally balanced portfolio of stocks, commodities and bonds plus a managed futures overlays. HRAA offers alpha and beta to mitigate…
Invesco Euro 350 ETF (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 gave it up.
Use this list wisely to identify buying opportunities.
Happy trading !!!