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.
Disney Plus will be its new streaming service. They bought Fox assets, which will help that platform. They already create content for their amusement parks and will for their streaming service. ESPN Plus has enjoyed massive subscriber growth, paving the way for Disney Plus. (Analysts’ price target is $126.55) (Zachary Curry )
Earnings in last quarter had 6-7% organic growth, 2-3 times better than the competition. Not cheap at 23x earnings. Has differentiated itself from the others in its industry. As long as dividends are growing at a hefty rate, no reason to sell. (David Driscoll)
A well-run blue chip. The price fells after a poor Q3. But it's moving into organics and just announced a new poultry operation with a new facility in London, ON. Trades at only 8x EBITDA. Great value. Solid balance sheet. (Analysts’ price target is $38.22) (Colin Stewart)
The biggest U.S. home builder that's acquired other hold builders. They operate mostly in the U.S. south (west and east). Trades at 7x earnings and below book value. Cheap. (Analysts’ price target is $57.10) (Gordon Reid)
(A Top Pick Feb 20/18, Down 2%) Unfortunately, he got stopped out. There's more baked into HD than meets the eye. He wants HD back in his portfolio, like FedFex. (Mike S. Newton, CIM FCSI)
(A Top Pick Feb 13/18, Up 9%) TD still looks attractively valued with metrics trading below 10 year averages. She expects another 9-10% increase in the dividend and the payout ratio remains around 50%. (Christine Poole)
You have to move out of Canada. They are a proponent of telemetric driving where you stick a gismo in your car and it tells you if you are a good driver. They are making a big push on the commercial side. They have a fantastic balance sheet. (Analysts’ price target is $74.06) (Hap (Robert)…
Their core P&C insurance business has improved in recent years. They now have a lot of cash. You're betting on Prem Watsa's investing acumen who will put that capital to work. Trading close to book value for the first time in six years. (Analysts’ price target is $748.46) (Colin Stewart)
REITs tend to trend in channels. He would be careful with all REITs at the moment. They just got out of CGR-T. He thinks that the idea that you have to own 5% Real Estate in your portfolio at all times is nonsense. Expensive. (Terry Shaunessy)
It is probably the best one in Canada in terms of residential REITs. You want to be cautious on REITs because they are expensive. This is not an ideal time to step into REITs. (Larry Berman CFA, CMT, CTA)
Bullish on the stock. Upcoming quarter might be challenged because of the weather, so Q1 won't be as good as Q4. Pricing power is good, volume is increasing. A great business. Makes sense to hedge the first quarter, but she wouldn't worry about hedging this sector for a whole year. (Veronika Hirsch)
Is the PE high? He likes the company and thinks it has executed on contracts well. They will benefit if SNC-Lavalin gets banned on contracts and this has caused the stock to rally. He would buy it here and sees 10 years of good growth potential. (Peter Hodson)
(A Top Pick Feb 08/18, Down 10%) Broadly speaking the aerospace arena is still favorable. The market has dialed down a little as more peaceful discussions have started with North Korea. He still wants to hold and likes their investment into electronic defense technology. (Cameron Hurst)
If you have a pro-growth movement in markets going forward, you have to have an investment like this. They are at the core of this theme. $280 will be its next move. It has really good support at $240. It is trading at a discount to its forward PE. Everything is pointing in the right…
Like the railroads in the '90s, the airlines are getting cleaned up. Unions are now onside with what is going on. He likes it. It just broke out. He would not get a full position here. If it pulls back, then buy more. It is now one of the better airline stocks. He likes it…
It gapped higher at $17 following earnings, but hit its 200-day moving average and now going lower. Be cautious here long-term. Feb-July is its seasonality. (Jon Vialoux)
A US company that specializes in cloud data management technology. They have a clean balance sheet and are growing revenue at 20% per year. They specialize in helping Fortune500 companies manage their cloud. National Bank become a client last year. A unique platform company, like Shopify. Yield 0% (Analysts’ price target is $25.83) (Chris Stuchberry)
It continues to garner a large percentage of online advertising spending. Newer driver-less car technology and YouTube offer good prospects. They have over 36 consecutive quarters of 20% organic growth. They can fund their growth through internal cash flow. Yield 0%. (Analysts’ price target is $1334.78) (Christine Poole)
Small tech name in Canada. Come back from the dead. Building in the hot areas like 5G. A small company, not expensive, underloved. Will have to ride through volatile times. No dividend. (Analysts’ price target is $6.00) (Gerard Ferguson)
(A Top Pick Dec 15/17, Up 9%) They had a couple of clients who delayed rolling out their services, but the stock has still done well. He still likes the growth potential. They are sitting on $200 million in cash. (Peter Hodson)
Not a fan because of the regulatory issues. It's not a long-term hold. She has a small short on it. As the US dollar rises, US earnings are worth less, but she wouldn't worry about this aspect. It's a good trade, as there is always lots of news on the stock, but you have to…
Software as a service. It is the strongest sector, period – in the last two years. It makes software that is used to manage workflow such as for companies that provide IT servicing. It is growing rapidly. 35% year over year. They have running room in front of them. (Analysts’ price target is $233.32) (David…
It is a secular theme that goes beyond the business cycle. They are more focused on emerging markets, where the industry is growing faster than domestically. It does not matter if the business cycle slows down or not. (Analysts’ price target is $235.70) (David Burrows)
(A Top Pick May 15/19, Down 4%) It was a theme that he still likes. Dominated by China. Big holding for his firm. (Terry Shaunessy)
Not without its volatility. Some leaked documents on pension reform causing it to move today. Good support and he likes the technical confirmation. Yield 2.5% (Cameron Hurst)
He likes because it gives diversification away from the big pharma. Nothing wrong with this one. (John Hood)
You buy it once and you don't have to do anything else if you buy it in a registered account. You don't have to think. MER is 18 basis points. Very cheap. (Terry Shaunessy)
Equal weight indexes is something they like. He likes Europe. The market weight index tends to be lumpy with the large companies in it. Many companies serve in emerging markets. Trades on NEO not on the TSX. (Terry Shaunessy)
Use this list wisely to identify buying opportunities.
Happy trading !!!