26 Stock Top Picks and 3 ETF (Dec 7-13)

Opinion about MRU-T: The ultimate winner in inflation. Tough business, low margins, competitive. He owns COST. Loblaw is well run, as are MRU and EMP.A

Opinion about ROOT-T: Interesting things happening. New CEO with marketing sophistication trying to transform a business that's struggled since the IPO. Pretty good entry point. Strong brand. If you have the appetite for a small company, more speculative, good name to own.

Opinion about FCFS-N: He sold then when the US Dept. of Justice began investigating it. He bought it to get exposure to gold and emerging markets. Gold is now in focus, but he wouldn't buy a miner or revenue streams, but rather physical gold. Gold is at all-time highs, so buy in tranches.

Opinion about LB-T: Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research LB traded sideways for the past year, with a nice level of support around $24, and after its recent earnings it popped higher to $30. To help confirm an uptrend, we would like to see it rise above $32. We do not…

Opinion about CM-T: We've already recommended National Bank, so let's look at the second-cheapest bank, CIBC, with its 11.2.x PE and EPS growth over five years of 5.39%, better than RY's 5.16%. Commerce has beaten its last four quarters with room to spare, and pays a safe dividend of 4.49%. Its EPS growth is beating…

Opinion about TD-T: Although it is a great operation, wait for a pullback. There is a potential slowdown and job losses. Also we're getting to the season where banks typically don't do well and many mortgages will be maturing.

Opinion about JPM-N: (A Top Pick Apr 03/24, Up 39%) Buy the leader. Strongest on the way up, most resilient on the way down. Best bank in the world. Global financials represent the most clearly defined leadership theme in the market right now.

Opinion about GS-N: Of the big banks, they are the most levered to investment banking, including IPOs. He bought it expecting an uptick in IPOs under Trump, but his tariffs have temporarily derailed that. The IPO revival should happen if tariffs don't return. This pulled back hard since mid-February because of those tariffs, down 35%.

Opinion about HLMA-LN: Chart shows nice stair steps over time. Fire safety, wastewater detection, healthcare (focused on cataract lenses). Serial acquirer, owning over 50 companies across those 3 segments. Exceptional job buying small companies at attractive valuations and growing them over time. High quality name, and gives Canadians a very different exposure from the usual…

Opinion about AL-N: (A Top Pick Nov 14/22, Up 12%) He is retiring from this. The PE is shrinking at almost the same rate as earning rise, so this means shares will go sideways.

Opinion about XYL-N: There will be a water shortage, and he expects a lot of cities city spending on upgrading, maintaining and expanding their water systems. A recent takeover should be accretive, (Analysts’ price target is $151.31)

Opinion about SWK-N: Are too many problems with the company. He was about to recommend it as a dividend stock, but realizes the dividend is not safe.

Opinion about PVG-T: (A Top Pick Dec 07/18, Up 36%) A volatile stock, but he likes the golds, holding 10-20% in a portfolio. Gold has a long runway.

Opinion about BCE-T: Now is probably the time to buy if you want to take a position. At $30 it is reasonably cheap. He likes the dividend cut which gives it financial flexibility and the opportunity to pay down debt. The dividend is still quite high at 6% and is stable. Market fears are somewhat…

Opinion about ENB-T: (A Top Pick Apr 30/24, Up 38%) We now have a gateway to Asia. With tariffs, Canadian energy will not be welcome in the US. Integrated nature of its pipelines make it a long-term asset with growth capabilities that will reward shareholders well. Buy when it goes on sale, trim any gains.…

Opinion about CNQ-T: Oil's been under pressure, and so have energy stocks, due to concerns about global economy. All these names are in a downswing, but you're getting a pretty nice dividend here of over 5%. 200-day MA is falling, and price is just below that, so may be important inflection point to see if…

Opinion about IPL-T: In the midst of a bidding war. More of a hold than a buy. Prospects for material upside are not very high. Better opportunities elsewhere. If you made profits, take some and invest in something like GEI or even TWM, if you have a higher risk tolerance.

Opinion about PPL-T: Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research PPL fell recently on news of lower tolls, but this of course comes with the territory of a regulated business. Considering its valuation, stability, cash flow and dividends, we would be comfortable buying a full position for income primarily and some long…

Opinion about UNH-N: He bought it back and bought more today. Steady management. They made a mistake underwriting Humana. V28 is behind them. They will have a kitchen sink quarter and you can count on the guidance. It will rally.

Opinion about PHM-X: They offer home monitoring for patients. They are expected to lose $0.01 per share this year and next year. It is not cash flow positive. There could be better chances about 18 month out. He would wait to see if things improve.

Opinion about VGW-CN: (A Top Pick Mar 15/19, Down 24%) He still holds it in the portfolio, but had taken some out at $4 per share. He is looking to add to the cannabis sector again following the consolidation. He holds an $8.25 target. They are producing a CBD and THC beverage.

Opinion about NVO-N: He's owned this since 2015, trimming 7 times (that's just good risk management). Markets were pushed well ahead of themselves in 2024, and then we saw a big retraction. Fast money has come out of this name. Down ~60%, growing double digits, 16x forward PE (vs. LLY at 43x forward PE). LLY…

Opinion about CSCO-Q: (A Top Pick May 22/24, Up 38%) King of the networking stocks. Hit their stride, mainly because of NVDA selling out of Blackwell and H20 and so on. Started beating on top and bottom, raising guidance (even during the tariff time). Pretty fully priced, with a $70.75 price target within 12 months.

Opinion about MSFT-Q: MSFT vs. META Excellent company that meets his criteria. If you made him choose one or the other today, he'd have to say META based on valuation (with the assumption that the investor would hold a position for the long run). MSFT trading ~37-38x PE, whereas META is in the mid-high 20s.

Opinion about OLED-Q: Patent on cellphone screens, from which they collect royalties. Good business as long as the patent goes on.

Opinion about OTEX-T: Really active with M&A through pandemic. Recent sale of a business. About 30% upside to target from here. Very involved in EIM software, leader in Canada. Buy 1/3 here around $36, another ~$33, final ~$31. (Analysts’ price target is $49.00)

Opinion about SDG-Q : (A Top Pick Dec 12/18, Up 15%) Linked to the UN Sustainable Goal: educational, healthcare, food, sanitation companies. Lots of exposure to emerging markets with only 35% US exposure. This will do well along with the world ex-US.

Opinion about CHGX-Q : (A Top Pick Dec 12/18, Up 17%) An ETF that tracks the S&P minus fossil fuels and weapons. Strongly correlates the S&P with slight outperformance. You get market returns and do good.

Opinion about SHY-Q: To park USD for a year BIL is a money-market-oriented ETF. For 2-3 years, look at SHV and SHY, to get interest rate exposure. He doesn't expect the Fed to cut rates for at least 1.5 years.