Companies are all around us, facilitating the way we live and producing products that we want. These top companies have such a huge reach that we have all at least interacted or used their services at one point or another in our lives. If not, then you surely know that someone that has!
Shopify Inc. (SHOP-T)
The e-commerce giant that offers a platform for webstores. They are one of the most popular platform and facilitates the interaction between shoppers and sellers. As e-commerce becomes more and more ubiquitous, you will be using Shopify without even knowing it.
Stockchase Research Editor: Michael O'Reilly As consumers become more comfortable with online commerce, SHOP is well positioned to continue to see significant growth. It offers retailers an efficient way to sell directly and it collects recurring revenues through subscription fees. Earnings will be reported April 28 and the market expects EPS of $0.71 US and…
Mastercard Inc. (MA-N)
The move away from cash and into digital currency has been a boom for Mastercard. We all have at least one person, if not many, who have a Mastercard credit card.
Second largest global payments system after Visa. Taps into a more normal economic backdrop and especially lucrative travel transactions. Long growth runway of moving from cash to digital. Annualized revenue growth should grow to 17%. Yield is 0.47%. (Analysts’ price target is $392.65)
Netflix Inc. (NFLX-Q)
Netflix is the online streaming service that most people know and use. They are starting to focus more on their in-house content which has won awards and keeps subscribers.
They report Tuesday. They usually beat their numbers and they enjoy talking about their business and forthcoming releases.
Visa Inc. (V-N)
If you have a credit card, chances are you have at least a Visa. Along with Mastercard, Visa is the most recognized name in the credit industry.
One of the best growth companies you can get out there. Trading at around 32x 2022, 27x 2023 with a model growth of 27%. This works on his price to growth value. Has had a fantastic run. You want to buy at the 200 day moving average, which is $218.
Everyone has a Facebook account know and the numbers are still growing, counting 2.4 Billion users. The company has faced some data security concerns and other scandals but this social network is not about to go away anytime soon.
(A Top Pick May 12/20, Up 49%) Of the megacap tech stocks, this is the cheapest at 25x earning with growth around 10-15%. Has a great base. The controversy will continue, but Democrats and Republicans hate FB for opposite reasons--which is the sweet spot.
Alphabet Inc. / Google (GOOG-Q)
For a lot of people, Google is the door to the internet. It has become so well-used and well-loved that it’s not uncommon to hear people say “Let me google that”.
(A Top Pick Aug 06/20, Up 49%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with GM is progressing well. We recommend trailing up the stop (from $1800) to $2000. This would all but guarantee a minimum return on investment of 33%.
The iPhone has been a staple in Apple’s line and has been their key product for some years. If not an iPhone, then you might have a Macbook, or you’ll know someone who has both. Apple products are everywhere and they have a loyal following.
A majority of people learnt to use the internet on a Windows machine and they continue to be a part of our everyday life. Their office suite is standard in the workplace and most people will be familiar with Microsoft.
Displaced Oracle in the cloud as the database of choice. It's about selling cloud services, like a utility. Margins are much higher on cloud than selling software. Over time, margins and free cashflow will go up. Not concerned about the valuation, because of growing business and margins.
Activision Blizzard (ATVI-Q)
An American video game production house. If you’ve ever played World of Warcraft, Call of Duty or Candy Crush then you’ve come into contact with Activision. They are one of the largest gaming companies.
It’s become more and more standard for people to call an Uber than a taxi. This revolution of ride-sharing was pioneered by Uber. They have become one of the most well-known ride-hailing platform in the world.
The company is saying they will be profitable this year. It is a profitable brand in his opinion, with many ways to monetize. A good recovery stock that you want to own. Depending on your risk tolerance, you can accumulate at these levels on dips.
Uber’s competitor that offers ride-hailing services. If you’re Canadian, you could soon be using Lyft too as they have announced plans to explore the possibility of expanding here.
This and Uber benefited from California voters rejecting proposition 22 which would have classified their drivers as employees, which would have increased their costs. Lyft shot up today.
Square Inc (SQ-N)
The payment system is known for their ease of use and connectivity. For those who love food trucks, their credit card terminal is usually powered by Square.
The payments industry has a bright future, and SQ can grow for years. It's the easiest place to buy fractional Bitcoin through its app.
One of the major producers of chips that power our computers, phones and many other technological devices.
They report Thursday. It's now led by a new CEO who's doing a terrific job inspiring people inside and outside the company. If the stock falls, buy. The CEO can turn the company around on a dime, but will turn it.
Advanced Micro Devices (AMD-Q)
They produce chips and processors that are used in a variety of tech that we use everyday.
AMD vs. INTC vs. NVDA Taking market share from Intel. Earnings growth is superior to Intel. Intel is in the midst of restructuring. Ongoing chip shortage, but this is a cyclical industry. Of the three, Nvidia has the most attractive long-term growth platform, but its valuation is very high. She's going to keep watching NVDA…
Hong Kong Stocks
Tencent Holdings Ltd (0700-HK)
The makers of Fortnite and many other games. Riot Games is one of their subsidiaries and is known for the League of Legends game.
Tencent was nearly $100 two weeks ago and now $84. Similarly, BABA has popped from $225 back to $280, round trip. Tencent is seeing its first meaningful sell-off in a while. In the low/mid-$80s it is an interesting range.
Dollarama Inc. (DOL-T)
Consumers love affordable goods and Dollarama is the hallmark dollar store that comes to mind for many people. They have been very efficient at providing goods for cheap and the customers love it.
Allan Tong’s Discover Picks Dollarama sells cheap stuff and has enjoyed a near-monopoly on selling household goods during these lockdowns. No argument that DOL has done very well. It peaked December 9 at $54.58 November 1, just shy of its all-time high. DOL stock has since peeled back 10%. It continues to enjoy a strong…
Spin Master Corp (TOY-T)
If you have any kids, they must have some toys made by Spin Master. Etch A Sketch and Hatchimals are some of their most well known brands that have won awards.
It is a really well run company. It is a dominant player in the toy industry. The business is very lumpy month to month, year to year. Kids are sending more time on-line and not playing with toys.
Restaurant Brands International (QSR-T)
Canadians love Tim Hortons and their roll up the rim has become somewhat of a tradition for many. Restaurant Brands also counts Burger King and Popeyes among their brands.
Hit hard by Covid. A reopening play. Popeye's has good growth potential. A good investment in the space. Earnings momentum should return as foot traffic increases.
Under Armour (UA-N)
The sportswear company has capitalized on the athleisure trend and you can’t leave your house without seeing someone wearing their clothing. The company is going through a multi-stage change and are turning around the business.
(Past Top Pick, May 10, 2018, Up 20%) Volumes are rising, the stock is coming alive and there's plenty of room for this stock to regroup. Those who have owned this since it's drop of the past few years will hold on now that it's starting to climb again, so they can get their money…
The go to e-commerce site that dominates online shopping. They also offer AWS which is used by many websites and internet companies. Amazon continues to diversify and grow, and their fundamentals are strong.
It's picked up and retained new customers during the pandemic. Also, Friday its unionization drive in Alabama failed.
Starbucks shaped coffee culture around the world and is one of the most recognized coffee shops. They have been loved for their personalizable coffee and grab and go meals.
The pandemic has closed the smaller players and SBUX's e-commerce has thrived. This should do well during the reopening.
Walt Disney (DIS-N)
Children love the characters and worlds that Disney has created. With the purchase of Marvel, Disney is well-positioned for their upcoming streaming service. They also own and operate the ABC broadcast network, and various theme parks around the world.
Hit by the pandemic, but Disney Plus did well through the crisis. Huge content library that they can stream. A reopening play on the parks, plus the new growth path of streaming. Positive future growth prospects. No dividend. (Analysts’ price target is $204.86)
Nike Inc (NKE-N)
The company has become a symbol of athleticism and sports. They’ve also broken out into the fashion movement, with many models and collectors snapping up their new collections.
It went through the meat-grinder this week based that its human rights stance could triggers a boycott (https://www.cnn.com/2021/03/25/business/hm-nike-xinjiang-cotton-boycott-intl-hnk/index.html). Today, Nike saw an upgrade. But China is a huge market for Nike, so Nike is at risk if Beijing starts cracking down on companies criticism, even mild, against the Chinese government. It's possible that US-China relations…
Walmart Inc (WMT-N)
Walmart has been doing well and is keeping up with Amazon in the battle for retail shoppers. The big box store is continuing to bring in strong revenues and is investing in their e-commerce platform.
Good long-term investment. E-commerce spending is starting to gain traction. Benefited from Covid, so future earnings growth may not be as good as other companies.
Dollar General Corp. (DG-N)
A well-known dollar store that gives customers a wide variety of choice without breaking the bank. Even in times of recession, these types of stores tend to do relatively well.
DG vs. DLTR Likes the dollar store trade in general. He took profits in this name. Prefers DG, as it benefits from being in rural areas, away from the Targets and Walmarts. DLTR has a lot of urban competition. In the next 3-5 years, he prefers DG.
Dunkin’ Brands Group (DNKN-Q)
America’s coffee and donut house. They are part of millions of people’s days, serving up coffee and snacks.
Today, the New York Times reported that a private entity wants to buy Dunkin'. Some felt that this stock was already overextended, but he disagrees. Their track record in acquisitions is fantastic. It has survived while peers have fallen away.
Nintendo Company Ltd. (7974-TYO)
Nintendo has become an integral part of childhood for many with the Wii and the Switch consoles enjoying widespread popularity. The company has strong franchises and characters that everyone would recognize and love.
Allan Tong’s Discover Picks NTDOY stock pays a 2.81% dividend yield and trades at a 17x PE, compared to 27x a year ago. Activision Blizzard pays only 0.51% and trades at nearly 24x. The Home of Mario does face competition from the PS 5 and the Xbox, but these are nothing new. As of this…
Johnson & Johnson (JNJ-N)
A giant in the healthcare and health tech space. If you’ve ever used a band-aid or other home treatments, chances are it was made by Johnson & Johnson.
They report Tuesday. The CDC, he feels, has unfairly punished JNJ over its Covid vaccine. He expects JNJ to release a strong quarter and pipeline of drugs.
Pfizer Inc (PFE-N)
One of the world’s largest pharmaceutical companies. They produce vaccines, medicine, and other healthcare products. Just how present is Pfizer in our everyday life? If you’ve used a chapstick, then you have used a product by Pfizer.
Their vaccine has been a boon to their revenues, which jumped 30% in a one year, but this is likely a round trip. Also, margins on this vaccine are fairly low. The vaccine offers some benefit to PFE, but it's limited. Look elsewhere.
Merck & Company (MRK-N)
Another of the largest pharmaceutical companies in the world. They research and market a variety of medicine, vaccines, such as Gardasil, and other over the counter medication.
Stockchase Research Editor: Michael O'Reilly MRK returns as a TOP PICK. Trading at 17 times earnings, compared with its peers at 40x it is good value here. It pays an excellent dividend, backed by payout ratio of only 50% of cash flow. We would buy it here with a stop-loss at $65, looking to achieve…
An aircraft maker that we recently featured on our list of Airline Stocks List. They bought the CSeries program from Bombardier last year that should create more lightweight planes.
Still 30% below pre-Covid highs, but well positioned to recover. Structurally growing market, with very high barriers to entry. Growth expansion supported by increasing middle class in EM. Efficiency gains from fleet renewal could be a benefit. No dividend. (Price target is in Euros.) (Analysts’ price target is $107.32)
The aerospace company has been down since the 737 Max crash but they are in a duopoly and demand for transport is strong. It will not go up in the short-term but worth holding.
Boeing last Friday announced electrical problems with its 737 Max and shares fell. But Boeing has too much going for a headline to spook investors. He'd still buy it. Don't sell. It remains a great reopening industrial stock. Repairs to these planes will take days at the most. The 737 Max is back, enjoying recent…
One of the best positioned to take advantage of the e-commerce business and ship products to customers. It tends to go the way the economy goes. We featured FedEx on the Top Shipping Stocks to Buy in 2019
(A Top Pick May 12/20, Up 160%) It's riding the e-commerce boom but also will benefit from the reopening. It's the proxy for economic growth and he believes the US economy will boom this year. Fedex is doing well in air freight as well, given fewer airplanes in the air now. There's lots of growth…
United Parcel Services (UPS-N)
If you’ve ever received a package from an online retailers, chances are you had some interactions with UPS. They are also a leader in supply chain management solutions.
The CEO is underestimated and he bets this will be a great buy over the course of this year (despite its current downturn).