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.
Pandemic has helped all the e-commerce names. But valuation worries him, at 500x forward earnings. Sales growth will be strong. Paying a premium for this name.
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.
If Biden wins Will benefit if Biden wins. China has already granted MA approval to start a new operation in China, but the trade war bogged down progress. Biden will lower the tension between US and China and this will benefit Mastercard.
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.
Buy it probably tomorrow after the sell-off, knee-jerk reaction to this week's disappointing earnings report, ends. A good hold for the long term.
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.
As long as you have the ability to take market share and you're not too exposed to Covid, markets have rewarded. Haven't seen that with Visa. Cross-border shopping is down. But outstanding growth runway. Will move much higher. Core holding.
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.
Loves their shops initiative (Facebook Store) which boosts small and medium businesses. The heat from Washington has come down on FB since FB became an e-commerce facilitator.
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”.
Adding for new clients. Google generates 99% of its revenue, with 83% coming from online ads. Expects 2021 revenue to cross 170B dollars. Simple thesis: as global online usage continues to grow, so does digital ad spending. A great growth name, and rather stable. No dividend. (Analysts’ price target is $1764.81)
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.
Pro-China trade will return if Biden wins the presidency. Rallied today despite the DoJ slapping an antitrust suit. Neither surprised him. China is a huge market and source of manufacturing for Apple. Apple just launched the 5G-friendly iPhone 12. With no war trade war, Apple will surge even higher. The Chinese economy is on fire,…
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.
MSFT vs. NVDA Both have been great. Likes them both. NVDA has one of the best graphics processors and they've been riding the trend, which isn't slowing down. A good one if you can handle the volatility of the semiconductor processing space. Good if you want growth in this depressed GDP era. MSFT is a…
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.
(A Top Pick Sep 05/19, Up 51%) They have great assets like Call of Duty and Candy Crush. They are the Disney of video games. They hope to have 1B user in the next year as they add more games on platforms and mobile.
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.
Allan Tong’s Discover Picks The ride-sharing giant is the poster child of overhyped, underbought tech IPO's. It's traded above its $45 initial asking price of May 2019 only twice, which was brief and happened in its early days. The year began promisingly when it rose from $20 to $30. Then, Covid hit and the stock…
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.
Lyft vs. Uber Technically, the better time to get in is when they start to show positive divergences. Hint of that, but it's not conclusive. No analysis to show that one is better than the other. Suspect they'd follow the same seasonality as technology. Wait until you see signs of selling exhaustion, which is not…
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.
Fintech continues to be attractive. Pay a premium, at 206x forward earnings, but a very strong growth rate. 20% growth longer term, and earnings are starting to accelerate. Looks attractive.
One of the major producers of chips that power our computers, phones and many other technological devices.
It was a monopoly and almost still is. AAPL-Q is now producing their own chips. He has a model price of $93.18 or an 83% upside. It looks great. (Analysts’ price target is $56.87)
Advanced Micro Devices (AMD-Q)
They produce chips and processors that are used in a variety of tech that we use everyday.
They make great chips that are in strong demand by China. All semis can get a big boost from a Biden win, because he will will likely relax US-China trade tensions which pressured markets during Trump's term.
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.
Challenge with Chinese stocks is when you invest in China, you don't actually hold the shares in your name. From a political perspective, you don't have claim to those assets. Now we have US-China tensions. He'd rather buy one of the multinational companies with operations in China that benefit from the recovery.
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.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company is very well run with a strong position in Canada.They have high debt but it should not affect their small dividend payments. Growth will be better in 2021. Unlock Premium - Try 5i Free
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.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The target price was raised today by RBC and National Bank. There was a story that retailers are accelerating shipments to secure adequate supply. This may point to strong sales. Unlock Premium - Try 5i Free
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.
(A Top Pick Oct 24/19, Down 15%) Sold out a week ago. Industry under immense pressure. Tim's and Burger King are struggling. Earnings growth remains uncertain. He'd look at it once there's a vaccine.
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.
Looking at technicals right now, the market has tried to break through and has failed a couple of times. It could be choppy through the election. We could be ready for a 5-7% pull-back over the next couple of weeks. Your entry point will be late October or early November. He would slightly prefer GOOG-Q.
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.
Pro-China trade will return if Biden wins the presidency. It's been held back by its U.S. business and the company needs to be more Covid-friendly. However, their Chinese locations are red hot. Take away the trade war under Trump and this stock will perform even better.
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.
(A Top Pick Oct 25/19, Down 3%) Theme parks and cruises brought it down. They have no revenue streams from these but it is almost what it was before the pandemic. They pushed more content through their Disney Plus. He would continue to buy it on dips.
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.
Pro-China trade will return if Biden wins the presidency. Pro-China trade will return if Biden wins the presidency. Nike already thrives in China where sales led their recent blow-out quarter. Further, China has Covid under control with contact tracing and everyone wearing masks, so their economy is roaring. Nike is pricey now, but he targets…
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.
(A Top Pick Sep 22/20, Up 5.8%)Stockchase Research Editor: Michael O'Reilly Our TOP PICK in WMT has achieved analyst targets. Although we think there is more upside to come, we are recommending moving the stop-loss up closer the acquisition cost to $136, from the previous $120.
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.
Plays well into what's happening with the pandemic and changes in consumer behaviour. Prefers Dollar General to Dollar Tree, as DG is in rural areas, with no Walmarts or Costcos. DLTR has lots of competition in the city and its latest acquisition hasn't worked out well. DLTR has 9% earnings growth rate, while Dollar General…
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.
New openings? His research suggests they are doing extremely well. He is not sure about new openings in the West. It is just like the Tim Horton's brand in Canada. Their success is based on their cheap coffee and customer loyalty.
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.
Not a big fan of branded technology. A product launch story where you get a big upsurge in revenue (like EA) and they have to carry a lot of cash. A volatile cycle that moves too much for his taste.
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.
JNJ vs. ABT Similar businesses. You absolutely need exposure to healthcare. He holds JNJ for the dividend aristocrat qualities. ABT has been impressive. Testing platform has been phenomenal and will continue to ramp up. It's a great addition to portfolios at these levels. Tough choice between the two, but ABT probably has more immediate upside.
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.
Tough to analyze now. He's awaiting their drug test results. They're in the middle of spinning off long-life assets, including Viagra (later this year or next). This spinning-off will transform Pfizer from boring long-life assets to focus on R&D drugs. He expects their Covid vaccine to succeed the first. The CEO issued an update Friday…
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.
(A Top Pick Oct 24/19, Down 2%) Healthcare is a resilient sector, not cyclical. Strong in oncology space. Pandemic has crimped pharma sales, especially from hospitals. Shares are cheap, 9% earnings growth rate, dividend over 3%.
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.
(A Top Pick Aug 19/19, Down 40%) It's been severely affected by the pandemic and the subsequent collapse of air travel. We're starting to see some recovery. It's in a duopoly in the aircraft business so it is a good market to be in the longer term. With a 5 year time horizon, it should…
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.
If Biden wins He can see China making a huge purchase of Boeing planes. If so, Boeing shares would roar (also would roar if it gets approval for the 737 Max).
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
Part of his Fear Factor portfolio of stocks that will thrive with or without government stimulus during Covid This and UPS were hated recently, but they enable the stay-at-home economy. FedEx's investments in its shipping network are finally paying off.
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.
If Biden wins UPS claims to offer more delivery options in China than any other company. Therefore, UPS will do better if Biden is president, because he will lower US-China tensions.