These 34 Trending Stocks Make Products You Use Everyday
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.
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Slower e-commerce growth expected. Inflation and consumer spending headwinds. Continues to invest e-commerce infrastructure. Valuation near historical low. Unlock Premium - Try 5i Free
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.
She owns Visa, but both are attractive because of the trend to digital payments--lots of runway here. Near-term, there's some regulatory overhang in the U.S. given both stocks being so dominant. If we fall into a recession, transaction volumes may soften, but both offer attractive long-term growth. Start to build positions on pullbacks, though not…
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.
Stockchase Research Editor: Michael O'Reilly NFLX is introducing a new ad-based subscription tier that it expects will add subscribers and aid the bottom line. Recent earnings beat expectations and support a ROE of 30%. It has used some cash reserves to prudently retire debt. We recommend placing a stop loss at $200, looking to achieve…
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.
(A Top Pick Jun 14/22, Down 0.5%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with V has triggered its stop at $190. To remain disciplined, we recommend covering the position at this time.
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.
Her time frame is very long and has held it for a long time (and bought at much cheaper). She remains bullish. Meta if fairly valued and generates a lot of cash. People are misreading Zuckerberg.
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”.
As a 5-year hold Current growth estimates are 12% and 13% sales growth and 68% gross margins. 10% of their market cap is cash. There's a gap between between expectations between now and 2023. The price target is $143 based on 48 buys and three holds and no sells. Sentiment hasn't changed yet. Buy it…
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.
The market is oversold, no doubt, but Apple is an outlier in megacap tech, but it hasn't off like the sector (or the market) has.
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.
(A Top Pick May 31/22, Down 12.1%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with MSFT has triggered its stop $240. To remain disciplined, we recommend covering the position at this time. When combined with the previous buy recommendation, this will result in net investment loss of 14%.
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.
Currently trading around $75 with an accepted buyout from Microsoft at $95 a share. A potential 26% arbitrage gain. The spread can be explained by the lack of a set date for when the deal would happen and the chance of it getting canceled. Social media mentions are up 333% over the last 24h.
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.
Powell's speech on Wednesday was a shift. You can no longer feel that the consumer and earnings are strong. Instead, there is a lot of uncertainty. The markets know inflation will remain stubbornly high and so will yields to combat inflation. Earnings revisions will come down. He sold this because the consumer will face some…
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.
As a 5-year hold Yes, because it's a global leader in ride shares. Its compound annual growth rate is probably 25% over the next 5 years. It's doesn't matter if it's down 80% from its highs. Lyft is well-positioned for the future. They're freezing hiring (though still want drivers) for the rest of the year.…
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.
They have a coherent, terrific strategy, but the stock just went up too high. Expect downside and volatility.
One of the major producers of chips that power our computers, phones and many other technological devices.
(A Top Pick Jul 14/22, Down 25.5%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with INTC has triggered its stop $28. To remain disciplined, we recommend covering the position at this time.
Advanced Micro Devices (AMD-Q)
They produce chips and processors that are used in a variety of tech that we use everyday.
(A Top Pick Jul 19/22, Down 20.9%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with AMD has triggered its stop $68. To remain disciplined, we recommend covering the position at this time.
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.
(A Top Pick Apr 23/21, Down 39%) Fundamental story is very good. Political interference from the Chinese government has been difficult and made investors shed the name. Political interference from the US by potential delisting. Attractively priced now, but political risk is too high. Sometimes you make a mistake, and it's time to sell.
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.
Great price momentum. Very stable stock in terms of volatility. Not the cheapest at 34x earnings. Quality of earnings is high, balance sheet is great, in the right sector. If we see a rise in unemployment, will benefit. In the sweet spot for a recession.
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.
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. 2022 Guidance maintained. Strong pull-forward in demand. Supply chain issues curbed. Initiated first ever dividend. 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.
Struggling with core Timmie's franchise in Canada. Limited inroads in US. Tim's accounts for around 40% of EBITDA operating profit. Not much menu innovation. Traffic hasn't recovered to pre-Covid levels. Interest rate hikes dampen fire power for further acquisitions. Don't buy.
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.
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.
A go-to stock. Delivery of boxes is part of the old economy. AWS is really important going forward, as it's part of the new economy. Fine at these prices.
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.
Plagued by higher wages, unionization efforts, resignations. Solid growth, upward guidance, more stores, innovation. Trades at 26x 2023 earnings, and he models growth at 17%, so it's not crazy. Markets will be rocky, so use the charts and try to buy at the 200-day MA.
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.
Integrated into movies, TV, streaming, toys, merchandise, theme parks. Excellent franchise value good for earning revenue. Large amounts of content already produced. Ad supported version of Disney Plus launching. Raising pricing next year will help bottom line. Current share price presenting good buying opportunity for investors.
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.
They report Monday. They're a barometer for raw costs, supply chain issues and China's economy. He predicts the market will look past their weakness in China's demand and push shares higher. Weakness is already baked in to the stock after several downgrades.
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.
He just sold his Walmart. The news earlier this week cut guidance for full-year 2023. There's a shift on consumer sentiment. It trades at a forward 22x which is a premium to the market. That's why he sold. WM will figure things out but will take a quarter or two.
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.
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.
Healthcare is defensive because you have constant demand for these products and services. Investors should have exposure in this uncertain economy. Her pick here is JNJ, given its strong balance sheet. They offer pharmaceuticals, medical devices and consumer products, so are diversified. Aging demographics will fuel demand.
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.
It has always been part of their health care portfolio. It is losing some lustre and interest created by Covid but is still a good health care company with a good dividend. He likes others as well, maybe a bit better.
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.
Has owned this since the mid-$80s. It offers the perfect blend of offence and defence perfectly. Investors have ignored this, but boasts a 20% a valuation discount to the S&P. You must be defensive, and Merck is a leader in healthcare.
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.
Boeing and Airbus have a duopoly. She hasn't owned Boeing for years. In a given year, one company gets more orders, then the next year the other gets more. It's split this way. Instead of these companies, she prefers owning the suppliers to these companies.
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.
Their troubles will play out, but boy it's taking a long time. Their Q2 earnings were much better than expected and 787s are being delivered again which is important for free cash flow. Shares jumped to $172 and now down to $157. He's adding to his position as shares have gone done. This is on…
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 Jun 30/22, Down 18.7%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with FDX has triggered its stop $195. To remain disciplined, we recommend covering the position at this time.
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.
An analyst downgraded it today, but this is a short-term trading call. Long-term, this is worth buying. UPS has a high yield. This will rebound after a short dip, he think. As a retail investor, distinguish between a short-term call and a long-term one.