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.
Phenomenal company that will do well for years to come, but trades at a huge multiple. Profits are small. Risk/reward is not there. He expects tech to lose its gold status over the next year, so this could fall 40%.
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.
Great business model. Don't sell. A payment system, not a credit card company. Takes on no risk. Pandemic has encouraged people to use less cash. Good organic growth globally. Going into the buy now-pay later business. Travel will improve and they'll do well.
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 should have a ton of new subscribers, driven by the hit Korean show, The Squid Game.
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.
V vs. MS Likes banking in general in the US as well as in Canada, because the economy is improving and this should improve net interest margins. She owns JPM instead of MS, as they've been very well run over time, gorgeous balance sheets, diversified, doing well in capital markets. She likes Visa as well.…
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.
He gets a lot of questions about this and avoids it. He doesn't know how they get around these regulatory pressures. He prefers Google in the online ad space.
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”.
Buy Google A vs. Google B stock? About 10 years ago, they split their shares into A and B with one getting voting rates and the other not that the public buys. He owns and still buys GOOGL, which has the voting shares.
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 Top Pick Oct 23/20, Up 29%) He bought this in 2005. He's done extremely well and there's lots of runway ahead. Tailwinds: 5G is coming and 1.4 billion phones out there will need to upgrade, and a 93% customer loyalty rate. Supply delays will mean deferred purchases, not cancellations.
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.
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 21/20, Down 3%) Got out, then bought back in around $80. Buy in tranches of $72, 65, and 57. Negative press releases dragged on the stock. Need some distance from those. Fundamentals remain strong. Build a position here in stages.
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.
New CEO is very bright, great job turning company around. Has announced EBITDA-positive in coming quarter, and this will increase cashflow. Workers as employees raises issues. Good brand. Cheaper than taxis, more convenient. Will do well in the long term. Very strong management. Worth buying on a bad day.
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.
It's handling this choppy reopening (i.e. driver shortage) better than Uber. On Friday, a California court just struck down the appeal which states that drivers are freelancers (they are employees, says the judge), so the cost of rides in CA will soar. Despite that, Lyft rebounded today 3% though down more than 15% so far…
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've expanded into loans to bus, P2P payments (their fastest business), and Bitcoin trading (the first to do so). The stock has pulled back 16%, so it's a buying opportunity for a long-term hold. He favours PayPal just slightly.
One of the major producers of chips that power our computers, phones and many other technological devices.
They report Thursday. Not sure if they can deliver a lift in shares. Instead, stay long in AMD and Nvidia.
Advanced Micro Devices (AMD-Q)
They produce chips and processors that are used in a variety of tech that we use everyday.
There's upside, though valuations are stretched. Technology going forward will be strong for semi makers like AMD. Growth outlook is positive. But wait for a slightly pullback in AMD.
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.
Recommendation to buy on the HK exchange. Price target is in HK$. Wanted exposure to Chinese internet but without the risk of the US delisting. The underlying growth of the Chinese market is significant. A very high growth company with dividends. There is growth in revenue and underlying market. (Analysts’ price target is $787.65)
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.
A great company. Owned it in the past. Sold it with the notion that the windfall from last year was not going to return. It was deemed an essential retailer when everything was closed. Same store sales comparisons are struggling due to last year. Has checked back a little. A slow and steady grower in…
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.
Investors are worried about Tim's turnaround, rising costs. Stock's way too cheap relative to the group. Good dividend. Sales up 31%. Growing around 14%, trading around 20x. Ability to grow is profound. Buy it around $79-80, and you can get a double in the next 5 years.
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 Top Pick Jun 10/21, Down 1%) You can buy it here. People are worried about supply chains and anti-trust, which is not a concern. Continues to innovate and grow. Huge player in AI. Large, embedded infrastructure. Huge free cashflow generator and invests that in the future. Outstanding value right now.
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.
He likes the two upgrades today. This reminds him of Nike four years ago which he missed out on. Starbucks' 2022 PE is 29x. Investor sentiment remains quite good. As long as Starbucks doesn't stumble in execution, their PE will rise. Their customer experience is amazing.
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 safer reopening bet than AMC in light of Merck announcing an anti-Covid pill today. It got crushed recently, but he sees a lot more upside in a post-Covid world.
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 reports Thursday. He doesn't expect good things. It supply chain is in tatters because it sources 50% of its materials from Vietnam and some worry that China's government will crack down on sneakers next. Nike, though, has nine lives. You can't short it or go long Nike. Be careful here.
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.
Allan Tong’s Discover Picks Like all retailers including Target, Walmart faces the twin challenges of labour and supply shortages. These will eventually end, but will likely linger for for the rest of this year. Fruther, the tailwind of stimulus cheques from Washington has dried up. Then, there’s Amazon. The planet’s largest retailer plans to build…
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.
(A Top Pick May 31/21, Up 2.97%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with DG has triggered its stop at $209. To remain disciplined, we recommend covering the position at this time. Combined with the previous recommendation to cover half the position, this results in a net investment gain of 9%.
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. It's best of breed and should rock the quarter. He's confident it can manage the claims arising from its lawsuit. They have perhaps the drug pipeline in the industry.
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.
All healthcare stocks have been pressured. PFE is protected by their near-4% dividend. We will all need their Covid booster shot.
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.
Today, Merck may have beaten Covid. That's why the market rallied today. Today had nothing to do with inflation or supply shortages. If you take this pill after testing positive for Covid, the pill can save you and crush symptoms. Merck can produce 10 million course of these pills by year's end. No wonder Merck…
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.
Question: Which stock has rallied higher so far in 2020, Boeing or Airbus? The answer isn't Boeing, which is enjoying a renaissance now that the FDA has certified the troubled 737 Max, once its best-selling plane. Boeing, however, gets all the attention, while Airbus keeps climbing. In the past six months, this European plane maker…
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.
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
He sees growth ahead. They have huge opportunity to use technology to reduce costs, like using e-trucks and drone delivery. Yes, wages will be sticky, but this technology will offset those labour hikes. FDX trades around 11-12x earnings. Lots of runway ahead, because e-commerce volumes are exploding. Shares are currently discounted. (Analysts’ price target is…
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.
About FedEx They're in a fantastic position, but maybe they can't maintain their momentum. When UPS spoke recently, their shares got crushed. He thinks they can achieve rich profit margins and growth. They have the edge of UPS, though UPS' price is better. At the next UPS report, he may buy more.