This week there were 30 Top Picks in a wide range of industries: Consumer, Energy, Financials, Technology, Basic Materials, Healthcare, Industrials, Utilities and Telecommunications.
Here are this week’s Top Picks as selected by Elliott Fishman, Eric Nuttall, Colin Stewart, Josef Schachter, Mike S. Newton, Zachary Curry, Greg Newman, Michael Simpson, Paul Gardner C. and Robert Lauzon.
Nicknames it Hit By A Car like its chart. HBC is all about its real estate holdings; that's the reason you own this. Doesn't know if the current rally signals a buy. Can't predict this chart. Even consider selling it.
They had a great quarter, but so did Whirlpool and the market didn't pay attention. He prefers Whirlpool.
(A Top Pick Jun 11/20, Up 13%) He sold. Still likes the company, but he had better ideas in the near-term. Windfall last year, as it was an essential retailer. This year, comparisons will lag and some aisles are off-limits as non-essential.
(A Top Pick Jun 18/18, Up 1%) Still likes it. It's well-run. They're growing their brands and they have a big opportunity to get into cannabis beverages which will be legal in Canada in October 2019. BRB is well-positioned for this and this market could be very large.
It's being acquired now, so there's little juice to squeeze here. The market is assuming the deal will happen. He owns Evolution Gaming (Swedish) instead, which operates the software for online gaming (EVO is the ticker).
The only producer in the Permian Basin that many consider a genuine growth stock among energy stocks. They report Monday.
(A Top Pick Sep 01/20, Up 56.4%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with PE has resulted in the company being acquired by Pioneer Natural Resources. We are considering the position now closed at the last market closing price of $16.93. Combined with the previous recommendation to cover 50%, the total return on…
Off most people's radar. Has had success in the Clearwater area. The well has come on very strong. Good economics. Oil prices is fixing their leverage problem and the new well might fix their inventory problem. Trading at 2.7x cashflow at $70 oil. Could privatize themselves in 2 years from free cashflow. Very inexpensive. 4x…
Not a name you should buy. Deleveraging due to excess debt from paying dividends longer than they should have and acquisitions. The stock is trading at 3.7x which is a premium to the group. Free cashflow is at 31% yield at $70 oil. Could see meaningful dividend but there are better names.
Consolidation of the small and mid-cap names is an important theme. There are better names to own in the space.
He had left the intermediate producers behind. It is between investor bases. There is not a basis beyond a pop in the commodity price. He sticks to those that did a better job at maintaining their dividend.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Revenues fell short of estimates by 8% but EPS was 4% better at $1.16. Outlook is good despite losing Keystone. Comfortable buying at 14x earnings. Unlock Premium - Try 5i Free
With line 5 shut down, how safe is the dividend? He prefers the pipelines over the oil producers, because they're one step removed from commodity price fluctuations. They are much better dividend payers out there, though his focus isn't dividends (he prefers companies that reinvest well). He can't speak to the line 5 shut-down, but…
(A Top Pick Jan 27/20, Up 66%) Very high quality business, and it's been growing. Acquisition in 2020 was quite attractive. Earnings last night very strong, beating estimates. A lot of free cashflow. Despite the run, still cheap. Easily upside to $30-35 over time. Yield is about 3.5%.
(A Top Pick Nov 20/18, Up 10%) The more activity, the better they do. In all the major asset classes. Volumes were down, but now you're seeing more of a pickup.
https://finance.yahoo.com/news/brookfield-announces-record-date-special-104500447.html Today, they announced they will spin off part of their reinsurance business. BAM is a great compounder; you can buy and hold for a long time, because they can compound at a strong rate. Brookfield is a big company with many platforms like renewable energy and real estate, and they always look to optimize…
He is very bullish on it. It operates solely in the US. Canadian investors don't value these stocks appropriately and US investors don't typically come north of the boarder to buy real estate exposure. He thinks we are in the early innings of the industrial warehouse cycle. They have a growing fee income stream.
(A Top Pick May 26/20, Up 21%) It's struggled, as travel related and entertainment spending are down. These are recovering. Long-term secular growth story of increasing digitization. He continues to buy.
A phenomenal company, but there are two risks: valuation at 24x forward earnings, which is in-line for a software company, not hardware; and its product mix (50% of revenues from their handsets). The 5G upgrade cycle will likely drive Apple's growth for the medium term. If you believe in this, buy on pullback, but everyone…
(A Top Pick May 26/20, Up 42%) Great long-term story. Likes the innovation, especially in VR, AR, and XR. Game-changing. A leader in healthcare innovation. Acquisition of Nuance Communications is exciting. Growing organically and by acquisition.
🛢 Basic Materials
He has owned this for some time now. They are in cleaning, sanitizing and waste management. Bill Gates owns a big chunk of their shares. Yield 0.94% (Analysts’ price target is $187.86)
Allan Tong’s Discover Picks NTR stocks are currently hitting all-time highs right below $80. There’s a little more upside that the street sees with a price target of $80.67, though I predict the low-$80s is more likely. Cyclical stocks are trades, not long-term holds, so there’s wiggle room to earn a 5-8% return if you’re…
With the opening of elective surgeries, it will start to pickup. The aging population will benefit them. They are head and shoulders above their peers.
They own Brookfield Infrastructure. The infrastructure stock has better valuation than the renewable energy fund. Brookfield renewable also faces too much money going into the sector.
A great business to own long term. They're in the bond business and SPGI boasts incredible pricing power. Developing countries like China don't have these bond ratings, so there's a lot of organic growth ahead. It's a new holding of his. He bought it on their big IHS acquisition. SPGI remains reasonably valued. It boasts…
It's performed well in the past 12-24 months. Ontario is one of the most difficult energy jurisdictions around. Hydro doesn't offer much growth, but it's stable. The dividend isn't enough to excite investors, so he prefers Fortis and others. It's okay to hang onto shares.
Benefits whether Shaw deal goes through or not. Either Rogers has wasted a year spinning its wheels, or there will be fewer operators and Shaw was a stiff competitor. Great place to be. Issued debt, so they are cashed up, but this put pressure on the stock. Nice entry point, with still room to move.…
You have to see how the AMZN partnership goes. They have to deal with the costs of getting up to speed with 5G. There is lots of capital expenditures. He owns other telecoms. The dividend is good and is growing.