Top 10 Favourite Canadian Companies – Where We Like to Shop (2019)
DailyHive recently published a report about Canada’s most admired companies. The results are from the 2019 Corporate Reputation Study conducted by research firm Leger and intended to to see which brands Canadian consumers admired.
Favorite companies are usually growing and interesting investment options. Most of these companies are publicly traded on the TSX, the NASDAQ or the NYSE. Discover the companies most admired by Canadians with expert opinions on the stock :
Canadian Tire Corporation Ltd (CTC-T)
A great Canadian retail stock. They have integrated well their acquisitions of Mark’s and SportsCheck and are a leader in the sports business in Canada. Their balance sheet is healthy and they have raised dividends. Seasonally, their period is from January to mid-April.
Allan Tong’s Discover Picks Canadian Tire boasts a wide range of household goods at decent prices, but consumers will have much more choice in buying that patio set or baseball glove. True, last summer’s partial reopenings didn’t dent the stock price, but the Tire’s website still sucks. Price to cash flow is inline with its…
Dollarama Inc. (DOL-T)
A strong cash flow generator. They are a growth company that are still adding stores. They got hit in the December correction and have been going sideways but this could be a good investment in the long-term.
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…
Loblaw Companies Ltd (L-T)
A defensive name you want to have in case of a recession. Their acquisition of Shoppers was a success and has been seen positively by investors.Consumer stocks are becoming more popular as investors adopt a more defensive strategy.
(A Top Pick Sep 15/20, Up 31%) The gains are surprising. They've invested in long term areas, namely e-commerce. Costs to protect employees from Covid will roll off. Shoppers during Covid flocked to the top supermarkets, though are now returning to the discount chains, which Loblaw also owns. She's waiting for a pullback to add…
Another defensive name. They produce cereal and snacks that are very popular with Canadians. They pay a nice dividend. They purchased Pringles a couple of years ago, and are trying to diversify their offerings.
Not a lot of interest in the consumer staples space recently. Not the best place to be in an economic recovery. Chart is up and down, trending downward so that's a negative signal. He'd prefer, and owns, Costco.
The most popular e-commerce store. They have activities in retail, cloud services and is well diversified, touching many sectors. They are growing their cloud services. Investors are looking at it closely as their valuation has been coming down, and they are still bullish on e-commerce.
Can buy now. A fairly recent entry to his portfolio. Always a mystery from a financial standpoint. Becoming more traditional in their accounting and how they allocate capital. New CEO that is investing heavily in distributions and fulfillment centres. More same day delivery is coming. Cloud business is the best in the world too. Getting…
Costco Wholesale (COST-Q)
They have a great balance sheet and keep producing great results. They are driven by memberships. The valuation is a little high so we would buy on weakness. Many analysts think that Costco is resistant to Amazon although they need to bulk up their online presence.
It reports Thursday. He doesn't expect good things. True, the stock has been rallying up in a straight line, but the clueless always expect an upside surprise, then sell it when numbers are merely in-line. A great company. He expects the clueless to sell it.
Alphabet Inc. / Google (GOOG-Q)
Much of the internet is accessed using Google by Canadians. In addition, google home devices have penetrated many households as the smart device of choice. Combined with their android operating system, Google/Alphabet is used by most Canadians on a daily basis.
(GOOGL) Right now, trading at 28x earnings. EPS is $100 roughly. They allocate $20B to R&D and produce many things like VR, AR, automated driving. These techs will make lots of money. See a bright future for Google. (Analysts’ price target is $3200.88)
Sony Corp. ADR (SNE-N)
Their activities include technology, games and movies. The most important products are the PlayStation consoles, cameras and their entertainment segment. There are some people who are very bullish on their content department.
He doesn't know it well. Their ROE has been good for the last three years, but negative during 2009-2015 (doesn't know why--management change, product issue?). Point is, ROE is inconsistent and that's a dealbreaker for him.
A driver of the online world.They have a solid balance sheet and are performing well. They are moving towards becoming a software service company. Microsoft also enjoys a healthy installed base with high recurring revenue with low cost. They pay a nice dividend that will grow.
Likes Apple. Apple is slightly less expensive on valuation than Microsoft. Their franchise is second to none. They came out with the iPhone 13, which was not particularly flashy, but the expected sales is positive. There are aging iPhones and the replacement cycle will be enormous. They have a good formula for success. Multiple has…
Samsung Electronics (005930-KRX)
Canadians love their phones and they’re one of the largest smartphone manufacturer and a huge producer of smartphone components. They generate great cash-flow and pays a nice dividend for an Asian company. Around 50% of their revenue comes from phones and chips.
(A Top Pick Sep 24/20, Up 36%) Great company. Secure holding. Expects to own for a number of years. Shouldn't go down too much here. Reasonable value longer term. Buying for new clients.