Top 10 Finance Stocks To Watch in 2021

Opinion about MA-N: (A Top Pick Jul 25/24, Up 30%) Not as constructive on it, simply because the valuation's been reset. Still a core part of his portfolio, and has been for a decade.

Opinion about C-N: Financial sector offers great promise, though it's reacted to current markets by pricing in a potential recession. Slower economic growth would not be good for banks. Absent a recession, with consumer confidence returning and unleashing M&A, the sector provides a good opportunity.A less expensive choice further down the food chain from the…

Opinion about MS-N: Money centre + wealth management (about 50% of total revenue). Accumulated companies over the years. New CEO comes from within. Traded off to a compelling valuation versus its history. Well positioned once we come out of all this. Yield is 3.72%. (Analysts’ price target is $130.90)

Opinion about TD-T: Coming out of a really vulnerable time with money laundering. Settled case, implemented new protocols. US assets capped; but TD shifted some assets around, giving them space to grow without running afoul of the cap. New CEO is very committed to turning over a new leaf.

Opinion about V-N: Reliable name. Vast network, trusted brand, unmatched scale. Move from cash to digital payments. Consumer spending remains pretty solid in US. Cross-border transactions remain strong. Pretty capital light, which means very strong free cashflows. About 13% annual growth rate, paying a slight premium for the name. Recently bounced off 200-day MA very nicely,…

Opinion about BNS-T: Likes it. Their exposure in Latin America offers exposure to copper and other minerals. Management is shifting focus from Latin America to outside that area. He sees success here, and the stock is priced well now. The yield is generous and safe. This could be a core holding.

Opinion about IFC-T: (A Top Pick May 15/24, Up 34%) Executing so well. High catastrophic losses, but ROE still at 16.5%. Underwriting beat. Strong Q4. Canadian and US commercial beat. Firing on all cylinders, resilient in this environment. Trading ~17.5x 2026, growing ~16%. Not a bad buy, but don't chase -- can probably get at…

Opinion about RY-T: (A Top Pick Mar 15/24, Up 27%) RY is the least-exposed bank exposed to tariffs. Good. Volatilty in capital markets benefits RY's cap markets division. The dividend is reasonable and now trades at a premium valuation in this sector, but this is deserved.

Opinion about CM-T: We've already recommended National Bank, so let's look at the second-cheapest bank, CIBC, with its 11.2.x PE and EPS growth over five years of 5.39%, better than RY's 5.16%. Commerce has beaten its last four quarters with room to spare, and pays a safe dividend of 4.49%. Its EPS growth is beating…

Opinion about BAC-N: High quality. Globalization is starting to move in a different direction, so this option provides a more domestic focus.