This Week’s Stock Picks & BNN Top Picks Summary: RY-T, ATD-T and 19 Stock Top Picks (Aug 01-07)

Opinion about BRK.B-N: The genius running their insurance business remains--business as usual. No, there won't be another Buffett or Munger, but their successor is well-train and hope he was the right choice. Look at Apple: Tim Cook put his own stamp on the company. He remain comfortable owning BRK.

Opinion about RY-T: No red flags here. Always screens #1 or #2 in his work on NA banks. So consistent and efficient. Keeps doing the right things over and over. Cashflow to support semi-annual dividend increases has actually been declining the last 4 quarters. Payout ratio (his firm calculates it a bit differently) is 41%,…

Opinion about UMG-AMS: price target: 29.41 Euros The largest music publisher in the world (i.e. Beatles, Drake, Taylor Swift, Rolling Stones, Lady Gaga, U2). Music is a huge growth and cash flow business. Spotify is raising its rates to pay UMG more. So, there's profit growth. Other revenues come from video games, fitness and social…

Opinion about ENVA-N: Stockchase Research Editor: Michael O'Reilly ENVA provides consumer credit services in the US and Brazil.  Recently reported earnings showed a 28% increase in originations and 48% increase in EPS.  Cash reserves are growing, partially thru increased debt and shares are being bought back.  It trades at 11x earnings, 2.1x book and supports…

Opinion about HCI-N: Stockchase Research Editor: Michael O'Reilly HCI, based in Florida, provides property and casualty insurance.  Analysts expect to see earnings up over 6% when reported this week.  Previously reported premiums were up 24% on the year.  It trades at 14x earnings, under 3x book and supports a ROE of 28%.  Cash reserves are…

Opinion about CBOE-Q: An exchange for stocks, ETFs, and crypto. Smaller than NYSE or NASD, yet still a $26B market cap and the most exciting. Focuses on derivatives. ROC profile is phenomenal. Likes the space in general. Trades at 19x EV/EBITDA. Great chart, steadily moves up and to the right. Growth was 20% last quarter.…

Opinion about MCY-N: Stockchase Research Editor: Michael O'Reilly MCY recently reported earnings growth of 14% over the year on revenue growth of 11%.  Catastrophic loss of reinsurance was down almost 90% from a year ago allowing cash reserves to grow aggressively.  It trades at 13x earnings, 2x book and supports a ROE of 21%.  We…

Opinion about AMZN-Q: Likes the whole AI play, it'll change the world. Biggest player in outsource infrastructure for computers; for example, SLF uses AMZN for its back office. Cheaper than the rest of the Mag 7. Buying opportunity and will catch up. AWS and advertising have much higher margins than the retail segment and are…

Opinion about ATD-T: The bears won on July 11 when ATD suddenly called off the $46 billion deal. Days later, the company revived its share buyback program to the tune of $7.1 billion. Shares bounced back. I was in the bear camp and now see ATD as a stock to enter now before it sets…

Opinion about UL-N: New management has made this a growth business again. Earnings and margins are rising. Cost structure is fantastic. Are in 190 countries. Are spinning off their ice cream business which should create shareholder value. Trades at 17x PE and pays a 3.3% dividend. One of the fastest growing consumer products companies. (Analysts’…

Opinion about NKE-N: The largest sneaker company in the world. Almost zero debt. Are still buying backs shares and paying dividends. They changed CEOs and ditched his distribution strategy. ON is a competitor, but Nike has the money to produce competitive products. Are cleaning out past inventories which will impact the next few quarters, but…

Opinion about CMCSA-Q: Stockchase Research Editor: Michael O'Reilly Faced with recently reported loss of customers, CMCSA is taking drastic steps to increase offerings to its customers.  Analysts expect this will stem the tide and allow the company to regain growth.  Despite all this, cash reserves are growing while shares are aggressively bought back -- albeit…

Opinion about GOOG-Q: He just bought it, owning six of the Mag 7. Momentum hasn't been this strong since Q4 2023.

Opinion about APH-N: PE is 27x. Electronic equipment and sensors. Aerospace, data centres. Valuation isn't perfect, and it's certainly run up quite a bit. This company has beat the "fade" (when revenue and ROC drop off) for a very long time and doesn't see that changing. He's willing to pay up for a company of…

Opinion about MSFT-Q: Stockchase Research Editor: Michael O'Reilly One has to look past its high valuation as it trades at 38x earnings and 11x book, but with a ROE of 33% it demonstrates its dominance in the space.  Recently reported earnings beat analysts estimates for revenues (by 4%) and EPS (by 9%).  Cash reserves are…

Opinion about HPS.A-T: Sells for 10x PE, whereas all the big European and US electrical companies sell at 30x. Leading market player in dry transformers. Business will boom with AI. Yield is 0.86%. (Analysts’ price target is $150.00)

Opinion about RMD-N: ResMed has beaten earnings four straight quarters, and its 31.2x PE is nowhere near its 2021 high of 74.5x. However, the street projects a lower future PE of 27.69x. The most recent EPS of $8.91 was 37.09% more than the previous year. Its ROE of 25.81% ranks among the highest in medical…

Opinion about TOU-T: Quality name. Largest player in nat gas in Canada, with the largest reserves and the lowest cost. Top of the environmental sustainability ratings. We just built a big gas export terminal. Natural gas will power AI for at least 10 years until nuclear can get more established. Outlook for gas is strong.…

Opinion about APA-Q: Stockchase Research Editor: Michael O'Reilly APA recently surprised analysts with revenues beating expectations by 26% and EPS beating by 93%.  Revenues were over $500 million higher, allowing an aggressive amount of debt to be retired.  It trades at 6x earnings, 1.2x book and supports a ROE of 26%.  We recommend trailing up…