This week there were 17 Stock and 4 ETF Top Picks in a wide range of industries: ETF, Financials, Technology, Consumer, Industrials, Healthcare, Utilities and Basic Materials.
If we start to see slowing growth, plus inflation, and so stagflation, these are inflation-protected sovereign bonds. These are government of Canada bonds. You get the yield plus inflation. Nice complement to your bond portfolio. Yield is 2.14%.
Quadratic Interest Rate Volatility and Inflation ETF (IVOL-N)
New product. The largest market in the world is OTC rates. Helps hedge against relative interest rate movements. Allows your portfolio to profit from changes in the regimes of growth, volatility and inflation. Yield is 3.62%.
HBP S&P 500 Inverse ETF (HIU-T)
Stockchase Research Editor: Michael O'Reilly We are once again cautioning against a possible market retracement and are recommending this inverse S&P500 ETF as a Top Pick. As it is priced in Canadian dollars it will receive added benefit from a weakening in the Canadian dollar if the market retraces. We recommend this as a hedge…
SPDR Utilities E.T.F. (XLU-N)
Stockchase Research Editor: Michael O'Reilly Thus utilities based ETF is a defensive holding that provides a solid yield. This can act as a hedge against investor equity holding in case of a broad market retracement. Utility holdings also benefit during a prolonged low interest rate environment. We would trade this with a $54 stop-loss. Yield…
Canadians are in the unique position of having access to cryptocurrency. It's a closed-ended fund, so you have to be careful how you buy it. Management fee is a little higher. Access to an emerging access class in the "explore" portion of your portfolio.
BancFirst Corp. (BANF-Q)
Stockchase Research Editor: Michael O'Reilly BANF operates 107 commercial banking locations in Oklahoma. Its latest earnings report topped analyst expectations by over 30% and it achieves margins over 23%. EPS has grown on average 8.9% annually over the past five years. The dividend was just raised and pays a decent yield that is backed by…
Bank of America (BAC-N)
It has a 3% dividend yield and trades at 0.8-0.9 times book value. They increased profitability by reducing costs. They took less of a loan loss provision than the other banks. They have a great balance sheet and will continue to pay their dividend. They have a great capital markets and wealth management business. (Analysts’…
Toronto Dominion (TD-T)
(A Top Pick Oct 28/19, Down 13%) Still their bank of choice in Canada. A big mistake for Canadians is to hold too many Canadian banks. TD is underindexed on oil and gas, dividend has increased this year, franchises have grown, insurance has done well. Predicts job cuts later this year.
Sun Life Financial Inc (SLF-T)
They have not owned a financial service stock in a long time. They have a $30B market cap. 4% yield. Free cashflow has been growing and earnings are expected to grow through 2021. A potential 13% upside. (Analysts’ price target is $59.11)
Stockchase Research Editor: Michael O'Reilly XRX has been a laggard during the pandemic as office workers have been remotely working. As employees begin a return to the office environment demand for the company's products will begin to return. Meanwhile the stock is quietly building a solid foundation. Carl Icahn has been accumulating shares steadily through…
Billy Kawasaki’s Insights - Picks from 5i Research. The company has potential to continue to grow at a good rate through acquisitions. Q2 results were satisfactory for investors and their balance sheet remains strong. Unlock Premium - Try 5i Free
Johnson & Johnson (JNJ-N)
A diversified healthcare name. The pharma drug pipeline is robust with success launching products that should continue. Strong balance sheet and pays under a 3% yield that they've increased in 50 straight years. The medical devices unit got hit by the lockdown, but surgeries are coming back (they reportedly snapped back to 85% pre-Covid). They…
Loblaw Companies Ltd (L-T)
Food retailing is defensive. Unlike Empire, Loblaw owns Shoppers which gives it an edge. Loblaw is expanding their health business, entering digital health with a new acquisition. The locations of both Loblaw and SDM are great and boast a 30% market share. People are becoming comfortable using online medical services, a trend that will continue…
H&R Block (HRB-N)
Stockchase Research Editor: Michael O'Reilly It will soon be tax time again and HRB is set to see a seasonal uptick in business. Latest earnings beat expectations by almost 50%. Although EPS was negative the company's investment in its online digital platform will better position it for this pandemic based economy. It pays a nice…
Choline product necessary to humans and animals. Also make a purifier for when you don't have water. Through Covid, EBITDA, revenue, and EPS all increased. Grow through acquisition and organically. Prudent with the debt they take on. About 12% free cash flow growth per year. Smart management team. Yield is 0.54%. (Analysts’ price target is…
Intertape Polymer Group (ITP-T)
Has a 900M market cap. They make pressure sensitive and water activated sealing tape used in e-commerce shipping. They have 11% free cashflow yield that they would use to pay down debt. Earnings are expected to grow well through 2021. Technical analysis notes that it has reversed a 3 year down trend. Potential 30-34% upside.…
Global leader in enzymes, 48% market share. Dividend has grown by 16% since 2000. Stock's been trading sideways, so with share buybacks investors get a bigger piece of the pie. 34% of sales come from EM. Enzymes are low in cost, but have a big impact on the outcome. Yield is 1.27%.
Stryker Corp. (SYK-N)
Medical devices. A lot of elective surgeries were put off but are now coming back. They acquired an ankle and wrist company. There is good international growth. There is a risk in the steep learning curve on these products. (Analysts’ price target is $213.91)
A regulated utility and they make green energy. 90% of revenues come from the U.S. It's defensive with a visible cash flow. Their renewable business is supported by long-term contracts. The 4.5% dividend is safe and will continue to rise. AQN recently raised $1 billion to fund their capital program this year into next. They've…
UGI Corporation (UGI-N)
Stockchase Research Editor: Michael O'Reilly UGI distributes energy, primarily propane, to over 1.7 million customers through 1900 distribution locations in the US. This is a bit of a seasonal play as their business is getting busy now shipping energy to its customers ahead of winter. It pays a nice dividend that is backed by a…
🛢 Basic Materials
$20B market cap that operates in N Ontario and California. A very big free cash flow yield. Earnings, sales are both up nicely. They are undertaking a new drilling program that could potentially offer high grade underground deposits. A potential 10-17% upside. (Analysts’ price target is $79.82)
This post summarizes the top picks weekly. The previous week’s stock picks list is available for an additional week using the link below. Refer to Daily Top Picks available in the All Top Picks pages to browse the all-time top picks archive.
Use this list wisely to identify buying opportunities.
Happy trading !!!