Alimentation Couche-Tard (B), Amazon.com and 19 Stock and 1 ETF Top Picks (Sep 10-16)
This week were 19 Stock and 1 ETF Top Picks in a wide range of industries: Consumer, Industrials, Financials, Technology, ETF, Basic Materials and Healthcare.
Trading at a reasonable PE and are discplined in M&A. Rumour says they're looking at EG Group's assets, some great and some not. ATD will do well in this recovering economy. (Analysts’ price target is $56.94)
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…
Korn/Ferry International (KFY-N)
Stockchase Research Editor: Michael O'Reilly We reiterate our recommendation of KFY as a TOP PICK. The executive search firm trades at 18x earnings, compared to peers at 25x. Currently it is valued at under 3x book value. It pays a small dividend, backed by a payout ratio under 20% of cash flow. It continue to…
Dollar Tree (DLTR-Q)
Stockchase Research Editor: Michael O'Reilly We reiterate our recommendation of DLTR as a TOP PICK. It trades at 14x earnings, compared to peers at 20x. Currently it is valued at under 3x book value. It has drawn down cash reserves somewhat, but by buying back $1.3 billion of stock and $800 million in debt it…
Stockchase Research Editor: Michael O'Reilly We reiterate our recommendation of VIAC as a TOP PICK. It trades at 8x earnings, compared to peers at 20x. Currently it is valued at under 2x book value. It pays a good dividend, backed by a payout ratio under 25% of cash flow. It continue to build cash reserves,…
Exemplifies growth and cyclicality. Engineering design, natural resources, infrastructure, and other sectors. The economic backdrop is bright for companies like this. Governments want to do infrastructure renewals. Governance and management missteps are being worked on. (Analysts’ price target is $41.07)
Curaleaf Holdings Inc. (CURLF-OTC)
Early in the story was a sceptic. Initiated a position last summer. Biggest company in cannabis by revenue. There is an e-report available. Vertically integrated with good geographic footprint. Good organic growth, with more licenses to open more. Great management team. Pullback is buyable. (Analysts’ price target is $28.06)
It corrected more than other financials in yesterday's rout. Their growth has been in China, so maybe they're getting hit by the Evergrande implosion. MFC has always reacted with more volatility than other financial stocks, like cutting their dividend in 2008. At $23.75, it's a good buy. In coming years, he expects them to continue…
Allied Properties REIT (AP.UN-T)
Concerns in office spaces are overblown. A massive pullback in this sector are overdone. he likes their 4% dividend and valuation. 2022 will likely see the end of Covid and he expects more people to return to the office, hence demand in this sector. He himself is working at his office. (Analysts’ price target is…
Toronto Dominion (TD-T)
It's lagged a little. It had a severe premium valuation. Like the other banks, they did well with reserve releases. ROE is decent. TD has spent a lot to expand in the U.S., so there's a lag in profitability--they are doing well in the U.S. It's reasonably priced now, in the middle of the bank…
Citizens Financial Group (CFG-N)
Stockchase Research Editor: Michael O'Reilly We reiterate our TOP PICK recommendation for CFG, the regional banking group who manages over 1000 branches through the US mid-Atlantic and Midwest. It trades at 10x earnings compared to peers at 14x, is valued right around book value and pays a great dividend backed by a payout ratio at…
Mastercard Inc. (MA-N)
They do not take any credit risk. They are a transaction company, and with the move away from cash, MA will benefit. However, the valuation compared to their historic multiple is high. They used to trade at a market multiple. Now, it is at 2x the market multiple. It has been rerated. However, thinks it…
Visa Inc. (V-N)
Beneficiary during Covid. Will also benefit from inflation and the recovery trade. Great company. Dividend has grown by 29% in the last 5 years. Good long term story. Need exposure to that space. Structural tailwind of moving from cash to digital, even if interchange fees are cut. If crypto becomes a major competitor, then V…
(A Top Pick Sep 22/20, Up 89%) He got out when he saw it blast off beyond his target price. The results have been very disappointing since then. They have been losing a lot of market share. Management has a huge credibility problem. They have a huge IP patent portfolio that should be monetized.
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…
Lockheed Martin (LMT-N)
Stockchase Research Editor: Michael O'Reilly We reiterate our TOP PICK recommendation with LMT. The company just secured contracts with the Pentagon worth up to $6.6 billion. It trades at 14x earnings compared to peers at 18x. It pays a good dividend, backed by a payout ratio of 40% of cash flow. Its cash reserves are…
Micron Technology (MU-Q)
Stockchase Research Editor: Michael O'Reilly We reiterate our TOP PICK with MU, the memory and storage technology company. It trades at 21x earnings compared to peers at 37x. With good earnings growth prospects it trades with a PEG ratio under 1.0 and is presently valued at just over 2x book value. It recently initiated a…
Basket of large-cap global energy names. Energy sector is underinvested, and this presents a contrarian opportunity. Improving global demand for oil and gas, diminished supplies, draw down on inventories, predictions of a colder winter ahead. These large caps have strong balance sheets, strong free cashflow, more disciplined. Rising inflation bodes well.
🛢 Basic Materials
The material sectors tend to be highly volatile. Seeing commodity prices firm up. Taking advantage of it. Their corporate policy is to pay out a percentage of earnings and their earnings have been very good. Declared an attractive dividend, but you cannot bank on this dividend going forward. Certainly doing well, strong balance sheet.
Broadly, pharmaceuticals and healthcare space is not providing a ton of opportunity. Trading at reasonable valuations with 3 divisions. Consumer business is in trouble because more people are going towards generics. Pharma business hasn't seen much tailwind from covid vaccines.
Use this list wisely to identify buying opportunities.
Happy trading !!!