Carvana, Bank of Montreal and 20 Stock and 3 ETF Top Picks (Dec 02-08)
Visa Inc., Zoom Video Communications Inc. and 21 Stock Top Picks (Archive From Nov 18-24)
This week were 21 Stock Top Picks in a wide range of industries: Financials, Industrials, Healthcare, Technology, Basic Materials, Energy, Consumer and Telecommunications.
Thinks highly of management. A great play on the GTA which boasts the highest rent growth. That said, they operate in rent-controlled markets, though. They see a nice increase in rents during renewals. They struggle, but are managing to manage costs. Upside is better than downside, so a solid hold. Solid assets.
WSP Global Inc. (WSP-T)
(A Top Pick Apr 05/22, Up 2%)Bought a company in central Europe today Still likes it as an infrastructure play. Has held this for years. Very diversified portfolio. Acquisitions are key for WSP. However, a deep recession will see valuation pull back and he will likely sell some shares.
Fifth Third Bancorp (FITB-Q)
Stockchase Research Editor: Michael O'Reilly We reiterate FITB, a 164 year old US bank, as a TOP PICK. It trades at 11x earnings (projected at 9x next year) and under 1.5x book. It pays a good dividend backed by a payout ratio under 45% of cash flow and has increased dividends for 11 consecutive years.…
Visa Inc. (V-N)
Leader in digital payments. New share buyback program, increased dividend by 20%. Will benefit from pent-up travel demand surge. US consumer continues to be strong. Retail sales recently marched to a new high. Very good cashflow, no material debt. Predictable sales and earnings growth. Secular trend away from cash. Yield is 0.85%. (Analysts’ price target…
Bank of Nova Scotia (BNS-T)
Really underperformed this quarter. BNS net interest rate margin didn't go up as much as the other banks, a worry. Used to like the international diversification, but that comes with a lot of risk. He likes TD much more.
Conflict in Europe looks to point towards increasing defense spending. Company is 1/2 commercial (aviation) and 1/2 deference business. Increasing travel after pandemic is good for the business. Procurement rules prevent much inventory from budding up on defense side (good for cash flow).
Green Thumb Industries (GTII-CSE)
It has one of the strongest teams, some of the strongest assets and some of the strongest markets in the cannabis sector. The stock is recovering now with the underlying business continuing to grow. Some of the institutional managers could come back. It is possible for a glut in Cannabis in the U.S. as well…
Bassett Furniture Industries, Incorporated (BSET-Q)
Stockchase Research Editor: Michael O'Reilly We reiterate this 120 year old manufacturer of home furnishings, who operates thru 97 stores in the US, as a TOP PICK. Recently reported revenues were up over 12% and EPS by 43%. It recently rejected an offer of $21 for the company as management sees better value ahead. We…
Premium Brands Holdings Corp (PBH-T)
Growing organically and inorganically. Challenges with supply chains and pandemic, but will work through them and end up stronger. Inflation has hurt, but now cost pressures are subsiding. Expects a few quarters of healthy margins, positive for the stock. High quality, record-low valuation. Yield is 3.33%. (Analysts’ price target is $112.11)
Exchange Income (EIF-T)
Aerospace parts and manufacturing. Assets mainly out West. Generates hundreds of millions of dollars in free cashflow every year. At a nice inflection point, where valuation doesn't fully reflect demonstrated free cashflow conversion from franchises. Really nice yield of 5.21%. (Analysts’ price target is $61.18)
It is in the recovery science market related to physiotherapy with machines to help patients recover from injury or surgery. It was formed one and a half years ago with 15 million in revenue growing to 50 million now, Could be 80 million by year end. Also it is profitable. The founder has successfully built…
It provides software for hardware for patients in their homes. Has 8 1/2 million in revenue up from 1 1/2 million the year before. It expects to have 100 000 patients at $50 per month per patient with maybe a 50% margin by the end of this year. It had a couple of false starts…
Activision Blizzard (ATVI-Q)
Activision Blizzard, Inc. connects and engages the world through epic entertainment. A member of the Fortune 500 and S&P 500, Activision Blizzard is a leading interactive entertainment company. It delights hundreds of millions of monthly active users around the world through franchises including Activision's Call of Duty® and Crash Bandicoot™, Blizzard Entertainment's World of Warcraft®,…
Zoom Video Communications Inc. (ZM-Q)
Zoom Video Communications, Inc. brings teams together to get more done in a frictionless and secure video environment. Its easy, reliable, and innovative video-first unified communications platform provides video meetings, voice, webinars, and chat across desktops, phones, mobile devices, and conference room systems. Zoom helps enterprises create elevated experiences with leading business app integrations and…
Agilent Technologies (A-N)
Consumables for labs. Green energy and pharmaceuticals creating all sorts of demand. Last quarter had 17% organic growth, pretty impressive. Guiding to 5-6% organic growth going forward. Underutilized balance sheet could be flexed for acquisitions. Growing dividend. Yield is 0.58%. (Analysts’ price target is $158.56)
Loves it. Brilliant to put themselves in the centre of small- and mid-sized businesses almost everywhere in the world. Not going away. That's why he sees it more as a utility. Surprised by the selloff, great entry point. Dividend will rise.
🛢 Basic Materials
Stockchase Research Editor: Michael O'Reilly We reiterate this low cost producer of supplier of rolled steel to Canada and US Midwest as a TOP PICK. Although recession fears are slowing demand for their product (resulting in steel prices plunging from $2000 US per ton to under $750), the fact remains the world is short raw…
Teck Resources Ltd. (B) (TECK.B-T)
Stockchase Research Editor: Michael O'Reilly TECK.B is reiterated as a TOP PICK. The global economic recovery and trend towards decarbonization will require massive inventories of copper -- and the world is short this commodity. Goldman Sachs projects copper prices to reach $15,000 per tone over the next three years, compared to this summer's low under…
One of the world's largest integrated energy companies. 11.3B barrels of proven reserves, produces 3.1M barrels of oil per day. Last reporting blew away estimates. Focused on returning excess cash to shareholders, curtailing expenses. Free cashflow yield is 10+%. Recently broke above long-term technical resistance. Yield is 3.10%. (Analysts’ price target is $191.27)
Down 38%. New-old CEO brings lots of experience to effect an operational turnaround. Parks business is OK, China is opening up. Real challenge is the media business, costs are increasing, on track to lose 4B this year and 2-3B in 2023. Transitioning ESPN from cable to streaming is also a challenge. High quality, great brands.…
Verizon is one of the largest communication technology companies in the world. Verizon Communications Inc. was formed on June 30, 2000 and is celebrating its 20th year as one of the world’s leading providers of technology, communications, information and entertainment products and services. Headquartered in New York City and with a presence around the world,…
Use this list wisely to identify buying opportunities.
Happy trading !!!