Stockchase Discover

Allan Tong’s Discover Picks No surprise that investors and sent shares soaring 6.29% the next day on the Iger news. Shares flirted with $100, but remain a long way from the peaks of $155 exactly a year ago. To be fair, most momentum stocks with any technology angle have plunged in this time frame, but Disney’s fall has been particularly painful. The street is looking to Iger to exercise fiscal restraint (Wall Street talk for cutting costs) and bolster revenue, even if recession is threatening the wider economy. Read 3 Momentum Stocks to Switch Out for our full analysis.

Allan Tong’s Discover Picks If the thought of tech makes you seasick, then stick to tried, true and seasonal investments. In Canada, this means banks and ZEB-T is the go-to ETF. ZEB holds the the Big Six banks equally, as the name implies, pays a 4.12% dividend yield and charges a 0.6% MER. Read 3 Momentum Stocks to Switch Out for our full analysis.

Allan Tong’s Discover Picks Since I recommended it in mid-August, CMG shares have endured a choppy ride, but since its report a week ago, shares have sharply turned upward pointing to it being an oversold stock at the time. CMG stock reported that revenue was up 13.7% YOY. In-store sales were up 22.1%, better than the company’s overall growth. Digital sales accounted for 37.2% of revenues in the last quarter. Another positive is that Chipotle’s rewards program now boasts 30 million members after only 3.5 years. More good news, the price of avocados has declined and overall U.S. inflation continues to tick down as seen in recent consumer and producer numbers. If food costs continue to ease, margins should improve. Read 3 Oversold Stocks to Take Advantage of for our full analysis.

Allan Tong’s Discover Picks Bay Street is giving CHR stock the benefit of the doubt with six buys and no holds or sells. The $4.60 price target is a far cry from Nov. 14’s close of $3.09, so the street is aiming high. Will they be right? Consider this a partial buy and watch CHR stock before making the next move. Chrous pays no dividend. Read 3 Oversold Stocks to Take Advantage of for our full analysis.

Allan Tong’s Discover Picks Shareholders of the company formerly known as Facebook have been treated for post-traumatic stress syndrome since the company’s recent earnings report and weak guidance. Before that, Meta was dogged by the challenge of TikTok and changes in Apple‘s privacy settings. Meanwhile, CEO Mark Zuckerberg was pouring A Lot of Money into the metaverse. Capital investments are normal and healthy for a company, but only if they yield results. Where is this metaverse? Investors have run out of patience with Meta and the company’s quarterly report triggered a landslide of selling where the stock slid from $130 at the end of October below $90 in a week. So, dump Meta, right? Read 3 Oversold Stocks to Take Advantage of for our full analysis.

Allan Tong’s Discover Picks Business is mounting. WSP’ Q2 reported a record $11.4 billion project backlog, jumping 19% year-over-year. The balance sheet is robust, helped by cost-cutting early in Covid. WSP is a growth-by-acquisition name, including a mammoth $2.3 billion deal with John Wood Group’s environmental and infrastructure business. Hope are pinned on integrating this U.K. Company as the company continues to buy during its three-year-growth plan. Read 3 Solid Infrastructure Stocks for our full analysis.

Allan Tong’s Discover Picks Cash flow is robust, because the company has sold four companies so far in 2022 and will unwind another three. Investments include helping Intel build two chip-making factories. It’s a good time to step into BIP, because shares have sunk 20% during this year’s bear market. Since that report, BIP.UN stock has jumped $4 from $32, but is still way off from $46, its 52-week high. Read 3 Solid Infrastructure Stocks for our full analysis.

Allan Tong’s Discover Picks Companies like Polaris trade at high PEs (102.44x), but that’s par for the course. Another caveat is that PIF is a small-cap of only $344 million, so it can be vulnerable to market mood swings—and we’ve had no shortage of that. PIF pays a steady dividend of 5%, which investors can collect as they wait. Given PIF’s caveats, consider this stock more a risky or partial buy. Read 3 Solid Infrastructure Stocks for our full analysis.

Allan Tong’s Discover Picks Honeywell has held up well this year, down only 4% compared to the Nasdaq’s -30%, which makes this a fairly safe stock. For the most part, HON stock has been rangebound between $170 and $200 and currently is riding the market upswing and returning to $200. It could break this level and return to its 52-week high of $228.26 as the market enters a historically strong period, given the U.S. midterm election which typically rises after that vote. In the meantime, shareholders are paid a 2.1% dividend as it trades at a 27x PE though Honeywell’s forward PE of 20.24x is more inline with the company’s historic average. (A caveat, but not a dealbreaker.) Read 3 Must Have Safe Stocks to Play Defensive for our full analysis.

Allan Tong’s Discover Picks Merck is definitely on an uptrend, breaking past $100 as October ends to establish new 52-week highs. The stock’s catalyst was its sterling Q3 report last week where it beat earnings and revenues and upgraded its forecast. Year-over-year, earnings were up 4% (7% if you exclude the impact of the strong USD) and revenues rose 14% (18% considering currency). Drivers were strong sales of Merck’s cancer drugs and many vaccines. The pharmaceutical side boasted a 13% hike in sales YOY. Merck’s key drug, Keytruda, saw sales jump 20%. One of the new weaknesses in Merck was its animal health business where the strong greenback depressed sales by 3%. Read 3 Must Have Safe Stocks to Play Defensive for our full analysis.

Allan Tong’s Discover Picks ZAG has trended down for much of this year, from a high of $15.84 to $12.95, but this ETF has been climbing of late. Meanwhile, you’re paid a safe 3.55% dividend to wait and paying only 0.09% in MER. The beta is 1.01. Read 3 Must Have Safe Stocks to Play Defensive for our full analysis.

Allan Tong’s Discover Picks Consider PE. On New Year’s Eve 2020, Netflix shares hit $540.73 and traded at 99.79x. On October 19, 2022, shares changed hands at $272.38 and only at a 24.21x PE. That is a saner valuation that matches Apple‘s and even dwarfs Amazon‘s of 103x. Another tailwind: Netflix will crack down on password sharing by charging guilty parties an additional fee (something it has been testing in Latin America) which should enhance revenues. Read Are these 2 Tech Stock Bellwethers Still Alive? for our full analysis.

Allan Tong’s Discover Picks After that report, Tesla shares were trading at precisely half its 52-week high of $414.50. True, TSLA stock’s PE has plunged from 1,102x on New Year’s Eve 2020 (you read that right) to the current 74.48x. Still, that’s not exactly cheap. GM trades at 6.22x and Ford at a measly 4.0x. Read Are these 2 Tech Stock Bellwethers Still Alive? for our full analysis.

Allan Tong’s Discover Picks The pizza chain and steady fast food stock delivered a tasty quarter recently. Domino‘s U.S. same-store sales came in better than expected, Q3 revenue rose 7.1% and their net global stores growth met guidance at 6.2%. Stronger U.S. sales offsets weakness abroad due to the strong American dollar. The topline climbed to $1.07 billion above expectations, as U.S. sales climbed 2% which offset the 1.8% decline overseas. If the USD weren’t so high, those foreigns sales would have jumped 5.2%. The headwinds forced profit to shrink to $2.79 a share which missed the street’s $2.97. Read 3 Fast Food Stocks to Nibble On for our full analysis.