Allan Tong’s Discover Picks As of March 8, this Canadian wind and solar power producer has tumbled nearly 15% off its high of $22.67 of just a month ago. The good news is that AQN‘s PE has slipped to 18.4x, which trades below the industry average of 19.2x. In addition to the current rotation, another factor pressuring Algonquin is last week’s Q4 report in which its EPS of $0.21 fell just a penny short of the street’s expected $0.22. Similarly, AQN’s adjusted EPS for the full year of $0.64 fell shy of management’s guidance of $0.65-0.70. Not a disaster, since Q4 EPS and revenues rose year-over-year so AQN stock is an oversold stock. Read 3 Overdone and Oversold Stocks for our full analysis.

Allan Tong’s Discover Picks Costco boasts a loyal customer base that feels relatively safe shopping in stores, which has been spending on safety measures right from the start of the pandemic. These necessary measures drove up costs, but ensured customer spending while all else was closed. Costco sales rose 17% over the year, and e-commerce sales soared 105%. EPS for Costco stock is $9.74, marking an increase of 18.44% over the past year and landing well beyond its peers. Read Battle of the Stocks: 2021 Consumer Staples Stocks for our full analysis.

Allan Tong’s Discover Picks Walmart also boasts strong e-commerce. Though its brand loyalty isn’t as celebrated as Costco’s, its Walmart+ loyalty program is already a hit, since launching last September. The street projects 25% upside to $162.47 based on 18 buys, three holds and one sell for Walmart stock. Walmart stock’s PE is actually lower than Costco’s at 27.4x, though its cash flow stands at $8.74 per share. However, Walmart missed its last quarter, and got punished. Read Battle of the Stocks: 2021 Consumer Staples Stocks for our full analysis.

Allan Tong’s Discover Picks Canadian Tire boasts a wide range of household goods at decent prices, but consumers will have much more choice in buying that patio set or baseball glove. True, last summer’s partial reopenings didn’t dent the stock price, but the Tire’s website still sucks. Price to cash flow is inline with its peers at 6.5x, though CTC stock’s PE of 13.4x is slightly higher than the industry’s 12.8x. Its profit margin of 5.8% is just below the industry’s 6%. Overall, not bad. Read Battle of the Stocks: 2021 Consumer Staples Stocks for our full analysis.

Allan Tong’s Discover Picks Dollarama sells cheap stuff and has enjoyed a near-monopoly on selling household goods during these lockdowns. No argument that DOL has done very well. It peaked December 9 at $54.58 November 1, just shy of its all-time high. DOL stock has since peeled back 10%. It continues to enjoy a strong brand in Canada and the ubiquity of its locations. Its last quarter in December reported sales up 14% and earnings 23%, blowing past street expectations. DOL stock is expected to grow 15% this year. Given the winter lockdown, it’s safe to say that DOL stock will report another strong quarter or two. In fact, DOL has beaten three of its last four quarters. Read Show full opinionHide full opinion