The Monthly Gems by Allan Tong

Its PE sank to 34.4x after that report, close to its median average of 33.94x. Its quarter was far from a disaster, so the sell-off was an over-reaction. Year-over-year earnings actually rose 10% and sales 16%, while Azure revenues jumped 32%. MSFT pays a 0.77% dividend, so you're not buying this for income. This is one to hold long term.

Shares are basically flat over the past year do some quarterly misses, but its PE has fallen to 22.34x, below its 24.06x, making it an attractive entry point. It pays a moderate 1.72x dividend because the company is investing in expansion, which should bolster top and bottom lines in future quarters and reinforce the company's prominence in this healthy space.

Fortis currently pays 4.09% and will raise that by 4.2%. The dark days of interest rate hikes are over, and the expected cuts are certainly working in Fortis' favour. A favourite of Stockchaser Trevor Rose and much of Bay Street, Fortis trades at 18.88x PE which is below its median average of 19.77x. This despite shares rallying 5.5% over the past three months.

The Well, a new and dazzling commercial-office-residential behemoth in downtown Toronto, bodes well for Allied's future mixed-use projects.
Caveat: The payout ratio of Allied's near-9% dividend yield is almost 400%, though Bay Street feels that divvy is safe. Be patient with this one. It holds more upside than down, and you can collect that 9% while you wait. 

It must be hard playing second fiddle to the giant called Nvidia. However, AMD is also enjoying growing demand. Both both companies are equally volatile around a 1.68 beta, though AMD is perceived to be safer. AMD has enjoyed modest top- and bottom-line beats in three of its last four quarters, with one coming in-line. A good track record, even if it Nvidia eclipses it. 

Another Canadian momentum play is the parent company of the Brookfield empire. BN shares are hitting all-time highs these days after slumping from the weight of high interest rates. It's a consistent grower and holds a wide range of assets from renewable energy to real estate. Its private equity investment have been growing around 15% annually as this segment is hot among investors, 60% of whom are institutional investors. BN is established globally and is renown for buying distressed assets at cheap prices; they have around $150 billion to play with. BN has been trading at a discount to NAV from 18-26%. 

AEM has an established reputation for its management and assets. It's a pure gold play, pays a steady 2.08% dividend yield. Stockchasers Trevor and particularly Michael like it for its dividend, growth prospects and overall safety. Cash levels are healthy enough to buyback shares, always a good sign.

Debt is down, and the dividend is a healthy 3.64% based on a 55% payout ratio. True, the PE has been climbing in the past year, now just under 16x, but historically it's 17.33x. Though shares have rallied 18% so far this year, the street expects them to climb another 10% to an average price of $35.90. Note that as of this writing on the morning of August 1, shares were jumping over 2%, and analyst upgrades will likely follow. ALA is for traders and income investors alike.

Also safe and steady and undervalued is this lender. It trades at 13.75x PE, slightly higher than its historic average of 12.03x, but below the industry's 15x. GSY pays a 2.33% dividend yield at a low 27.24% payout ratio. The beta, though, is a tad high at 1.93, while shares have rallied about 30% this year.

Once a dog, this American pet food maker is a comeback after reporting Q1 results. Shares jumped 30% after the company reported earnings per share (EPS) of US$0.15, which blew away street estimates by 291%. Meanwhile, revenues of US$2.9 billion (all USD)were in line. Net income more than tripled from a year ago to $67.3 million, or $0.15 per share while gross margins climbed 130 basis points to 29.7% and net margins increased 150 basis points to 2.3%. Growth has moderated, but profits are now consistent and growing. Analysts were impressed enough to raise Chewy's price target rose by 8.4% to US$25.12. So, how did the company beat the post-Covid slump? One step was recently opening Chewy Vet Care clinics, targeting younger, tech-savvy pet owners, who can see their pet's medical information displayed on interactive screens in the exam room but also access that data on their portable devices. This cohort of Millennials and GenZ'ers make up 46% of pet owners in the U.S., so penetrating this market through the clinics is a savvy move.

A month ago, this defense company reported total revenues of $3.98 billion which beat the street's $3.8 billion and rose 4.2% year-over-year as operating income climbed from $265 million to $415 million (all USD) in that time. The operating margin expanded from 7.2% to 10.4% as total incomes declined 9.3%. The future looks positive with a backlog of $36.57 billion. To cap it off, the company raised its full-year earnings guidance from $7.50-7.90 to $8.40-8.80 per share and cash flow from $1.1 billion to $1.3 billion. After Leidos reported this beat, the stock and made fresh 52-week highs in the weeks that followed. It's come back a bit which makes it an attractive entry point.

Quietly rising 17% since the year started, this Quebec manufacturer of in-home lifts serves an aging demographic. One thing to note is its EPS growth: up 8.1% annually since 2021. In the last year, revenue grew 2.2% to $835 million. Insider have been buying shares (always a good sign) and now hold 20% of the company. The icing on the cake is SIS' dividend, which has more than doubled in the past decade and now pays just under 3%. This trend should continue, based on management projections of revenue growth to top $1 billion next year. Last year, the company enjoyed a record backlog as well.

It's a homegrown success story driven by customers who promote their wares on social media. However, given an iffy forecast for the Canadian consumer, and a rosier one for Americans, you're buying ATZ for its continued expansion into the U.S. It's ambitious: eight to ten new stores annually through 2027, based on 100 possible locations down there.

Old tech can have new life. This underdog, outlier or what have you, surprised the market when it reported in late March. Its forward PE jumped from 12x to over 16x, largely driven by higher demand for its AI servers. It's now cruising above 28x PE, well above its historic average of 11.55x.

By all means, this EV stock should be tanking. At the end of April it reported adjusted EPS of 45 cents adjusted vs. the street's 51 cents expected, and posted revenues of $21.30 billion that missed the estimated $22.15 billion. For months leading up to that report, the street knew that EV sales were not increasing, but had likely plateaued, at least for now.