Summer Sale

50% off Premium Yearly

00days
00hrs
00mins
00secs

Latest Stock Buy or Sell? Make More Informed Decisions!

Today, Paul Harris, CFA commented about whether DIS, GOOG, JNJ, V, AAPL, TSLA, SYK, BAC, JPM, AMZN, ZTS, NVO, T, VOD, CNR.TO, INTC, REI.UN.TO, MSFT are stocks to buy or sell.

COMMENT
Concerned that media has spooked investors? The media has added a fear dynamic to the global economy, so we're going to have a hard time getting back to "normal". Toronto, for example, is empty. It's going to be a slow recovery. Difficult to get back to a normalized economy when you put the fear of god into everybody.
COMMENT
Now, more than ever, buy high quality companies? Yes. If you bought a mediocre company, it will be much worse. A quality company will do better. Tech companies, and the great companies like Home Depot and Costco have done very well. Good balance sheets let them grow their business in this difficult environment. Especially the e-commerce aspect. These companies will continue to do well regardless of what happens going forward.
COMMENT
Which sectors will continue to struggle? Technology will continue to do well, and the consumer side like Amazon, Target, and Walmart. Tougher on the retail side if you don't have an e-commerce presence. Oil and gas are still struggling. We need a sustained global recovery for oil to do well.
BUY ON WEAKNESS

In a sweet spot. The cloud computing pie is getting bigger, so it will do well even if its market share stays the same. VR and AI can be added to a company's cloud product, so MSFT can upsell, and it will have better margin growth. He'd buy it here. It may have a pullback, but won't fall too much. Small dividend, but a great stock that will continue to do well.

BUY
One of the best run banks in the US. Cheap multiple. Has grown its business, but kept costs down. Strong franchise. Difficult time over the next 6 months or so. Worth buying here. Yield is 3%.
COMMENT
Canadian bank stocks. Investors have cooled on Canadian banks because Canadian consumer was in worse shape going into the pandemic than in the US, real estate not as hot, oil and gas have had a tough time. People are worried about loan loss provisions. They're well capitalized, dividends are well covered. Over the last 30-40 years, have delivered 10-12% ROE. They can manage.
DON'T BUY
Bulk of their business is in retail, and that's the difficult part of the story. Reassessing retail in Canada and globally. They have a mall with one big client, and then a lot of smaller ones whose future is uncertain.
BUY

Product is being pushed back, whereas Nvidia had good numbers. Good chance to buy it here. Semis will become an important part of how the US protects its technology, so you want to own some of these companies. They'll become strategic assets, as companies will want control over their production.

BUY
Rails have had many bad years, but now they've found religion in how they run their businesses. One of the best rail franchises in NA. Should see better volume growth, better margins, and free cashflow growth. Better consolidation and management. Has done very well and will continue.
DON'T BUY

Not a tech company, but does provide access to the internet. Overexpanded and took on a lot of debt. Great business in the UK and Europe. How do they integrate 5G and the cable business? Will have a lot of capex going forward. He'd rather own a Canadian telecom like BCE. Good yield.

DON'T BUY

Great dividend. Bought a lot and took on a lot of debt. DirectTV has declining subscribers. Can they grow their online business as well as Disney? Prefers Verizon, though it's more expensive, as it's focused on 5G and is a safer bet.

PAST TOP PICK
(A Top Pick Sep 26/19, Up 29%) Diabetes and hemophilia. Diabetes continues to grow. NVO is at the sweet spot of that. Obesity will become a bigger and bigger issue.
PAST TOP PICK
(A Top Pick Sep 26/19, Up 26%) Pharmaceuticals for pets and livestock. Beat revenue by 11% on pets. Livestock side was down, but rose at 5%. Great company and demographic growth. If you see a pullback, buy.
HOLD
Has benefited from the pandemic. Will solidify their ability to be the premier online place to buy things. AWS will be a massive growth engine for them.
BUY

JPM vs. BAC Both incredible companies. All bank stocks are trading at a substantial discount. JPM pays a nice dividend, and trades at a bit of a premium. BAC trades at 0.8x book. Both well run.

Most popular stocks on Stockchase