Latest Stock Buy or Sell? Make More Informed Decisions!

Today, Gordon Reid and Stockchase Discover commented about whether CJR.B.TO, UBER, SNAP, FCX, DY, CB, MMM, UAL, GM, F, TSLA, V, FDX, META, ABBV, JPM, JEC, JNJ, GD, KO, PFE are stocks to buy or sell.

PAST TOP PICK

(A Top Pick May 12/20, Up 24%) He's sticking with it. There's more upside to come. Their biggest product was Humera, a massive drug. A few years ago, they bought Allergan and their Botox drug, which reduced company dependence on Humera for company revenues. ABBV has some new drugs in the pipeline that are reaching $1 billion in sales, so this further spreads the risk away from Humera. It trades at a cheap 9x PE and pays a 5% dividend. Warning: in 2023, Humera goes off patent and that will mean a challenge for ABBV to replace that revenue stream (Humera makes up 32% of all revenues, though it used to be 65% before Botox).

PAST TOP PICK
(A Top Pick May 12/20, Up 49%) Of the megacap tech stocks, this is the cheapest at 25x earning with growth around 10-15%. Has a great base. The controversy will continue, but Democrats and Republicans hate FB for opposite reasons--which is the sweet spot.
PAST TOP PICK
(A Top Pick May 12/20, Up 160%) It's riding the e-commerce boom but also will benefit from the reopening. It's the proxy for economic growth and he believes the US economy will boom this year. Fedex is doing well in air freight as well, given fewer airplanes in the air now. There's lots of growth in this company. They can cut costs in the future with drone deliveries and other technological uses.
DON'T BUY
A great company with no credit risk. It comes down to how many people around the world swipe their card. A great business. His issue is that the stock is getting more expensive, surpassing its growth. He sold it for this reason a while ago. The PE is twice the market multiple now. Likes the company, but the PE is too high.
DON'T BUY

They've built a fabulous brand, but this is a cult stock which doesn't support the stock fundamentals. Is it worth 95x enteprise value when GM is at 6x. There's danger in this high-beta stock. The stock price fluctuates a lot based on emotion.

COMMENT

Ford vs. GM This and GM are heavily moving towards e-cars. GM is bigger than Ford and more cost-efficient with far better operating margins. Long-term, GM will offer better products. Ford has been relying on the F-150, while GM has just surpassed them in total truck sales. He likes that GM is the majority owner of the Cruise self-driving business, partnering with Microsoft (https://www.reuters.com/article/us-gm-microsoft-autonomous-idUSKBN29O1MO). Ford isn't a bad option, but GM is the best.

BUY

This and GM are heavily moving towards e-cars. GM is bigger than Ford and more cost-efficient with far better operating margins. Long-term, GM will offer better products. Ford has been relying on the F-150, while GM has just surpassed them in total truck sales. He likes that GM is the majority owner of the Cruise self-driving business, partnering with Microsoft (https://www.reuters.com/article/us-gm-microsoft-autonomous-idUSKBN29O1MO). Ford isn't a bad option, but GM is the best.

DON'T BUY
He owned this going into the pandemic and got hurt. To survive plunges like that be strongly disciplined, diversified and rebalance. He sold it almost immediately. Though UAL stock has partially recovered, his new stock has done very well with a lot less risk. The airlines will survive, but the future is up in the air and not a good reason to buy these stocks. Distancing will make it tough to pack passengers on planes.
DON'T BUY
Many other industrials are positioned better. 3M has been struggling for a direction. Profit growth and revenue growth are slow, and they face litigation risk with PFAS. Avoid.
TOP PICK
Two-thirds of their business is in North America. They have pricing power now (at times in a cycle insurers don't). CB's combined ratio is very strong. It trades at 1.3x book, reasonable for an insurer, and at 15x earnings. He's done well holding this for a while. (Analysts’ price target is $180.59)
TOP PICK

An infrastructure company in telecoms; their biggest customers are telecoms like Verizon and Comcast. They string the contintent for 5G capability. Warning: It's a lumpy business, because it's bsed on fixed costs. However, Dycom is getting a lot of positive attention because they are the go-to business to lay the fibre optics for the coming 5G revolution. This can easily earn $6/share, so it's not expensive now. (Analysts’ price target is $102.00)

TOP PICK
Copper is showing life again at over $4/pound and will stay at high levels. A highly profitable company. Commodities have done very well in the past year. The price could rise long term. One big reason is the electrification of cars which need 2-4 times as much copper as a gas-powered car. (Analysts’ price target is $39.03)
BUY
Allan Tong’s Discover Picks SNAP stock earnings are -$0.65 and well below the industry average of $3.84. Cash flow at -$0.59 also lags its peers. The PE is sky high, while price/sales and price-book also exceed industry averages. Essentially, SNAP is not a profitable company and carries a negative ROE. So, am I trashing SNAP and telling you to run away screaming from this stock? Millennials and kids love this social media platform. Stockchase’s research division recently noted that revenues have surged over 60% and daily users have leapt 22%. Business is so good that SNAP management revised revenue forecasts to up to $740 million vs. the street’s $703 million. Even though the U.S. is reopening, I don’t expect usage of this app will fall off, since people will continue to use their apps out of sheer habit. Read 3 Promising Stock Upgrades: SNAP, Uber, Corus for our full analysis.
BUY
Allan Tong’s Discover Picks On the same day, analyst Youssef Squali of Truist Financial signaled a buy with a price target of $66. On the same morning, Uber leapt 4% to nearly $60. Squali is actually more conservative than his peers, who foresee a mean PT of $72.96. As with SNAP stock, Uber investors are betting on future performance. Uber’s growth is literally driven by the reopening south of the border (Canada will lag until vaccinations catch up). Again like SNAP, Uber stock’s current fundamentals reflect negative earnings and profit margins and a huge PE. Read 3 Promising Stock Upgrades: SNAP, Uber, Corus for our full analysis.
PARTIAL BUY
Allan Tong’s Discover Picks The stock is climbing out of a long slump and offers upside of 23%, based on a price target of $7.71 by six analysts. Corus has cut costs and the Shaw family owns the company, so there is stability in the upper office. Meanwhile, shareowners can collect the 3.83% dividend yield. However, the fundamentals remained challenged with negative earnings, a -41% profit margin and -46% ROE. There’s still a ways to go with this story. There’s upside, but maybe not to $7.71. Consider this a partial buy. Read 3 Promising Stock Upgrades: SNAP, Uber, Corus for our full analysis.