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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly ALLY is a financial services company operating in the US and Canada with a $19 billion market cap. Recently reported earnings showed revenues up 40% and EPS 55% higher than analyst expectations. It has a decent dividend backed by a payout ratio of under 25% of cash flow. Management announced a 32% increase in the dividend and has authorized a share buyback program. We would buy this with $42.50, looking to achieve $61.50 -- upside potential over 19%. Yield 1.46% (Analysts’ price target is $61.26)
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly NVAX is applying for Emergency Use Authorization for its COVID-19 vaccine as experts believe annual boosters may be required as with the annual flu shots. It has achieved over 89% efficacy and does not require deep freeze storage -- a huge advantage. It has agreements already in place for 180 million doses in the UK, Canada, and Australia when approved. We would buy this with a stop loss at $160, looking to achieve $272 -- upside potential over 27%. Yield 0%. (Analysts’ price target is $271.75)
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly TOU is well positioned for a continuation of energy price stabilization. It trades at 11x earnings, compared to peers at 29x. It is presently valued at under 1.5x book value and has a PEG ratio of 1.3 -- indicating analyst views of earnings growth. It pays a decent dividend backed by a payout ratio of under 25%. It has an interesting short position battle going on that might yield some explosive short covering in the days ahead. We would buy this with a stop loss at $26, looking to achieve $43.50 -- upside potential over 25%. Yield 1.87% (Analysts’ price target is $43.50)
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Apr 13/21, Up 28.2%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with SHOP is progressing well and has achieved our $2000 objective. To be disciplined, we recommend covering 50% of the position here and to trail up the stop (from $1000) to $1550 -- near the original recommended entry. If the stop is triggered, it would all but guarantee a minimum investment return over 14%.
COMMENT
Markets. We're still in Covid. The problem is that it's everywhere until it's nowhere. The economic data has to be analyzed through that lens. It's very choppy. Hard to get a clear picture. US unemployment claims are up. Economy is in better shape than last March, but it may still take a lot of time before we can look at data and get a feel for what's going on in the economy. Easy to have a correction of 5-10% as we saw earlier this week. Hard for him to see the stock market fall, because of all the liquidity in the system. The economy is still quite fragile, so governments have to keep pumping in stimulus. This is not going away until next year some time, and we face a lot of uncertainty in how the world will look. But the trend line is much more positive than negative.
COMMENT

Sectors to focus on. Tech, pharma will continue to do well. Those trends will continue and grow. Consumer discretionary like AMZN, Costco, and Walmart will continue to do well. The more cyclical plays started strong, but are now having a difficult time because the economy is much more choppy. He wants to be in the sectors that did well during the pandemic, as they will continue to perform now.

DON'T BUY

Cheap, but wouldn't buy it. The issue is they didn't have a lot of topline revenue growth, but that's changing now. Buying back shares, nice dividend of 4.4% or so, trading at 10-11x earnings. Too late to the cloud to be competitive. Better to own AMZN, MSFT or GOOG to play in the cloud.

HOLD

CP vs. CNR Owns CNR. Numbers positive over the last little while, but the KSU acquisition may hamper them going into next year, with the stock moving sideways. Rail industry is great: limited competition, hard to duplicate, good pricing power, sweet spot of transportation. KSU acquisition will enhance their business. Forest fires are affecting the backlog, but this is short term.

HOLD

CP vs. CNR Owns CNR. Numbers positive over the last little while, but the KSU acquisition may hamper them going into next year, with the stock moving sideways. Rail industry as a whole is great: limited competition, hard to duplicate, good pricing power, sweet spot of transportation. KSU acquisition will enhance CNR's business. Forest fires are affecting the backlog, but this is short term.

BUY
Tried to expand into investment banking but had a difficult time through 2008. Focusing on its wealth management business, and that's why it has a high multiple. Relatively low payout ratio, bad debt situation has improved. Good company.
BUY
Banco Santander has a massive franchise and good potential to do well.
BUY
Livestock had a tough year in 2020, grows about 5%. But that's coming back. As people get wealthier, they eat more protein. Pet care benefits from branded drug pricing power, good growth over next several years. Not many competitors. Great free cashflow growth, great balance sheet, good product pipeline. Great story for the long term.
DON'T BUY
Not expensive. Trying to expand. Real problem is the Chinese government shutting things down, like the e-commerce arm Ant, to prevent US access to data of Chinese companies. Risk of delisting. Don't buy now, maybe later.
PAST TOP PICK
(A Top Pick Jul 21/20, Up 37%) Great business. Demographic tailwind. User loyalty. Pandemic surgery slowdown created a backlog that's coming online now. Good free cashflow growth can be used to pay down debt and make acquisitions. Good upside for next several years.
PAST TOP PICK
(A Top Pick Jul 21/20, Up 22%) Technology for airline bookings also trickles down to all other modes of transportation. Well funded till 2022. Smart stick-handling by management during pandemic. Their services help reduce costs.