TOP PICK
Has long held this. They produce medical devices for hips, knees and spines. The sector fell off during lockdowns due to no or few elective surgeries, however that is rebounding. Also, this is a demographic play as the population ages and needs such surgeries. Also, doctors stay loyal to a brand of medical devices. Trades at 25x earnings and has $3.7 billion in free cash. (Analysts’ price target is $288.43)
TOP PICK
It boasts a large, growing user base. Data they collect fuels ads and contents. It's one of the most underlevered internet companies. We still haven't seen the monetization of Whatsapp and Instagram. They are getting stronger in mobile. It trades at only 23x. There will be strong cash flow growth ahead. (Analysts’ price target is $416.50)
COMMENT

SHOP vs. Constellation Software E-commerce continues to proliferate our economy, and SHOP grows organically. In contrast, CSU is more of a growth-by-acquisition story, buying software companies to grow in size. Therefore, CSU is safer, but SHOP has much better growth prospects. SHOP recently did a deal with Facebook. SHOP and CSU are apples vs. oranges. SHOP has more pricing power in the stock than people think as they gain market share, but he isn't sure about this with CSU. CSU has great managers and acquire well.

COMMENT

Buy on current weakness? He owns CNQ instead. His strategy is to own the larger-cap oil companies. SU will spend some money in capex and likely increase that, buyback shares and raise their dividend. All large oil companies around the world are doing this. Of course, rising oil prices will help. These companies are in better shape than before. Both SU and CNQ make acquisitions at the right time.

BUY
Allan Tong’s Discover Picks The GOOS has swooned and soared in the past 12 months. A year ago, it was struggle to break above $33 on the TSX, then it topped $57 in mid-February as the U.S. and China began to reopen, fuelled by rapid vaccination rates and the company's vibrant e-commerce sales. Since then, this luxury retailer has been rangebound between $45 and $55. The fiscal Q1 quarter they posted earlier in August failed to beat lofy expectations, namely gross margins. Investors were also dour after listening to the conference call wherein management outlined plans to sell its luxury coats more online and through its own stores than through third-party retailers. Read Buying the Dip – A Stock Buying Opportunity for our full analysis.
BUY ON WEAKNESS
Allan Tong’s Discover Picks TRI is a steady eddy operating in a (let's face it) stodgy business, but predictability preserves capital. TRI stock is reliable in that it keeps beating its quarters (the last four by comfortable margins) and trades at a PE of mere 8x. The dividend pays a safe, but modest 1.4%. Read Buying the Dip – A Stock Buying Opportunity for our full analysis.
BUY

Allan Tong’s Discover Picks UNH it trades at 28.1x PE, which is slightly higher than its peers's average of 26.5x. Return on assets is higher, though, at 7.43% vs. 6.47% as is ROE at 21.88% vs. 18.86%. UNH stock's 1.36% may seem small, but it is in line with its peers and safe at a 34% payout ratio. The street loves this name at 14 buys and two holds, but sees only 7.5% upside from here. This isn't a trade a stock, but a long-term hold that you build on dips over time. It's enjoyed a 35% move in the past 12 months and has sharply climbed since Feb. 15. It's time for this to take a breather, which is the investor's cue to enter with a stock buying opportunity. Read Buying the Dip – A Stock Buying Opportunity for our full analysis.