Latest Stock Buy or Sell? Make More Informed Decisions!
Today, Bruce Murray and Larry Berman CFA, CMT, CTA commented about whether VIX-I, XBB.TO, SLF.TO, RTX, TD.TO, ILF, AC.TO, EADSY, GOOG, CM.TO, ATD.B.TO, NVDA, ROP, ASAN, SJ.TO, BNS.TO, MDI.TO, ZLNDY, AMZN, CPG.TO, TRI.TO, NFI.TO, BTE.TO, AVGO, ATZ.TO, UBER, CCO.TO are stocks to buy or sell.
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BUY
SLF vs. ATD'B ATD is doing very well because oil prices are high. Also, they are on the verge of buying a company. Both add to upside. SLF is the best Canadian insurer, with stable, but slow earnings growth. It will benefit from higher interest rates. Buy and put away and own for the dividend. Shares are down 5-10% from last year's high, so good to enter now.
insurance
BUY ON WEAKNESS
A classic growth stock. The market got excited over it for its dominance in videogames; they entered cars and warehousing. Then the market slowed down. Trades at a high PE. Great long term, but is watching what happens in 6-9 months. Could be more downside, but average down.
computer softwareprocessing
BUY
SLF vs. ATD'B ATD is doing very well because oil prices are high. Also, they are on the verge of buying a company. Both add to upside. SLF is the best Canadian insurer, with stable, but slow earnings growth. It will benefit from higher interest rates. Buy and put away and own for the dividend. Shares are down 5-10% from last year's high, so good to enter now.
food stores
BUY
Are bank stocks safe again? Canadian banks have outperformed the TSX throughout his entire career. There's fear that rising rates will make mortgages uncertain. But given this correction, you can nibble at the Canadian banks now, one of the safest assets in Canada, since they are protected by law. His favourite bank here is BNS given their exposure in South America, which were badly hit by Covid and they have wide mining exposure. The safer bet is CIBC, because it's well-managed, is more exposed to the Canadian economy which is thriving because of demand for natural resources, and it pays a good dividend.
banks
TOP PICK
Still incredible growth of 15% annually for the next few years with earnings at 18-20%, he projects. It trades at 22.5x PE and they will buy back $78 billion (5% of market cap) in shares over the next 12 months. Their cloud business is #3 behind AWS and MSFT and growing nicely. Ad revenues will hold. They're spending $30 billion in R&D; divisions like Waymo are huge and not even absorbed in the stock. The best of the FAANGs. (Analysts’ price target is $3274.28)
Bruce MurrayOwned
Technology
TOP PICK
Everyone is aware of Boeing's problems with the 737 Max (there's a film about this is on Netflix). The Airbus 320neo is outselling the 737. They also have a big defence business in Europe, and defence budgets are rising. This trades at 20x earning, so not cheap, but earnings will grow by 12-13% annually for the coming decade. (Analysts’ price target is $40.59)
Bruce MurrayOwned
0
TOP PICK
It was at $50 before Covid, then they did a lot of refinancing during Covid, but AC are in a strong position as we reopen. Demand to travel is strong. Will rise into the $30s, then gradually grow. (Analysts’ price target is $29.75)
Bruce MurrayOwned
Transportation
COMMENT
Educational Segment. Looking at some indicators, it looks like stocks are oversold. Looking at seasonality for the second year of a presidential cycle, you see a period of a cautionary area. May tends to perform the worst. We are probably oversold that there will be a bounce after. Area of opportunity right now. Tradable.
Larry Berman CFA, CMT, CTAUnknown
COMMENT
From day to day, it will be very choppy. Volatility is telling him we are in a bear market. Not down 20% yet, but over the next 6 months, we will see the US stock market below 20% its peak. Canadian market is a different situation with exposure to energy and commodities. Won't see such a large correction. However, TSX didn't get as much of the upside.
indexes
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