Latest Stock Buy or Sell?
Today, The Panic-Proof Portfolio (Stockchase Research) and Stockchase Discover commented about whether TSLA-Q, SHOP-T, MSFT-Q, ABBV-N, SSD-N, HOG-N, HIU-T are stocks to buy or sell.
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TOP PICK
Stockchase Research Editor: Michael O'Reilly We again reiterate HIU as a defensive TOP PICK for Canadian investors. The low MER inverse ETF for the S&P500 is a good haven during periods of increased market instability. Its value will also benefit if the CAD dollar weakens during a market retracement as currency is not hedged. We recommend trailing up the stop (from $12.50) to $13.00. Yield 0%
E.T.F.'s
$14.380
Unknown
TOP PICK
Stockchase Research Editor: Michael O'Reilly The company is interested in spinning off its EV line, which could bring good value (think Tesla trading at 80x earnings). The company is currently trading at 9x and recently reported earnings support a healthy ROE of 27%. Supply chain issues and microchip shortages have slowed sales growth, but earnings still met expectations and it is sign the demand is outstripping its supply -- a good thing. The company has prudently used some cash to retire debt. It's small dividend is supported by a payout ratio under 15% of cash flow. We recommend setting a stop loss at $28, looking to achieve $52 -- upside potential over 40%. Yield 1.64% (Analysts’ price target is $52.16)
household goods
TOP PICK
Stockchase Research Editor: Michael O'Reilly The new CEO has accelerated the company's expansion into new high growth areas, including the OEM auto market. The company's traditional construction and manufacturing sectors helped propel revenue growth over 40% last year. Recent earnings beat expectations by 30% and support a solid ROE of 26%. It trades at 15x earnings, along side its peers. We like that is has continued to build cash reserves, while buying back stock. It pays a small dividend backed by a payout ratio under 15% of cash flow. We recommend setting a stop loss at $90, looking to achieve $146 -- upside potential over 30%. Yield 0.96% (Analysts’ price target is $146.33)
INDUSTRIAL PRODUCTS
PAST TOP PICK
(A Top Pick Apr 27/21, Up 34.6%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with ABBV has triggered its stop at $152. To remain disciplined we recommend covering the position at this time.
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BUY
Allan Tong’s Discover Picks MSFT stock trades at 30.4x earnings, consistent with its 29.8x a year ago. In a time of volatility, MSFT stock remains steady in this regard. Microsoft remains a darling of Wall Street with 21 buys, one hold and a $363.781 price target, which is roughly 33% higher than current levels. Unfortunately, the name is gotten swept up in the massive tech stock sell-off, which drowned markets on April 29. Consider those pullbacks buying opportunities. Read Are mega tech stocks still alive? for our full analysis.
computer software / processing
PARTIAL BUY
Allan Tong’s Discover Picks The silver lining is that Shopify’s PE has plunged to 18.5x. In contrast, Amazon trades at 42.8x and Apple at 26.2x. Only Meta trades lower among the megatechs at 12.8x (and that is a whole different story). Shopify’s EPS stands at a reasonable $29.34, ROI 29.2% and profit margin of 63.2%. Not shabby at all. The company beat three of its last four quarters, including its most recent (Q4 2021). Again, decent. Read Are mega tech stocks still alive? for our full analysis.
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DON'T BUY
Allan Tong’s Discover Picks This leaves TSLA stock with a PE around 183x, a market cap over $900 billion, and a beta of 2, based on shares trading around $900. Now, Tesla has beat its last four quarters, including a blowout last time, so the company does perform. It remains the global market leader in EV’s with nearly a 14% market share, compared to VW Group at 11%, BYD, a Chinese company, at 9%, and GM at 7.6%. In 2021, 6.6 million EV’s were sold (led by Chinese sales), more than tripling auto market share since 2019. Current sky-high fuel costs will only fuel demand for EV’s. Read Are mega tech stocks still alive? for our full analysis.
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