TOP PICK
Grows organically and makes acquisitions in a fragmented industry. Low capex business. Stock's fallen, as it's a high multiple stock. Continues to outperform. Executes incredibly well. Yield is 0.61%. (Analysts’ price target is $192.07)
TOP PICK
Great retail franchise. Trades at 10x earnings, 1.4x book, not expensive. Strong US franchise has suffered, as it's a tough business in the States. In the long run, increased scale will help. Yield is 4.32%. (Analysts’ price target is $101.26)
COMMENT
Canadian banks right now. At these levels, any Canadian bank will be good for you. He prefers TD and RY. RY has spent time and energy being a good investment bank as well as asset manager. Both have strong Canadian franchises. TD spent time developing a great asset management business in Canada. Both have strong businesses that outperform on an ongoing basis. Buying here, you'll do very well over the next couple of years with either TD or RY.
COMMENT
A quarter of the S&P's earnings come out this week. Also, it's hard to trade before the Fed announces its next rate hike on Wednesday (the last before September). Problem is, Walmart today announced an inventory gut and price cuts. Who else will have too much inventory? Price cuts could balance pernicious high gas prices--good for consumers.
BUY
They report tomorrow. It's among the cheapest stocks on the S&P. He fears that will say that China's lockdowns and higher costs have hurt. This is a 2023 stock with lots of solid EVs coming their way. Likes it.
DON'T BUY
They report tomorrow. Their alternative energy business is awful, and their medical devices are held back by supply chain problems. It's hard to be a bull here.
COMMENT
They report tomorrow. They almost never miss, so Wall Street loves them.
BUY
They report tomorrow. They face currency risks, but that's offset by new alcohol products that could move the needle. Also, Coke is better run than, say, Walmart.
BUY
They report tomorrow. E-commerce is alive and well, so these shares deserve better.
BUY
They report tomorrow after the bell. He suspects that Azure, their key cloud business, is doing very well. Shrewdly, the CEO warned of a hit from the strong USD. He wouldn't be surprised if they announce negative things about PC sales or Europe, but these shares are down 90 points from its high.
PARTIAL BUY
They report tomorrow after the bell. They give their clients the best returns on digital ads and which don't rely on much third-party data. It has fallen by a third, so worth buying. Then again, it has not been a hot stock for ages.
WAIT
They report tomorrow. Too many dump on this stock. It's a reliable chain and shares have gotten too cheap, but wait for what McDonald's says tomorrow morning when it reports.
DON'T BUY
They report Wednesday. They got big orders--but can they meet them? A machinists' strike may happen. The Feds may halt the Dreamliner. Sub-optimal.
COMMENT
They report Wednesday. He expects a beat and forecast cut. Once expectations get low enough for the metaverse, then this stock becomes a buy.
BUY
They report Wednesday. He expects the chips act to pass this week. That would be a big boost for Lam.