BUY
Trades around 19x earnings, 2.2% dividend yield. Should have strong revenue and earnings growth due to oncology portfolio. Pipeline is quite good. Should see fruits of refocused portfolio in the next little while. He owns JNJ and NVO.
biotechnology / pharmaceutical
TOP PICK
Owns 10% of all assets in the US. Cost-cutting. Trades at 10x earnings, below book value. Owns great businesses. Management strong on loan book. Will be able to buy back shares, though not as much as before, and increase dividend. Substantially lower payout ratio than most Canadian banks. Yield is 2.63%.
banks
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)
other services
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)
banks
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.
Unknown
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.
Unknown
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.
Automotive