premiumPremium content

🔒 Premium Content Alert – This buzzing stock opinion is accessible only to Stockchase Premium

Discover an exclusive list and analysis of the stocks that are trending on social medias—accessible only to our Premium subscribers. With a keen focus on the stocks that are setting social media ablaze, this weekly feature offers an invaluable lens through which to evaluate market movers. Say goodbye to the endless scroll through social media timelines; we curate the buzz so you can invest your time as wisely as your money. Unlock Premium Now.

TOP PICK
Teladoc Health empowers all people everywhere to live their healthiest lives by transforming the healthcare experience. As the world leader in whole-person virtual care, Teladoc Health uses proprietary health signals and personalized interactions to drive better health outcomes across the full continuum of care, at every stage in a person’s health journey. Social media mentions are up 19% in the past 24h.
COMMENT
Fed rate hike yesterday. We're back in the soft landing narrative again. The path that was narrowing is getting a little wider. J Powell soothed investors and said there's no reason to hike us into a recession just to do it. They'll be data dependent. The 2-year bond was 3.15 yesterday and went down about 20 bps, which suggests the bond market believes the Fed will do 25 in September, another 25 after that, and perhaps talk about pausing early next year. Lots of people were sitting out the market, even shorting. Yesterday you saw a reversal as those shorts came off.
COMMENT
The bond market. It all comes back to inflation. If inflation is going to be runaway and uncontained, then fixed income will go up or down, as it depends on interest rates. If people think inflation is under control, or the Fed is going too hard, then interest rates will come down and so will bond yields. Long way between now and when we declare victory. This could be a bullish head fake. If he had to choose, he'd say we probably saw the bottom on June 16. But there are so many cross-currents going on, it's really hard to tell.
COMMENT
Keep traditional 60/40 portfolio for next 3-5 years? Yes. Even if this is a false dawn for equities. Even if, worst-case, there is a recession, it will be a shallow recession. There's already been enough erosion in equities, bonds, high yield, and preferred shares. These are already true levels to be building portfolios. If you can get 5-6% on high-yield bonds, and we're not going to have a nasty recession, or if you can get 4-5% in investment grade, it's a good time to start dipping your toe in. He'd be more of a seller than a buyer.
BUY
Cut guidance by 20% citing inflation and supply chain. Labour cost issues might be more structural. Super-cheap at 9.5x. Great balance sheet. Nice dividend. Modelling decent growth up to about 30% in 2023.
WAIT
Great company. Decent growth rate. Priced well. Good balance sheet. In no man's land right now. Technically, it had a great run. With all the erosion in the market, more interesting places to put capital and get immediately rewarded.
BUY
Got way overdone and way too cheap. Yesterday, they just blew it away. Feeling inflation, but reiterated full-year outlook. Raised dividend. Extraordinarily cheap, 5.7x 2023, with a 5.6% growth rate. So it sets up very well on price to growth. If we're going straight into a recession, don't buy. But if you think recession 50/50 over the next 2 years, good name to buy now.
BUY
Why target debt instead of zero debt? Their target debt was based on $45 WTI, less than half of where oil is now. That would be great for their balance sheet. They also talk about capital returns to shareholders, with theirs being 16% compared to peers at 11%. If oil stays at these levels, CPG is cheaper than the group and is executing well. He's been trading, but would be a net buyer.
WEAK BUY
Insurance companies as a group are down 20% YTD, while the TSX is down around 12%. Weaker economy hurts. Question is whether it's overly reflected in the sector? GWO tends to trade at a premium, clean earnings. He'd buy the sector, given the nice dividends and low valuations. Second half won't be as bad as the first. He'd go with MFC, trading at 6.5x earnings. Second choice SLF, third GWO.
BUY
Insurance companies as a group are down 20% YTD, while the TSX is down around 12%. Weaker economy hurts. Question is whether it's overly reflected in the sector? GWO tends to trade at a premium, clean earnings. He'd buy the sector, given the nice dividends and low valuations. Second half won't be as bad as the first. He'd go with MFC, trading at 6.5x earnings. Second choice SLF, third GWO.
WEAK BUY
Insurance companies as a group are down 20% YTD, while the TSX is down around 12%. Weaker economy hurts. Question is whether it's overly reflected in the sector? GWO tends to trade at a premium, clean earnings. He'd buy the sector, given the nice dividends and low valuations. Second half won't be as bad as the first. He'd go with MFC, trading at 6.5x earnings. Second choice SLF, third GWO.
BUY
As stocks come off, lots of companies get forgotten. Earnings a bit weak, analysts reduced targets. Price reasonable, dividend safe. Infrastructure pretty inflation resistant. At these levels around $12.50, you'll be a winner.