Latest Stock Buy or Sell? Make More Informed Decisions!
Today, The Monthly Gems by Allan Tong and Bruce Campbell (2) commented about whether GSY-T, PAY-T, REKR-Q, CTC.A-T, ATD-T, VFF-Q, ATZ-T, EIF-T, XTRA-T, CMC-X, LSPD-T, VMD-T, TDW-N, SOIL-T, NDVA-X, TLRY-Q, AVN-X, T-T, KRR-T, CTS-T, EXRO-X, UNH-N, T-T, AMD-Q are stocks to buy or sell.
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Premium contentCanadian dividends
It's no secret that rising interest rates punished dividend stocks in 2023, but the dynamic is already reversing. Telus shares have jumped over 7% since the late-October market bottom though still lost nearly 10% over 2023. That's an accomplishment of sorts, given that its EPS slid 62% in the past year. Still, Telus' retains a safe 6.38% dividend yield and investor sentiment towards the entire sector is now positive. Analysts clock in at 13 buys, two overweights and two holds, with a price target of $27.03, a fair move from its Dec. 29 close of $23.58. Another tailwing is strong immigration flowing into Canada, which means more customers for the telcos. Even if Telus falls short of that projection, investors are collecting a tidy dividend. Another one to consider in this space is BCE.
Premium contentAmerican healthcare
As noted, 2023 was unkind to healthcare stocks, but UNH shed only 1%, thanks to a rebound in Q4. UNH remains America's biggest health insurer. It beat its last four quarters, trades at a safe 0.62 beta as well as a 22.85x PE, which is historically in-line. Earlier in 2023, the stock took a hit when the company noted that post-Covid the U.S. was seeing a rebound in elective surgeries, which would increase medical costs and cut into UNH's margins. However, this is a passing concern. View UNH in the long-term. Its shares have climbed 144% in five years and the projectory has been largely up, though the last two years have been bumpy. As we exit post-Covid, Wall Street expect UNH to resume its climb. Analysts signal 20 buys, one overweight, five holds and one sell with a price target of $594.61, nearly 13% higher than its last close of $526.47. Go long on UNH.
A year ago, the street expected a recession, but now it expects a soft landing. If there is a recession, will it be broad or only in certain sectors? The softening US dollar was a story last year and it continues to influence the market (shares have risen as the dollar weakens). Watch the USD. Also watch the US election this year. The last few years have followed exactly the pattern of a presidential cycle: years 1 & 2 are not strong, year 3 is very strong and year 4 is also strong. But in year 4, January-February are choppy, then March-August are strong, then September-October are choppy, then the rest of the year is strong. Let's see if 2024 follows this pattern.
A pandemic darling, but their valuation became extreme and they had trouble managing their profitability. As they remained profitable, it couldn't keep up with the street's rising expectations, and so it sold off hard. It bottomed last fall. He bought it as it started to rebound, hoping for rising profitability.
Has been steady over the years and pays a good dividend, though anything sensitive to interest rates was punished last year. He's owned this in the past and is worth owning now. Pays a steady dividend, better than what bonds and HISA pay. Rates appear to be coming down. Hang on, if you own.
Are in helium in Canada and U.S. with 3 successful wells. After drilling, they're now getting that helium to market. A US partner will process the gas. What price will they get? They project $20-30 million which would allow them to drill even more wells. Helium is far more stable than natural gas. he expects a January effect for AVN. Last year, they raised money for production but impatient shareholders sold, and they've seen tax-loss selling last month. It's one of his larger holdings.
They were penalized for carrying so much debt, and were effected by fluctuating commodity prices. But they've sold assets to Altagas to paid down debt. They ceased the dividend to buyback shares. He sold when they cut their dividend. But will watch it.
AI-driven tech
Nvidia and Microsoft are the obvious names in AI and both should be in portfolios, but AMD is a strong number-two behind Nvidia in the category of AI chips. AMD stock rose about half as far as the frontrunner in 2023, but in the last quarter AMD has been gaining momentum, up over 43.4% vs. NVDA's 14.8% and nearly 21% vs. 3.5% in December. Fundamentals and performance are sound. AMD beat its last four quarters. The company boasts that its new MI300X chip can outperform Nvidia's and targets $2 billion in sales in 2024.