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Today, The Weekly Buzzing Stocks by Billy Kawasaki and The Panic-Proof Portfolio (Stockchase Research) commented about whether IGM.TO, CMC, DINO, EPD, RPI.UN.TO, VTRS, WEX, SNAP, DIS are stocks to buy or sell.

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TOP PICK

Snap inc. is a camera company. at snap, we believe that reinventing the camera represents our greatest opportunity to improve the way people live and communicate. we contribute to human progress by empowering people to express themselves, live in the moment, learn about the world, and have fun together. learn more about our open opportunities and get a glimpse of life at snap at careers.snap.com! Social media mentions are up 67% in the past 24h.

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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

Wex inc. (nyse: wex) is a leading global provider of corporate payment solutions that enable its customers to manage their businesses more efficiently, with enhanced security and greater control over their costs. from its roots in fleet card payments beginning in 1983, wex has expanded its scope to become a multi-channel provider of corporate payment solutions with millions of cardholders across several growing market sectors including travel, health care and employee benefits. our focus is on providing exceptional payment security and control for a vast spectrum of payment sectors while delivering an exceptional experience so that our customers – whether large or small – can operate efficiently, securely and profitably. the company has operations in north and south america, europe, australia, new zealand, and asia, and employs more than 2,000 associates. for more information about wex, please visit www.wexinc.com.

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

We reiterate VTRS, producer of Lipitor as one of its brands, as a TOP PICK.  Management has simplified its product offering portfolio and committed to returning half of free cash cash flow to shareholders through aggressive share buybacks.  It trades at 8x earnings and below book value.  Cash reserves are growing as debt is aggressively retired.  Its dividend is backed by a payout ratio under one-third of cash flow.  We recommend trailing up the stop (from $8.50) to $10.50, looking to achieve $14 -- upside potential of 19%.  Yield 4.0%  

(Analysts’ price target is $14.13)
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Curated by Michael O'Reilly since 2020.
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TOP PICK
Stockchase Research Editor: Michael O'Reilly

We reiterate RPI.UN, the third largest packaging company in North America, as a TOP PICK.  Management has dealt with industry challenges while continuing to grow cash reserves and retiring debt.  Its dividend is maintained by a payout ratio under 50% of free cash flow.   We recommend trailing up the stop (from $29.50) to $31.00, looking to achieve $46.00 -- upside potential of 33%.  Yield 3.7%

(Analysts’ price target is $46.50)
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Curated by Michael O'Reilly since 2020.
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TOP PICK
Stockchase Research Editor: Michael O'Reilly

We again reiterate EPD, a US energy infrastructure giant, as a TOP PICK.  Recently reported earnings beat expectations as quarterly revenues grew by 14% as volumes transported rose and margins expanded.  It trades at 11x earnings, 2.1x book and supports a 20% ROE.  We recommend maintaining the stop at $24, looking to achieve $32 -- 20% potential upside.  Yield 7.6%  

(Analysts’ price target is $31.95)
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Curated by Michael O'Reilly since 2020.
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PAST TOP PICK
(A Top Pick Jan 09/24, Up 10.2%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with DINO is progressing well.  To remain disciplined, we recommend trailing up the stop (from $44) to $51 at this time.  

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Dec 19/23, Up 9%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with CMC is progressing well.  To remain disciplined, we recommend trailing up the stop (from $40) to $47 at this time.  

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Nov 28/23, Up 8.2%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with IGM is progressing well.  To remain disciplined, we recommend trailing up the stop (from $30) to $33 at this time.  

COMMENT
S&P 500 euphoria?

Almost at 5,000. This is a big moment. He remembers at the start of his career, the Dow broke through 10,000 in 1998, hats on the floor and everything. It's the old story, where the Magnificent 7 or the top 10% of stocks are really contributing to most of the rally, and a lot of stocks are not participating that much.

COMMENT
Appeal of the mega-tech.

Capital light, excellent free cashflow. Even though they were doing the heavy lifting for this rally, they were very soberly priced. Not AAPL, but META, GOOG, AMZN. 

Since the latest run over the last 6 weeks, they aren't as generously priced as in the previous 3 months, but they're not crazy. AMZN, for example, is 28% growth rate, trading at 30x, PEG ratio is a bit higher than 1, but still OK. Even names like NVDA still make sense.

COMMENT
PEG ratio explained.

The growth rate of a company compared to its PE multiple. Under 1 is desirable. Near 1 is fine. If you have the growth rate, slightly over 1 is fine, too. So a 20x multiple's OK if a company's also growing profits at 20%.

COMMENT
Could be more disappointment over timing of interest rate cuts?

For sure. Market started out thinking there would be 6-7 cuts in 2024, and now it's down to 4-5. He thinks it will be more like 2-3.

Inflation will go down to 2%, that's the good news. But it's going to take a few years. This market is the reciprocal of what it was in October 2023. Then, people were positioned for a recession, leaning towards fixed income, under their asset allocation for equity. Now the crowd is very ebullient and looking for the next moves. 

We have a reasonable chance of some sort of selloff here, given all the optimism. It's really hard to see that big of a selloff when you have US earnings being so good, and inflation coming in line, even if rates don't come down aggressively.

WEAK BUY

High USD hurting copper prices. Sputtering China. Recession fears. Capex for recent acquisition higher than anticipated. Copper market really tight. Starting to get debt under control. Decent valuation around 10x 2025 earnings. 

If copper hits $4 in 2024, and $4.50 for 2025, sees them growing well at 62%. Under-owned, perhaps its time has come.