TOP PICK

This is his pick for income-seeking investors. Not a ton of robust growth in Canada, US growth has been curtailed. You don't buy this for growth. You're going to collect your dividend, over 3-5 years you're waiting for some kind of multiple expansion, and your total return should be quite good. Lowest PE multiple of the peer group. Protected dividend, great capital position.

Still a great domestic franchise, and they'll figure things out in the US. One thing they have to consider is exiting the US completely. Canadian banks have all had a history with the biggest underperformer being the next outperformer (think CIBC). Yield is 6%.

(Analysts’ price target is $82.67)
COMMENT

Markets plunged today after the Fed's Jay Powell announced a rate cut. Wait, shouldn't that be good news? Those hoping for more cuts ahead were disappointed because Powell announced fewer cuts next year, while those who want to stamp out inflation were discouraged by cuts. Nobody is happy. Powell sounded stern, even though he announced rate cuts. Powell has a tricky job; we have two economies--one on fire and the other stalled.

BUY

Shares jumped 7% today because they reported a super quarter and raised their forecast due to a lot of data centre construction. Anything in data centres is on fire.

COMMENT

The defence department is a natural place to cut back when there's a threat of a shutdown of the federal government. Hence, the current weakness in this stock.

BUY ON WEAKNESS

There will be only 2 rate cuts next year, not 3 or 4. Adjust your expectations. So, this stock is fairly valued, though buy under $40.

HOLD

Is up 137% this year. Current shareholders will sell on today's sell-off to lock in profits, so don't sell after today's sell-off.

BUY

Has longed liked this and it's long been a good performer, but it has struggled since peaking in end-2021 and pulled back in 2022, and sideways ever since. TMO benefitted in 2020-1 as drug companies spent a fortune dealing with Covid and needed TMO's medical machines. From Oct. 2023 to Sept. 2024, shares rose 51%, but is down 18% since then. But they last reported a mixed quarter: a slight miss in revenue though a slight beat in earnings and soft guidance. It sold off and hasn't stopped, though announcing a $4 billion share buyback last month helped. He expects a graudal improvement as business picks up int he next two years. Trades at only 22x PE 2025 vs. 30x historically, so it's cheap now.

BUY

He bought this in early 2022, though it was mired in an inventory glut. He's stuck with it ebcause he expected it to bounce back. It still has a high PE though. Is down 19% from its August high, but is now a good entry point. An analyst just upgraded it. He expects the healthcare sector to come back next year.

BUY ON WEAKNESS

It just affirmed its forecast of 5-7% annual revenue growth and steady operating margin expansion. Trades at only 22x 2025 PE.

RISKY

JNJ hasn't been this cheap in many years, pays a 3.5% yield and boasts a super balance sheet. The sector is unloved, though. If you can handle the pain, you can get some gain.

DON'T BUY

No revenue growth and the company seems unconcerned that they are losing so much money. This is why sentiment has turned against MRNA.

DON'T BUY

It missed its last quarter and stocks that missed are being punished now and in the future until we hear better economic news. This will head further down.

PARTIAL SELL

The business isn't worth as much as the stock is selling, even though shares have recently bounced back.

DON'T BUY

It's losing money and will lose even more ground in the days to come.

BUY ON WEAKNESS

It's come down a lot and looks attractive now.