The issue was in the U.S. resulting in a big fine but that is now out of the way. TD now has an opportunity to get rid of businesses not giving a good rate of return and an opportunity to do a better job than other banks. It has more exposure to the retail side. Also volatility helps investment banking. TD is under the microscope.
It produces medical devices which is a good business to be in. The aging population needs their products and there is a backlog from Covid. Their products change the quality of life and reduce hospital stays to a couple of days. 71% of its business comes from the U.S. and there is lots of growth internationally.
He has owned this for a long time. The issue is partly AI and worries about how it can use AI effectively. Also its $80 billion in capital expenditures. This can hurt margins and free cash flow but Capex is coming down. It is big on the institutional side and we should see the value of that next year.
It is the largest player in the search business and has several other businesses such as YouTube and a self-driving division. In digital advertising it has 30% of a $400 billion market which is continually growing. Its monetization of advertising doesn't get enough credit. It is a big spender on the cloud and AI. It has tons of free cash flow and no debt giving it one of the best balance sheets in the world. It is trading at 20X which is less than the market, is undervalued, and can continue to grow in the double digits for the next several years. Buy 19 Hold 1 Sell 0
(Analysts’ price target is $221.75)It is the largest player in obesity drugs which includes Ozempic. A large percentage of the population in North America are overweight and this condition causes chronic diseases. Therefore obesity drugs help to bring down costs to treat these chronic diseases. The stock price has fallen because of an over-reaction to an announcement. It is a great franchise and has other businesses. The NOVO foundation owns the majority of shares and can't be taken over. Buy 7 Hold 4 Sell 1
(Analysts’ price target is $110.23)