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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

This central American airline trades at 6x earnings, 1.8x book and supports a robust 27% ROE.  Recently reported earnings showed 10% growth in passenger miles over a year ago.  Its dividend is backed by a payout ratio under 50% of cash flow.  We recommend setting a stop-loss at $83, looking to achieve $131 -- upside potential of 28%.  Yield 6.3%

(Analysts’ price target is $150.73)
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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

US homebuilding is a key piece in economic recovery.  TOL is a luxury builder trading at 8x earnings, 1.4x book and a ROE of 20%.  We like that over 25% of their buyers pay with cash -- insulating them better than their competitors from short term economic pauses.  Cash reserves are being maintained despite an aggressive share buy back and debt being retired.  We recommend setting a stop-loss at $87, looking to achieve $140 -- upside potential of 26%.  Yield 0.8%

(Analysts’ price target is $140.14)
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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

This global manufacturer of lift equipment offers diversification across several geographical regions as the economy stabilizes.  It trades at 15x earnings, 1.5x book and supports a ROE of 21%.  Recently reported earnings showed a strong backlog of orders and management is confident they can adjust strategies to deal with the fully-discounted tariff uncertainty.  This is backed by cash reserves continuing to grow, while debt is retired and shares bought back.  We recommend setting a stop-loss at $34, looking to achieve $56 -- upside potential of 28%.  Yield 3.2%

(Analysts’ price target is $56.00)
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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 Apr 17/25, Up 16.5%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with IMO has achieved its target at $103.  To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $67) to $84.

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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 Apr 17/25, Up 28.8%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with AC has achieved its target at $18.  To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $9) to $13.

COMMENT

By now, we know that Trump is an interesting character who manages by chaos, keeping people off balance. Investors must know that volatility will stay during his term, and tariffs weren't the volatility, but Trump himself. Tariffs are the trigger, and Trump the gun. Corporate America came into this Presidency strong and has remained strong, despite all that's been thrown at it. But there's been a drop in confidence among consumers and boardrooms, which hasn't effected earnings yet--and it may not, because Trump keeps swinging back and forth. As of last Friday, 78% of reporting S&P companies reported positive surprises. Valuation is on the mark for a 5-year average.

DON'T BUY

A few weeks ago they warned they wouldn't meet their numbers. Today, they said they wouldn't meet their guidance. US insurance is changing with regulatory policy demands and medical loss ratios are staying high as people are using their plans more and more as an echo of Covid. The problem is UNH's concentration in the Medicare/Medicaid space

DON'T BUY

He didn't like the tax treatment to Canadians of their spin-off of their mission critical solutions division. So, he sold it. It was a good company before the spin off. Instead, look at EMCOR or Dycom.

RISKY

It's rewiring North American for 1-Gig technology, but it's lumpy because it relies on only 8-9 major clients that comprise their revenues. So, if one client defers a project for a quarter or two, Dycom will take a big hit.

BUY
Faces a major competitive threat in internet search

They are the leader in search and the criticism is that they will lose market share. So sell Google? He argues that Alphabet will recapture that share, because GOOG is a leader in AI as well. Yes, GOOG will lose some of their current 92% share in search, but maybe the overall pie grows bigger, so GOOG revenues will still expand. Also, GOOG has a lot else going on--YouTube is massive with 1 in 3 humans using it, Waymo. Shares have sold off so much that the PE is below the market average now.

BUY

The US banks are cheap in valuation, and benefit from an M&A cycle that will come.

DON'T BUY

Sold it for Canadian tax reasons. LEN spun off the part of the company that held the land, probably a good move, but he wasn't sure about the tax hit. He still likes the US homebuilders given the shortage of housing.

PAST TOP PICK
(A Top Pick May 14/24, Up 12%)

The company is treading water, hasn't done much in the recent versions of the Apple phone. However, their services division is doing well; services are stickier with higher margins, and make up 28% of Apple's total revenues. The phone is the core, though, and will be raising prices. People are willing to pay a lot for these phones. Last fall, they launched Apple Intelligence, their AI, but hasn't had an impacted, but that's not unusual for Apple--their launches take time to catch on. AI will be an opportunity for Apple down the road. Apple is a core holding of his.

PAST TOP PICK
(A Top Pick May 14/24, Down 3%)

75% of their operations are outside North America. The strong USD has hit them hard, and Europe hasn't been growing as quickly as expected. This trades at a cheap 11x PE, and they grow organically. Not exciting, but safe and a solid hold.

PAST TOP PICK
(A Top Pick May 14/24, Up 36%)

The rides and Uber Eats are growing rapidly. Advertising boasts 175 million active users of the Uber app, and they can still capture more of the ad potential. Their freight division should be set aside; it's distraction. Also, their self-driving business will be exciting for Uber.