Today, Martin Cobb, ASIP commented about whether V-N, DEO-N, ADBE-Q, MG-T, RY-T, TSLA-Q, TD-T, CNQ-T, XOM-N, OXY-N, CVX-N, TPX.B-T, MCD-N, ATD-T, EA-Q, SNN-N, SAP-T, NVDA-Q, DOL-T, TSM-N, MRVL-Q, DFY-T, WMT-N, PLTR-Q, TRI-T are stocks to buy or sell.
Didn't care for its bid to acquire Seven & I, so they sold. This could be one deal too many; could indeed be game-changing, but not in the way investors hope. They'd have to issue massive equity, take on massive debt, with integration risks.
If it walked away from the deal, he might be interested again.
Yield of 3.5% is not as high as it once was, given the move in the stock price. About 15-16% ROE, and it retains half of that. If that can continue, should be able to grow the bottom line in mid-high single digits. Valuation is above historic averages. Better opportunities in the sector, such as TD.
Still stands out, but the fear is that it won't in the world of AI. And that's why it looks particularly interesting. Good earnings, upped guidance, yet stock fell. Valuation has collapsed to 17x PE. Still likely to grow double-digit EPS this year, and consensus is still 14-15% EPS growth over the next 3 years.
There is more competition, but it's spending 18% of sales on R&D, so something compelling will turn up. No dividend.
(Note the short timeframe.) In Canada, it's retail. But south of the border it's more food services and is #3, and the US is dragging down its profitability. If it can return to half of former levels in US, it will be a very cheap stock at this point.