Today, The Panic-Proof Portfolio (Stockchase Research) and Colin Cieszynski commented about whether EPOL, MRK, CVE.TO, BN.TO, EMA.TO, GFL.TO, SIA.TO, CSH.UN.TO, ZLU.TO, ZLB.TO, AGI.TO, TOU.TO, ATD.TO, PBH.TO, ZEO.TO, GEV, MX.TO, CCO.TO, MSFT-NE, TVE.TO, PPL.TO, SHOP.TO, CSU.TO, BB.TO, LLY, PRM.TO, ELF.TO, JCI, TEVA are stocks to buy or sell.
A historically volatile month, September this time has been more choppy than volatile. There's been an orderly decline, moderate weakness, in the TSX, while the U.S. has gone sideways. Causing this is sector rotation, from weakness in mining, strength in energy while the banks go along in Canada; in the U.S. there's back and forth between AI semis and software battling it out. Looking ahead, he's focused on the US Midterms, the 4 weeks before then after those elections, which are usually volatile. On top of that, we have earnings season. Politics, such as tariffs have had such an impact on markets. Meanwhile, treasury yields and rates are impacting companies, including AI ones.
It had a huge sell-off a year ago, common for software companies. But in the last 4-6 months, it's quietly coming back. There are stops and starts, but the trend is positive. It's establishing support above $2,700, which is encouraging. First resistance is at $32,50. There's room for an upswing. It looks the worst is behind them, but it hasn't taken off yet.
He likes CDRs a lot to give him exposure to international stocks instead of going through the U.S. MSFT has had a nice rally after lows in April and July, a double bottom when the stock didn't fall lower. This has totally broken out of a downtrend. Is a top stock, a go-to in tech. Relative strength is good. Great support--it rallied, but didn't dip.
We reiterate this pharma company as a TOP PICK. It trades at 20x earnings, 12x if you include analyst EPS growth projections of 40% next year, and supports a 32% ROE. We like that cash reserves are growing, while debt is aggressively retired and shares bought back. We continue to recommend a stop at $33, looking to achieve $47 -- upside potential of 18%. Yield 0%
(Analysts’ price target is $43.73)