The Daily Top Stock Picks
Today's stock picks by Greg Newman and The Panic-Proof Portfolio (Stockchase Research) are LITE-Q, BCC-N, HTB-T, ACQ-T, CAE-T, TOU-T.
TOP PICK
New vehicle growth is still 15% below 2019 levels, so there's still growth. He bought it at $43, and then it had a huge move yesterday. Still lots of upside. Solid balance sheet to fund acquisitions. 500 million new transactions in the pipeline. Digital strategy. Undemanding multiple of 8x. Still underowned. No dividend. (Analysts’ price target is $64.13)
specialty stores
$0.000
Owned
TOP PICK
Safer play on the global aviation recovery. Nice upside with further capital deployment. Not cheap, but growing around 36%. Sets up nicely for investors on price to growth. No dividend. (Analysts’ price target is $42.78)
transportation equip & components
TOP PICK
Natural gas is finally looking good. Fabulous balance sheet. Top-tier operator and capital allocator. Significant free cashflow, which can make its way to shareholders. Not expensive. Relatively unhedged. He sees 27% production growth and 66% cashflow per share growth. Score some nice points for the next 12-24 months. Yield is 1.66%. (Analysts’ price target is $49.05)
oil / gas
TOP PICK
Stockchase Research Editor: Michael O'Reilly We reiterate our recommendation of LITE (maker of fiber optic network products essential in the 5G rollout) as a TOP PICK. It trades at 17x earnings compared to peers at 38x. It continues to grow its cash reserves and buying back shares. We would buy this with a stop loss at $70, looking to achieve $100 -- upside potential over 17%. Yield 0% (Analysts’ price target is $96.76)
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TOP PICK
Stockchase Research Editor: Michael O'Reilly We reiterate our recommendation of BCC as a TOP PICK. The lumber manufacturer focuses on engineered wood products, which are increasingly popular for their durability and longevity. These traits continue to be during the pandemic as consumers focused on better quality home improvement projects. It trades at 8x earnings compared to peers at 18x. It pays a small dividend, backed by a payout ratio under 10% of cash flow. We would buy this with a stop loss at $45, looking to achieve $64 -- upside potential over 20%. Yield 0.74% (Analysts’ price target is $63.80)
Forestry
TOP PICK
Stockchase Research Editor: Michael O'Reilly We reiterate HTB as a TOP PICK. This low MER ETF tracks US 7-10 year Treasuries -- a safe haven during market down turns. Priced in Canadian dollars, this would likely add another kicker in a market down turn as we expect a flight to the US dollar safety at some point. We would buy this with a stop loss at $57.50, holding as insurance against a market downturn. Yield 0%
E.T.F.'s
TOP PICK
Canada's number one provider of pharmacy services to long term care facilities. They have over 20% market share. They are also into tele-health services. The consolidation play is still in the early stages. (Analysts’ price target is $8.81)
Healthcare
TOP PICK
It is one of the fastest growing healthcare solutions providers. They made a series of very targeted acquisitions which they are integrating. A quality company with quality assets. (Analysts’ price target is $4.19)
Healthcare
TOP PICK
A unique and stable asset class. 58 manufactured housing communities. It is a fragmented industry which they are consolidating. (Analysts’ price target is $20.83)
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TOP PICK
They invest in private companies through preferred shares, not commons, though are starting to do the latter now. They invest in good companies with track record across various industries. They increase funds if a company does well, but have a floor if things go awry. They've demonstrated an ability to earn a very good rate of return. They've had issues, but have grown overall. Most investments are American. Extremely well-managed. The yield should increase for years to come. (Analysts’ price target is $22.06)
Financial Services
TOP PICK
Trading at a reasonable PE and are discplined in M&A. Rumour says they're looking at EG Group's assets, some great and some not. ATD will do well in this recovering economy. (Analysts’ price target is $56.94)
food stores
TOP PICK
Many agriculture stocks have done very well, but AFN has seen a few setbacks, like litigation. But AFN crop yields are improving and the agriculture space is well-positioned. Growth by acquiring has declined, but he expects their technological expertise to increase. (Analysts’ price target is $46.63)
machinery
TOP PICK
A company they are excited about. The largest copper miner in the world. Now at 100% production capacity in their Indonesian mine. Copper prices have been firm, and at this level of copper prices, they produce $15B EBITDA. Enterprise value is under $60B. Extremely attractive. Every 10 cent change in copper price, they make $400M of cashflow. The application of copper is exciting. There is cyclical and secular elements that will push copper demand. (Analysts’ price target is $42.59)
TOP PICK
(GOOGL) Right now, trading at 28x earnings. EPS is $100 roughly. They allocate $20B to R&D and produce many things like VR, AR, automated driving. These techs will make lots of money. See a bright future for Google. (Analysts’ price target is $3200.88)
TOP PICK
Grand daddy of the banking sector. One of the best banks in the world. The capital market sector is on fire and this will carry them. Net interest margins are weak but there are future opportunities. With an expanding economy, loan books will grow and higher interest will help their net interest margins. The reserves they took are being released since there were less credit losses. (Analysts’ price target is $167.86)
Financial Services
What are the best stocks to buy today?
According to Greg Newman and The Panic-Proof Portfolio (Stockchase Research), the best stocks to buy today are LITE-Q, BCC-N, HTB-T, ACQ-T, CAE-T, TOU-T.
