The Daily Top Stock Picks

Stockchase Research Editor: Michael O'Reilly This specialty home decor retailer, who has benefitted through the pandemic as lockdowns, is reiterated as a TOP PICK. It reports on earnings this week, so we will recommend a tight stop -- trailing up from $17 $19. It continues to trade at good value compared to its peers (9x earnings compared to peers at 18x). We also like that they have been building up cash reserves, while buying back stock. We continue to see upside potential towards $36 -- upside potential over 65%. Yield 0% (Analysts’ price target is $36.33)

Stockchase Research Editor: Michael O'Reilly We reiterate MFC, a Canadian based financial and wealth services provider, as a TOP PICK. It pays a strong dividend backed by a payout ratio of 33% of cash flow. It trades only 7x current earnings, compared to peers at 12x, and it is valued right near book value. We recommend trailing up the previously recommended stop (from $17) to $21 looking to achieve $30 -- over 29% upside. Yield 4.7% (Analysts’ price target is $30.00)

Stockchase Research Editor: Michael O'Reilly We reiterate DRVN as a TOP PICK. The company operates 4300 auto service centers in the US and 14 other countries, and services over 50 million cars annually, generating over $1 billion in revenues each year. Auto maintenance demand continues to jump during the pandemic. We like that the company is using cash reserves to pay down debt. We recommend keeping the stop at $27, looking to achieve $42.50 -- upside potential over 35%. Yield 0% (Analysts’ price target is $42.12)

Stockchase Research Editor: Michael O'Reilly We reiterate RDS.A as a TOP PICK as a way to play the global recovery in oil and gas, while avoiding the pipeline drama in North America. The company is working to become carbon neutral by 2050, is one of the largest producers in the world, and is investing in renewable energy. It trades at book value and is priced at 7x forward earnings. It pays a good dividend, backed by a payout ratio under 30% of next year's cash flow. We like how they are increasing cash reserves, while paying down debt and buying back shares. We continue to recommend keeping a tight stop at $41, with upside to $59.50 -- potential over 33%. Yield 4.34% (Analysts’ price target is $59.49)

Stockchase Research Editor: Michael O'Reilly We once again reiterate MU as a TOP PICK. The memory and storage technology company trades at 17x earnings compared to peers at 77x. With good earnings growth prospects it trades with a PEG ratio under 1.0 and is presently valued at just over 2x book value. It pays a small dividend, backed by a payout ratio under 10% of cash flow. We like that it is buying back shares and paying down debt. We recommend trailing up the stop to $70, looking to achieve $103 -- upside potential over 19%. Yield 0.47% (Analysts’ price target is $102.93)

Stockchase Research Editor: Michael O'Reilly We reiterate IGM, a $10 billion Canadian financial services business (with brand names including IG Wealth Management and Mackenzie Investments) as a TOP PICK. It trades at 13x earnings and a PEG ratio under 1.0. It is currently valued at just under 2x book value. It reinstated its dividend with an excellent yield that is backed by an expected payout ratio under 60% of cash flow. We recommend trailing up the stop (from $35) to $45, looking $57.50 -- upside potential over 15%. Yield 4.55% (Analysts’ price target is $57.25)