Top Picks
Show
Signal
Opinion
Expert
TOP PICK
TOP PICK
April 16, 2021
This is a low hanging fruit that has low risk but has good upside potential with dividend. They will benefit from their network updates and 5G. There will be consolidation with Rogers and Shaw which will help their business. You will get a nice dividend. A great all weather stock. (Analysts’ price target is $60.09)
Show full opinionHide full opinion
This is a low hanging fruit that has low risk but has good upside potential with dividend. They will benefit from their network updates and 5G. There will be consolidation with Rogers and Shaw which will help their business. You will get a nice dividend. A great all weather stock. (Analysts’ price target is $60.09)
TOP PICK
TOP PICK
April 16, 2021
The banks are all benefitting from market sensitive fees like investment banking and yield curve. They are trading at 10.3x 2022. A good risk-reward play. Balance sheet looks good. They will buy back their shares or increase their dividends in the coming months. (Analysts’ price target is $118.89)
Show full opinionHide full opinionThe banks are all benefitting from market sensitive fees like investment banking and yield curve. They are trading at 10.3x 2022. A good risk-reward play. Balance sheet looks good. They will buy back their shares or increase their dividends in the coming months. (Analysts’ price target is $118.89)
TOP PICK
TOP PICK
April 16, 2021
Essential to our way of life. One of the companies that moves oil. Pipelines are very hard to build. A scarce resource that has coveted assets. Has a much better balance sheet, moving to ESG, and line 3 is getting support. Trading at 14.9x PE 2023 with an 8% EPS growth rate. (Analysts’ price target is $52.58)
Show full opinionHide full opinionEssential to our way of life. One of the companies that moves oil. Pipelines are very hard to build. A scarce resource that has coveted assets. Has a much better balance sheet, moving to ESG, and line 3 is getting support. Trading at 14.9x PE 2023 with an 8% EPS growth rate. (Analysts’ price target is $52.58)
TOP PICK
TOP PICK
April 15, 2021
Stockchase Research Editor: Michael O'Reilly LOVE is a maker of foam filled furniture that is washable and modular. It uses Best Buy and Costco as their largest retailing arms. Recently reported sales were up 41%, revenue up 66%, which handily beat analyst expectations. Quarterly EPS at $1.33 beat expectation by $0.79. It is building cash reserves and has zero debt. We would buy this with a stop loss at $49, looking to achieve $76 -- upside potential over 20%. And besides, who doesn't want to have a little LOVE? Yield 0% (Analysts’ price target is $75.71)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly LOVE is a maker of foam filled furniture that is washable and modular. It uses Best Buy and Costco as their largest retailing arms. Recently reported sales were up 41%, revenue up 66%, which handily beat analyst expectations. Quarterly EPS at $1.33 beat expectation by $0.79. It is building cash reserves and has zero debt. We would buy this with a stop loss at $49, looking to achieve $76 -- upside potential over 20%. And besides, who doesn't want to have a little LOVE? Yield 0% (Analysts’ price target is $75.71)
TOP PICK
TOP PICK
April 15, 2021
Stockchase Research Editor: Michael O'Reilly LRN is a K-12 technology based education company. Its revenue growth has averaged over 11% for the past five years and it is expected schools will continue to have blended online teaching even after the pandemic. Trading at 27x earnings, it is cheap compared to peers at 45x. Over 85% of the shares are held by large institutions, giving it more staying power. We would buy this with a stop loss at $21, looking to achieve $44 -- upside potential over 39%. Yield 0% (Analysts’ price target is $43.75)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly LRN is a K-12 technology based education company. Its revenue growth has averaged over 11% for the past five years and it is expected schools will continue to have blended online teaching even after the pandemic. Trading at 27x earnings, it is cheap compared to peers at 45x. Over 85% of the shares are held by large institutions, giving it more staying power. We would buy this with a stop loss at $21, looking to achieve $44 -- upside potential over 39%. Yield 0% (Analysts’ price target is $43.75)
TOP PICK
TOP PICK
April 15, 2021
Stockchase Research Editor: Michael O'Reilly NEM is a good defensive holding -- a well funded, high level dividend; inflation protection; and market uncertainty protection. As a miner, primarily of gold, with reserves over 94 million ounces, it checks a lot of boxes. Trading at 20x earnings, it is cheaper than its peers at 26x. Over 75% of the shares are held by large institutions, giving it more staying power. Its dividend is backed by a payout ratio of 57%. We would buy this with a stop loss at $52, looking to achieve $80 -- upside exceeding 23%. Yield 3.56% (Analysts’ price target is $72.91)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly NEM is a good defensive holding -- a well funded, high level dividend; inflation protection; and market uncertainty protection. As a miner, primarily of gold, with reserves over 94 million ounces, it checks a lot of boxes. Trading at 20x earnings, it is cheaper than its peers at 26x. Over 75% of the shares are held by large institutions, giving it more staying power. Its dividend is backed by a payout ratio of 57%. We would buy this with a stop loss at $52, looking to achieve $80 -- upside exceeding 23%. Yield 3.56% (Analysts’ price target is $72.91)
TOP PICK
TOP PICK
April 15, 2021
Should do well going forward in their 5 areas: property, infrastructure, credit, renewables, private equity. Will benefit as more institutions allocate funds to the types of alternative assets that BAM holds. Yield is 1.14%. (Analysts’ price target is $66.95)
Show full opinionHide full opinionShould do well going forward in their 5 areas: property, infrastructure, credit, renewables, private equity. Will benefit as more institutions allocate funds to the types of alternative assets that BAM holds. Yield is 1.14%. (Analysts’ price target is $66.95)
TOP PICK
TOP PICK
April 15, 2021
Hit by the pandemic, but Disney Plus did well through the crisis. Huge content library that they can stream. A reopening play on the parks, plus the new growth path of streaming. Positive future growth prospects. No dividend. (Analysts’ price target is $204.86)
Show full opinionHide full opinionHit by the pandemic, but Disney Plus did well through the crisis. Huge content library that they can stream. A reopening play on the parks, plus the new growth path of streaming. Positive future growth prospects. No dividend. (Analysts’ price target is $204.86)
TOP PICK
TOP PICK
April 15, 2021
25% of business comes from the US, where capital market activity is quite robust. Stock price has moved, but more to come as the Canadian and US economies open up. Still trades at a reasonable multiple. Eventually dividends and share buybacks will resume. Unused loan reserves strengthen its capital base. Yield is 3.68%. (Analysts’ price target is $123.06)
Show full opinionHide full opinion25% of business comes from the US, where capital market activity is quite robust. Stock price has moved, but more to come as the Canadian and US economies open up. Still trades at a reasonable multiple. Eventually dividends and share buybacks will resume. Unused loan reserves strengthen its capital base. Yield is 3.68%. (Analysts’ price target is $123.06)
TOP PICK
TOP PICK
April 14, 2021
Lots of pent-up demand for eyeglass lenses and endoscopy procedures. Pent-up demand is one of his themes for the early stage of an economic recovery. (Price target is in yuan.) Yield is 0.65%. (Analysts’ price target is $14486.36)
Show full opinionHide full opinionLots of pent-up demand for eyeglass lenses and endoscopy procedures. Pent-up demand is one of his themes for the early stage of an economic recovery. (Price target is in yuan.) Yield is 0.65%. (Analysts’ price target is $14486.36)
TOP PICK
TOP PICK
April 14, 2021
Commercial property insurance is getting better. A hardening price environment. One of the 3 largest global reinsurers. Strongest balance sheet, so can charge the highest prices and give the most coverage. Strong cyclical exposure is a good play on recovering economy. Returns capital to shareholders by buying back shares. No dividend. (Analysts’ price target is $281.00)
Show full opinionHide full opinionCommercial property insurance is getting better. A hardening price environment. One of the 3 largest global reinsurers. Strongest balance sheet, so can charge the highest prices and give the most coverage. Strong cyclical exposure is a good play on recovering economy. Returns capital to shareholders by buying back shares. No dividend. (Analysts’ price target is $281.00)
TOP PICK
TOP PICK
April 14, 2021
Construction chemicals. One of key beneficiaries of European green new deal. Timely. Very strong balance sheet, proven record of acquisitions, improving margins. The strong Swiss currency has been a challenge, but he can live with this. (Price target is in Swiss francs.) Yield is 0.94%. (Analysts’ price target is $289.95)
Show full opinionHide full opinionConstruction chemicals. One of key beneficiaries of European green new deal. Timely. Very strong balance sheet, proven record of acquisitions, improving margins. The strong Swiss currency has been a challenge, but he can live with this. (Price target is in Swiss francs.) Yield is 0.94%. (Analysts’ price target is $289.95)
TOP PICK
TOP PICK
April 13, 2021
Stockchase Research Editor: Michael O'Reilly SLP is a $1.2 billion healthcare software company that provides modeling and simulation products to drug companies and biotechs and other sectors. Recently reported revenues were up 27% on the year and net income rose 49%. Their recurring revenue model helps produce 78% gross margins and it carries minimal long term debt. It pays a small dividend, backed by a 45% payout ratio. We would buy this with a stop loss at $40, looking to achieve $83 -- upside potential over 40%. Yield 0.38% (Analysts’ price target is $82.50)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly SLP is a $1.2 billion healthcare software company that provides modeling and simulation products to drug companies and biotechs and other sectors. Recently reported revenues were up 27% on the year and net income rose 49%. Their recurring revenue model helps produce 78% gross margins and it carries minimal long term debt. It pays a small dividend, backed by a 45% payout ratio. We would buy this with a stop loss at $40, looking to achieve $83 -- upside potential over 40%. Yield 0.38% (Analysts’ price target is $82.50)
TOP PICK
TOP PICK
April 13, 2021
Stockchase Research Editor: Michael O'Reilly As consumers become more comfortable with online commerce, SHOP is well positioned to continue to see significant growth. It offers retailers an efficient way to sell directly and it collects recurring revenues through subscription fees. Earnings will be reported April 28 and the market expects EPS of $0.71 US and revenue of over $848 million US. Growth is expected to be modest compared to more than 1200% last year. Its success as a Canadian company has allowed it to build its cash position to over $2 billion US. We would buy this with a stop loss at $1000, looking to achieve $2000 -- upside potential over 30%. Yield 0% (Analysts’ price target is $2002.76)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly As consumers become more comfortable with online commerce, SHOP is well positioned to continue to see significant growth. It offers retailers an efficient way to sell directly and it collects recurring revenues through subscription fees. Earnings will be reported April 28 and the market expects EPS of $0.71 US and revenue of over $848 million US. Growth is expected to be modest compared to more than 1200% last year. Its success as a Canadian company has allowed it to build its cash position to over $2 billion US. We would buy this with a stop loss at $1000, looking to achieve $2000 -- upside potential over 30%. Yield 0% (Analysts’ price target is $2002.76)
TOP PICK
TOP PICK
April 13, 2021
Stockchase Research Editor: Michael O'Reilly TLT is an ETF that represents US 20 long term treasury bonds of a term of 20+ years. Yields on these treasuries have been rising steadily since the pandemic based market collapse last March from under 1.00% to 2.25% now. This is a precautionary holding, to protect in the event of another market retracement. With the S&P500 trading at 22.4x earnings the market is at risk to correction if this season's reported earnings disappoint. As we consider this a hedge, we do not set a target or stop-loss, but instead will monitor trends in the underlying yield as a signal. Yield 1.61%
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly TLT is an ETF that represents US 20 long term treasury bonds of a term of 20+ years. Yields on these treasuries have been rising steadily since the pandemic based market collapse last March from under 1.00% to 2.25% now. This is a precautionary holding, to protect in the event of another market retracement. With the S&P500 trading at 22.4x earnings the market is at risk to correction if this season's reported earnings disappoint. As we consider this a hedge, we do not set a target or stop-loss, but instead will monitor trends in the underlying yield as a signal. Yield 1.61%
TOP PICK
TOP PICK
April 13, 2021
Two-thirds of their business is in North America. They have pricing power now (at times in a cycle insurers don't). CB's combined ratio is very strong. It trades at 1.3x book, reasonable for an insurer, and at 15x earnings. He's done well holding this for a while. (Analysts’ price target is $180.59)
Show full opinionHide full opinionTwo-thirds of their business is in North America. They have pricing power now (at times in a cycle insurers don't). CB's combined ratio is very strong. It trades at 1.3x book, reasonable for an insurer, and at 15x earnings. He's done well holding this for a while. (Analysts’ price target is $180.59)
TOP PICK
TOP PICK
April 13, 2021
An infrastructure company in telecoms; their biggest customers are telecoms like Verizon and Comcast. They string the contintent for 5G capability. Warning: It's a lumpy business, because it's bsed on fixed costs. However, Dycom is getting a lot of positive attention because they are the go-to business to lay the fibre optics for the coming 5G revolution. This can easily earn $6/share, so it's not expensive now. (Analysts’ price target is $102.00)
An infrastructure company in telecoms; their biggest customers are telecoms like Verizon and Comcast. They string the contintent for 5G capability. Warning: It's a lumpy business, because it's bsed on fixed costs. However, Dycom is getting a lot of positive attention because they are the go-to business to lay the fibre optics for the coming 5G revolution. This can easily earn $6/share, so it's not expensive now. (Analysts’ price target is $102.00)
TOP PICK
TOP PICK
April 13, 2021
Copper is showing life again at over $4/pound and will stay at high levels. A highly profitable company. Commodities have done very well in the past year. The price could rise long term. One big reason is the electrification of cars which need 2-4 times as much copper as a gas-powered car. (Analysts’ price target is $39.03)
Show full opinionHide full opinionCopper is showing life again at over $4/pound and will stay at high levels. A highly profitable company. Commodities have done very well in the past year. The price could rise long term. One big reason is the electrification of cars which need 2-4 times as much copper as a gas-powered car. (Analysts’ price target is $39.03)
TOP PICK
TOP PICK
April 12, 2021
Pays a 2.5% dividend, but generates a lot of cash flow at 17.1% cash flow yield. Earnings to grow 14% in 2022 or 11.7x PE. Analysts have bumped up earnings estimates by 2% in the past 90 days. An analyst today said this is trading at historic oversold levels in the past decade. (Analysts’ price target is $190.58)
Show full opinionHide full opinionPays a 2.5% dividend, but generates a lot of cash flow at 17.1% cash flow yield. Earnings to grow 14% in 2022 or 11.7x PE. Analysts have bumped up earnings estimates by 2% in the past 90 days. An analyst today said this is trading at historic oversold levels in the past decade. (Analysts’ price target is $190.58)
TOP PICK
TOP PICK
April 12, 2021
They're involved in Covid testing. Sales should more than double by Sept. 2021 year end to $25 million with a further 32% growth in sales of 2022 to $34 million. He expects Covid testing will continue to be common for employees and travellers. This stock could double from current levels. Other analysts target even higher, but this is a speculative stock. (Analysts’ price target is $0.80)
Show full opinionHide full opinionThey're involved in Covid testing. Sales should more than double by Sept. 2021 year end to $25 million with a further 32% growth in sales of 2022 to $34 million. He expects Covid testing will continue to be common for employees and travellers. This stock could double from current levels. Other analysts target even higher, but this is a speculative stock. (Analysts’ price target is $0.80)
TOP PICK
TOP PICK
April 12, 2021
Lumber prices have soared YOY over 300%. Free cash flow yield at 14.4% is very high. The latest report said that earnings were up 50% and earnings are forecast to grow 35% to $16 ROE in 2021 at a PE of 6.4x. Analyst estimates have jumped 81%. (Analysts’ price target is $112.68)
Show full opinionHide full opinionLumber prices have soared YOY over 300%. Free cash flow yield at 14.4% is very high. The latest report said that earnings were up 50% and earnings are forecast to grow 35% to $16 ROE in 2021 at a PE of 6.4x. Analyst estimates have jumped 81%. (Analysts’ price target is $112.68)
TOP PICK
TOP PICK
April 9, 2021
They participate in the spread when the deal is announced. Shaw is trading 24% the price Rogers has offered. This is due to the fear of regulatory intervention. Thinks that the real concern is on the wireless side, and this deal works without the wireless side. They can divest Shaw's wireless side and still be a good deal. Thinks there is a 85% chance of the deal going through. (Analysts’ price target is $37.92)
They participate in the spread when the deal is announced. Shaw is trading 24% the price Rogers has offered. This is due to the fear of regulatory intervention. Thinks that the real concern is on the wireless side, and this deal works without the wireless side. They can divest Shaw's wireless side and still be a good deal. Thinks there is a 85% chance of the deal going through. (Analysts’ price target is $37.92)
TOP PICK
TOP PICK
April 9, 2021
In a transformation to digital by investing in wealth business acuiqistions. International exposure is being retooled too. Likes it in general since banks have tail winds like yield curve steepening, ability to buy back stocks again, etc. One of the cheaper banks. The wealth business is showing good returns. Good value and volatility measures. (Analysts’ price target is $80.45)
Show full opinionHide full opinionIn a transformation to digital by investing in wealth business acuiqistions. International exposure is being retooled too. Likes it in general since banks have tail winds like yield curve steepening, ability to buy back stocks again, etc. One of the cheaper banks. The wealth business is showing good returns. Good value and volatility measures. (Analysts’ price target is $80.45)
TOP PICK
TOP PICK
April 9, 2021
Likes it for the non-bank financial play. In a bull cycle, one area to look at is broker dealers and asset managers. They are a wealth planner. Relatively new holding for him. Good price momentum and very reasonably priced at 8x enterprise value, 6.8x free cashflow, 16x earnings. Great balance sheet and using it for doing mergers. Fragmented business that can be consolidated. (Analysts’ price target is $249.46)
Show full opinionHide full opinionLikes it for the non-bank financial play. In a bull cycle, one area to look at is broker dealers and asset managers. They are a wealth planner. Relatively new holding for him. Good price momentum and very reasonably priced at 8x enterprise value, 6.8x free cashflow, 16x earnings. Great balance sheet and using it for doing mergers. Fragmented business that can be consolidated. (Analysts’ price target is $249.46)
TOP PICK
TOP PICK
April 8, 2021
Stockchase Research Editor: Michael O'Reilly MRNA is now a well known name in the production of COVID-19 vaccine and is only one of three that have received approval in the US. Purchase agreements amounted to $18 billion, allowing cash flow reserves of the company to balloon. The company is now working on a single-dose product that does not require extreme refrigeration. The pullback in the share price, and a forward PE of 9x earnings, offers a good entry level here. We would buy this with a stop loss at $90, looking to achieve $175 -- upside potential of 29%. Yield 0% (Analysts’ price target is $174.25)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly MRNA is now a well known name in the production of COVID-19 vaccine and is only one of three that have received approval in the US. Purchase agreements amounted to $18 billion, allowing cash flow reserves of the company to balloon. The company is now working on a single-dose product that does not require extreme refrigeration. The pullback in the share price, and a forward PE of 9x earnings, offers a good entry level here. We would buy this with a stop loss at $90, looking to achieve $175 -- upside potential of 29%. Yield 0% (Analysts’ price target is $174.25)
TOP PICK
TOP PICK
April 8, 2021
Stockchase Research Editor: Michael O'Reilly The semiconductor space saw global chip sales up over 14% last year and there is now a global shortage of supply. UMC is a Taiwan based chip producer and recently released sales were up 14%. It has beat earnings estimates in each of the past three reporting cycles. It trades at 31x earnings, cheap compared to its peers at 68x. It also pays a small dividend. We would buy this with a stop loss at $7, looking achieve $11.50 -- upside potential over 20%. Yield 1.56% (Analysts’ price target is $11.55)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly The semiconductor space saw global chip sales up over 14% last year and there is now a global shortage of supply. UMC is a Taiwan based chip producer and recently released sales were up 14%. It has beat earnings estimates in each of the past three reporting cycles. It trades at 31x earnings, cheap compared to its peers at 68x. It also pays a small dividend. We would buy this with a stop loss at $7, looking achieve $11.50 -- upside potential over 20%. Yield 1.56% (Analysts’ price target is $11.55)
TOP PICK
TOP PICK
April 8, 2021
Stockchase Research Editor: Michael O'Reilly VIAC is a media monster. Recently reported earnings beat analyst expectations and showed streaming sales were up over 70% and operating cash flow was $2.2 billion and cash reserves are now over $3 billion. Recent stock price volatility has been associated to a forced liquidation by hedge fund that impacted several other unrelated entities. This creates a good entry point as it is now trading at under 20x earnings, compared to peers at over 45x. It pays a modest dividend, backed by a payout ratio under 25% of cash flow. We would buy this with a stop loss at $25, looking to achieve $57.50 -- upside potential over 32%. Yield 2.19% (Analysts’ price target is $57.48)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly VIAC is a media monster. Recently reported earnings beat analyst expectations and showed streaming sales were up over 70% and operating cash flow was $2.2 billion and cash reserves are now over $3 billion. Recent stock price volatility has been associated to a forced liquidation by hedge fund that impacted several other unrelated entities. This creates a good entry point as it is now trading at under 20x earnings, compared to peers at over 45x. It pays a modest dividend, backed by a payout ratio under 25% of cash flow. We would buy this with a stop loss at $25, looking to achieve $57.50 -- upside potential over 32%. Yield 2.19% (Analysts’ price target is $57.48)
TOP PICK
TOP PICK
April 8, 2021
Inflation indexed bonds. Inflation will run hot for at least another 12-18 months. Fees are incredibly low, high liquidity. Benefits from inflation increases. Can't know what's going to happen long term, but you will benefit in the short term from this type of investment. Yield is 1.6%.
Show full opinionHide full opinionInflation indexed bonds. Inflation will run hot for at least another 12-18 months. Fees are incredibly low, high liquidity. Benefits from inflation increases. Can't know what's going to happen long term, but you will benefit in the short term from this type of investment. Yield is 1.6%.
TOP PICK
TOP PICK
April 8, 2021
A recovery story. Best in class, best assets. Theme of stay at home will wane. There's a more hybrid solution, and its stable of smaller tech and healthcare tenants will benefit. Trades at a 15% discount to NAV. Yield is 4.04%. (Analysts’ price target is $45.23)
Show full opinionHide full opinionA recovery story. Best in class, best assets. Theme of stay at home will wane. There's a more hybrid solution, and its stable of smaller tech and healthcare tenants will benefit. Trades at a 15% discount to NAV. Yield is 4.04%. (Analysts’ price target is $45.23)
TOP PICK
TOP PICK
April 8, 2021
Digital and e-commerce transition. Cheap relative to its space and on an absolute basis. Having Shoppers as an asset is so powerful. Yield is 1.9%. (Analysts’ price target is $75.33)
Show full opinionHide full opinionDigital and e-commerce transition. Cheap relative to its space and on an absolute basis. Having Shoppers as an asset is so powerful. Yield is 1.9%. (Analysts’ price target is $75.33)
TOP PICK
TOP PICK
April 7, 2021
Second largest global payments system after Visa. Taps into a more normal economic backdrop and especially lucrative travel transactions. Long growth runway of moving from cash to digital. Annualized revenue growth should grow to 17%. Yield is 0.47%. (Analysts’ price target is $392.65)
Show full opinionHide full opinionSecond largest global payments system after Visa. Taps into a more normal economic backdrop and especially lucrative travel transactions. Long growth runway of moving from cash to digital. Annualized revenue growth should grow to 17%. Yield is 0.47%. (Analysts’ price target is $392.65)
TOP PICK
TOP PICK
April 7, 2021
Based in Switzerland. World's largest wealth and asset manager. Universal Bank in Switzerland, and a global and investment bank. Solid balance sheet. Strong capital and liquidity metrics. Broad economic recovery will help European banks. Trading at just below book value. Shares look healthy technically speaking. Yield is 1.15%. (Analysts’ price target is $17.13)
Show full opinionHide full opinionBased in Switzerland. World's largest wealth and asset manager. Universal Bank in Switzerland, and a global and investment bank. Solid balance sheet. Strong capital and liquidity metrics. Broad economic recovery will help European banks. Trading at just below book value. Shares look healthy technically speaking. Yield is 1.15%. (Analysts’ price target is $17.13)
TOP PICK
TOP PICK
April 7, 2021
Second largest in US by market cap, most international-focused by operating revenue. As pace of vaccine rollout accelerates, strong pent-up demand will cause airline traffic to surge. No dividend. (Analysts’ price target is $54.20)
Show full opinionHide full opinionSecond largest in US by market cap, most international-focused by operating revenue. As pace of vaccine rollout accelerates, strong pent-up demand will cause airline traffic to surge. No dividend. (Analysts’ price target is $54.20)
TOP PICK
TOP PICK
April 6, 2021
Stockchase Research Editor: Michael O'Reilly Recently reported revenues were up 24%, including a 94% increase in direct to consumer sales. LULU holds $1.2 billion in cash and the stock is still trading 20% below its all-time highs. Clearly the pandemic has not hurt this Vancouver based stretchy pant manufacturer. We would buy this with a stop loss at $250, looking to achieve $385 -- upside potential over 26%. Yield 0% (Analysts’ price target is $385.35)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly Recently reported revenues were up 24%, including a 94% increase in direct to consumer sales. LULU holds $1.2 billion in cash and the stock is still trading 20% below its all-time highs. Clearly the pandemic has not hurt this Vancouver based stretchy pant manufacturer. We would buy this with a stop loss at $250, looking to achieve $385 -- upside potential over 26%. Yield 0% (Analysts’ price target is $385.35)
TOP PICK
TOP PICK
April 6, 2021
Stockchase Research Editor: Michael O'Reilly MP is a miner of rare earth metals and is the largest US producer of oxides used in magnets. These are used in consumer electronics, electric vehicles, robotics, wind turbines and more. It is a goal of the Biden Administration to ensure the US does not become dependent on China (who supplies 80% of US demand). Recently released EPS of $0.18 beat expectations of $0.04. Revenues were up 100% on the year as production increased 40%. We would buy this with a stop loss at $20, looking to achieve $46 -- upside potential of 33%. Yield 0% (Analysts’ price target is $45.60)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly MP is a miner of rare earth metals and is the largest US producer of oxides used in magnets. These are used in consumer electronics, electric vehicles, robotics, wind turbines and more. It is a goal of the Biden Administration to ensure the US does not become dependent on China (who supplies 80% of US demand). Recently released EPS of $0.18 beat expectations of $0.04. Revenues were up 100% on the year as production increased 40%. We would buy this with a stop loss at $20, looking to achieve $46 -- upside potential of 33%. Yield 0% (Analysts’ price target is $45.60)
TOP PICK
TOP PICK
April 6, 2021
Stockchase Research Editor: Michael O'Reilly AZN is the COVID-19 vaccine producer that has been granted emergency use authorization in over 50 countries. It also has one of the best pipelines for new biotech drugs. They just acquired a strategic company that will further "boost" their immunology presence. The company pays a good dividend that is projected to have a payout ratio under 75% of cash flow next year. The company is estimated to have added over $2.3 billion to its cash reserves, which are now over $7.5 billion. We would buy this with a stop loss at $42, looking to achieve $64 -- upside potential of 28%. Yield 2.83% (Analysts’ price target is $63.73)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly AZN is the COVID-19 vaccine producer that has been granted emergency use authorization in over 50 countries. It also has one of the best pipelines for new biotech drugs. They just acquired a strategic company that will further "boost" their immunology presence. The company pays a good dividend that is projected to have a payout ratio under 75% of cash flow next year. The company is estimated to have added over $2.3 billion to its cash reserves, which are now over $7.5 billion. We would buy this with a stop loss at $42, looking to achieve $64 -- upside potential of 28%. Yield 2.83% (Analysts’ price target is $63.73)
TOP PICK
TOP PICK
April 6, 2021
The yield curve is steepening which will help revenues. They have held reserves very well, and these are coming off and going to the bottom line now. The Fed after June will allow banks for buyback shares and increase their dividends, too. Also, BAC has lowered their costs and using technology more efficiently. The U.S. banks are seeing growth. Wealth management business is also increasing. It pays a reasonable dividend that's rising and it trades at only 13x PE. (Analysts’ price target is $38.63)
Show full opinionHide full opinionThe yield curve is steepening which will help revenues. They have held reserves very well, and these are coming off and going to the bottom line now. The Fed after June will allow banks for buyback shares and increase their dividends, too. Also, BAC has lowered their costs and using technology more efficiently. The U.S. banks are seeing growth. Wealth management business is also increasing. It pays a reasonable dividend that's rising and it trades at only 13x PE. (Analysts’ price target is $38.63)
TOP PICK
TOP PICK
April 6, 2021
It trades at 17x PE. Cybersecurity will be an big issue as companies around the world (the recent MSFT breach is an example). We've digitized so quickly during Covid, so that's led to more security problems, and this won't go away. Federal governments around the world are looking into these bad actors. CHKP has many new products coming to serve the cloud business. They beat their quarter, but offered poor guidance, because they're moving to a subscription-based operation. That said, he expects growth in several more quarters. (Analysts’ price target is $133.10)
Show full opinionHide full opinionIt trades at 17x PE. Cybersecurity will be an big issue as companies around the world (the recent MSFT breach is an example). We've digitized so quickly during Covid, so that's led to more security problems, and this won't go away. Federal governments around the world are looking into these bad actors. CHKP has many new products coming to serve the cloud business. They beat their quarter, but offered poor guidance, because they're moving to a subscription-based operation. That said, he expects growth in several more quarters. (Analysts’ price target is $133.10)
TOP PICK
TOP PICK
April 6, 2021
They produce medical devices for hips, knees, hands and ankles. Elective surgeries are coming back after pandemic lockdowns. SYK's medical products reduce medical stays and drug use, which benefits American hospitals and patients. Again demographics are another tailwind. He expects good growth. SYK holds a lot of fresh cash to pay debt and the dividend. (Analysts’ price target is $251.00)
Show full opinionHide full opinionThey produce medical devices for hips, knees, hands and ankles. Elective surgeries are coming back after pandemic lockdowns. SYK's medical products reduce medical stays and drug use, which benefits American hospitals and patients. Again demographics are another tailwind. He expects good growth. SYK holds a lot of fresh cash to pay debt and the dividend. (Analysts’ price target is $251.00)
TOP PICK
TOP PICK
April 5, 2021
It is a recent addition to his portfolios. It is Canada's largest commercial printing operation and unnoticed by the majority of investors. They are going to be a big player in the flexible packaging industry. It will be more like CCL industries. They are best known for their fliers. They have been shrinking that footprint. The shares are inexpensive. They have a long history of growing the dividend. The stock should turn up dramatically this year as it was depressed last year. (Analysts’ price target is $25.25)
It is a recent addition to his portfolios. It is Canada's largest commercial printing operation and unnoticed by the majority of investors. They are going to be a big player in the flexible packaging industry. It will be more like CCL industries. They are best known for their fliers. They have been shrinking that footprint. The shares are inexpensive. They have a long history of growing the dividend. The stock should turn up dramatically this year as it was depressed last year. (Analysts’ price target is $25.25)
TOP PICK
TOP PICK
April 5, 2021
This is a secular growth stock. They have been expanding rapidly in Asia. They are working on their e-commerce channels as it gives them a margin uplift vs. selling coats through third party retailers. They are also increasing their in-sourcing manufacturing so as to have better control over product quality. They are making key hires in the marketing and branding groups. It has pulled back after blockbuster numbers came out. (Analysts’ price target is $61.67)
Show full opinionHide full opinionThis is a secular growth stock. They have been expanding rapidly in Asia. They are working on their e-commerce channels as it gives them a margin uplift vs. selling coats through third party retailers. They are also increasing their in-sourcing manufacturing so as to have better control over product quality. They are making key hires in the marketing and branding groups. It has pulled back after blockbuster numbers came out. (Analysts’ price target is $61.67)
TOP PICK
TOP PICK
April 5, 2021
Emerging markets are more volatile than developed markets. This is the most globally ambitious of the Canadian banks. The return on equity is lower than their peers and should be boosted this year. Their credit provisions last years were quite large compared to others but should face easy comparisons this year. He thinks the regulators will free them up later this year to increase dividends and possibly buy back shares. (Analysts’ price target is $80.41)
Show full opinionHide full opinionEmerging markets are more volatile than developed markets. This is the most globally ambitious of the Canadian banks. The return on equity is lower than their peers and should be boosted this year. Their credit provisions last years were quite large compared to others but should face easy comparisons this year. He thinks the regulators will free them up later this year to increase dividends and possibly buy back shares. (Analysts’ price target is $80.41)
TOP PICK
TOP PICK
April 1, 2021
Stockchase Research Editor: Michael O'Reilly SNAP represents the social media platform of Snapchat for Gen Z and millennials. Recently reported EPS of $0.07 beat analyst expectations of $0.02 as revenues surged over 60%. Daily users increased 22% with over 5 billion daily snaps. Management revised revenue forecasts to $720-$740 million versus analyst expectations of $703 million. We would buy this with a stop loss at $30, looking to achieve $75 -- upside potential over 38%. Yield 0% (Analysts’ price target is $75.44)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly SNAP represents the social media platform of Snapchat for Gen Z and millennials. Recently reported EPS of $0.07 beat analyst expectations of $0.02 as revenues surged over 60%. Daily users increased 22% with over 5 billion daily snaps. Management revised revenue forecasts to $720-$740 million versus analyst expectations of $703 million. We would buy this with a stop loss at $30, looking to achieve $75 -- upside potential over 38%. Yield 0% (Analysts’ price target is $75.44)
TOP PICK
TOP PICK
April 1, 2021
Stockchase Research Editor: Michael O'Reilly CALM is the largest producer of regular shell and specialty eggs in the US. It carries no debt and has been growing its cash flow. They maintain a strong balance sheet by reducing the dividend following a quarterly financial loss. Recently reported EPS of $0.28 beat expectations of $0.07. The company announced a $0.034 dividend (implied payout ratio of 12%). We would buy this with a stop loss at $33, looking to achieve $47 -- upside potential over 20%. Yield 0.3% (Analysts’ price target is $47.00)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly CALM is the largest producer of regular shell and specialty eggs in the US. It carries no debt and has been growing its cash flow. They maintain a strong balance sheet by reducing the dividend following a quarterly financial loss. Recently reported EPS of $0.28 beat expectations of $0.07. The company announced a $0.034 dividend (implied payout ratio of 12%). We would buy this with a stop loss at $33, looking to achieve $47 -- upside potential over 20%. Yield 0.3% (Analysts’ price target is $47.00)
TOP PICK
TOP PICK
April 1, 2021
Stockchase Research Editor: Michael O'Reilly The digital online learning space has clearly benefitted from the pandemic. CHGG provides unique online tutoring for students and offers a digital textbook rental service. Recently reported earnings were up over 40% and this year are expected up another 23%. The company has been profitable since 2016 and has added nicely to cash reserves. We would buy this with a stop loss at $61, looking to achieve $114 -- upside potential over 28%. Yield 0% (Analysts’ price target is $114.00)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly The digital online learning space has clearly benefitted from the pandemic. CHGG provides unique online tutoring for students and offers a digital textbook rental service. Recently reported earnings were up over 40% and this year are expected up another 23%. The company has been profitable since 2016 and has added nicely to cash reserves. We would buy this with a stop loss at $61, looking to achieve $114 -- upside potential over 28%. Yield 0% (Analysts’ price target is $114.00)
TOP PICK
TOP PICK
April 1, 2021
Huge in the US. Aims to be a member of the 20/20 club: 20% compound revenue growth and 20% compound earnings growth. Increased adoption creates the network effect via e-commerce and online shopping. Inflation protection. No dividend. (Analysts’ price target is $310.53)
Show full opinionHide full opinionHuge in the US. Aims to be a member of the 20/20 club: 20% compound revenue growth and 20% compound earnings growth. Increased adoption creates the network effect via e-commerce and online shopping. Inflation protection. No dividend. (Analysts’ price target is $310.53)
TOP PICK
TOP PICK
April 1, 2021
Movie theatre business is done. It's all about NFLX and DIS. Best service, local language products. No one's going to catch them. Margins will grow and earnings will increase dramatically. Wishy-washy in the short term, but very bullish long-term. No dividend. (Analysts’ price target is $609.50)
TOP PICK
TOP PICK
April 1, 2021
Defensive, financial business. Will benefit from rising stock prices. Exchange listing, but also a data analytics business. Way undervalued for the quality. Wants to see management unlock its value. $175+ stock going forward. Clean balance sheet. Tailwinds as markets stay strong. Yield is 2.14%. (Analysts’ price target is $146.00)
Show full opinionHide full opinionDefensive, financial business. Will benefit from rising stock prices. Exchange listing, but also a data analytics business. Way undervalued for the quality. Wants to see management unlock its value. $175+ stock going forward. Clean balance sheet. Tailwinds as markets stay strong. Yield is 2.14%. (Analysts’ price target is $146.00)
TOP PICK
TOP PICK
March 31, 2021
Chinese tech conglomerate. One of the largest Chinese players in EVs. Price target of $68. Normally he'd buy the supply chain, but this company has both the EVs and the batteries. Warren Buffet owns 8.25% of BYD. Yield is 0.04%.
Show full opinionHide full opinionChinese tech conglomerate. One of the largest Chinese players in EVs. Price target of $68. Normally he'd buy the supply chain, but this company has both the EVs and the batteries. Warren Buffet owns 8.25% of BYD. Yield is 0.04%.
TOP PICK
TOP PICK
March 31, 2021
Integrated device manufacturer, in that they design and produce semiconductors. #1 auto chip supplier, 8th largest semi company in the world. Price target of $50. It's up today, so buy in thirds here, at $38, and at $35 if you're lucky. Yield is 0.63%. (Analysts’ price target is $39.00)
Show full opinionHide full opinionIntegrated device manufacturer, in that they design and produce semiconductors. #1 auto chip supplier, 8th largest semi company in the world. Price target of $50. It's up today, so buy in thirds here, at $38, and at $35 if you're lucky. Yield is 0.63%. (Analysts’ price target is $39.00)
TOP PICK
TOP PICK
March 31, 2021
44% market share in image sensors, which are in Apple and Samsung phones. 64% market share in gaming consoles. Price target of $147. Buy half a position here, and another half down around $100. Yield is 0.45%. (Analysts’ price target is $138.29)
TOP PICK
TOP PICK
March 30, 2021
Stockchase Research Editor: Michael O'Reilly WJX is an integrated distribution company that provides rentals, sales, parts and services of heavy equipment to the major industrial sectors. They will benefit from the return to normal infrastructure development during the pandemic recovery in Canada. Not a massive growth stock, but provides an excellent dividend that is backed by a payout ratio less than 65% of cash flow. It trades at just 1.2 times book value and at 13x earnings, compared to its peers at 48x. We would buy this with a stop-loss at $14, looking to achieve $25 -- 25% upside. Yield 5.09% (Analysts’ price target is $21.00)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly WJX is an integrated distribution company that provides rentals, sales, parts and services of heavy equipment to the major industrial sectors. They will benefit from the return to normal infrastructure development during the pandemic recovery in Canada. Not a massive growth stock, but provides an excellent dividend that is backed by a payout ratio less than 65% of cash flow. It trades at just 1.2 times book value and at 13x earnings, compared to its peers at 48x. We would buy this with a stop-loss at $14, looking to achieve $25 -- 25% upside. Yield 5.09% (Analysts’ price target is $21.00)
TOP PICK
TOP PICK
March 30, 2021
Stockchase Research Editor: Michael O'Reilly Recently reported revenues were up 26% over the year for the $215 billion market-cap company. Expansion of their cloud based services has been instrumental. Trading at 42x earnings, it is still cheap compared to its peers at 65x. Earnings are expected to grow another 18% this year. Over 80% of the stock is held by institutions, who have strong staying power. We would buy this with a stop loss at $400, looking to achieve $565 -- upside potential over 20%. Yield 0% (Analysts’ price target is $565.37)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly Recently reported revenues were up 26% over the year for the $215 billion market-cap company. Expansion of their cloud based services has been instrumental. Trading at 42x earnings, it is still cheap compared to its peers at 65x. Earnings are expected to grow another 18% this year. Over 80% of the stock is held by institutions, who have strong staying power. We would buy this with a stop loss at $400, looking to achieve $565 -- upside potential over 20%. Yield 0% (Analysts’ price target is $565.37)
TOP PICK
TOP PICK
March 30, 2021
Stockchase Research Editor: Michael O'Reilly TMO is a $173 billion market-cap company that provides scientific instruments and consumables to companies involved in COVID-19 testing, treatment and vaccine production. Management expects another 50% increase in EPS this year, following last year's 74% boost. The company grew its cash position by over $7.5 billion company and it plans to use this to further invest in new technologies. It pays a small dividend, backed by a 5% payout ratio. We would buy this with a stop loss at $390, looking to achieve $560 --upside potential over 23%. Yield 0.20% (Analysts’ price target is $559.16)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly TMO is a $173 billion market-cap company that provides scientific instruments and consumables to companies involved in COVID-19 testing, treatment and vaccine production. Management expects another 50% increase in EPS this year, following last year's 74% boost. The company grew its cash position by over $7.5 billion company and it plans to use this to further invest in new technologies. It pays a small dividend, backed by a 5% payout ratio. We would buy this with a stop loss at $390, looking to achieve $560 --upside potential over 23%. Yield 0.20% (Analysts’ price target is $559.16)
TOP PICK
TOP PICK
March 30, 2021
He likes its valuation and its concentration in the GTA, its largest market. Immigration and foreign students returning will drive growth. During Covid, millennials returned home, but after mass vaccinations, this cohort will return to the apartment market and create a bounceback. CAP REIT will definitely benefit from this pent-up demand. He sees a lot of upside in earnings and a NAV basis later this year. CAP REIT is very undervalued.
Show full opinionHide full opinionHe likes its valuation and its concentration in the GTA, its largest market. Immigration and foreign students returning will drive growth. During Covid, millennials returned home, but after mass vaccinations, this cohort will return to the apartment market and create a bounceback. CAP REIT will definitely benefit from this pent-up demand. He sees a lot of upside in earnings and a NAV basis later this year. CAP REIT is very undervalued.
TOP PICK
TOP PICK
March 30, 2021
During Covid they lost a lot of occupancy and it was a tough sector during Covid. But now we're close to the bottom or past it. About 90% of CSH residents have gotten a vaccine. Compared to U.S. peers, CSH trades at a big discount with better fundamentals than most U.S. peers. CSH trades at 13.5x earnings vs. 20x in the U.S. They have a long way to go, though, and must raise occupancy by 10%, but he believes this will happen. Trades at a huge NAV discount. Note: this isn't a nursing home, which endures a cloud over it, but a retirement home. (Analysts’ price target is $12.71)
Show full opinionHide full opinionDuring Covid they lost a lot of occupancy and it was a tough sector during Covid. But now we're close to the bottom or past it. About 90% of CSH residents have gotten a vaccine. Compared to U.S. peers, CSH trades at a big discount with better fundamentals than most U.S. peers. CSH trades at 13.5x earnings vs. 20x in the U.S. They have a long way to go, though, and must raise occupancy by 10%, but he believes this will happen. Trades at a huge NAV discount. Note: this isn't a nursing home, which endures a cloud over it, but a retirement home. (Analysts’ price target is $12.71)
TOP PICK
TOP PICK
March 30, 2021
It's the biggest operating of self-storage in Canada, a business which was very resilient during Covid. Death, divorce and disasters drives this business, which we saw during Covid. They had 5% NOI growth in 2020 and 17% bottom line growth. A great story. If this were American, the stock would top $5. (Analysts’ price target is $4.41)
Show full opinionHide full opinionIt's the biggest operating of self-storage in Canada, a business which was very resilient during Covid. Death, divorce and disasters drives this business, which we saw during Covid. They had 5% NOI growth in 2020 and 17% bottom line growth. A great story. If this were American, the stock would top $5. (Analysts’ price target is $4.41)
TOP PICK
TOP PICK
March 29, 2021
This is the name he likes in the space. It is up significantly. They are focused on growing their cash flow from operations. They are the biggest makers of analogue circuits. Particularly they are in robots. In the next 5 years the use of robots is expected to grow by 60%. It is a high quality company. The forward PE is only 26. (Analysts’ price target is $177.32)
Show full opinionHide full opinionThis is the name he likes in the space. It is up significantly. They are focused on growing their cash flow from operations. They are the biggest makers of analogue circuits. Particularly they are in robots. In the next 5 years the use of robots is expected to grow by 60%. It is a high quality company. The forward PE is only 26. (Analysts’ price target is $177.32)
TOP PICK
TOP PICK
March 29, 2021
It has not done that well through the pandemic. Their appliances are used on an elective basis, so their installation got canceled by hospitals. Sales are expected to grow by 19% this year. (Analysts’ price target is $251.00)
Show full opinionHide full opinionIt has not done that well through the pandemic. Their appliances are used on an elective basis, so their installation got canceled by hospitals. Sales are expected to grow by 19% this year. (Analysts’ price target is $251.00)
TOP PICK
TOP PICK
March 29, 2021
Most Canadians should have exposure to private assets in their portfolio. You will see increases in valuation. (Analysts’ price target is $66.64)
Show full opinionHide full opinionMost Canadians should have exposure to private assets in their portfolio. You will see increases in valuation. (Analysts’ price target is $66.64)
TOP PICK
TOP PICK
March 26, 2021
Trading at a very low valuation. Biggest weighting for him. Likes it for the exploration front, partnership with government and valuation. Trading at 2.4x cashflow at $65. 28% free cashflow yield. Theoretically could keep production flat and pay 28% free cash. Sitting on $460M cash. What to do with the cash? Looking into new acreages. Free optionality on exploration or could get acquired for deleveraging by a company like Vermillion. 70% upside possible. (Analysts’ price target is $30.52)
Trading at a very low valuation. Biggest weighting for him. Likes it for the exploration front, partnership with government and valuation. Trading at 2.4x cashflow at $65. 28% free cashflow yield. Theoretically could keep production flat and pay 28% free cash. Sitting on $460M cash. What to do with the cash? Looking into new acreages. Free optionality on exploration or could get acquired for deleveraging by a company like Vermillion. 70% upside possible. (Analysts’ price target is $30.52)
TOP PICK
TOP PICK
March 26, 2021
A clearwater play. Trading at 2.5x cashflow. Once they pay down debt from acquisitions, you could see them buy back stocks. Really mis-priced right now. A great opportunity to get access to the most profitable play in Canada. New leg of growth and balance sheet is strong. MnA is possible. (Analysts’ price target is $3.06)
Show full opinionHide full opinionA clearwater play. Trading at 2.5x cashflow. Once they pay down debt from acquisitions, you could see them buy back stocks. Really mis-priced right now. A great opportunity to get access to the most profitable play in Canada. New leg of growth and balance sheet is strong. MnA is possible. (Analysts’ price target is $3.06)
TOP PICK
TOP PICK