Ticker Take: top AI stock picks?
A weekly newsletter on investing from Jon Erlichman.
Bulls in charge.
As Sam Stovall of CFRA told me this week, “bull markets don’t die of old age, they die of fright.” Earlier this year, recession fears were driving down stocks. These days, those fears have diminished. As such, Sam would not be surprised to see continued gains for the S&P 500.
Chhad Aul of SLGI Asset Management said as much when we spoke. He feels investors will continue to shift back towards Magnificent 7 stocks as earnings roll in (we saw that with Alphabet) and while the U.S. and Canadian markets are at all-time highs, Aul thinks there will be more second half momentum for the S&P versus the TSX.
7,000 here we come?
I caught up with Jimmy Lee of Wealth Consulting Group who believes a move towards 7,000 in the S&P 500 is very much possible. That would suggest about 10% upside for a stock market that has already been trading at record highs. He sees positive developments on trade, the strength in tech (AI), encouraging developments with crypto in Washington, as well as deregulation as possible drivers.
Top AI stocks to watch?
AI stocks have been surging! Is it too late to buy? In our latest Ticker Take video, we spoke to tech investor Eric Jackson, who still sees lots of opportunity. And he highlighted 10 AI stocks to watch! Watch below!
Are you buying the Opendoor story?
We also spoke with Eric about Opendoor, which surged after his comments about the company’s potential growth. While the shares quickly got caught up in the meme theme (which has surrounded a number of stocks including Krispy Kreme), Eric remains confident the company has a solid path ahead and he dismissed the idea of it being a meme stock. Watch below!
Buy Goldman Sachs and Uber?
Gord Reid of Goodreid Investment Counsel is bullish on Goldam Sachs, citing the strong trading results and a solid ROE. In the case of Uber, he believes their hitting their stride as a growth company, producing significant cash flow and monetizing both their Uber business and their Uber Eats operations.
Eddie’s top tech stocks to own?
From the perspective of Eddie Ghabour of Key Advisors Wealth Management, Nvidia and Amazon remain two standout names worth owning. He’s broadly more of an ETF investor but those were two he mentioned to me that he’s still seeing as top names.
Top beverage stocks for a portfolio?
Filippo Falorni of Citi Research told me his three top buy rated names would be Monster Beverage (MNST), Coca-Cola (KO) and Keurig Dr Pepper (KDP).
The ”durable moat” stock?
It was great to catch up with Martin Pelletier of Wellington-Altus Private Counsel, who singled out Berkshire Hathaway (BRK) as a name to keep on your list, especially if you feel like valuations are frothy and tech’s best days are done.
Can Netflix keep climbing?
Yes, in the eyes of Alicia Reese of Wedbush. After the company’s latest earnings report, she boosted her target price on the stock to $1500. Her view is that the company continues to produce phenomenal results, with ever more growth in its sights.
Stocks to own for dividend potential?
I spoke with Greg Newman of Newman Group at ScotiaMcLeod, who flagged a range of dividend names he likes, including Brookfield Infrastructure, Gibson Energy, Altagas and Keyera.
Stick with Starbucks?
Martin Cobb of Lorne Steinberg Wealth Management is a fan of Starbucks, which he says lost its way but can re-establish its sales strength and is already committing to shareholder friendly moves, such as stock buybacks. Additionally, he likes Alimentation Couche-Tard (ATD) and Toromont (TSE).
Standout social media stocks?
I spoke with Internet Analyst Ron Josey of Citi who shared his three top picks in social media: Pinterest (PINS), Reddit (RDDT) and Meta (META). As a bonus pick, he added Alphabet (GOOG).
Stocks to watch in financials, industrials and tech!
I had a good conversation with Julien Non-Womdim, VP of Equity Analysis at Goodreid Investment Counsel. His three preferred sectors right now are broker dealers, industrials and technology. As such, he highlighted three stocks that he likes: Leonardo DRS (DRS), Goldman Sachs (GS) and Garrett Motion (GTX).
Bullish on biotech stocks?
It was nice to reconnect with Eden Rahim of NextEdge Capital. Biotech can be volatile, but he flagged three stocks he likes after some stock pressure and an encouraging roadmap to growth: Legend Biotech (LEGN), Apellis Pharmaceuticals (APLS) and Cytokinetics (CYTK).
Other biotechs of note?
I also connected with Robert Driscoll of Wedbush, who cited his favorites in the biotech sector – Revolution Medicines (RVMD), Janux Therapeutics (JANX) and Mone Rosa Therapeutics (GLUE).
Go Canada?
Colin Stewart of JC Clark is generally favorable on Canadian equities, in part because of the increased spending on infrastructure and defense. As for individual stocks he is recommending, they include Dream Unlimited (DRM), Jamieson Wellness (JWEL) and lottery ticket company Pollard Banknote (PBL) which he’s held for years.
Telecom stocks to consider?
Vince Valentini of TD Cowen told me he’d be leaning into names such as Rogers (RCI.B), Cogeco (CCA) and illumin Holdings (ILLM).
Lesser known stocks worth buying?
I checked in with longtime Ticker Take contributor Jamie Murray of The Murray Wealth Group. Two lesser discussed stocks he wanted to flag are: Chemtrade (CHE), which he sees as an under owned name with a solid dividend, and Exchange Income (EIF), which in his opinion is building a standout northern Canadian aerospace play.
Value names to watch?
It’s always great to catch up with Rebecca Teltscher of Newhaven Asset Management. Three stocks she highlighted in our conversation? Northland Power (NPI), Premium Brands Holdings (PBH) and NFI Group (NFI).
Buy SAP on the dip?
Brent Bracelin thinks so. The Piper Sandler analyst told me that he’s still a fan of the software company, despite the selloff post-earnings. The company is benefiting from an enterprise upgrade cycle, which makes it what he calls his “highest conviction” name (which is noteworthy, considering he covers the likes of Microsoft, Salesforce and Oracle too).
Disclaimer: this content is for informational purposes only and does not constitute legal, financial, or professional advice. Always consult a qualified professional regarding your individual situation.