Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Paul Harris.
Paul Harris.

BNN Market Call

3 top stock picks from Avenue Investment’s Paul Harris Add to ...

Paul Harris is a partner and portfolio manager at Avenue Investment Management. His focus is on North American and global equities.

Top Picks:

TD Bank

We believe TD’s strategy of growing its retail operations in the U.S. will be very effective over the long run. The recent purchases have been astute which will help earnings over the next few years. The stock trades at 10 times earnings and 1.6 times P/BV and has a 4.0-per-cent yield.

SunTrust Banks

SunTrust is a commercial and retail bank in the southeast United States. The stock trades at .8 times book value and an 11 times earnings. The company will benefit from a continuing improvement of the U.S. housing market and a continued reduction in cost.


BCE has fallen due to increases in interest rates and the entrance of Verizon into Canada. The company is well run and recent purchases will start to add to earnings. The stock yields 5.3 per cent and has a free cash flow yield of 8 per cent. BCE is moving back to being a utility and capex and other metrics are going back to historical levels. The stock trades at 13 times earnings.

Past Picks: June 18, 2012

Then: $16.40
Now: $23.10
Total return: +48.80 per cent

Then: $21.05
Now: $24.63
Total return: +20.45 per cent

Bank of America
Then: $7.76
Now: $12.98
Total return: +67.88 per cent

Total return average: +45.71 per cent

Market outlook:

We believe the tremendous amount of sovereign debt outstanding globally will lead to slower growth around the world over the next several years. This will keep rates low for an extended period of time and inflation will be benign. In this environment we look for companies with a strong balance sheet and growing dividends

Report Typo/Error

Follow us on Twitter: @GlobeInvestor


More Related to this Story


Next story




Most popular videos »

More from The Globe and Mail

Most popular