Daily roundup of research and analysis from The Globe and Mail’s market strategist Scott Barlow
BofA Securities quantitative strategist Savita Subramanian updated her list of top U.S. stocks for growth and value investors.
The top picks for growth are Advanced Auto Parts Inc., Amazon.com , Facebook Inc., Alphabet Inc., Marathon Petroleum Corp., Microsoft Corp., Netflix Inc., NRS Energy Inc., T-Mobile U.S. Inc. and Vertex Pharmaceuticals Inc.
The value picks are HCA Healthcare Inc., Lincoln National Corp., Marathon Petroleum Inc., Morgan Stanley, Netapp Inc., Progressive Corp., Parker Hannifin Corp., TE Connectivity Ltd., T-Mobile Inc., and Exxon Mobil Corp.
“@SBarlow_ROB BoA: Top 10 U.S. picks by growth and value” – (table) Twitter
" @SBarlow_ROB BoA: Growth and value 10 criteria’ – (research excerpt) Twitter
I wrote about the growing bullish consensus surrounding global mining stocks, particularly copper, for Wednesday’s Globe Investor newsletter.
Scotiabank analyst Orest Wowkodaw published a report Thursday morning contributing to the discussion with a list of top picks in the sector,
“The copper (Cu) equities have staged an impressive recovery following the painful COVID-19-related sell-off in March, largely on trend with the improving Cu price (which is now at a remarkable two-year high). Given the strong rally, which admittedly, occurred sooner than we had anticipated, we have stepped back and reviewed the current risk/reward proposition for the equities. Although we believe that the equities as a group appear to be largely pricing in spot Cu and that valuations appear mixed, we continue to recommend exposure to CS-T, FCX-N, FM-T, LUN-T, NCU-T, TECK.B-T, and TRQ-T. Among the producers, CS-T, HBM-T, and LUN-T appear the most attractively priced, while FCX-N and FM-T have exceptional leverage to higher prices, material near-term growth, and are both potential takeover targets in our view”
“@SBarlow_ROB Scotia: Top picks in NA copper miners” – (research excerpt) Twitter
Citi global strategist Chris Montagu screens the MSCI World index each month using a proprietary model emphasizing price momentum and attractive valuations.
The screen has uncovered three Canadian stocks – Sun Life Financial Inc., Enbridge Inc., and Canadian National Railway Co. – as moving into the top decile for attractiveness,
“We measure relative Value using one of two metrics. The primary metric is the ratio of the stock’s P/E to its theoretical fair value, which we estimate using a cross sectional model. If we cannot calculate such a value due to missing data then we use the ratio of the stock’s P/B to its theoretical value instead. Our composite Momentum score consists of three distinct elements: price momentum, abnormal trading volume (stocks which are currently more heavily traded than normal have a more sustainable source of momentum that is still building) and earnings/cashflow revisions (the change in the outlook for earnings and cashflow).’
Sun-Life, Enbridge, and CN Rail are listed as the top picks for the financials, energy and industrials sectors respectively. The other top picks by sector are KDDI , Sony, the A2 Milk Company , Teva Pharmaceuticals Industries (ADR), SAP, Fortesque Metals and Iberdrola.
Newsletter: “The ‘reflation’ trade and why the outlook for the TSX is brightening” – Globe Investor
Diversion: “Save Like A Pessimist, Invest Like An Optimist” – Morgan Housel
Tweet of the day:
The hunt for yield has accelerated in the past two weeks, with investors favoring the riskiest assets above safer ones. Some examples of the results: it's the cheapest since February for emerging-markets companies to borrow in dollars relative to U.S. IG businesses: pic.twitter.com/vKD4CRebR4— Lisa Abramowicz (@lisaabramowicz1) September 3, 2020
Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.