Feb 18, 2021
Gordon Reid's Top Picks: Feb. 18, 2021
BNN Bloomberg
Gordon Reid's Top Picks
Gordon Reid, president and CEO of Goodreid Investment Counsel
FOCUS: U.S. equities
MARKET OUTLOOK:
While equity markets are historically pushing the upper band of valuation ranges, the circumstances are unique. Not only are interest rates at extremely low levels but the Fed has endorsed a low rate environment. In addition, long neglected areas of the market, namely value and cyclical issues are awakening. Finally, the world seems poised for a synchronized growth spurt. Don’t be scared off.
TOP PICKS:
Jacobs Engineering Group (J NYSE) Latest Purchase Feb 2021 @ US$114
Jacobs Engineering provides exposure to the construction and engineering space as well as the burgeoning rollout of 5G technology. At 19x estimated 2021 earnings and sporting solid double-digit growth potential of both earnings and cashflow, this issue is compelling and the attractiveness will only increase with an infrastructure bill in the U.S.
JPMorgan Chase & Co. (JPM NYSE) Latest Purchase Feb 2021 @ US$135
Arguably the highest quality bank in the U.S., JPMorgan has appreciated as expected as the impact of COVID on the economy became clearer. The prospect of a steepening yield curve is also intriguing. Look for earning in excess of US$10/share in 2021. Coupled with a solid and growing dividend, JPMorgan is attractive.
Qualcomm, Inc. (QCOM NASD) Latest Purchase Feb 2021 @ US$147
At around 20x 2021 anticipated earnings, this industry leader in integrated circuits is a compelling buy. Both the licensing side and the chip business are growing dramatically, which for a company of this size is impressive.
PAST PICKS: February 25, 2020
Cisco Systems (CSCO NASD)
- Then: $42.74
- Now: $46.01
- Return: 8%
- Total Return: 11%
FedEx (FDX NYSE)
- Then: $145.60
- Now: $257.23
- Return: 77%
- Total Return: 79%
Regal Beloit Corp. (RBC NYSE)
- Then: $83.16
- Now: $128.81
- Return: 55%
- Total Return: 57%
Total Return Average: 49%
DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
---|---|---|---|
CSCO NASD | N | N | N |
FDX NYSE | Y | N | Y |
RBC NYSE | N | Y | Y |
WEBSITE: https://www.goodreid.com/