Gordon Reid's Top Picks
Gordon Reid, president and CEO of Goodreid Investment Counsel
FOCUS: U.S. Stocks
Is the prospect of inflation creeping into market thinking? Will the yield curve continue to steepen? Can investors believe the Fed? Will 2021 be the year when value stocks finally take the mantle from growth? The correct answers to these questions will be rewarding to investors.
Please note Market Call will be on hiatus on Wednesday Jan. 19. BNN Bloomberg will air special coverage of the U.S. inauguration.
Anthem is a managed care operator with 41 million members. With the tailwind of an aging population and a desperate need to provide health insurance solutions, Anthem will be in the mix. Goodreid expects earnings of US$26 per share in 2021, yielding a P/E of just over 12x and a free cash flow yield of seven per cent.
CVS Health is in the news as a major clog in the vaccine distribution effort. Shedding the image as simply a drugstore, CVS is a powerhouse in U.S. healthcare, sporting a major insurance division, a pharmacy benefit manager and a fulfillment division of 10,000 physical locations, filling one billion prescriptions per year.
TTEC Holdings provides business solutions to firms wanting to optimize customer acquisition and fraud protection capabilities and to those companies needing to improve their customer online offering. COVID-19 has created more urgency within businesses to replace face-to-face services with automated systems.
PAST PICKS: January 29, 2020
Home Depot (HD NYSE)
- Then: $234.02
- Now: $275.26
- Return: +18%
- Total Return: +20%
McDonald’s Corp (MCD NYSE) Sold June 2020
- Then: $214.44
- Now: $209.89
- Return: -2%
- Total Return: +1%
United Airlines (UAL NASD) Sold March 2020
- Then: $75.21
- Now: $44.35
- Return: -41%
- Total Return: -41%
Total Return Average: -7%
Company website: www.goodreid.com