Stan Wong, Portfolio Manager, Scotia Wealth Management
Focus: North American Large Caps and ETFs
Top picks: DoorDash, Expedia Group, Meta Platforms
MARKET OUTLOOK:
Equity markets remain supported by expectations for interest rate cuts.
Following a soft U.S. jobs report, investors now anticipate a 25-basis-point cut by the Federal Reserve system in October, with potential for another move before year-end. Inflation is moderating but remains above target, keeping policymakers cautious.
Global equities have held firm, led by technology and AI-related sectors, though volatility has increased amid mixed signals. With easing expectations in the U.S., growth and tech names may continue to lead, especially those tied to secular themes like artificial intelligence, cloud computing, and semiconductors.
However, elevated valuations call for selectivity. Investors should focus on high-quality companies with durable earnings and strong balance sheets.
U.S. money market assets have surpassed US$7.3 trillion, offering ‘dry powder’ that could support equities as confidence improves. Seasonality is also favourable, with the S&P 500 averaging a 5.3 per cent gain in Q4 over the past decade and rising in nine of ten years.
Looking ahead, S&P 500 earnings are forecasted to grow roughly 13 per cent in 2026, reinforcing a constructive view for equities in the months ahead.
In Canada, the Bank of Canada recently cut its overnight rate to 2.5 per cent amid softer growth and hiring. The Canadian dollar remains below 72 U.S. cents, pressured by weaker commodities and diverging U.S. growth.
At The Stan Wong Group, we maintain a constructive view on equities, favouring high-quality large-cap companies in technology, financials, and healthcare. In fixed income, we prefer short- and intermediate-term government and investment-grade corporate bonds, balancing opportunity with risk management. Our disciplined and diversified approach, anchored by a well-structured financial plan, helps clients navigate near-term market volatility while staying focused on long-term goals.
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TOP PICKS:
DoorDash (DASH NASD)
DoorDash is the largest on-demand delivery and logistics platform in North America, accounting for nearly 65 per cent of the U.S. food delivery market and connecting millions of consumers, merchants, and drivers through a data-driven network.
Fiscal 2026 revenue is projected to reach US$16.2 billion, reflecting continued growth across food delivery, grocery, and retail categories. The company’s dominant market share, strong brand recognition, and advanced logistics capabilities have helped it sustain leadership in a highly competitive and rapidly evolving industry.
Recent results highlight resilient order growth, improving margins, and rising profitability as DoorDash enhances efficiency and cost control. The continued expansion of DashPass, its subscription program, has strengthened customer loyalty and order frequency, while growth into grocery, convenience, and retail delivery is broadening the company’s market reach.
These initiatives are transforming DoorDash from a food delivery company into a broader local commerce platform serving diverse consumer needs.
Looking forward, DoorDash is well positioned to benefit from structural trends favoring convenience, digital consumption, and rapid fulfillment. Its logistics expertise, scale efficiencies, and focus on technology investment provide a foundation for sustainable growth and margin expansion. Earnings are forecasted to grow at an annualized rate of about 33 per cent over the next few years, supported by operating leverage, disciplined execution, and continued consumer adoption across its expanding delivery network.
Expedia Group (EXPE NASD)
Expedia Group is one of the world’s leading online travel companies, offering booking and accommodation services through well-known brands such as Expedia, Hotels.com, Vrbo, Hotwire and Orbitz.
Fiscal 2026 revenue is expected to exceed US$15 billion, supported by continued strength in leisure and business travel and growing adoption of online booking channels. The company’s global reach, broad brand portfolio, and deep travel inventory position it as a key beneficiary of ongoing demand for digital travel and vacation experiences.
Recent results highlight steady growth in bookings, improving margins, and solid free cash flow generation.
Expedia’s unified technology platform has enhanced operating efficiency and improved the user experience through personalization, automation, and faster search performance. Its integrated loyalty program, One Key, is increasing customer retention and cross-brand engagement, while data-driven marketing and dynamic pricing have strengthened conversion and profitability across platforms.
Looking ahead, Expedia is positioned to benefit from several long-term drivers of global travel demand. Remote and hybrid work arrangements have increased flexibility for consumers, allowing more frequent and extended trips. Younger generations continue to prioritize experiences and travel, while older consumers are devoting a greater share of income toward leisure and lifestyle activities. These demographic and behavioural shifts, combined with ongoing digital adoption, support a favourable long-term outlook.
With strong brand equity, expanding relationships with hotels and vacation rentals, and consistent cash generation, Expedia is well positioned for sustained growth. Earnings are expected to grow at an annualized rate of approximately 18 per cent over the next few years, supported by operating leverage, efficiency gains, and resilient travel demand.
Meta Platforms (META NASD)
Meta Platforms operates several of the world’s most widely used digital and social media platforms, including Facebook, Instagram, WhatsApp, and Messenger.
Fiscal 2026 revenue is expected to exceed US$227 billion, driven by strong growth in advertising and messaging services. With over three billion users worldwide, Meta remains the clear leader in digital advertising, supported by unmatched scale, deep engagement, and advanced targeting capabilities powered by artificial intelligence.
Recent results reflect strong advertising demand and significant improvement in profitability, helped by cost discipline and enhanced efficiency. The company is diversifying its revenue mix through newer business lines such as Reels advertising, business messaging, and integrated commerce. Continued investment in AI, automation, and infrastructure is improving content personalization and advertiser performance while strengthening user engagement across platforms.
Looking ahead, Meta is well positioned to benefit from global growth in digital advertising and the monetization potential of its messaging ecosystem. Its vast user base, high free cash flow generation, and operational efficiency provide resilience and flexibility in a competitive environment. Earnings are expected to grow at an annualized rate of about 17 per cent over the next few years, reflecting scalable technology, expanding ad revenue, and sustained global demand for digital marketing solutions.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| DASH NASD | Y | Y | Y |
| EXPE NASD | Y | Y | Y |
| META NASD | Y | Y | Y |
PAST PICKS: NOVEMBER 7, 2024
CATERPILLAR (CAT NYSE)
Then: US$408.21
Now: US$503.74
Return: 23%
Total Return: 24%
NETFLIX (NFLX NASD)
Then: US$796.54
Now: US$1230.28
Return: 54%
Total Return: 54%
ISHARES CORE S&P MID-CAP ETF (IJH NYSE)
Then: US$65.61
Now: US$65.56
Return: -0.07%
Total Return: 1%
Total Return Average: 26%
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| CAT NYSE | N | N | N |
| NFLX NASD | Y | Y | Y |
| IJH NYSE | Y | Y | Y |
