Gordon Reid’s Top Picks for November 10, 2025

Gordon Reid, President & CEO, Goodreid Investment Counsel

Focus: U.S. Equities

Top picks: Emcor, Alphabet, Uber

MARKET OUTLOOK:

Equity markets have been relentless and amazingly stable since the tariff tantrum of last April. In fact, we have yet to see a pullback of greater than three per cent in the major averages in the past six months. This is highly unusual and at Goodreid we know that this streak could end at any time. Corrections are a natural, healthy and normally frequent occurrence within markets. In fact, some of the most damaging times have occurred when investors drive prices higher relentlessly - think the late 1990s as the internet bubble was being built.

While at Goodreid we believe the secular growth story of AI is intact and will create many opportunities, we also believe the assent of stock prices should reflect the fundamental growth of company’s financial characteristics. There has been a lot of chatter about a “bubble” being built, no doubt the result of the relentless move within the market. However, analysis doesn’t support this thesis. Consider that stocks in the Goodreid large capitalization portfolio such as Google, Meta and Qualcomm are being valued at between 15 times and 25 times next year’s expected earnings and have expected percentage growth rates in the high teens to mid twenties.

Even hybrid offerings such as Apple and Amazon are trading for 32 to 33 times earnings yet offer tremendous growth opportunities. Contrast that with the bubble of the late 1990s, when growth stocks such as Cisco Systems (CSCO) traded at close to 100 times earnings.

While just a few stocks have driven market averages meaningfully higher for the third straight year, analysis shows that the average company’s stock has recorded below normal growth. In fact, the unweighted S&P 500 index has advanced only about six per cent in 2025. When coupled with strong earnings growth the valuations of most stocks have drifted lower, not higher in 2025.

Stay the course, participate in AI opportunities, but don’t concentrate your portfolio in those names. Also, expect the inevitable correction, and do your best not to react emotionally.

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TOP PICKS:

Emcor (EME NYSE)

Emcor is a successful infrastructure company capitalizing on the robust buildout of the next stage of U.S. development, including data centres. Growth has been very strong, and their record backlog is an indicator that the runway is long. At 23 times earnings and a run rate of mid teens growth in earnings and cashflow it makes sense to take advantage of the recent pullback.

Alphabet (GOOGL NASD)

Alphabet is in terrific shape as it enters the AI race, essentially a defence of its dominant position in search. AI expands the pie, so Google could (will) lose some market share but still be a winner. Alphabet has many other cards to play, including its dominance in streaming through YouTube (2 billion+ viewers), and its self driving car technology, Waymo. At 25times 2026 earnings per share estimates, GOOG is excellent value.

Uber (UBER NYSE)

The market is fixated on autonomous vehicles and the disruptive effect they may have on UBER’s model. Historical evidence suggests that disruption and change fuels companies with foundational strength. When you have 180 million subscribers and a software model that the public trusts, there is opportunity. The stock has done well but investors are reluctant given the unknowns, creating an opportunity for confident investors.

PAST PICKS: November 19, 2024

RTX Corp (RTX NYSE)

Then: US$118.96

Now: US$178.00

Return: 50%

Total Return: 51%

Blue Bird (BLBD NASD)

Then: US$37.66

Now: US$49.82

Return: 32%

Total Return: 32%

Toll Brothers (TOL NYSE)

Then: US$151.74

Now: US$133.52

Return: -12%

Total Return: -11%

Total Return Average: 24%