Mike Vinokur’s Top Picks for Aug. 4, 2026

Mike Vinokur, Portfolio Manager & Senior Wealth Advisor, Propellus Wealth Partners, iA Private Wealth

Focus: North American Large Caps

Top picks: Uber, Rithm Capital, Talen Energy

MARKET OUTLOOK:

Equity markets have staged a meaningful recovery since the volatility experienced in March. Corporate earnings have remained resilient despite a challenging geopolitical backdrop, both domestically and internationally. Two active theatres of conflict — in Ukraine and the Middle East — continue to weigh on sentiment, while on the home front, ongoing tariff disputes and the absence of a Canada-United States-Mexico Agreement (CUSMA) extension, present a complex macro environment. Nevertheless, broad market indices have largely absorbed these headwinds, reflecting a degree of underlying strength that may not be immediately apparent given the prevailing uncertainty.

Notably, the composition of market leadership has shifted. Several members of the Magnificent Seven have underperformed relative to prior expectations, while small- and mid-cap equities, along with financials, healthcare, industrials, and other cyclical segments, are attracting substantial capital inflows — a dynamic that speaks to a broadening of market participation.

Seasonality warrants attention heading into August, a month historically associated with periods of consolidation or corrective activity. As the current earnings season draws to a close, we would not rule out a near-term pullback. However, should one materialize, we expect it to be shallow and short-lived in nature.

Our base case remains constructive. We are still in a bull market, and historically, sustained bull markets do not peak in the absence of broad-based euphoria. Given the degree of skepticism still present among investors, we do not believe we have yet reached that threshold — suggesting the path of least resistance remains higher.

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TOP PICKS:

Uber Technologies Inc. (UBER NYSE)

We think Uber is very undervalued. This is not a transportation company, but a platform tech company acting as a toll both between the riders and the drivers. Uber now has over 50 million monthly paying Uber one users. These users are generating approximately 50 per cent of the Mobility and Delivery Gross bookings. Uber’s revenues are growing at approximately 20 per cent per year, however we think earnings can accelerate much faster with cost savings from headcount reduction and synergies found from the delivery hero acquisition, once it goes through.

We believe the stock is very undervalued, with a large margin of safety, based on current forward earnings estimate for 2028, which we think are quite conservative.

Rithm Capital Corp. (RITM NYSE)

Not just a mortgage Reit. The CEO has built a powerhouse in the mortgage, credit, asset management and property management sectors. Today, Rithm originates and services mortgage and other credit but also has a very fast-growing asset management arm and property management division. The company just reported book value of US$12.33 and trades at an approximate 25 per cent discount. Furthermore, it pays a $1 dividend which at the current price is a 10 per cent dividend yield. We think over the next few years RITM will be able to increase earnings to US$2.50 and should be re-rated to a much higher multiple and premium to book value. While we wait, we are happy to collect a sustainable 10 per cent dividend.

Talen Energy Corp. (TLN NASD)

Talen Energy is a Houston based independent power producer which was restructured through a Chapter 11filing a few years ago. Today the company produces approximately 13.1GW of power and has a pending acquisition of cornerstone which will add another 2 GW of natural gas fired power. The company has guided to generating FCF of US$36 per share in 2027 and US$41 in 2028. Based on the projected FCF, we believe the stock is very undervalued and offers a high margin of safety. We think power demand will grow at a faster pace in the next few years compared to historical average growth over the previous decade, which should increase margins and perhaps make current company projections conservative. This utility does not pay a dividend however they have been aggressively returning capital through share buybacks.

Past Picks: August 28, 2025

Russel Metals (RUS TSX)

Then: $41.38

Now: $68.85

Return: 66%

Total Return: 70%

Micron (MU NASD)

Then: US$122.00

Now: US$877.01

Return: 619%

Total Return: 619%

FISERV (FISV NASD)

Then: US$137.65

Now: US$53.73

Return: -61%

Total Return: -61%

Total Return Average: 209%