Robert McWhirter's Top Picks: April 29, 2019

Robert McWhirter, president of Selective Asset Management
Focus: Canadian dividend and small-cap industrial, technology and health care stocks

MARKET OUTLOOK

From a technical analysis perspective, North American equities appear to be over-bought. We’re entering the classic “sell in May and go away” period. Will this be a significant pullback or more of a rotational affair?

With regards to commodities, Javed Mirza, technical analyst at Canaccord Genuity, noted this morning that a rotation from energy to precious metal stocks appears to be underway. Kirkland Lake Gold, which is one of our top picks, could benefit from this rotation.

We continue to expect North American equities to move higher over the next 12 months as the U.S economy "muddles through."

TOP PICKS

AECON GROUP (ARE.TO)

Aecon builds, finances and operates infrastructure projects and provides services to energy and materials companies. Street consensus implies a 26 per cent potential upside.

GOEASY (GSY.TO)

Goeasy offers consumer leases for home furnishings, appliance and home electronics. It’s currently a candidate for purchase into the Canadian Dividend Strategy offered by Enriched Investing. Street consensus implies a 32 per cent potential upside.

KIRKLAND LAKE GOLD (KL.TO)

A Canadian based gold company with mines here and in and Australia, Kirkland Lake is currently a candidate for purchase into the Canadian Dividend Strategy offered by Enriched Investing. Street consensus is implying a 15 per cent further potential upside.

PAST PICKS: OCT. 11, 2018

CP RAIL (CP.TO)

• Then: $264.97
• Now: $299.78
• Return: 13%
• Total return: 14%

XEBEC ADSORPTION (XBC.V)

• Then: $0.80
• Now: $1.33
• Return: 66%
• Total return: 66%

AECON GROUP (ARE.TO)

• Then: $16.17
• Now: $18.81
• Return: 16%
• Total return: 18%

Total return average: 33%