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Today, Stockchase Insights and Teal Linde commented about whether TRP-T, OWL-N, BN-T, AAPL-Q, MA-N, BBD.B-T, IBM-N, BMO-T, ADBE-Q, PPL-T, ATZ-T, DAL-N, ESI-T, AMZN-Q, EQX-T, BA-N, BCE-T, BNS-T, COST-Q, OTEX-T, MCB-T, ET-T, ULTA-Q are stocks to buy or sell.

PARTIAL BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

EPS of $8.08 beat estimates of $7.57. Revenue of $3.55B beat estimates by 6.7%. EBITDA of $579M beat by 5.6%. Conservative guidance worried investors, though. Ulta Beauty's outlook for more operating-margin deterioration in fiscal 2024 is a bit of a concern, given the metric fell more than 100 bps to 15% in 2023 and since big market-cap hardline peers are largely projecting improvement this year. Beauty demand remains robust, as evidenced by strong 4Q results, including a 14.6% operating margin -- up vs. 3Q and above management's guidance. This strength in demand should let discounts remain limited, a tailwind for margin. The company's forecast for $11.7-$11.8 billion in sales for 2024 appears low, implying less than 5% growth at the midpoint, or about half of 2023's almost 10% gain. This might be too drastic a slowdown, even with tough year-over-year comparisons, considering its growing customer base and expanding store fleet. We are comfortable still, but it needs to be watched a bit more closely than usual. 
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Consumer Products
BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

EPS of 24c beat estimates of 22c. Revenue of $135M beat estimates by ~8%. EBITDA of $30M beat by 7%. Revenue rose 22%, with international up 38%. The quarter was a record. Net earnings rose 48%. Net cash is $40M. With nice growth and only at 14X earnings, a valuation bump is possible, moreso if rates fall. It was certainly a strong quarter. We might set an $18 target here. 
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electrical / electronic
HOLD
McCoy Corp.
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

MCB reported Q4 revenue of $19.7M, increasing 8% year-over-year from $18.3M in 2022. The increase in revenue was driven by strong demand for the newly commercialized smart products, particularly McCoy's Flush Mount Spider (FMS). MCB also reported net earnings of $2.7M, compared to net earnings of $7.3M in 2022, with the comparative period benefitting from a $3.9M gain on sale and leaseback of McCoy's facility in Cedar Park, TX, and $1.0M recovery of income taxes. MCB cited, "Though timing and product mix of customer purchase commitments may result in quarter-to-quarter fluctuations in revenues and gross margins, we anticipate sustained success beyond drilling activity cycles as adoption of our smart technologies continues to accelerate." We think this was an OK quarter as revenue growth was good and earnings seems to be impacted by one-time factors in 2022 but still did decline significantly. 
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oil / gas field services
COMMENT
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

Company Highlight:

ARC Resources Ltd. (ARX): Acquires and develops crude oil, natural gas and natural gas liquids in Canada through its interest in the Montney basin located in Alberta and northeast British Columbia. ARX has cyclicality in revenue and earnings. Over the last few years, ARX experienced a decent tailwind due to record energy prices and favourable operational leverage. The company is returning capital through dividends and buybacks with a combined yield of around 6% on the trailing twelve-month basis.
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Unknown
COMMENT

He wonders at how much markets have been driven up by speculation. The options market is seeing speculative activity that is more than it was two years ago. Also there has been a record increase of '0 days to expiration' options being traded. This all begins to look like a continuation of 2021. For longer term investors, in particular Market Call's callers who are not traders, look at what you own and decide if it is being given up to speculation or not. NVIDIA is a good example of enthusiasm pushing up the price but at the same time not being over-valued. However what happens when people don't want new GPU's anymore.

Unknown
Unspecified
Open Text

Management deserves more credit. They made their biggest acquisition in history in 2022 which caused the stock to plummet. However they have managed to turn it around as they had claimed they could and are now getting some revenue growth from the acquisition.They have also paid down $2 billion in debt so have a better balance sheet. trades at 11X earnings.

computer software / processing
COMMENT

It is a stable company which makes its money on volume and membership fees. The Kirkland brand itself generates a huge amount of revenue. However its valuation is quite stretched at 45X earnings.

department stores
COMMENT
Bank of Nova Scotia

It is in a transition stage and is backing away from international markets and focusing more on North America: Canada, the U.S. and Mexico. This could be challenging since other banks are already there. He owns some of the other banks.

banks
COMMENT
BCE Inc.

Due to the falling price it now pays about an 8% dividend which he feels is sustainable, although the payout ratio is quite high. If interest rates come down this should help dividend payers and the Canadian stock market in general. The Canadian markets have more dividend payers than the U.S. markets.

telephone utilities
COMMENT
Boeing

It is close to a 52 week low. It is going through an improvement process and the new CEO is establishing a new culture with the focus on quality. However it is having difficulties with its 737 Max and the FAA did their own audit and found more problems. It needs to bottom before it can go up again.

Transportation
COMMENT
Equinox Gold

As the new project comes on line this should bring the operating costs down. With its higher costs this gives it more leverage to increasing gold prices.

Mining
Unspecified
Amazon.com, Inc.

It is a trail blazer in public cloud services. It has the largest market share in this but Microsoft and Google are chipping away at it. It should be the most profitable it has ever been in its history, but has to harvest this profitability in this and the next year to justify its high valuation.

specialty stores
PAST TOP PICK
(A Top Pick May 15/23, Up 22%)

It anticipated $200 million in free cash flow and achieved this. It is reflected in the price so he would hold back on new buying.

oil / gas
PAST TOP PICK
Delta Air Lines Inc
(A Top Pick May 15/23, Up 29%)

It is still cheap at a 15% free cash flow yield. The business travel component is back to pre-pandemic levels, at least for Delta. Trades at 6 1/2X expected earnings.

Transportation
PAST TOP PICK
Aritzia Inc.
(A Top Pick May 15/23, Up 0.2%)

It took a big tumble so he bought more in October and will hold at this level since it is trading at a fair valuation. It needs more traction before getting a premium valuation. However he has long term conviction in it and feels it should grow in the double digit range. Just over half of its revenue comes form the U.S. side and each new store has a 12 month payback.

specialty stores