Chris Stuchberry, senior portfolio manager at Wellington-Altus Private Wealth
FOCUS: Large cap growth stocks
Top Picks: Palantir Technologies, Uber, Carrier Global
MARKET OUTLOOK:
All investors must remember this key point: “the stock market is not the economy.” Stocks do not directly correlate to the economy.
This is critically important because the economy and economic sentiment do appear to be softening.
As we review the year and look forward, we see few changes to the outlook. Canada continues to struggle; we maintain small allocations to Canada and primarily hold Canadian multinationals with most revenue outside Canada. We do think the Canadian dollar will have a rebound in 2025, but we may need to be patient.
We continue to have faith in our winning stocks. Yes, stock prices have surpassed our expectations and the valuations are high, but we cannot discount that every single winner is stronger ending the year than starting the year. Balance sheets continue to strengthen, revenue continues to grow, and buybacks reduce the number of shares outstanding, increasing earnings per share. We continue to believe we have identified the winning companies and will adjust as needed.
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TOP PICKS:
Palantir Technologies (PLTR NASD)
Palantir is a high-risk, high-reward AI-driven data analytics company that originated in the defense industry and has successfully expanded into the private sector with its Artificial Intelligence Platform (AIP). With a strong financial position, impressive revenue growth, and strategic government and commercial contracts, Palantir is considered a potential secular winner in the competitive AI sector.
Uber (UBER NASD)
Uber stands as a dominant platform in transportation and delivery, with its name now a verb, demonstrating consistent growth, improving profitability, and strategic share buybacks that position it for future expansion. The company’s diversified revenue streams, strong balance sheet, and ongoing investments in AI and autonomous vehicles make it an attractive investment opportunity with significant potential for long-term value creation.
Carrier Global (CARR NYSE)
Carrier is a manufacturer of HVAC systems, demonstrates consistent growth, a share buyback program, and a recent 18 per cent dividend hike. The company is actively rebalancing its business portfolio after the acquisition of Viessmann, aiming to enhance profitability.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| PLTR | Y | Y | Y |
| UBER | Y | Y | Y |
| CARR | Y | Y | Y |
PAST PICKS: June 25, 2019
Meta (META NASD)
- Then: US$188.84
- Now: US$641.90
- Return: 240%
- Total Return: 241%
Cloudera (CLDR NYSE)
- Acquired on Oct. 8, 2021, by Clayton, Dubilier & Rice and KKR. Shareholders bought out at US$16.00 per share.
Royal Bank (RY TSX)
- Then: $105.19
- Now: $175.38
- Return: 67%
- Total Return: 94%
Total Return Average: 166%
| DISCLOSURES | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| META | N | N | N |
| CLDR | N | N | N |
| RY | Y | Y | Y |