RBC Capital Markets analyst Bish Koziol made four changes to the quantitatively driven Top 40 List of stock picks, removing Suncor Energy Inc. and ARC Resources Ltd. in favour of Exchange Income Corp. and ATS Corp.,
“Our Canada Overall Top 40 rose 2.8 % last month but underperformed the S&P /TSX Composite’ s 4. 1 % gain . Year -to -date the Portfolio advanced 7.9 % compared to the benchmark ' s 6.6 % increase. Gains in the Resource segment of the market were primarily attributable to the performance last month . Both buys this month realized improving Momentum scores and overall … ranks”The stocks remaining in the portfolio are Canadian Natural Resources, imperial Oil, Pason Systems, Ovintiv Inc.
“We expect the headwinds of double-digit expense growth against a more muted revenue growth, proactive reserve building against a back-drop of rising interest rates, and eroding ROEs given rising regulatory capital requirements which have weighed on the Canadian bank fundamentals and stocks over the past couple or so years to hit an inflection point in Q2/24.
“The Price is Right: remains an ‘ABB’ bull market…buyers’ strike in government bonds potent factor behind 40-year equity high in Japanese stocks, 20- year high in Europe, new highs in US, outperforming commodities & crypto; Wall St back to 6x the size of Main St … Tale of the Tape: 2020s era of higher inflation driven by fiscal excess, deglobalization, war ; that said, biggest Q2 tactical risk to consensus ‘ABB’ bull=decline in US payrolls signalling Fed needs to cut...