BMO chief investment strategist Brian Belski still sees value in domestic equity markets and provides examples,
“With the recent rally and valuation surpassing long-term historical averages, many investors have voiced concerns that there is no longer value in Canadian markets. We strongly disagree. In fact, our work shows that despite revitalized outperformance, there remains significant breadth of absolute and relative value in Canada. we find that almost all sectors are showing relative value versus the US. Only Canadian Consumer Staples look expensive.
His list of stocks offering both value and positive earnings momentum are: Advantage Energy Ltd, ATCO Ltd, Boardwalk REIT, Brookfield Corp, B2Gold Corp., Choice Properties REIT, Dream Industrial REIT, Eldorado Gold Corp, Equinox Gold Corp., Fairfax Financial Holdings, Finning International Inc., Fortuna Mining Corp. Galiano Gold, Inc. Granite Real Estate Investment Trust, goeasy Ltd. Headwater Exploration, K92 Mining Inc., Linamar Corp, Mattr Corp, Magna International Inc.
“ASML have released their 3Q24 results half a day early, punctuated by an order miss and reduction to 2025 expectations. They are seeing weakness in both logic and memory, with the former showing a slower ramp in new process nodes and the latter limiting capacity additions. 3Q orders of only EUR2.6bn are well below consensus of EUR5bn, leading to ASML reducing 2025 sales to between EUR30-35bn from 30-40bn previously.