BMO chief strategist sees buying opportunity for these U.S. stocks

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Daily roundup of research and analysis from The Globe and Mail’s market strategist Scott Barlow

“Although small- and mid-cap stocks have delivered above-average, double-digit gains over the past year, the performance has been unable to keep up with the torrid pace set by their large-cap counterparts. Although relative underperformance has generally intensified over the past several months, March 2024 month-to-date trends suggest that a bottom may be forming.

The recommended stocks are Arch Resources Inc., Bunge Global SA, Constellation Energy Corp, Chesapeake Energy Corp., Centerpoint Energy Inc., CubeSmart, DoorDash Inc., Dayforce Inc., Dynatrace Inc., Entegris Inc., Exelixis Inc., Louisiana-Pacific Corp., Open Text Corp., Restaurant Brands International Inc., Ross Stores Inc., RPM International Inc., Snap Inc., US Foods Holdinq Corp.Citi foreign exchange strategist Daniel Tabon is recommending the Canadian dollar versus the U.S.

“We will continue to look for USD bounces as opportunities for shorts into Q2. In the meantime, CHFJPY downside could get traction as MoF intervention concerns increase … The Fed last week was dovish, especially Powell’s presser . We had wanted to sell USD on strength into FOMC, and we went short USDCAD after the meeting . Our bias remains to be short USD into Q2 given two potential drivers: seasonal weakness in US data in Q2 and improving global manufacturing PMIs pointed to a cyclical bounce.

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