Brian Madden's Top Picks: January 11, 2022
BNN Bloomberg
Top picks from Brian Madden, senior vice president and portfolio manager at Goodreid Investment Counsel
MARKET OUTLOOK:
After the fourth-best year in the last 25 for Canadian stocks in 2021, our outlook for the Canadian stock market remains favorable but tempered from recent returns.
We expected ongoing above trend real growth in 2022 (consensus forecasts call for 4.1 per cent real GDP growth) and by extension, above trend growth in corporate profits (consensus forecasts call for 28 per cent growth in S&P/TSX index earnings), all while valuations remain undemanding, with the S&P/TSX index trading below 16x 2022 earnings forecasts and yielding 2.7 per cent.
Nevertheless, with inflation expected to remain uncomfortably high for much of the year before fading back towards central bank targets, we favour price makers over price takers, we favour companies that can substitute capital and productivity-enhancing technology for labour and we favour companies whose products and services address the mass market over those that address mainly the affluent.
TOP PICKS:
TFI International (TFII TSX) Last bought in January 2022 for $131.19 TFI International is one of North America’s largest trucking companies, specializing in truckload, less-than-truckload, logistics & “last mile” and package and courier services across Canada, the U.S. and Mexico.
