Gordon Reid, President & CEO, Goodreid Investment Counsel
Focus: U.S. equities
Top picks: Brinker, Goldman Sachs, Visa
MARKET OUTLOOK:
The Donald Trump tariff tantrum of April seems like a distant memory, demonstrating once again how dynamic financial markets can be. It’s really not surprising, as markets are subject to changing circumstances and the market’s ability to digest information. Trump’s new label, TACO (Trump Always Chickens Out), has exposed his playbook; one of intimidation and confusion, followed by concessions.
While fully valued, equity markets have the opportunity to advance on stronger corporate results, backed by a strong economy. The consumer is being pressured but employment statistics and an impending tax cut should allow spending to continue. Finally, investors continue to demonstrate a cautious stance, not fully convinced that the all clear is to be believed. They may be right but nevertheless there’s ample capital to be redirected to equities to keep markets advancing.
Remember that with each passing day, the influence of the November 2026 mid-term results will seep into market action. Trump and the Republicans desperately want to hold onto the balance of power and will likely be investor friendly to do so.
- Market-moving news, fast: Get the BNN Bloomberg App now
- Sign up for the Market Call Top Picks newsletter at bnnbloomberg.ca/subscribe
TOP PICKS:
Brinker (EAT NYSE)
Brinker operates casual dining restaurants, most notably Chili’s Grill & Bar. After on-boarding veteran industry expert Kevin Hochman (P&G, KFC) a few years ago, this brand has turned into an industry leader with robust same store sales increases and innovative growth initiatives. They operate 1600 locations, 75 per cent of which are company owned. At 19x fiscal 2026 expected earnings, valuations are undemanding for this high growth achiever.
Goldman Sachs (GS NYSE)
Goldman ticks all the boxes for this cycle. First, the economy continues to hold up well and interest rates are trending downward, creating a positively sloped yield curve. Secondly, capital markets are primed to do well in a regulatory-light environment. We expect pent up demand to result in a packed calendar of capital markets business in the second half of the year. Finally, valuations are undemanding.
Visa (V NYSE)
This fintech juggernaut demonstrates a consistency that is enviable. At just over 27x 2026 EPS estimates the premium to the market is narrow when you consider a mid teens percentage growth rate of earnings and a very high score for predictability of earnings. Growth is most robust in Latin America and Europe and lags in Asia, which is a prime opportunity for this payment network.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| EAT NYSE | N | Y | Y |
| GS NYSE | Y | N | Y |
| V NYSE | Y | Y | Y |
PAST PICKS: JUNE 11, 2024
Amgen (AMGN NASD)
Then: US$300.70
Now: US$293.63
Return: -2%
Total Return: 0.78%
First Solar (FSLR NASD)
Then: US$294.53
Now: US$141.85
Return: -52%
Total Return: -52%
Crowdstrike (CRWD NASD)
Then: US$384.63
Now: US$479.48
Return: 25%
Total Return: 25%
Total Return Average: -9%
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| AMGN NASD | Y | N | Y |
| FSLR NASD | N | N | N |
| CRWD NASD | Y | N | Y |
