Ernest Wong’s Top Picks for Sept. 22, 2026

Ernest Wong, Head of Research, Baskin Wealth Management

Focus: North American Large Caps

Top Picks: TransDigm, Visa, Ferrari

MARKET OUTLOOK:

The U.S. stock market remains largely driven by artificial intelligence (AI), with 40 per cent of the S&P 500 being related to AI, semiconductors, or data centre spending, and an even bigger percentage including banks and financial institutions. Outside of AI, consumer spending and industrial activity remain weak and likely to get worse due to rising interest rates and cost inflation resulting from Iran.

The Canadian economy has remained resilient despite tariff uncertainty with the U.S., and Prime Minister Mark Carney has made economic growth and productivity a key priority. The tax incentives for investment, streamlined regulatory approvals, and new trade agreements with other countries will provide stimulus to the economy.

In the current market, we are finding attractive value in high-quality businesses that don’t participate in AI but continue to generate strong free cash flows and gain market share.

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TOP PICKS:

TransDigm (TDG NYSE)

TransDigm is a provider of aerospace replacement parts for commercial and defense markets. Shares have underperformed over the last year both relative to the indices and other aerospace peers such as GE Aerospace due to production issues by Boeing and Airbus, and concerns about the acquisition runway. However, commercial replacement part demand and profitability has remained strong and management continues to make acquisitions. This is a good opportunity to own a strong compounder.

Visa (V NYSE)

Visa is still thought of primarily as the credit card company, but today is growing in other areas such as Visa Direct, Commercial payments, and value-added services. There has been some worries about agentic commerce, but we believe most of these transactions will still go through Visa due to the fraud, rewards, and security provided by a Visa transaction. Visa will also benefit from inflation. Shares are trading at a very reasonable valuation.

Ferrari (RACE NYSE)

Very high-quality business with a strong brand and pricing power from selling cars to the ultra-rich. The stock had fallen due to worries about demand from Iran and their new electric vehicle (EV), but they remain sold out through 2027 and demand for the Ferrari Luce has been strong especially from new client segments. We think there is a strong opportunity to grow production and raise prices, and think shares are reasonably valued at 33 times earnings.

PAST PICKS: FEB. 24, 2026

Netflix (NFLX NASD)

Then: US$78.04

Now: US$72.25

Return: -7%

Total Return: -7%

Domino’s Pizza (DPZ NASD)

Then: US$414.20

Now: US$303.35

Return: -27%

Total Return: -25%

Live Nation (LYV NYSE)

Then: US$157.98

Now: US$169.29

Return: 7%

Total Return: 7%

Total Return Average: -8%