This stock market is a crazy one today. Valuations remain absurd, and stocks are flying higher than ever. Accordingly, there’s certainly room for investors to remain cautious right now.
For investors who find themselves in this boat, these three picks are excellent options today. Now is as good a time as any to make some portfolio moves. For those looking to freshen up their portfolio, here are three hand-picked options to choose from.
Restaurant Brands
As far as growth-at-a-reasonable-price plays go, Restaurant Brands (TSX: QSR)(NYSE: QSR) continues to be one of my top picks.
This conglomerate of fast-food banners has been hit hard by the pandemic. Accordingly, recent earnings results have left much to be expected from this growth-oriented stock.
However, those taking a longer-term look at Restaurant Brands will see the value in this company today. Should Tim Hortons turn around (and I think it will, once the pandemic nears its end), Restaurant Brands’s top and bottom lines will look a lot better. Both Burger King and Popeyes’s Louisiana Kitchen continue to provide strong growth, regardless of the economic environment.
Thus, Restaurant Brands is a great, defensive growth play for long-term investors. And picking up a dividend yield in excess of 3% while investors wait for the growth? That’s just the cherry on top.
Alimentation Couche-Tard
Alimentation Couche-Tard (TSX:ATD.B) continues to be on my list of top picks, despite underperforming for the last couple of years.
Why?
Well, this company continues to be one of the best consolidators in its sector. The gas station and convenience store segment isn’t the most attractive one out there. But it’s also one that’s been similarly hit hard by the pandemic. The reopening thesis is strong with this company.
I think Couche-Tard stands to benefit from additional acquisitions on the horizon. While the company’s failed bid for French grocer Carrefour was eschewed by the market, I think this deal is a sign of the foresight of Couche-Tard’s management team.
Those looking for a high-quality growth play at a dirt-cheap price have come to the right place. There are few stocks as good as Couche-Tard in this respect today.
Air Canada
Perhaps a bit more speculative of a pick, Air Canada (TSX: AC) could turn out to be a great long-term play at these levels.
Yes, Air Canada stock has soared since post-pandemic lows. However, there’s a reason for this.
Air Canada’s value as a pandemic reopening play is undoubtedly strong today. This is an airline with a high-risk, high-reward type of potential return for long-term investors today. In the near term, there’s really no telling which direction this stock will trade. However, over the longer run, Air Canada has proven itself to be one of the best operators in the airlines space today.
Headwinds related to slower vaccine rollouts and rising jet fuel prices do persist. However, for those looking past near-term weakness, Air Canada could be a winner.
