As the year draws to a close, investment experts Lorne Steinberg and Andrew Pyle have shared their top stock picks and market outlooks for December 2024, reflecting a generally optimistic sentiment in the U.S. economy. Lorne Steinberg, president of Lorne Steinberg Wealth Management, highlighted Allstate (ALL - NYSE), CVS (CVS - NYSE), and Nestle (NSRGY OTC) as his key selections. He noted that the U.S. economy remains robust, with expectations of reduced regulations and tax cuts contributing to market rallies. In contrast, growth in Europe and Canada is slower, and China's economic slowdown has implications for multinational corporations [35970b9d].
Steinberg emphasized Allstate's attractive valuation, with a price-to-earnings (P/E) ratio of 11 and a dividend yield of 1.8%, alongside an expected earnings growth of over 10% annually. CVS, despite facing recent earnings challenges, is positioned for growth with a P/E of 10 and a 4.8% dividend yield. Nestle, trading near a 10-year low with a 4% dividend yield, is anticipated to stabilize and grow its revenues by 2025 [35970b9d].
Adding to the investment landscape, Andrew Pyle, senior investment advisor at CIBC Wood Gundy, provided his insights on December 12, 2024. Pyle predicts that the U.S. will not face a recession until at least 2025, despite potential inflation risks stemming from strong economic demand. His top picks include Broadcom (AVGO), Mastercard (MA), and Superior Plus Corp. (SPB). He cautioned about Canadian economic fatigue and the risks of a recession due to U.S. tariffs [2ed5ff9b].
Pyle's previous selections included Pfizer (PFE), Microsoft (MSFT), and Tourmaline Oil (TOU), with mixed results: PFE is down 13%, MSFT is up 22%, and TOU is down 1% since his last recommendations [2ed5ff9b].
Overall, both experts reflect a cautious yet optimistic outlook for the markets as they navigate the complexities of economic growth and potential risks, particularly in the context of U.S. and Canadian economic dynamics. Their insights provide valuable guidance for investors looking to make informed decisions as 2024 comes to a close.