BMO's Top 15 North American Income stock list sees four changes
RBC Capital Markets analyst Sam Crittenden assesses the copper mining stocks after a rally in the commodity price,
'Equity valuations have risen, coming closer to historical averages: North American copper equities under coverage are up 14 per cent year-to-date, significantly outperforming the LME copper price up 4 per cent despite materially underperforming in Q1. As a result, the equities are trading closer to historical valuations at 0.8 times NAVPS [net asset value per share] at spot (1.0 times at RBC estimates), 5.6 times NTM [next 12-month] EBITDA vs. 10Y average of 0.8 times NAVPS and 5.7 times NTM [next 12 months] EBITDA. We estimate our large producers under coverage will generate 0-per-cent FCF/EV yield in 2025 (3 per cent in 2026) and intermediate producers to generate 5-per-cent FCF/EV in 2025 (10 per cent in 2026) at spot. We see an attractive set-up for selected equities ahead of our positive medium-term outlook. Preferred names: Hudbay as they continue to demonstrate strong FCF and de-risk Copper World, Capstone as they execute on a production and FCF inflection, while any progress in Panama could be positive for First Quantum'
***
BMO strategist Brian Belski updated performance on the Top 15 North Amrrican Income picks. He emphasizes they should not be looked at as a portfolio, but the best ideas of BMO analysts. There were four recent changes to the list – Essex Property Trust and Evergy were added at the expense of BXP and NiSource.
The 15 stocks are AbbVie (ABBV), Amgen (AMGN), Brookfield Infrastructure Partners (BIP), Canadian Natural Res. (CNQ), Cenovus Energy (CVE), Emera (EMA), Essex Property (ESS), Entergy (ETR), Evergy, Inc., Manulife Financial (MFC), National Bank (NA), Pembina Pipeline Income Fund (PPL), Restaurant Brands Intl (QSR), Rogers Comm. (RCI.B) and Royal Bank (RY).
***
National Bank chief economist and strategist Stéfane Marion thinks the federal government should make small steps to 'make Canada investable again',
'The lesson for Canada's economic strategy is clear: Ottawa must keep its eye on the ball by focusing on high-probability policy plays, rather than concentrating solely on rare moonshots. Such high-probability measures include streamlining regulation, accelerating project approvals, providing clear and bankable incentives for private capital, and investing in foundational infrastructure … This work is part of our broader vision to Make Canada Investable Again (MCIA)—an effort to close Canada's persistent valuation gap, rebuild industrial competitiveness, and re-attract long-term private capital'
'Canada's RBI Playbook: Base Hits to Make Canada Investable Again: #1' - National Bank Economics
***
Bluesky post of the day:
Diversion: 'Late-Night Cheese May Fuel Nightmares – New Study Explains How' – SciTechDaily
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
10 minutes ago
- Globe and Mail
OPEC+ set to make another accelerated oil output hike on Saturday, sources say
Report on Business Meet Nojoud Al Mallees As an economics reporter, Nojoud writes about how fiscal and economic decisions on Parliament Hill affect businesses, Canadians and the economy at large.
Globe and Mail
15 minutes ago
- Globe and Mail
Boeing Stock Set for a Ride as NASA Progresses in Artemis II Program
NASA's Artemis II mission, the first crewed flight in its lunar return program, set to launch in April 2026, has reached critical milestones in recent months, reigniting investor interest in aerospace giant Boeing BA, a key contractor in the Space Launch System (SLS) program. On July 2, 2025, NASA announced on its Facebook page that the Program Specific Engineering Test for the Artemis II core stage had been completed. In early June, the Artemis II team conducted its first mission simulation to rehearse lunar science operations for the upcoming crewed mission. Earlier, in March, the integration of the Artemis II SLS core stage with its solid rocket boosters was successfully completed, which was another key milestone in preparing the rocket for launch. To this end, it is imperative to mention that the SLS rocket, designed to carry astronauts farther into space than ever before, is led by Boeing as the prime contractor for its core stage, upper stage, and avionics systems. The jet giant is currently building the core stages for all future Artemis missions. Thus, for Boeing, Artemis II represents more than just a technological triumph — it's a strategic revenue driver. With the company's Defense, Space & Security segment accounting for nearly 36% of total revenues in 2024, space programs like Artemis are key to Boeing's efforts to gain from a diversified portfolio beyond its struggling commercial aviation business and provide it with a significant financial cushion. With Artemis II on track, NASA's commitment to sustaining the Artemis program through Artemis III and beyond implies recurring revenue potential for Boeing over the long run, given its deep involvement in every SLS flight configuration. As investor interest in space stocks has been gaining increasing traction these days, the continued success of the Artemis mission should strengthen Boeing's positioning in the $500 billion global space economy and offer a promising growth vector for its shares. The potential upside reflected in BA's price target further supports this thesis. Based on short-term price targets provided by 22 analysts, the average Zacks price target for Boeing implies a 6.4% upside from its last closing price. Other Space Stocks Warrant a Look Other stocks, involved in the SLS program and Artemis missions, like Lockheed Martin LMT and L3Harris Technologies Inc. LHX, also stand to benefit from the steady progress of the Artemis II mission. Notably, Lockheed is the prime contractor involved in the construction of Orion, the spacecraft that will carry the crew of four astronauts in the Artemis II mission. In May 2025, LMT achieved a significant milestone in the development of NASA's Orion spacecraft by officially transferring it to NASA's Exploration Ground Systems team, following the completion of the spacecraft's assembly and testing. On the other hand, L3Harris is involved in the Artemis II mission through its Aerojet Rocketdyne business unit, which provides the RS-25 engines that power the SLS core stage. In May 2025, Aerojet Rocketdyne completed installation of all four RS-25 main engines on the core stage of NASA's second SLS exploration rocket, which will be used in the Artemis II mission. The Zacks Rundown for BA Shares of Boeing have risen 22% year to date compared with the industry 's growth of 22.2%. From a valuation standpoint, BA is currently trading at a forward 12-month sales multiple of 1.80X, a roughly 18.9% discount when stacked up with the industry average of 2.22X. The Zacks Consensus Estimate for BA's 2025 and 2026 sales implies a year-over-year uptick of 25.6% and 16.2%, respectively. The same for its earnings per share for 2025 has moved north over the past 60 days, while the same for 2026 has moved south. BA stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boeing Company (BA): Free Stock Analysis Report Lockheed Martin Corporation (LMT): Free Stock Analysis Report L3Harris Technologies Inc (LHX): Free Stock Analysis Report This article originally published on Zacks Investment Research (
Globe and Mail
15 minutes ago
- Globe and Mail
UnitedHealth Under Fire as Medicaid & Centene Bombshell Rattle Sector
UnitedHealth Group Incorporated UNH continues to face challenges amid a turbulent healthcare insurance landscape. The passage of the 'One Big Beautiful Bill Act' through Congress, ready for President Donald Trump's signature, threatens to significantly reduce federal Medicaid spending. According to reports, approximately 11.8 million Americans are expected to lose Medicaid coverage by 2034, with 5.2 million affected by new work requirements alone. To curb state-level Medicaid expenditures, the bill gradually limits the use of 'provider taxes' as a revenue source. However, it also allocates $50 billion in funding to support rural hospitals impacted by these cuts. While insurers like UnitedHealth and Humana Inc. HUM may encounter short-term pressure from shrinking Medicaid rolls, they could ultimately benefit as displaced members shift toward private coverage options. UnitedHealth's Medicaid membership declined 4% in 2023, 5.2% in 2024, and 1.4% in the first quarter of 2025. The proposed elimination of ACA marketplace tax credits will likely propel more people into employer-sponsored plans. Meanwhile, Medicare Advantage may gain traction, as seniors grapple with increased out-of-pocket expenses due to rollbacks in Medicare Savings Programs. UnitedHealth's Medicare Advantage enrollment rose by 8.3% in 2023, 1.9% in 2024, and 6.3% in the first quarter of 2025. Another major development shook the market as Centene Corporation CNC, a major Medicaid player, withdrew its 2025 earnings guidance late Tuesday, citing unexpected enrollment shifts and higher medical costs. The move, mirroring UnitedHealth's earlier decision, rattled the managed care sector. Centene shares witnessed massive declines following the news, and peers like UnitedHealth and Humana followed suit. Centene shares plummeted 41.2% following the announcement, dragging down peers: UnitedHealth and Humana dropped 5.4% and 5.1%, respectively, despite broader market gains driven by tech strength and encouraging jobs data. Price Performance Comparison – UNH, HUM & CNC Image Source: Zacks Investment Research UnitedHealth's Valuation and Estimates From a valuation standpoint, UnitedHealth trades at a forward price-to-earnings ratio of 12.99, up from the industry average of 11.49. UNH currently carries a Value Score of A. The Zacks Consensus Estimate for UnitedHealth's 2025 earnings is pegged at $22.07 per share, implying a 20.2% drop from the year-ago period. Image Source: Zacks Investment Research The stock currently carries a Zacks Rank #5 (Strong Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report Humana Inc. (HUM): Free Stock Analysis Report Centene Corporation (CNC): Free Stock Analysis Report This article originally published on Zacks Investment Research (
