July 22, 2023 – While the select few of the “S&P 7” continue to dominate both the headlines and the performance of the broad-based equity indices, some pundits believe the market’s frothiness is cause for concern. For those discerning investors who want to look beyond the jumbo-cap growth names of the major benchmarks, AlphaRank’s Top Stocks provides some evidence-based stock ideas, both long and short
Alimentation Couche-Tard Inc. (ATD) is a Canadian multinational company that operates a vast network of convenience stores and gas stations across North America, Europe, and other regions. A classic “compounder”, which seeks to compound earnings through acquisitions, Couche-Tard’s M&A prowess has consistently grown earnings, while its global presence and diverse revenue streams may offer some protection against regional economic fluctuations. Moreover, as the world transitions towards sustainable energy solutions, Couche-Tard’s gas station network provides a potential platform for future charging infrastructure for electric vehicles, presenting opportunities for adaptation and growth in the long run. Due to ATD’s strong share price momentum, reasonable valuation, and attractive return on capital, combined with its share repurchase program, the stock is expected to continue to outperform.
Tilray Brands Inc. (TLRY) is a Canadian cannabis company. The ruthlessly competitive and oversupplied market has created a difficult operating environment for cannabis firms, with seemingly no hope in sight. Given TLRY’s poor share price momentum, continued share dilution, and everlasting operating losses, its share price is expected to continue to underperform.
AlphaRank Top Stocks represents Accelerate’s predictive equity ranking powered by proven drivers of return. Stocks with the highest AlphaRank are expected to outperform, while stocks with the lowest AlphaRank are anticipated to underperform. AlphaRank assigns a numeric value to each stock from zero (bottom-ranked) to 100 (top-ranked) based on selected predictive factors. All Canadian and U.S. stocks priced above $1.50 per share and $100 million in market capitalization are evaluated. Accelerate funds may be long many top-ranked stocks and short many bottom-ranked stocks in both the Accelerate Absolute Return Hedge Fund (TSX: HDGE) and the Accelerate Enhanced Canadian Benchmark Alternative Fund (TSX: ATSX). See AccelerateShares.com for more information.
