Investment Q&A

• Amazon.com Inc. (AMZN $211.65)
  • $211.65 P/E (TTM): 34.98X Cap: $2.25T
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• Shopify Inc. Class A Subordinate Voting Shares (SHOP $163.63)
  • $163.63 P/E (TTM): 97.92X Cap: $212.29B
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Q: Hi, Any insights as to why the share price of SHOP is trading at a much higher forward P/E and forward P/FCF than all of the magnificent 7 with the exception of TSLA? As of end of trading Jul 15 this is the data I have:

Compare Forward P/E with Mag 7:
TSLA 88.54
SHOP 62.2
NVDA 43.95
AMZN 40.32
MSFT 35.9
AAPL 33.86
META 24.2
GOOG 24.1

Compare Forward P/FCF with Mag 7:
TSLA 133.02
SHOP 65.22
MSFT 48.2
NVDA 50.24
AMZN 35.03
AAPL 30.43
META 27.6
GOOG 28.5

Upvote 6

Read Answer Asked by Michael on July 17, 2024

• Adobe Inc. (ADBE $338.85)
  • $338.85 P/E (TTM): 22.31X Cap: $143.74B
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• Microsoft Corporation (MSFT $535.64)
  • $535.64 P/E (TTM): 40.53X Cap: $3.98T
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• CrowdStrike Holdings Inc. (CRWD $454.86)
  • $454.86 Cap: $111.32B
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• Cloudflare Inc. Class A (NET $208.80)
  • $208.80 Cap: $72.76B
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• Palantir Technologies Inc. (PLTR $160.66)
  • $160.66 P/E (TTM): 670.74X Cap: $379.14B
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Q: What are your five favourite software opportunities in Ai, with a brief reason why for each? It would help if you could list or rank them in terms of upside as well (most upside first).

Upvote 17

Read Answer Asked by Brian on July 17, 2024

• CGI Inc. Class A Subordinate Voting Shares (GIB.A $131.63)
  • $131.63 P/E (TTM): 17.18X Cap: $29.53B
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• Constellation Software Inc. (CSU $4,718.31)
  • $4,718.31 P/E (TTM): 98.53X Cap: $99.98B
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• Enghouse Systems Limited (ENGH $22.75)
  • $22.75 P/E (TTM): 16.02X Cap: $1.25B
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• Open Text Corporation (OTEX $39.15)
  • $39.15 P/E (TTM): 11.68X Cap: $10.40B
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Q: Could you please compare the key financial metrics of OTEX vs ENGH and tell me which one you feel is the better long term hold and why. Finally, is there a canadian tech company you prefer to either of these 2?

Many Thanks
Scott

Upvote 6

Read Answer Asked by Scott on July 17, 2024

• Arthur J. Gallagher & Co. (AJG $284.61)
  • $284.61 P/E (TTM): 43.85X Cap: $72.88B
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Q: Can you comment on the prospects for this name?

Upvote 2

Read Answer Asked by Kim on July 17, 2024

• Whitecap Resources Inc. (WCP $10.31)
  • $10.31 P/E (TTM): 7.06X Cap: $6.05B
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• Tennessee Valley Authority (TVE $23.55)
  • $23.55 Cap: $1.03B
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• Northern Oil and Gas Inc. (NOG $25.11)
  • $25.11 P/E (TTM): 3.9X Cap: $2.91B
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• Chord Energy Corporation (CHRD $105.37)
  • $105.37 P/E (TTM): 7.04X Cap: $6.08B
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Q: I am underweight in resources, thinking TVE or WCP...your thoughts on which of these two and perhaps a couple of US midcaps recc...thank you for all that you do.

Upvote 4

Read Answer Asked by Geoff on July 17, 2024

• BMO S&P 500 Index ETF (ZSP $94.16)
  • $94.16 P/E (TTM): 57.09X Cap: $18.77B
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• Vanguard S&P 500 Index ETF (VFV $152.73)
  • $152.73 P/E (TTM): 24.94X Cap: $23.83B
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Q: Hi 5i Team,

In a recent question by Kyle (July 15), you recommended ZSP. Any reason for choosing ZSP over the usual VFV? MER a drop higher for ZSP although liquidity looks better.

Upvote 7

Read Answer Asked by David on July 17, 2024

• Agnico Eagle Mines Limited (AEM $172.74)
  • $172.74 P/E (TTM): 26.83X Cap: $86.83B
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• Pan American Silver Corp. (PAAS $37.28)
  • $37.28 P/E (TTM): 31.28X Cap: $13.58B
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Q: Hello 5i I own AEM and PAAS and I would like to get your opinion as to the seasonality for gold and you opinion of both companies. As I am thinking of selling them while the price of gold is rising but I think most gold companies stock prices have not appreciated in value as I thought

Upvote 2

Read Answer Asked by Michael on July 17, 2024

• Dynacor Group Inc. (DNG $4.64)
  • $4.64 P/E (TTM): 7.53X Cap: $195M
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Q: Could you please provide your opinion on this company. They appear to have a unique model in ther metals space and have executed quite well with expansion plans on the horizon. Can you kindly outline some of the major risks aside from the location and overall size. thanks in advance.

Upvote 1

Read Answer Asked by mitchell on July 17, 2024

• Paychex Inc. (PAYX $139.43)
  • $139.43 P/E (TTM): 30.49X Cap: $50.22B
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Q: I will appreciate if you could give your analysis on the future growth of the business. Is the future of payroll business is stalled with new technology? Does the payroll business dyeing?

Upvote 1

Read Answer Asked by Piyush on July 17, 2024

• Loblaw Companies Limited (L $223.56)
  • $223.56 P/E (TTM): 27.63X Cap: $67.45B
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• Metro Inc. (MRU $105.38)
  • $105.38 P/E (TTM): 23.68X Cap: $23.12B
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• Alimentation Couche-Tard Inc. (ATD $70.18)
  • $70.18 P/E (TTM): 18.84X Cap: $66.53B
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• iShares S&P/TSX Capped Consumer Staples Index ETF (XST $59.38)
  • $59.38 P/E (TTM): 23.96X Cap: $317M
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Q: 5i’s opinion of XST for a 5-yr hold in RESP?
I see its 5yr & 10yr returns are 10% & 12%, its 3 largest holdings (ATD, Loblaws, MRU) total about 60% of the fund, and it has 11 holdings.
I would basically purchase for diversification as opposed to buying the main holdings individually and paying commissions. Thank you.

Upvote 3

Read Answer Asked by Trevor on July 17, 2024

• Canadian Apartment Properties Real Estate Investment Trust (CAR.UN $43.73)
  • $43.73 P/E (TTM): 62.47X Cap: $7.18B
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• Brookfield Asset Management Ltd. Class A Limited Voting Shares (BAM $82.52)
  • $82.52 P/E (TTM): 43.34X Cap: $133.06B
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Q: I hold BAM as an income stock and also CAR.UN, both in a TFSA. Going forward, I am considering combining them into either BAM or CAR.UN. (And I also hold DIR.UN, a larger position than CAR.UN). I know 5iR likes diversification, however the family has a home and a cottage. If I combine them, what would you suggest as the one to hold, BAM or CAR.UN??? .....Thanks....Tom

Upvote 3

Read Answer Asked by Tom on July 17, 2024

• iShares U.S. Home Construction ETF (ITB $102.04)
  • $102.04 P/E (TTM): 29.42X Cap: $2.63B
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Q: If we see interest rate cuts 2 or 3 times this year in the US, this should get the house building companies a real lift. What is your outlook for these stocks and are they a real buy now?
Thanks Again

Upvote 1

Read Answer Asked by eugene on July 17, 2024

• SolarEdge Technologies Inc. (SEDG $25.63)
  • $25.63 Cap: $1.51B
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• Nextracker Inc. (NXT $56.31)
  • $56.31 P/E (TTM): 16.3X Cap: $8.33B
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Q: Why the sudden drop in the share price yesterday? Is it related to the flight from small growth stocks?

Upvote 1

Read Answer Asked by jacques on July 17, 2024

• Alpha Metallurgical Resources Inc. (AMR $118.62)
  • $118.62 P/E (TTM): 57.14X Cap: $1.50B
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Q: What do you think of this company ? They were buying back shares aggressively but seems to have paused in this quarter. It is cheap and I saw that Guy Speir just bought 8000 shares in his aquamarine fund. Thanks !

Upvote 1

Read Answer Asked by jean on July 17, 2024

Q: Good Morning

My question pertains to GOLD and the run that it is now enjoying
What are the factors that continue to push the price up?
How long do you feel this upward movement will continue?
What would be the primary factor to see a reversal in price?
At what price do you see gold topping?
Thks for all you do
Marse

Upvote 5

Read Answer Asked by Marcel on July 17, 2024

• Apple Inc. (AAPL $203.35)
  • $203.35 P/E (TTM): 31.52X Cap: $3.01T
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• Alphabet Inc. (GOOG $195.75)
  • $195.75 P/E (TTM): 21.2X Cap: $2.36T
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• Eli Lilly and Company (LLY $769.00)
  • $769.00 P/E (TTM): 62.03X Cap: $728.80B
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• Shopify Inc. Class A Subordinate Voting Shares (SHOP $163.63)
  • $163.63 P/E (TTM): 97.92X Cap: $212.29B
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• iShares Jantzi Social Index ETF (XEN $41.03)
  • $41.03 P/E (TTM): 27.33X Cap: $139M
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• iShares MSCI USA ESG Optimized ETF (ESGU $138.08)
  • $138.08 P/E (TTM): 54.71X Cap: $13.73B
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Q: Hi,
After reading disturbing reports about Shopify's business practices, such as not enforcing its own acceptable use policy against its merchants selling nazi-related products, and its COO's board-level involvement with a far right wing media group, do you have any suggestions for ethical growth companies in Canada or the US to replace this name in my portfolio?
Thank you. Michael

Upvote 4

Read Answer Asked by Michael on July 17, 2024

• CECO Environmental Corp. (CECO $44.84)
  • $44.84 P/E (TTM): 31.34X Cap: $1.58B
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• Aspen Aerogels Inc. (ASPN $7.88)
  • $7.88 Cap: $647M
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• IonQ Inc. (IONQ $39.86)
  • $39.86 Cap: $9.87B
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Q: HI 5I,
Is it too late to buy the first two?
And what is your opinion of all three?
Connie

Upvote 5

Read Answer Asked by Constance on July 17, 2024

• AeroVironment Inc. (AVAV $267.95)
  • $267.95 P/E (TTM): 168.22X Cap: $12.24B
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• TerraVest Industries Inc. (TVK $167.03)
  • $167.03 P/E (TTM): 41.76X Cap: $3.25B
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• Super Micro Computer Inc. (SMCI $58.23)
  • $58.23 P/E (TTM): 31.21X Cap: $34.75B
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• CrowdStrike Holdings Inc. (CRWD $454.86)
  • $454.86 Cap: $111.32B
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• Vertiv Holdings LLC Class A (VRT $140.20)
  • $140.20 P/E (TTM): 82.32X Cap: $53.53B
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• Propel Holdings Inc. (PRL $34.65)
  • $34.65 P/E (TTM): 17.69X Cap: $1.34B
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• TransMedics Group Inc. (TMDX $128.50)
  • $128.50 P/E (TTM): 87.86X Cap: $4.38B
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Q: From a pure growth perspective - what are five or six companies that excite you most right now?

Upvote 30

Read Answer Asked by Stephen on July 17, 2024

• Vanguard All-Equity ETF Portfolio (VEQT $48.39)
  • $48.39 P/E (TTM): 4.23X Cap: $7.79B
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• iShares Core Equity ETF Portfolio (XEQT $35.78)
  • $35.78 P/E (TTM): 11.59X Cap: $8.56B
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• BMO All-Equity ETF (ZEQT $54.94)
  • $54.94 P/E (TTM): 3.47X Cap: $273M
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Q: Apologies if this has been answered previously. This is a follow up to Ross’ question about these one stop shop ETFs. You mention, in this particular answer, that you consider them to be ‘more than acceptable’.

Assuming one doesn’t mind complicating their lives a little, what would be your optimal all-equity ETF portfolio for an aggressive investor ?

Thank you

Upvote 9

Read Answer Asked by Karim on July 17, 2024

• iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (CDZ $37.69)
  • $37.69 P/E (TTM): 5.68X Cap: $978M
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• Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY $52.53)
  • $52.53 P/E (TTM): 9.23X Cap: $4.05B
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• iShares Core MSCI Canadian Quality Dividend Index ETF (XDIV $32.19)
  • $32.19 P/E (TTM): 3.19X Cap: $2.59B
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Q: Can you pls recommend 3 Cdn ETFs that focus on high dividend stocks, with an estimated 10% yield including both dividend and capital appreciation for over the next 1 year?

Upvote 12

Read Answer Asked by Ron on July 16, 2024