Darren Sissons’ Top Stock Picks for October 2024: Hermes, Nestle, and Visa
Exploring Darren Sissons' strategic stock picks for global stability and growth in 2024, with insights into Hermes, Nestle, and Visa.
Editorial Team (ET)July 11, 2025
Darren Sissons, a seasoned partner and portfolio manager at Campbell, Lee & Ross Investment Management, has revealed his top picks for October 7, 2024. With a focus on global technology stocks, Sissons remains committed to identifying high-growth opportunities while maintaining a steady eye on market volatility and economic challenges. His top recommendations for the moment include Hermes International SCA, Nestle SA, and Visa, each of which demonstrates resilience and long-term growth potential. Here’s a closer look at his outlook and the rationale behind these selections.
Market Outlook for 2024
Surprisingly, 2024 has been a strong year for returns, despite numerous macroeconomic hurdles. Rising real interest rates, a sluggish global economy, increasing unemployment, and persistent inflation in services sectors would typically signal a challenging year for markets. However, investors have seen steady gains throughout the year. The three interest rate cuts by the Bank of Canada helped international portfolios, providing a needed tailwind in a difficult environment.
Nevertheless, high real interest rates will continue to exert pressure on the economy in the near term. Given that Canadian banks tend to have loan books with durations of over three years, the full impact of these rates will likely take time to be fully absorbed. Investors should expect a protracted period of economic pain as these adjustments take place.
Further complicating matters are the ongoing geopolitical tensions in the Middle East. The Iranian rocket attack on Israel raises concerns not just from a political perspective but from an economic standpoint as well. Any sustained conflict in the region could severely impact global oil supply, spurring higher inflation. Since oil and its derivatives comprise around 20% of the global economy, disruptions could have a widespread inflationary effect, affecting various sectors.
Hermes International SCA (RMS EPA)
Hermes International is one of the world’s most prestigious luxury brands, renowned for its high-end products, such as the Birkin handbag, which can command prices between US$40,000 and $450,000. Hermes is particularly attractive to investors because it targets ultra-high-net-worth individuals, making it resilient even during economic downturns. Unlike most consumer brands, Hermes rarely discounts its products, reflecting its premium status.
Hermes offers a progressive dividend currently yielding 1.2%, with a 10-year average growth rate of 18% per year. The company’s strong financials, including a return on equity of more than 20% and a return on invested capital of over 40%, further solidify its position as a fortress in the luxury goods sector. For value-focused investors, Hermes may only become available at a more favorable price during periods of economic weakness, but it remains a strong long-term investment.
Nestle SA (NESN SWX)
Nestle is the world’s largest food and beverage company, offering a diversified portfolio of products ranging from baby food to bottled water. Despite facing some strategic challenges in recent years, including a deterioration in economic value-add generation in 2021 and 2022, Nestle’s long-term growth outlook remains strong.
The company’s progressive dividend yield of 3.60% has grown at an annualized rate of 5.7% over the past decade, offering a solid income for investors. Nestle is currently trading at a discount compared to its 10-year valuation metrics, making it an appealing choice for new investors. The replacement of the company’s chief financial officer has also provided optimism about Nestle’s ability to improve performance going forward.
With its global reach and diversified product range, Nestle is positioned to deliver consistent returns despite economic headwinds, making it an undervalued opportunity in the current market.
Visa (V NYSE)
Visa, a global leader in digital payments, continues to be a top pick for investors seeking both growth and resilience. As a toll operator in the consumer and corporate transaction space, Visa’s business model allows it to generate steady cash flows regardless of broader market conditions.
Though its dividend yield is modest at 0.75%, Visa’s dividend has grown at an impressive annualized rate of 21% over the past decade. The company has proven its ability to weather economic downturns, as U.S. regulators often impose restrictive credit card legislation during recessions, causing short-term dips in the stock price. These temporary declines, however, provide investors with attractive entry points, making Visa an excellent tactical trade as well as a long-term investment.
Visa’s long-term prospects are bright, particularly as the world continues its transition toward a cashless economy. As one of the key players in digital payments, Visa is well-positioned to benefit from this global shift.
Conclusion
Darren Sissons’ top picks for October 7, 2024—Hermes International, Nestle, and Visa—underscore his strategic focus on resilient companies with long-term growth potential. Despite the current economic challenges, these stocks offer solid financials, progressive dividends, and market leadership. Investors looking for a balance of stability and growth should take note of these companies as they navigate the remainder of 2024 and beyond. As always, Sissons’ approach emphasizes patience and a long-term perspective, key factors in achieving sustained investment success.
