Teal Linde Reveals Key Stocks for 2024: Path, TD Bank, Alphabet
Teal Linde’s Top Stock Picks: Navigating Market Uncertainty with UiPath, TD Bank, and Alphabet
Editorial Team (ET)May 17, 2025
Teal Linde, manager of the Linde Equity Fund, has made his top picks for late 2024, focusing on companies positioned to perform well despite the uncertain climate of the U.S. presidential election. As the race narrows, market watchers wonder how equities might react in the days following the vote. Historically, election years tend to show positive market performance in the final quarter. Since 1952, excluding the financial crisis of 2008, the S&P 500 has gained an average of 4% during this period, compared to a general quarterly average of 2.2%.
This pattern demonstrates a stabilizing trend, especially after a winner is declared. While different administrations influence market behaviors, the data suggests a strong probability of positive market outcomes in the final stretch of 2024. Linde sees a continuation of this trend, noting that a Democratic win could traditionally signal higher gains in the first calendar year following an election. However, Trump’s first term remains a notable exception, reminding investors that results can vary with unique circumstances.
Top Stock Picks for November 2024
UiPath: A Resilient Innovator in Automation
UiPath, a leader in robotic process automation (RPA), has captured Linde’s attention despite its recent price drop. Since its IPO in 2021, the company’s stock has fallen significantly from its debut at $75 to below $13 due to a marked slowdown in growth. However, Linde sees UiPath as a ‘fallen angel’ with the potential to regain momentum, particularly as demand for automation continues to expand. The company’s technology focuses on automating repetitive digital tasks, making it a key player as businesses increasingly adopt AI-driven solutions to enhance efficiency.
With revenue growth expected at 11% and 13% over the next two fiscal years, UiPath holds significant potential even amidst a tighter valuation at 29 times next year’s earnings. The company’s $1.7 billion in cash, equivalent to about a quarter of its market value, provides an additional safety net, underscoring Linde’s confidence in UiPath’s stability and market leadership. In Linde’s view, UiPath’s role in the rapidly evolving automation sector, combined with its strong insider ownership and a strategic focus on AI, positions it well for the future.
TD Bank: Undervalued with Strong Canadian Roots
TD Bank has also made the cut for Linde’s top picks, despite its recent challenges. The bank was recently hit with a substantial $3.1 billion penalty related to money laundering, alongside an indefinite asset cap on its U.S. retail business. These setbacks have tempered its U.S. growth, but Linde points out that TD’s larger Canadian banking division and U.S. capital markets business provide a solid foundation for continued earnings.
Currently trading at a discounted 9.6 times its expected 2025 earnings per share, TD stands out in its sector, with a valuation nearly 20% below the average for Canadian banks. This lower valuation appears to be an overreaction in Linde’s eyes, particularly given TD’s strong return on equity, which positions it as Canada’s third most profitable bank. Additionally, TD’s dividend yield of 5% offers steady income potential for shareholders, complementing its favorable valuation and expected growth. Linde anticipates a rebound in TD’s stock price, projecting a return to $81 per share from its current price of $77, which would deliver a double-digit return when including the dividend yield.
Alphabet: A Balanced Tech Giant in a Crowded Field
Among mega-cap tech stocks, Alphabet has emerged as Linde’s choice due to its attractive valuation and consistent growth. As one of the “Magnificent Seven” tech giants, Alphabet has been instrumental in driving the S&P 500’s gains over the past two years. Despite concerns about the increasing concentration of market power among these few companies, Linde views Alphabet’s balance of revenue growth, competitive valuation, and industry dominance as advantageous.
Alphabet’s lower P/E ratio, currently at 19.5 times next year’s projected earnings, sets it apart from peers like Apple, Microsoft, and Amazon, which are trading at over 30 times earnings. This valuation offers investors a comparatively low-cost entry into the high-growth tech sector. Alphabet’s diverse revenue streams across digital advertising and cloud computing enhance its resilience, making it an ideal pick for those seeking exposure to tech without the volatility often associated with smaller players. For Linde, Alphabet represents a secure investment that blends innovation with financial stability, promising long-term returns in a sector poised for sustained growth.
Conclusion
Teal Linde’s top stock picks—UiPath, TD Bank, and Alphabet—reveal a calculated approach focused on industry leaders with solid fundamentals and significant growth potential. In UiPath, Linde identifies a company with the potential to recover and thrive as businesses increasingly adopt automation. TD Bank, despite recent challenges, is a trusted name with a robust dividend yield and a strong Canadian presence that could yield returns as its valuation normalizes. Alphabet, with its balanced growth and lower valuation relative to peers, remains an attractive tech option amidst an evolving market landscape.
Linde’s market outlook is cautiously optimistic, recognizing the election cycle’s potential impact but grounding his selections in companies with resilient characteristics. For investors looking to navigate the complexities of today’s market, his recommendations provide both growth potential and a defensive edge, setting up for 2024 with confidence and insight.
