Zach Curry's Top Stock Picks for June 2024

Meet Zach Curry, the director and portfolio manager at Greenrock Capital Partners. If you're looking to navigate the volatile seas of the stock market in 2024, Zach's insights and top picks are your compass. In this article, we'll dive deep into his market outlook and explore his top stock picks, including Suncor, Qualcomm, and Royal Bank of Canada.

Market Outlook

2024 has been a rollercoaster for stock markets in Canada and the U.S. With interest rates and inflation at the forefront of investors' minds, the market has seen significant fluctuations. The S&P 500 Index has soared over 10% since January, but with central banks now expected to cut interest rates only once this year in the U.S. (and maybe twice in Canada), volatility is likely to continue.

Central banks are walking a tightrope, balancing economic activity with inflation control. As long as the economy remains robust and unemployment stays low, they're likely to hold off on significant rate cuts until inflation is firmly on a downward path toward the 2% target.

Zach Curry's Top Picks

When it comes to investing, Zach Curry emphasizes the importance of high-quality, well-managed companies that can thrive in any economic environment. Let's take a closer look at his top picks for June 2024.

Suncor (SU TSX)

Suncor is a heavyweight in Canada's energy sector. As the country's largest integrated oil company, Suncor's operations span from oil sands production to refining. With assets like the MacKay River project, a significant stake in the Syncrude oil sands joint venture, and full ownership of Fort Hills, Suncor's production is almost entirely oil-based.

Financially, Suncor is in a strong position. The company has reached its intermediate net debt target and increased its allocation to shareholder returns to 75% of excess funds. Once net debt hits $8 billion, all free cash flow will be directed to shareholders. With a current yield of 3.9%, Suncor offers a solid return for investors.

Qualcomm (QCOM NASD)

Qualcomm is a tech giant at the heart of the global wireless industry. The company operates through three main segments: Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL), and Qualcomm Strategic Initiatives (QSI). From developing cutting-edge 5G technology to investing in early-stage companies, Qualcomm is a key player in the tech world.

Recent partnerships, like the one with <a class="tvreplink" target="_blank" href="https://www.tradingview.com/chart/?symbol=Nasdaq%3AMSFT">Microsoft, and the growth of their Snapdragon chips highlight Qualcomm's innovation and market influence. As technology continues to evolve, Qualcomm's position in the industry makes it a compelling investment.

Royal Bank of Canada (RY TSX)

Royal Bank of Canada, the largest bank in the country by market capitalization, is a financial powerhouse. With over $1 trillion in assets, RBC holds a leading position in Canada's Personal & Commercial banking sector. The bank's diversified business mix includes Insurance, Investor & Treasury Services, and a substantial U.S. Wealth business.

RBC's financial performance has been impressive, with a positive Q1 earnings report, a 3% dividend increase, and plans to buy back 30 million shares. With a yield of 3.8%, RBC remains a solid choice for investors seeking stability and growth.

Conclusion

Zach Curry's investment strategy focuses on resilience and quality. By prioritizing high-quality, well-managed companies like Suncor, Qualcomm, and Royal Bank of Canada, investors can navigate the uncertainties of 2024 with confidence. As interest rates and inflation continue to shape the market, these top picks are well-positioned to deliver long-term value.