-
Restaurant Brands International Inc. (QSR)
-
Premium Brands Holdings Corporation (PBH)
-
Leon's Furniture Limited (LNF)
Q: I have half positions of these three stocks: QSR, PBH, & LNF. PBH is underwater. Are these good stocks to own long term? They haven't really done much in the last few years. Or on this pullback, make them full positions for their div and possible future growth? Do you have other favourites in Consumer stocks? YOUR THOUGHTS PLEASE. Thanks.
5i Research Answer:
We would consider them 'good' stocks overall, certainly. They each have varying degrees of tariff and/or economic risks, and they do have upside potential over time. All are down this year, whereas stocks like DOL and L are up nicely due to their differing businesses. These latter two would be our favourites if investors are worried about recession. Depending on one's overall sector weightings, we would be comfortable keeping LNF, PBG and QSR and adding one of the others. We would not see a big reason to add a full half position, but would be OK with a small add (1/4 more, perhaps) in further weakness, again depending on overall sector weighting.