We are bullish! Moderating inflation and lower interest rates, combined with significantly rising corporate profit margins provide a very supportive backdrop for equity markets. S&P 500 profit growth expectations have increased significantly over the past year, reinforcing our view that the underlying earnings environment remains healthy.
Artificial intelligence (AI) remains one of the most important investment themes of our time. While there is uncertainty around which business models will ultimately benefit most, we believe investors should focus on companies with strong competitive positions, deep customer relationships, and the ability to use AI to enhance their products and services. To date, the clearest beneficiaries have been the companies providing the underlying AI infrastructure, including hardware and networking providers.
On oil, we still think prices drift lower over time, but probably a bit slower and bumpy than people expect.
We also see strong opportunities in Canada, with rising demand for basic materials supporting growth, investment, and jobs across the sector.
ServiceNow (NOW NYSE)
ServiceNow Inc. provides an AI platform for business transformation.
The company’s AI platform connects people, processes, data, and devices to increase productivity and maximize business outcomes. Its intelligent platform, the Now Platform, is a cloud-based solution that helps enterprises and organizations across public and private sectors digitize workflows. The stock was an internet darling growing its revenue 20 per cent plus annually and trading at well over 30 times earnings.
But then a year ago AI fears set in and have cut the stock in half over the last 12 months. However NOW has imbedded AI into its offering and the analysts outlook for growth remains high teens for revenue and higher for earnings per share.
So, we like the stock for long-term growth as we believe it will be a winner in the AI world. It is now trading at 20 times 2027 estimated earnings.
Evertz Technologies (ET TSX)
Evertz Technologies Limited is a Canadian company that designs, manufactures, and markets video and audio infrastructure solutions for the television, telecommunications, and new media industries.
Its products help broadcasters, specialty channels, television service providers, telecommunications companies, and new media firms manage complex multi-channel digital, HDTV, UHD, and high-bandwidth, low-latency IP network environments.
The company provides end-to-end broadcast solutions across content creation, distribution, and delivery. Evertz is also a key supplier of sports broadcasting equipment, where the ability to follow fast-moving action is essential. The rise of drone warfare could create significant military sales opportunities, given the need to rapidly monitor many moving targets. Evertz indicated, for the first time that defence and space related sales approached 10 per cent in fiscal year ending April 30, 2026.
Military sales should lead to significant growth which is not priced into the stock price at all. I like Evertz as it has no debt and has a dividend yield of close to five per cent with upside potential from defence which could trigger massive upside.
Alamos Gold (AGI, TSX)
Alamos Gold Inc. is a Canadian intermediate gold producer with diversified production from three operations in North America. The Island Gold District is its most significant mine and will be the main source of growth as both mined tonnage and ore grades are increasing.
The Young-Davidson mine an historic in south of Timmins, Alamos’ second mine has had recent seismic activity that will reduce production temporarily, led to an over 30 per cent decline in the stock and is in my opinion a buying opportunity for investors interested in mining stocks.
Alamos also has significant operation in the Mulatos District in Sonora State, Mexico. The Company has a portfolio of growth projects, including the Phase 3+ Expansion at Island Gold, and the Lynn Lake project in Manitoba, Canada.
Their Lynn Lake project is in northern Manitoba and consists of two primary sites, MacLellan and Gordon which should provide production later this decade. Its other project is a Gold Project in Northern Quebec could provide production after 2030.
The median target price on AGI is $74, which is 70 per cent above its current price and I believe the stock will recover quickly when the issues at the Young-Davidson mine are resolved which will take some time.
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Source
https://www.bnnbloomberg.ca/markets/2026/06/30/bruce-murrays-top-picks-for-june-30-2026/
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