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Long-time readers know that we aim to keep you informed of important news about the stocks we cover. That means highlighting developments and plans that promise to bolster investor gains. Here are two buys that stand out this month:


THERMO FISHER SCIENTIFIC INC., $573.79, is a buy. The company (New York symbol TMO; TSINetwork Rating: Average) (www.thermofisher.com; Shares outstanding: 375.7 million; Market cap: $215.6 billion; Dividend yield: 0.3%) has agreed to acquire Clario Holdings, a leading provider of endpoint data solutions for clinical trials. The purchase price is $8.875 billion in cash at closing plus potential additional earnout and other payments in the future. Those are tied to performance.
You should remain wary of stocks that attract broker/media attention because of high-profile products or services, and their business models. Heres a closer look at one stock with risks that prospective investors should take into consideration:


WAYFAIR INC., $97.94, (New York symbol W; TSINetwork Rating: Extra Risk) (www.wayfair.com; Shares outstanding: 130.3 million; Market cap: $12.8 billion; No dividends paid) is one of the world’s largest online destinations for home furnishings. Through its e-commerce platform, the company offers furniture, décor, housewares and home improvement products.
Understanding our recommendations: Power Buy—These stocks are our top choices for new buying now. We feel each currently offers the best combination of fundamentals (earnings, sales, cash flow and so on) plus external factors (industry trends and the current share price) to give it a chance of above-average gains. Buy—high-quality stocks with strong growth prospects. However, they are likely to grow at a slower rate than our Power Buys. Sell—these are stocks that no longer inspire our confidence. As Power Growth Investor focuses on maximizing profits for aggressive investors, we prefer to sell poorly performing stocks instead of holding them and waiting for a rebound.
The pandemic presented both of these firms with unique challenges. However, each remained profitable and is well positioned to keep prospering as the economy continues to rebound. Trends now underway—as well as the strong position of these firms in key markets—will power their gains. Both are buys.


RESMED INC., $244.99, is a buy. The company (New York symbol RMD; TSINetwork Rating: Average) (www.resmed.com; Shares outstanding: 146.0 million; Market cap: $35.8 billion; Dividend yield: 1.0%) helps investors tap the growing market for medical devices used to treat sleep apnea. ResMed’s CPAP (nasal continuous positive airway pressure) devices are also used to treat patients with chronic obstructive pulmonary disease as well as other respiratory conditions.

Wajax investors benefit from the company’s (symbol WJX on Toronto) sales and servicing of cranes, forklifts and other heavy equipment. Wajax also provides related parts and systems such as ball bearings, hoses, diesel engines and transmissions.


WAJAX CORP., $26.95, is a buy. The company (Toronto symbol WJX; TSINetwork Rating: Extra Risk) (www.wajax.ca; Shares outstanding: 21.8 million; Market cap: $586.1 million; Dividend yield: 5.2%) has customers spread across the resources, construction, manufacturing and transportation industries.
CALIAN GROUP, $48.57, is a buy. The company (Toronto symbol CGY; TSINetwork Rating: Extra Risk) (calian.com; Shares outstanding: 11.3 million; Market cap: $551.0 million; Dividend yield: 2.3%) now plans to sell parts of its business and also seek new board members.


That’s after it entered into a co-operation agreement with 5%-shareholder Plantro Ltd. Planto has been pressuring Calian to sell its underperforming IT and cyber solutions division, which includes its two U.S. offices.
Garmin is a leader in GPS devices and software for a range of markets. ADT keeps signing up new security customers at the same time it retains more and more of its existing ones. The company’s expanded services help drive that growth. We think both stocks are attractive buys.


GARMIN LTD., $189.62, is a buy. The company (Nasdaq symbol GRMN; TSINetwork Rating: Average) (Shares outstanding: 192.3 million; Market cap: $36.5 billion; Dividend yield: 1.9%) makes GPS devices and software for five different markets: fitness, outdoors, auto, aviation, and marine.

AI
Artificial intelligence (AI) is an example of an investment idea that could boost your investment returns, or, more likely, end up costing you money. All in all, we think that the biggest, surest gains from AI will come from investing in established businesses that are already profitable and growing, and that can gain all the more by applying AI to their operations.


Here are two companies that are already profitably taking advantage of AI, and they should be among the leaders in the push to extend AI’s use.
CHIPOTLE MEXICAN GRILL, $31.00, is a buy. The company (New York symbol CMG; TSINetwork Rating: Extra Risk) (www.chipotle.com; Shares outstanding: 1.3 billion; Market cap: $41.0 billion; No dividends paid.) continues to be hurt by high beef prices, especially for its smoked brisket. However, prices may now be entering a downward trend.