Stock Picks for January 2026

Today is January 7th, 2026 and it’s time for some new stock picks!

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Market overview and outlook

December was another generally good month for stocks with Canadian stocks up about 2%, global stocks more or less flat and value stocks outperforming growth stocks for the first time in a long time. Overall the markets finished up nicely for the year with Canada outperforming major world equity markets delivering strong double digit returns for investors.

Looking forward, we don’t see a recession in the next 12 months as governments around the world are still stimulating the economy with large deficit spending but equity returns may be muted as valuations remain very high. Additionally, the recent regime change in Venezuela has investors feeling even more positive as they are hopeful that more oil will hit the market over time. As energy consumption is very highly correlated with world GDP, this should be good for stocks.

W.R. Berkley (NYSE: WRB)

My first stock pick is W.R. Berkely, symbol WRB on the NYSE. W.R. Berkley is a commercial lines property and casualty insurance holding company based in Greenwich, Connecticut

The company operates commercial insurance businesses in the United Kingdom, Continental Europe, South America, Canada, Mexico, Scandinavia, Asia and Australia and reinsurance businesses in the United States, United Kingdom, Continental Europe, Australia, the Asia-Pacific region and South Africa. The company is ranked 397th on the Fortune 500.

The company has 26 billion dollar market capitalization. It has been consistently profitable in its past and and the shares are trading at a reasonable valuation. All things I like and I don’t see things changing much. I like it!

Grupo Aeroportuario del Sureste SA (NYSE:ASR)

My second stock pick is a company in the travel and leisure business, Grupo Aeroportuario del Sureste SA symbol ASR on the NYSE.  ASR engages in the operation, maintenance, and development of airports it operates such as Cancun, Villahermosa, Merida, and others. The company was founded in 1996 and is headquartered in Mexico City, Mexico..

The travel and leisure sector is economically sensitive and businesses in that sector are relying on the strength of the economy. The sector doesn’t do particularly well during recessions but I don’t anticipate a recession in 2026 given all the deficit spending governments around the world are undertaking at the moment. ASR has done a very good job managing the airports it does, remaining profitable even through Covid which is quite remarkable. And it’s performed much better since 2020, generating return on equity above 20% in 2022, 2023, 2024 and likely 2025 as well. Yet it trades at a forward price to earnings ratio of only 14.4 times. Good business, good price, I like it.

Cummings Inc. (NYSE:CMI)

My third pick is Cummings, symbol CMI on the NYSE. Cummings engages in the design, manufacture, and distribution of diesel, natural gas, electric and hybrid powertrains and is best known for their diesel engines found in many trucks, buses and elsewhere.

The stock trades at a forward price to earnings ratio of about 20 which is a bit on the expensive side but Cummins is in a very unique situation with a very strong brand and is able to achieve very high and consistent profitability as a result. I believe it deserves to be trading at a premium yet it trades around the average market multiple. Very strong business, reasonable valuation. I like this combination.

Give Us a Call

As always, if you have questions about whether these stocks fit in your portfolio or if you have any other investment-related questions, give us a call! 604-288-2084

Thank you!

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