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Pro Picks: 3 Stocks at All-Time Highs Still Worth Buying

Investment ideas from Stan Wong of Scotia Wealth

Pro Picks: 3 Stocks at All-Time Highs that can go even Higher

Watch full episode: On this episode Stan Wong of Scotia Wealth reveals 3 high-conviction stocks all trading near all-time highs: Dollarama (DOL), a Canadian retail juggernaut with pricing power and minimal competition; MercadoLibre (MELI), a Latin American fintech and e-commerce leader growing at 35%+; and Netflix (NFLX), where ad-supported tiers, global content, and pricing inelasticity power long-term upside.

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  1. Dollarama (TSX: DOL)

  • Why it’s attractive:

    • Limited competition in the dollar store space in Canada. Unlike the U.S. where Dollar Tree and others are prevalent, Dollarama holds a near-monopoly in its domestic market.

    • Strong pricing power: They’ve increased their price ceiling from $4 to $5, directly boosting revenue and margins.

    • 60% of sales from private label brands—high-margin, proprietary products.

    • Aims to grow from ~1,500 to 2,000 stores by 2031, with expansion through Dollar City in Latin America providing a hidden growth engine.

  • Financial highlights:

    • Trading at ~39x forward earnings with a 14–15% forecasted long-term EPS growth.

    • 5-year historical EPS growth: ~19% CAGR.

    • Total return since IPO in 2009: +5,540% vs. TSX’s +262%.

    • Only one negative year since 2009 (in 2018).

Takeaway: Despite trading at all-time highs, Dollarama’s dominant market position and resilient value-driven model make it a defensive compounder in uncertain macro conditions.

  1. MercadoLibre (NASDAQ: MELI)

  • Why it’s attractive:

    • Often dubbed the “Amazon, PayPal, and Shopify of Latin America”, MELI’s integrated model spans e-commerce, logistics, payments, and digital banking.

    • Fintech division (Mercado Pago) is the fastest-growing segment, pushing further into full-service digital banking.

    • Low competition in both fintech and e-commerce across the region.

  • Financial highlights:

    • Trades at ~47x earnings with a 35% long-term EPS growth projection.

    • PEG ratio of 1.3—attractive relative to its growth.

    • 5-year historical EPS growth: 50% CAGR.

Takeaway: MercadoLibre is a digital juggernaut in a region with vast runway for digital and financial inclusion. Its high growth rate more than justifies the valuation.

  1. Netflix (NASDAQ: NFLX)

  • Why it’s attractive:

    • Now trading at all-time highs, Netflix has proven resilient even in volatile markets—driven by its pivot into ad-supported tiers and crackdown on password sharing, both boosting subscriber numbers.

    • Expanding international content and live entertainment (e.g., WWE, NFL on Christmas)—a significant evolution from traditional streaming.

    • Strong pricing power—customers show inelastic demand, tolerating frequent price hikes.

  • Financial highlights:

    • Trading at ~45x forward earnings, with 25% projected long-term EPS growth.

    • Historical EPS growth: ~23% CAGR.

  • Why Netflix over Disney (NYSE: DIS)?

    • Broader global appeal and less dependence on legacy businesses like ESPN or theme parks.

    • More consistent reinvestment into new content with fewer corporate distractions.

Takeaway: Netflix has evolved into a global streaming and content platform powerhouse, outpacing peers in growth and innovation. Its recurring revenue model and sticky subscriber base offer continued upside.

Disclaimer: The information provided in this podcast is for informational purposes only and does not constitute financial, investment, or professional advice. The views expressed by the host and guests are their own and do not necessarily reflect the opinions of any organization or company. The host and guests may maintain positions in any securities discussed on the podcast. Always consult with a qualified financial advisor or professional before making any investment decisions.

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