Written by Joey Frenette at The Motley Fool Canada
The TSX Index hasn’t been nearly as hot over the last few years, returning a mere 24.6% over the past five years compared to the S&P 500’s 51.7%. Although it’s good to be an investor in Canadian stocks, I believe that investors should go on the hunt for undervalued stocks south of the border as well — not just for the better performers (many of which tend to accompany higher prices of admission!), but for technology exposure that may be difficult to come by here on the TSX.
Indeed, the TSX isn’t heavy with high-tech companies that have a front-row seat to the artificial intelligence (AI) boom. To stay 100% invested in Canada could cause one to miss out on such trends. That’s why I’m an advocate for diversifying geographically, especially when it comes to exposure beyond just financials or energy.
In this piece, we’ll have a look at three intriguing S&P stocks that I believe Canadian investors may wish to consider if their portfolios are a tad light on U.S. names. Though the loonie isn’t really doing fantastic right now, I still think the currency swap is worthwhile, provided you spot a truly undervalued stock that can help give your portfolio a nice jolt over the long run.
First up, we have Apple (NASDAQ:AAPL), the famous iPhone maker that recently got hit with a correction (around a 11% drop), thanks in part to a good (but not mind-blowing) quarterly result alongside a rather snooze-worthy September keynote.
Indeed, the latest iPhone 15 is here; it’s made of titanium, and it’s equipped with a new button, cutting-edge hardware, as well as USB-C. Though I have no idea what Wall Street was expecting going into the big reveal, I think the latest and greatest smartphone could be in for a bit of a demand boom. And that’s despite the price increase.
The iPhone 15 has modest upgrades over the iPhone 14, with not much of a redesign. That said, I do think people are still going to be buying what Apple is selling. Why? It’s Apple — one of the greatest consumer product companies of our time. Even if the current currency rate isn’t ideal, I think you need to buy some Apple stock on the latest dip if you’re looking to beat the markets over the long haul.
It’s the biggest contributor to the S&P 500. And if you’re not at least market weight, I think the job of beating the market will be really tough. My takeaway? Apple stock is a top U.S. stock pick for Canadians.
Up next, we have shares of Salesforce (NYSE:CRM), which also hit a bit of a slump in recent weeks. The stock is singing the September blues, despite recently pulling the curtain on new, intriguing AI concepts. The enterprise software company has a nice, growing ecosystem, with Slack, Tableau, and other Salesforce offerings. As the company invests heavily in AI, look for the stock to really heat up over the coming years, as the AI boom heads into its next innings.
At writing, CRM stock goes for US$215 and change. With Salesforce Dreamforce in the rearview and AI in its veins, I think the stock is worth consideration for all Canadian investors seeking long-term growth!
Before you consider Apple, you'll want to hear this.
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