David Burrows, president and chief investment strategist at Barometer Capital Management, discusses his top picks: JPMorgan Chase, Stantec, and ATS Corp.We like JPM as a reflation beneficiary. As rates move higher in the U.S., the income JPM earns from lending has moved higher as well. The bank has seen net interest income expand almost 50 per cent between fourth quarter 2021 and fourth quarter 2022. Net interest margin has expanded substantially as well moving from 2.28 per cent to 2.
This is evident from its most recent update, as it expects to see a meaningful uptick in organic growth, driving the strength of its backlog related to the infrastructure stimulus and the continued push in environmental services. We expect this stimulus to be a strong tailwind for the next couple years, with additional upside stemming from acquisitions to increase scale into favourable end-markets.