Brendan Caldwell's June 24, 2026, Top Picks: A Deep Dive into North American Equities
In this article, we delve into Brendan Caldwell's top picks for June 24, 2026, focusing on North American equities. Caldwell, President, CEO, and CIO of Caldwell Investment Management Ltd., offers a nuanced perspective on market trends, highlighting the importance of high-quality companies with strong earnings power and disciplined capital allocation in navigating volatility.
PriceSmart (PSMT NASDAQ):
PriceSmart, akin to Costco but operating in the Caribbean, Central, and South America, is a compelling investment. Caldwell highlights several key strengths:
- New Store Growth: With low penetration in existing markets and new market entrances (like Chile in 2026), PriceSmart enjoys a durable runway for new store growth.
- Customer Stickiness: Being the sole membership club in their markets offering access to foreign brands, PriceSmart fosters a premium brand image and gains market share.
- Digital Transformation: The appointment of David Price, the founder's grandson, as CEO in September 2025, signals a focus on digital transformation. This shift enhances customer stickiness and drives membership upsell, boosting high-margin income.
- Valuation: Despite mid-single to high-single digit comparable sales growth, PriceSmart trades at approximately 30 times earnings per share, a more attractive valuation compared to the industry average of 46 times.
Materion (MTRN NYSE):
Materion, a global leader in advanced materials, is a fascinating investment opportunity. Caldwell's enthusiasm stems from:
- Global Monopoly: Materion holds a global monopoly in beryllium extraction, a critical material for semiconductor, defense, and aerospace applications.
- Megatrend Exposure: The company's products serve megatrends like semiconductor complexity, new energy, advanced defense systems, vehicle electrification, and space commercialization.
- Segment Growth: The Performance Materials segment, accounting for 38% of revenue, is expected to accelerate in the second half of 2026, following the resolution of production quality issues and a drawdown of defense and space backlog.
- Strong Demand: The Electronic Materials segment, comprising 57% of revenue, benefits from strong demand in semiconductor fabrication and capitalization, with margins poised for structural improvement.
Ryman Hospitality Properties (RHP NYSE):
Ryman Hospitality, a hotel and convention center operator, presents a unique investment proposition:
- Contractual Revenue: RHP enjoys good visibility with revenue booked two to three years in advance, protected by strict attrition and cancellation fees.
- Diverse Client Base: 50% of RHP's group volume comes from non-corporate associations and SMERF (social, military, educational, religious, and fraternal) groups.
- High Spending: For every dollar spent on hotel rooms, approximately $1.50 is spent on-premises, indicating strong demand.
- Industry Recovery: The return of large in-person conventions is driving strong same-store revenue growth, with RHP seeing a 6% year-over-year increase year-to-date.
Market Outlook and Risks:
Caldwell acknowledges the constructive but volatile market backdrop in 2026. Global growth remains resilient, supported by past rate cuts, fiscal support, and AI-driven capital spending. However, supply shocks and sticky energy prices introduce inflation uncertainty.
The U.S. Federal Reserve and the Bank of Canada's cautious, data-dependent stance is expected to continue. Corporate fundamentals remain healthy, with earnings growth driving equity returns. Market leadership is broadening beyond mega-cap tech, with participation across sectors tied to capital investment, industrial activity, and structural themes.
However, Caldwell emphasizes the importance of focusing on high-quality companies with strong earnings power, disciplined capital allocation, and a proven ability to navigate volatility. Risks include elevated headline inflation, geopolitical tensions in the Middle East, and policy uncertainty, all of which could fuel market volatility.
Personal Commentary:
Caldwell's picks showcase a thoughtful approach to investing in North American equities. His emphasis on high-quality companies with strong fundamentals and the ability to navigate market volatility is a sound strategy. The focus on digital transformation, megatrend exposure, and diverse revenue streams in these picks highlights Caldwell's forward-thinking approach.
While the market outlook remains constructive, Caldwell's cautious stance and emphasis on quality companies are prudent in the current environment. His picks offer a compelling blend of growth potential and risk mitigation, making them attractive investments for investors seeking long-term sustainable returns.
