Blumas Sees Opportunities in North American Large Caps Amid Uncertainty

Chris Blumas, portfolio manager at Raymond James Investment Counsel, shared his outlook on North American Large Caps during a recent Market Call.

Blumas noted that there is no shortage of uncertainty in financial markets due to the ongoing war in Iran and its impact on energy prices. This has led to higher inflation rates, which have remained above the U.S. Federal Reserve's two percent goal for more than five years.

In this environment, Blumas highlighted his top picks: Stantec (STN TSX), CGI (GIB.A TSX), and KKR (KKR NYSE).

Stantec is a leading global design and consulting firm that provides a broad range of professional services. Despite its share price being down by more than 30 percent over the last year, Blumas sees potential for growth due to artificial intelligence making the company more efficient.

CGI is an IT outsourcing and consulting company with a strong competitive position in North America and Europe. Its service offerings and global delivery model lead to enduring client relationships and high recurring revenues. The company has the financial flexibility to create value through acquisitions, organic initiatives, and share buybacks.

KKR is an alternative asset manager with a unique business model and a global presence. It earns various fees from managing third-party capital and has almost $800 billion in assets under management. Despite concerns about private credit impacting the entire industry, Blumas believes KKR's business is scaling well and will continue to raise large amounts of capital over the medium term.