Canadians Adding U.S. Stocks Right Now: Here’s 1 to Avoid and 1 to Buy

If you are a Canadian investor who buys U.S. stocks, you have a real superpower: access to the world’s biggest growth engines. But you’ll want to sidestep the fast-moving hype cycles that can derail a lot of U.S. investors.

The safest approach is simple. Avoid businesses stuck in messy transitions when one bad quarter can reset the story. Instead, favour companies with steady demand, pricing power, and a track record of turning scale into cash. The U.S. market offers both in abundance, sometimes in the same sector, which is why stock picking matters more than ever.

Related: What the TFSA Fine Print Says About Holding U.S. Stocks

INTC

Intel (NASDAQ:INTC) looks like a U.S. stock to avoid today because it still sits mid-pivot, and pivots punish investors who want calm. Intel makes CPUs and other chips, but it’s also trying to rebuild its manufacturing edge and expand its foundry ambitions. That takes years, not quarters.

Intel reported fourth-quarter 2025 revenue of about US$13.7 billion, with a GAAP loss per share of US$0.12 and non-GAAP earnings per share (EPS) of US$0.15. For full-year 2025, revenue came in around US$52.9 billion, with a GAAP loss per share of US$0.06 and non-GAAP EPS of US$0.42. It also guided first-quarter 2026 revenue to roughly US$11.7 billion to US$12.7 billion, with GAAP EPS expected around a US$0.21 loss and non-GAAP EPS around breakeven. That suggests more near-term pressure, even after a quarter that beat expectations.

Valuation adds another layer of discomfort. Intel’s trailing price-to-earnings (P/E) can look absurdly high because earnings sit near zero, price-to-sales sits near 3.9. That screams uncertainty. Intel can absolutely win if manufacturing yields improve, new products land cleanly, and the foundry plan gains traction. But the risks feel immediate. Supply constraints, margin pressure, intense competition in CPUs and artificial intelligence (AI)-adjacent chips, and the possibility that the turnaround timeline stretches again. If there’s one U.S. stock to avoid, I’d say Intel fits the bill because the investment thesis depends on execution perfection.

So if your international investing goal is to own a reputable tech stock without a white-knuckle ride, Intel is not the way to get there, at least not just yet.

WMT

On the other hand, Walmart (NASDAQ:WMT) looks like a smart buy today. It runs a giant, practical machine that keeps working even when headlines make the markets wobble. Walmart sells groceries and essentials, but it now behaves like a tech-powered retailer with a growing set of higher-margin add-ons. That matters for Canadians because it can act as a steadier anchor in a U.S. allocation when other parts of the market feel jumpy.

Over the last year, Walmart kept stacking wins in the places investors care about most. In its fiscal 2026 fourth quarter, it reported quarterly revenue of about US$190.7 billion, up 5.6%, with global e-commerce growth around 24%. For fiscal 2026, it posted revenue of roughly US$713 billion. The bigger signal came from guidance. For fiscal 2027, Walmart guided net sales growth of 3.5% to 4.5%, adjusted operating income growth of 6% to 8%, and adjusted EPS of about US$2.75 to US$2.85. That reads like a business leaning into momentum, not bracing for impact.

Valuation is not cheap, and you should admit that upfront. Walmart trades at a premium multiple on many screens, with a trailing P/E 44.9, and price-to-sales around 1.44. That price asks you to believe Walmart can keep expanding margins with e-commerce, advertising, and memberships, while also protecting market share in a cost-conscious world. The risk is clear. If consumer spending softens sharply, or if competition forces more discounting, the stock could wobble because expectations already sit high. Still, Walmart’s scale and its steady traffic make it a rare “growth plus defence” mix that looks buyable even in a moody market.

Bottom line

Skip Intel until the turnaround stops feeling like a weekly cliffhanger. Walmart offers a steadier ride with real catalysts tied to digital growth and higher-margin revenue streams. Fewer surprises, more consistency, and a business model that does not need perfect conditions to win.

Stock Advisor Canada recommends U.S. stocks every month, along with domestic choices. If you want more cross-border investing ideas, give it a whirl.

The post Canadians Adding U.S. Stocks Right Now: Here’s 1 to Avoid and 1 to Buy appeared first on The Motley Fool Canada.

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Fool contributor Amy Legate-Wolfe has positions in Walmart. The Motley Fool recommends Intel and Walmart. The Motley Fool has a disclosure policy.