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Stock Opinions by Karen Firestone, CEO, Aureus Asset Management

COMMENT
The market is stuck in a trading range between the June lows and August lows. Yesterday's sharp sell-off saw the algos kick in. The market is so queasy and sensitive now, and triggers a slide. She's been buying and selling names (taking profits) in the past month.
Unknown
HOLD
It's cheap on a valuation basis, if you strip out the cash. But Meta faces Tik-Tok and negative biases. Ad spending comes down in a recession, so that makes Meta less attractive. Cash flow generation remains good, so there is value here, but a market hates anything driven by ad spending if there's a recession coming. No one who owns Meta loves it; it's down so much.
0
WEAK BUY
A great performer this year. Offers nice cash flow and stable growth. Not a cheap stock, though. She still owns a position, but smaller than before. She's not worried that people will drive less to work, because people are still working hybrid. More important is whether people hold onto their existing cars for longer. Demand for repairs remains.
Automotive
BUY
This came down so hard so fast that a lot of people bailed. There aren't many new buyers, but they are making money and are happy. PayPal is cutting costs and improving margins with activists involved. They are seeing mid-teen sales growth and are buying back shares. Also, the PE has plunged in recent years.
0
HOLD
Hitting a 52-week low. There's a lot of content, too many streamers, and that isn't good. Now, these streamers are getting into advertising, but they're doing it at the wrong time as the economy slows. This is a crowded space.
Consumer Products
COMMENT
The upcoming US Fed announcement on interest rates A 75-point hike will restore a little confidence in the US Fed. Now, there is no confidence as the market is down over 20%. That's a decimation of sentiment. We need to see other prices, including oil and housing prices, to come down. We need to see the effect of the hike on commodities and food over the next few months before we restore our faith in the Fed.
Unknown
COMMENT
Today's sell-off indicates a loss of faith in the Fed who wrongly called inflation "transitory." Would the market view a 75-basis point hike by the US Fed on Wednesday as panic? No. In fact, the market would be relieved, welcoming it to fight inflation.
Unknown
BUY on WEAKNESS
In recent weeks and today, she had sold some names and is now buying them back. They're down 45-75% from their 12-month high. But she's looking forward and these names inevitably will be higher than today.
computer software / processing
BUY on WEAKNESS
In recent weeks and today, she had sold some names and is now buying them back. They're down 45-75% from their 12-month high. But she's looking forward and these names inevitably will be higher than today.
0
BUY on WEAKNESS
In recent weeks and today, she had sold some names and is now buying them back. They're down 45-75% from their 12-month high. But she's looking forward and these names inevitably will be higher than today.
0
COMMENT
When the S&P was down 11% and the Nasdaq 23% from their peaks those were corrections that baked in a lot of negativity. So the market has not ignored the possibility of a recession. The market as a while may not be, but certain stocks have fallen hard enough to make them attractive. Pick your spots. There is a lot of worry over whether we are heading to a recession. The Nasdaq has been volatile. At 3.6% unemployment, it's hard to imagine a recession. But expect more volatility in earning season in coming weeks. Maybe take profits and find buying opportunities.
Unknown
BUY
GS has had problems (unspecified). That's why its valuation is cheaper than other banks like MS'. But this makes GS a reasonable entry point now.
investment companies / funds
BUY
It took its estimates way down when they reported at year's end, so shares plunged 50% and the PE was cut in half, but the PE is in line with the market. Expect this month's earnings season from the FAAANGs to issue caution. Expect growth from around 9-20% at a market multiple. These stocks are recession-proof, meaning they might grow a little less in a recession, but cyclicals will not grow at all. Also, cyclicals are trading at a higher PE now, and many industrials have had huge runs this year. In contrast, you can buy Apple, Alphabet or Netflix at a resonable PE. These companies have has sales larger than entire countries, and boast sales that are growing.
Unknown
WEAK BUY
It's a play on travel which is seeing enormous bookings and full planes, but airlines and cruiselines are struggling with rocketing fuel and worker costs.
department stores
COMMENT
There are opportunities in the market. The S&P could possibly re-test January's lows, but stocks already down 30-50% have already hit their lows. These aren't small companies, but big ones like PayPal and Cleveland Cliffs--you can find bargains among these names, punished because of disappointing guidance.
Unknown
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