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Stock Opinions by Karen Firestone, CEO, Aureus Asset Management

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
BUY
Sells at 25x earnings and this has guided weak, more pessimistic than deserved. Shares are down 50% already, but she growth rate remains more than decent.
0
BUY
Great technicals now. They showed good bookings last year until Omicron hit them hard. But the credit card companies, even Citi, indicate signs of major travel spending in the next 6 months. Bookings' labour costs are low compared to service companies. She sees more than a 30% return over the coming year.
department stores
BUY
They reported a strong quarter. Volatility and rising rates helped them. 30% of their business is in interest-rate futures, which grew 50%. They have strong cash flow and pay a 4% dividend. They also have futures in Bitcoin.
Financial Services
COMMENT
The headline today is that supply chain disruptions are hurting the advertisers who provide the revenue to Facebook and Google, but the market goes through phases. For example, 2-3 weeks markets were deeply worried about inflation and Evergrande, but if you ask someone today they'll think that Evergrande is a Las Vegas casino. Things are transitory. People come back to these stocks when they feel they're selling at attractive levels, and these tech stocks are still the big growth engines.
0
COMMENT
The headline today is that supply chain disruptions are hurting the advertisers who provide the revenue to Facebook and Google, but the market goes through phases. For example, 2-3 weeks markets were deeply worried about inflation and Evergrande, but if you ask someone today they'll think that Evergrande is a Las Vegas casino. Things are transitory. Google has had a fantastic year, up 80%, she thinks. People come back to these stocks when they feel they're selling at attractive levels, and these tech stocks are still the big growth engines..
Business Services
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