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Stock Opinions by Shannon Saccocia, CIO, Boston Private

DON'T BUY
She sold URI. Held it for a long time and it did well for her. As supply chains ease, the rental market will decline as people buy more.
Financial Services
BUY
It's down far more than the market this year, but automation is important when there is a labour shortage now, leading to higher efficiency and productivity. They have a strong backlog as demand endures. They will benefit as production returns in the U.S. She remains overweight industrials.
transportation equip & components
BUY
Is an innovative pharma company. Life sciences companies are getting more interest from investors.
0
BUY
Was downgraded today. UNP has trouble hiring enough staff and meeting demand. They will figure this out and hire enough specialized staff. Total traffic demand growth in 2021 fell short of their 5% target. Rail shipping margins continue to improve with precision schedule. This is a great place to play in industrials.
Transportation
BUY
Down 8% this week A cloud infrastructure stock that continues to grow above 20%. They can deliver in this hybrid work environment. She continues to believe this is a great place to play cloud computing.
computer software / processing
COMMENT
There are a lot of players in streaming and costs are high to attract new customers, but she's looking at Disney's theme park revenue which can pass higher costs to customers. There could be a big bump if they don't need to support the infrastructure of its township in Florida. She expects strong park revenue, but is it enough to offset weakness in Disney+? She's not sure.
entertainment services
BUY
Are moving from core server more to a subscription-based service. Hybrid work is here to stay.
computer software / processing
COMMENT
She's optimistic about stocks in the second half of 2022. She expects continuing volatility, and winners and losers. Inflation and supply shortages won't slow as fast as we want. For Q2, companies have digested that the Fed will be aggressive, and the Ukraine war could turn into one of attrition. However, stocks remain better investments than bonds or cash. You must find pockets of stocks to invest in. Fundamentals are key.
Unknown
BUY on WEAKNESS
We will see more enterprise spend and lower growth in the next few years. You want to be in companies that continue to grow earnings and generate free cash flow and buy back stock. You must distinguish between types of tech companies--those with these characters and those that don't. She will add to big tech (Apple, Alphabet, Amazon, Adobe and Meta).
E.T.F.'s
BUY
There is a severe housing shortage. A nice way to play housing this is in the repair side. Rising rates will prevent homeowners from moving into new homes and they will stay in place. So, this will drive home renovations. We need to add more supply to homes in the next 12-18 months, but until then there will be pressure on this space.
contractors
BUY
There is a severe housing shortage. A nice way to play housing this is in the repair side. Rising rates will prevent homeowners from moving into new homes and they will stay in place. So, this will drive home renovations. We need to add more supply to homes in the next 12-18 months, but until then there will be pressure on this space.
specialty stores
BUY
There is a severe housing shortage. A nice way to play housing this is in the repair side. Rising rates will prevent homeowners from moving into new homes and they will stay in place. So, this will drive home renovations. We need to add more supply to homes in the next 12-18 months, but until then there will be pressure on this space.
contractors
COMMENT
Bullish or bearish? Historically, the third year of a bull market offers fewer possible outcomes. She doesn't expect a blockbuster year like 2021. The economy is slowing down, but that doesn't mean a recession. Watch the 3- and 10-year spreads. Be positioned for the second half of 2022 which looks better.
Unknown
BUY
Apple will enjoy continued consumer demand because of ongoing pent-up demand. FAANGs have strong balance sheets and cash flow and they can innovate. Add to that tuck-in acquisitions. Earnings can still grow with big tech stocks like Apple.
electrical / electronic
STRONG BUY
Shares are sliding on a disappointing forecast It remains her favourite stock. There's the perception that the pandemic accelerated digital media marketing, and so Adobe share rose, and now we're leaving Covid. But consider their installed user base, they're growing at 15% earnings and trading at 27x times. The embedded users of the Adobe Suite are in digital marketing departments in companies across the land. The last few quarters have led to questions about execution, so she wants to see an ARPU increase in the second half of 2022, and this should come from new products instead of pricing. Growth in digital marketing will continue even as we exit Covid. She would add shares today, but she is already very overweight it.
computer software / processing
Showing 1 to 15 of 38 entries