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Stock Opinions by Stephanie Link, Chief investment strategist, Hightower

COMMENT
Today's hot jobs data The data this week has been very encouraging, like factory orders being better than expected and new orders in the ISM report. Inflation is coming down. However, the economy can handle higher interest rates; unemployment is only 3.5%. The Fed didn't pivot--and has no reason to--last month. She's more worried about 2023, because we don't know the effect of all these rate hikes. For now, though, things look pretty okay.
Unknown
STRONG BUY
Just reported solid Q2 earnings and the price target rose The stock is down 17% from its high, pays over a 3.5% dividend yield, and trades at 8.5x PE. The quarter was really good. It's interesting that they chose to increase their share buyback than increase production, which fell in that quarter. They're returning cash to shareholders like the other oil companies. She has been adding to energy on this pullback. Oil companies can make money at $40-50 oil/barrel, including Chevron. She expects more returns to shareholders. Oil stocks remain cheap and earnings went up for the group. It's her favourite sector.
integrated oils
BUY
She has been adding to energy on this pullback. Oil companies can make money at $40-50 oil/barrel. Oil stocks remain cheap and earnings went up for the group. It's her favourite sector.
integrated oils
BUY
Had a good earnings report yesterday, narrowing the range for earnings and total revenue. Companion animal business is up 14% and they have many products in the pipeline.
Consumer Products
COMMENT
Consumer staples this week have been beaten. It's disappointing that we can't sustain a rally like today, even though earnings recently have been good--except this week where retail earnings were terrible. Consumer demand has been strong, but higher costs are eating into profits. No, she sees no recession this year. Next year, we'll see. Not just the Fed, but supply chains will also fight inflation. Tech and comm. services are 35% of the S&P and are still over-owned. Buy companies that make money, have earnings.
Unknown
DON'T BUY
Walmart didn't follow what the consumer was doing--buying more experiences. So, Walmart is left with a lot of inventory. Walmart missed the signal.
department stores
BUY
Companies like Expedia have pricing power. These are the companies to own and not retailers that lack pricing power like Target or Walmart.
merchandising / lodging
BUY
She bought more today. She likes farm equipment's secular growth; likes how Deere is introducing technology to make their business more efficient which will improve margin. But they are also hit by the supply chain. They beat their quarter--precision and production ag came in light, but up 13%. Construction and forestry segments were stellar with revenues up 9% YOY; operating profit was up 66%. This current share drop is overdone. Deere has hung on better than other industrials. They just announced 9% revenue growth, and 17% earnings growth, and raised guidance.
machinery
BUY
It trades at 12x price to sales which is reasonable. They projects their billings by 2025 to reach $10 billion while the street sees $8.5 billion. It's in a rapidly growing space.
Technology
WATCH
75% of their business is recurring membership fees that may rise this summer. A stellar company with a good balance sheet. It's on her list. Trades at 31x and down 27% YTD, so it's getting interesting.
department stores
BUY
One of her largest holdings. Reported strongly today, but stocks down. Disappointing, but today is a buying opportunity. It's a reopening play as people will spend a lot on travel. Metrics were very strong in the report including card fee growth of 16% YOY, 3 million new cards signed up, 19x PE, and upbeat guidance of 18-20% growth this year and mid-teens for coming year. She expects business spend to pick up. A strong beat, but share are down -- earnings season is "silly season."
investment companies / funds
BUY on WEAKNESS
We'll be in a trading range in the short term at least. The Fed is so behind the inflation curve; inflation so high. Can the Fed engineer a soft landing? Even 7 rate hikes won't cure inflation. We need to fix supply chains. On the positive side, she always felt 2022 growth will be slower than 2021, because fiscal supports have ended. Housing is still strong. Banks are lending, and consumers have historically high amounts of cash to spend. She is adding during this weakness to Dow Chemicals and American Express for example. Look for solid fundamdentals.
chemicals
BUY on WEAKNESS
We'll be in a trading range in the short term at least. The Fed is so behind the inflation curve; inflation so high. Can the Fed engineer a soft landing? Even 7 rate hikes won't cure inflation. We need to fix supply chains. On the positive side, she always felt 2022 growth will be slower than 2021, because fiscal supports have ended. Housing is still strong. Banks are lending, and consumers have historically high amounts of cash to spend. She is adding during this weakness to Dow Chemicals and American Express for example. Look for solid fundamdentals.
investment companies / funds
HOLD
A major holding for her. It's had a nice run. It's up 45% YTD and pays a 3.3% yield. It's a powerhouse, because they have steady production, lowering their capex and so have huge free cash flow. They've increased their share buybacks and dividends. She may shed her other oil names, but will keep this.
integrated oils
WATCH
She's sold this after the stock split. Has no regrets. She was underweight this the past year. Their newly announced buyback is silly--amounts to only 0.7% of shares outstanding. It's a confidence measure. No, not ready to buy back shares of Amazon, but it's on her radar.
specialty stores
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