Stock Opinions by Amy Raskin, CIO, Chevy Chase Trust

DON'T BUY
Apple Inc

Is underweight megatech . Apple's valuation now is crazy at 30x. They bought back 40% of its shares in the past 10 years. Revenues are down year or year, though cash flow is strong. Will keep buying back shares. Growth is limited.

electrical / electronic
BUY
Amazon.com, Inc.

Added more recently. Boasts high barriers to entry, and long term it can gain retail market share.

specialty stores
PARTIAL SELL
NVIDIA Corporation

The gains have been so incredible that she has taken some profits. It's a tremendous data play and just in AI.

computer software / processing
BUY

Shares are down in the past 24 hours due to a delay in a drug approval. But another drug remains strong in sales, and they have double-digit in oncology drugs in trials. A great science company.

Pharma & Healthcare
COMMENT
Nike Inc

They report tomorrow night. No idea what the results will be, but there's been a lot of bad news in this space from Foot Locker. Nike is a long-term core holding and the PE is cheap historically. Direct selling will improve margins.

misc consumer products
COMMENT
Illumina Inc.

80% of the world's genomic sequencing equipment runs on their machines. Strong cash flows, but earnings are a mess because they are spending on a big acquisition. But they have increased the board, which is good, and the company is well-positioned. The CEO resigned a few weeks ago and there's infighting about that acquisition.

Consumer Products
COMMENT
Cognex Corporation

A huge customer, Amazon, pulled back spending which has impacted Cognex, but they are well-positioned in automation.

computer parts mnfctr
BUY

A Japanese bank that trades at 9x PE and pays a 4% dividend. Well-positioned.

banks
BUY

She expects a recession in 2024, and higher unemployment. She sees a lot of opportunity in healthcare.

E.T.F.'s
BUY
Walt Disney Co.

She's trimmed it. Disney is not just a streaming company. Their parks business is doing well. In streaming, Disney and Netflix will be the winners.

entertainment services
COMMENT
Inflation will come down, based on leading indicators. This will cause the Fed to pause a little and this will benefit markets. There will be a positive close to 2022.
Unknown
COMMENT
A Comment -- General Comments From an Expert
tech Big-cap tech is heading to serious growth slowdown. Software and services are investing a lot to buy growth while cloud companies invest a lot in capex.
Unknown
PARTIAL SELL
Estee Lauder
She trimmed this due to issues in China. Trades at an expensive 36x PE. She just sold some shares.
Consumer Products
BUY
It trades at 13x earnings. Their pipeline is really good but was under pressure given drug pricing issues. This has outperformed the market this year. They have a strong pipeline of drugs and trades at an attractive valuation.
Pharma & Healthcare
BUY
Impinj Inc
PI is a small-cap semiconductor stock. It's up for the year, unusual for a semi. Likes it a lot then cut in half when she added to it. She just trimmed her large position. A well-positioned company long-term.
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