Latest Stock Buy or Sell? Make More Informed Decisions!
Today, Brooke Thackray and Jim Cramer - Mad Money commented about whether F-N, GM-N, MS-N, MEDP-Q, WFC-N, FSLY-N, PD-N, BBBY-Q, TT-N, MCK-N, IEF-Q, XLP-N, XLV-N, GSY-T, ENB-T, CTC.A-T, FTS-T, BIR-T, ZEB-T, EMN-N, SU-T, MFI-T, FCX-N, COST-Q, NTR-T, BCE-T, T-T, CVS-N are stocks to buy or sell.
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COMMENT
Canadian vs. US banks When interest rates move up, US banks outperform Canadian by a mile. This is because their net interest margins are greater and because they're more leveraged to the economy. But when interest rates go down, US banks tend to underperform. Banks are out of their seasonality right now, so he's not looking at any of them.
HOLD
Not a lot of growth potential, though it expects to grow its dividend over the next 5 years by 6%. Won't be a huge outperformer. Utilities are seasonal right now, and tend to perform well here. Very defensive, so if markets tank, FTS won't participate as much on the downside. A pretty good buy here. Yield is about 3.6%.
electrical utilities
COMMENT
Gold miners. Gold miners sweet spot of seasonality starts July 27 - early October. Sometimes a pickup happens earlier in June. June can also be very volatile for gold and gold miners. Right now, he'd wait on gold miners, even though a name like ABX just had some good numbers. Downturn in June may be a good entry opportunity. He'd pick gold over the oil sector.
TOP PICK
There's been talk of change of the US healthcare system for years, but Covid is making it difficult to do that right now and makes healthcare protected from attack. Strong seasonal period right now. Elective surgeries coming back. Huge opportunity for an uptick at least until August. Yield is 1.39%.
E.T.F.'s
TOP PICK
Not an exciting sector, but this is the time of year it tends to do well, especially if the market's getting a little softer. In March, the sector outperformed the market. It is expensive at 21.5 PE, but investors are willing to pay up when they're concerned about market valuations. Yield is 2.52%.
E.T.F.'s
COMMENT
FAANG continued to sell off today at natural resource stocks rallied again, but he won't give up on the tech giants. Very low interest rates and a once-in-a-lifetime boom has seen Facebook over 700% and Amazon nearly 1,600% over the last 10 years. Doesn't this merit something? Do we just forget these stocks? Throw them away to double-down on the cyclicals? Booms are great, but don't last. Eventually, booms bust and this one will one day face rising interest rates. That's when investors flock back to the likes of Microsoft and the other FAANGs. FAANGs are built to last and not sensitive to the whims of consumers, and they sit on a lot of cash to consistently reinvent themselves. For example, Netflix used to rent DVDs and are now a monster streamer.
