BUY
The US homebuilding sector Housebuilding stocks are cyclical, driven by momentum. Interest rates are rising and there's a housing shortage in the US, and yet houses remain affordable due to low rates. But rising rates may be a headwind. She prefers playing this space through Home Depot, because people will buy homes and do renos, while older homes also need renos. Millennials will move out, post-Covid, and may need home renos, too.
specialty stores
COMMENT
They've been announcing a lot of orders lately, which should help long-term. But she wants to see execution of their strategy and their orders when they can produce them (considering current supply shortages).
Automotive
BUY
Question about BAC A good bank and good play on the US economy, but she prefers JPM though JPM shares have lagged BAC, but JPM will catch up. You want to be exposed to US banks because interest rates are rising. JPM has been investing more in their business, and the street didn't like that, but it makes strategic sense. All banks are diversified in capital markets activity, lending and wealth management.
Financial Services
TOP PICK
Has owned this for years. This current pullback is a buy. Trades at 24x forward earnings is not onerous for a company that can grow their topline double digits. They just reported a strong quarter. Their online advertising is their best-performing business and remains a high-growth area as businesses want to advertise online. Using AI makes it more productive for businesses to advertising. Their cloud business is growing 45% YOY, contributing to revenues, though not earnings yet, but eventually as they scale up. GOOG has a strong balance sheet with $25 billion net cash. Their 20-1 stock split is a plus. (Analysts’ price target is $3490.51)
Business Services
TOP PICK
They have 4 divisions. Their ratings business enjoys an oligopoly and makes up half their revenues; business has been strong in the last two years. They get maintenance revenues for existing issues, plus more as they issues must get matured and must be replaced. M&A has really picked up and so has benfitted their debt issuance business. Market intelligence business supplies price feeds for investment pros. Also, they are developing new ESG products. All these businesses are profitable and will grow this year. (Analysts’ price target is $490.83)
publishing / printing
TOP PICK
A global sensor and connector company making products used in all electric circuits. This plays into EV production, which boasts growth for the coming years. Attractively valued and TEL is seeing good growth in all their end markets. (Analysts’ price target is $167.38)
Technology

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TOP PICK
Stockchase Research Editor: Michael O'Reilly After beating earnings expectations by 24%, we again reiterate this maker of industrial optic and laser components as a TOP PICK. The company established record bookings of over $1.1 billion and saw its order backlog grow by 58% and it remains well positioned to benefit from 5G rollout, cloud migration, and EVs. We like that it has continued to increase cash reserves. We recommend keeping the stop at $58.50, looking to achieve $85 -- upside potential over 20%. Yield 0% (Analysts’ price target is $85.00)
Technology