Latest Stock Buy or Sell?

Today, Stockchase Discover and The Panic-Proof Portfolio (Stockchase Research) commented about whether MSFT-Q, ABT-N, SSD-N, NFLX-Q, FB-Q are stocks to buy or sell.

BUY
Allan Tong’s Discover Picks Overall, the quarter was mixed, though investors perked up on the daily active users numbers and the EPS beat of $2.72 above $2.56. The market bumped the stock from $174.95 to $205.73 the day after that report. Meta is out of the dog house, and is attractive at a 15x valuation. However, it will be investing in the metaverse through 2030. Reality Labs, its VR research and development arm, suffered $2.96 billion in losses in Q1 compared to $1.83 billion the previous year. (Meta will lower operating expenses this year, though.) It's too early to tell whether the metaverse will pay off or what it will even be. In the meantime, investors should keep in mind that Meta is a cash cow with an ad-driven business model generating $30 billion annually at a free cash flow yield of 11%. Sure, many governments hate Meta/Facebook, but it hasn't stopped people from using it. Read Are tech stocks alive? for our full analysis.
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BUY
Allan Tong’s Discover Picks The world’s number-one streamer released its latest quarter on April 19 and it landed like a bomb. Shares tanked 25% the following day. IT came down to subscribers: a net loss of 200,000 in Q1 and a forecast of losing two millions subs in Q2. It was the first decline in subs since October 2011 and surprised the market. In fact, the company had projected an additional 2.5 million net subs in Q1. Netflix blamed rising competition, password sharing and the Russian war, though the street widely believes that the end of lockdowns is another big factor. Read Are tech stocks alive? for our full analysis.
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TOP PICK
Stockchase Research Editor: Michael O'Reilly This manufacturer of wood and concrete construction products recently reported earnings 38% above analyst expectations and is again reiterated as a TOP PICK. Its latest European acquisition is accretive to the bottom line and is helping support a 26% ROE. The company did add long term debt for the acquisition, but the anticipated interest expense is well within their cash reserve position. We continue to recommend a stop loss at $90, looking to achieve $146 -- upside potential over 35%. Yield 0.9% (Analysts’ price target is $146.33)
INDUSTRIAL PRODUCTS

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TOP PICK
Stockchase Research Editor: Michael O'Reilly ABT was embroiled in a whistleblower complaint that led to shutdown of a key baby formula plant. Now that the company has effectively been cleared of wrongdoing, the plant will be reopening and we again reiterate ABT as a TOP PICK. Recently reported earnings beat expectations and support at ROE of 28%. The have aggressively bought back shares and are retiring debt early. They are a Dividend Aristocrat, raising dividends for 50 consecutive years. We continue to recommend a stop loss at $105, looking to achieve $143 -- upside potential over 20%. Yield 1.6% (Analysts’ price target is $140.17)
biotechnology / pharmaceutical

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TOP PICK
Stockchase Research Editor: Michael O'Reilly With fundamentals still looking strong, we again reiterate MSFT as a TOP PICK. Recently reported earnings beat expectations and highlight an underlying ROE of 44%. The company is aggressively buying back stock and retiring debt early. It has increased dividends for 20 consecutive years. Its Cloud segment earnings were up 26% over the year. We continue to recommend a stop loss at $240, looking to achieve $370 -- upside potential over 30%. Yield 0.9% (Analysts’ price target is $360.34)
computer software / processing
COMMENT
Recession? Numbers are showing a significant slowdown as we're going into a tightening cycle. Higher chance of recession than not.
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COMMENT
How to be more defensive? At the beginning of the year, it was easy. You just went to the bond market for protection against a slowing economy and volatile equity markets. But that didn't happen. Both bond and equity markets went down together, by 5-10%. It's been 100 years since a bond market has acted in that way, and it has a lot to do with inflation. He's more confident that the bond market is settling down. Early days, but we're seeing the heights of inflation modelling, though he doesn't have a high conviction on this.
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