Today, The Panic-Proof Portfolio (Stockchase Research) and Darren Sissons commented about whether NOC-N, CRR.UN-T, ACN-N, ITC-OTC, AAPL-Q, GE-N, TIXT-T, LVMUY-OTC, KLAC-Q, ASML-Q, TRP-T, JMHLY-OTC, BAYRY-OTC, MU-Q, BABA-N, AMD-Q, NVDA-Q, INTC-Q, TSM-N, FTS-T, CTS-T, DELL-N, GEN-N, AMGN-Q, AEM-T, TMUS-Q, RY.PR.H-T, UAL-Q, GPRK-Q, ING-N, PRL-T, FLEX-Q are stocks to buy or sell.
The Mag 7 has recently seen a 20-25% decline and you should take some money off the table. Also, take losses on stocks that haven't executed and move on. This is regular portfolio management. It's too early to call a major correction or buying opportunity; wait for direction. Have cash reserves so you can play weakness. Ex-the top 10 S&P names, it's been a recessionary environment; look at telcos, pipelines and staples trading at elevated yields, while valuations for tech have been highly stretched. Did the market get ahead of itself, and how long can that last? He's long talked about a bifurcated market. He isn't ready to go full-in to this market, but being cautious.
He hears that more AI use needs more energy and therefore more energy from utilities, but heard this noise in 2020 that higher internet use would drive utility demand. He doesn't totally buy into that, but he likes Fortis' dividend in a market where interest rates continue to decline. Dividend stocks will continue to rally. Likes this long term.
We reiterate FLEX as a TOP PICK. With AI driving the demand for data centre growth, FLEX power products and services cover 80% of a data centre's needs. It trades at 14x earnings, 2.2x book and supports a 16% ROE. Recently reported earnings beat analyst expectations by 7% on revenue and over 40% on EPS. The company has been prudently using some cash reserves to aggressively buy back shares and retire debt. We continue to recommend a tight stop at $25, looking to achieve $37 -- upside potential of 29%. Yield 0%
(Analysts’ price target is $37.64)