premiumPremium content

Unlock this Panic-proof Portfolio opinion with Stockchase Premium

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

Analysts see AAPL continuing to advance its AI integration driven with a new chipset that they believe will fuel more device upgrades going forward.  It trades at 25x earnings and supports a robust 138% ROE.  Cash reserves are prudently being used to aggressively buy back shares and retire debt.  We recommend setting a stop-loss at $150, looking to achieve $236 -- upside potential of 18%.  Yield 0.5%

(Analysts’ price target is $228.26)
premiumPremium content

Unlock this Panic-proof Portfolio opinion with Stockchase Premium

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

NVDA has had some setbacks with AI competition and trade war uncertainty, but recently reported earnings showed a 69% increase in revenues --including a 73% increase in data center revenues.  It trades at 46x earnings and supports a ROE over 100%.  We like that cash reserves are growing, while shares are aggressively bought back and debt is retired.  We recommend setting a stop-loss at $106, looking to achieve $172 -- upside potential of 18%.  Yield 0.03%

(Analysts’ price target is $172.22)
premiumPremium content

Unlock this Panic-proof Portfolio opinion with Stockchase Premium

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

CRM is building cash reserves, aggressively buying back shares and retiring debt.  It trades at 4x book and supports a 10% ROE.  It manages its platform efficiently and is well positioned for an improving economy.  We recommend setting a stop-loss at $183, looking to achieve $352 -- upside potential of 32%.  Yield 0.3%

(Analysts’ price target is $352.14)
premiumPremium content

Unlock this Panic-proof Portfolio opinion with Stockchase Premium

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Nov 12/24, Up 24.2%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with PET has achieved its target at $32.  To remain disciplined, we recommend covering half the position at this time and maintaining the stop at $26.

COMMENT

Oil: There's no way knowing if oil can stay above $70; the oil price is tough to peg. It is a risk asset that responds to geopolitical tension, but after this tension in the Middle East the price will probably not all down, but find balance and this issue will become a non-topic. He wouldn't be surprised to see oil a little higher by year's end. Cash levels: remain high as investor sentiment remains cautious. April remains in the memory, and caution is a good thing for the market. The time to worry is when people are super optimistic. He'd like to see this money bleed into the market as optimism improves. US Midterms: He expects Trump to be less unpredictable and less chaotic because the Republicans need to maintain their power which will be investor-friendly.

WATCH

Their moat isn't wide enough, but they have an impressive half-billion active monthly users and good revenue growth. They have some problems with marketing, but trades at a reasonable multiple. There's not enough here to interest, but will watch to see how they develop.

DON'T BUY

Is a heavy cyclical, depending on farm incomes and commodity prices, which you can't predict. DE equipment isn't cheap, so farmers must be confident enough to buy it. It's been difficult to predict. He's done okay with it before, but other sectors are more predictable.

BUY

Semis are cyclical with their highs and lows, and we are possibly in the early innings of AI--who knows where AI will take us. NVDA is getting cheaper as the stock price rises. As earnings rise, so will the stock. In the past 1.5 years, NVDA shares have not risen as fast as earnings growth.

COMMENT
portfolio construction

Hold 7-8 sectors out of 11, diverse industries and roughly 20-25 companies (in his standard portfolio). Watch for overweighting by a single stock, no more than 8%.

COMMENT
Defensive strategy now during this rockiness

A broad topic. Defensive means predictability: utilities, consumer staples. Stocks that pay dividends and/or buyback shares. Also, telcos. Utilities are super defensive, because they basically issue a yield. Also, do you want that income stream coming from Canada or the U.S., considering taxes.

BUY

Keep a full weighting in the financial sector, which is primed for doing well in the next leg of the market. The sector is not expensive and has policy tailwinds. Banks are best capitalized in their history. It's a red herring--don't be scared off by Trump's Big, Beautiful Bill (and the fear of higher taxes).

COMMENT

Time will tell is they recover or not from the recent slide (shares fell by half). Their medical cost ratios have risen and we'll see if they maintain a higher level. There were fewer medical procedures during Covid, but has since increased, but also has pushed up costs for the insurers. But some issues may be temporary, including Medicare and Medicaid rates.

BUY

More opportunity than UNH, but also hurt by reimbursement rates. But a lot of ELV's business is fee-based, so they don't take on the full liability of these higher rates. Share have fallen to become an opportunity.

PAST TOP PICK
(A Top Pick Jun 11/24, Up 1.18%)

It's been tough in healthcare, but Amgen is good. They spent a few years ago $28 billion to buy Horizon Therapeutics to deepen their bench in biotech, including blood cancer drugs. Trades at a low multiple and pays over a 3% dividend. Plus they have a potential GLP-1 drug.

PAST TOP PICK
(A Top Pick Jun 11/24, Down 52%)

The US is pushing away from solar energy. He bought it because they were a US-domestic supplier of panels. There was an oversupply in China which drove prices down. He was counting on the domestic supplier being protected from foreign producers. This didn't happen. Today, there is a Senate proposal to end tax incentives for solar, and those shares are sliding. He sold shares in February--he saw it coming. It's hard to admit defeat, but you have to.