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Home / Business / Here are five quality ‘anti-electoral’ stocks with bullish potential, the analyst said

Here are five quality ‘anti-electoral’ stocks with bullish potential, the analyst said



Coming Soon – Tuesday is National Sandwich Day.

More appropriate for financial markets, Tuesday is also US election day. Pre-electoral worries certainly emerged this week, although markets have also faced a new European lockdown and a deadlock in US stimulus talks.

David Trainer, founder of independent research firm New Constructs, has put together a list of five stocks that should be owned regardless of the election. He says all of these options come with attractive risks and rewards, large cash reserves, and strong market share.

One is JPMorgan Chase JPM,
+ 0.65%,
US bank giant. Trainer highlights strong balance sheet and the ability to increase returns in low and low interest rates.

Simon Property Group SPG,
+ 4.36%,
Shopping mall operator, is a more startling option. But Trainer says its after-tax net operating profit, at current prices, is expected to fall permanently by 50%. During the last recession, its NOPAT fell 1

2% in 2009 and rebounded by almost 37% in 2010. Existing traditional retailers, such as Williams-Sonoma WSM,
-0.52%,
will perform stronger than ever, with less competition, as he says the stock is worth $ 99 in a moderate economic recovery.

The housing market has been strong during the COVID-19 pandemic and Trainer likes builder DR Horton DHI,
-1.23%.
More than two-thirds of its inventory last year came from homes that cost $ 300,000 or less, an underserved market, but it traded below economic book value.

Hershey Co. HSY,
-0.26%,
most famous for its chocolate, has been hurt in the pandemic by tourism and international weakness. But Trainer says the acquisition of brands including SkinnyPop, Pirate Booty and ONE Brands has positioned it as a “snack powerhouse”. Last year, the proportion of consumers snacking three or more times a day was 47%, up from 43% in 2015, Trainer said.

Allstate Corp. ALL,
+ 0.67%
was his last choice and he noted that the property and casualty insurance industry was not strongly affected by the pandemic. He cites Allstate’s disciplined guarantee, as well as a long-term need for auto insurance.

Buzz

Thursday night saw the US tech giants report their hefty earnings, though investors reacted differently to the results.

Google Owner GOOG Alphabet,
+ 3.33%
A 6% increase in pre-market transactions after a sharper-than-forecast increase in advertising revenue has lifted the internet giant.

Apple AAPL,
+ 3.70%
relies on Mac sales to report better-than-expected financial fourth-quarter earnings, although the iPhone maker doesn’t offer a revenue outlook for the holiday quarter.

Amazon AMZN,
+ 1.52%
Reported 3Q earnings and revenues higher than forecast, although its fourth-quarter earnings forecast was lower than analysts’ expectations.

Social media giant Facebook FB,
+ 4.91%
reported third-quarter profit higher than forecast. Smaller rival Twitter TWTR,
+ 8.03%
15% decline in the previous market after reporting that the number of new users grew less than expected.

Coffee chain Starbucks SBUX,
+ 1.29%
Profit reports plummeted due to a 9% drop in same-store sales, although its results topped analysts’ expectations.

The major oil and gas companies Exxon Mobil XOM,
+ 4.43%
and Chevron CVX,
+ 2.87%
highlight Friday’s earnings releases. Chevron reported an unexpected adjusted earnings but with sales lower than forecast.

The latest data on personal income, consumer spending, employment costs, Chicago regional activity and consumer sentiment have been released.

President Donald Trump and former Vice President Joe Biden both halted their campaign in key Florida on Thursday. London’s betting markets are pricing in a 65% chance of Biden winning. Analysts at Goldman Sachs say there is a gap between the betting market and the poll, partly because Biden has a lead in the smaller poll in states with close proximity, and because the markets are building expectations that Trump will outperform the polls by at least 3 percentage points.

Market

After Thursday’s hike of 139 points for blue chip DJIA,
+ 0.52%,
US stock futures fell, with Dow YM00 futures,
-0.68%
down about 150 points and the Nasdaq-100 futures NQ00,
-1.09%
decline.

Other asset classes are less volatile. US Dollar DXY,
-0.11%
slightly lower and the yield on a 10-year treasury bond TMUBMUSD 10Y,
0.826%
is 0.83%.

Chart

Was the recent increase in coronavirus spikes caused by increased testing? This chart plots the percentage of tests per capita compared with coronavirus cases per capita. It should be noted that the Czech Republic, which is almost out of the list, did not actually have an initial pandemic. Spain and France stand out among the major economies of the world because of their particularly severe impacts.

Random reading

After the riots in Philadelphia, the Walmart WMT,
-0.08%
removed firearms and ammunition from its sales floors for an indefinite period of time.

A man in Leeds, UK has bypassed the British government’s ‘rule six’ social segregation law by setting up a limited liability company and hiring his family and friends on a zero-hour contract. .

A spider that can hear – without ears.

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