Most companies have reported fourth quarter earnings. The biggest takeaway for investors? This is a stock picker’s market. Some companies are thriving while their competitors are not.
Just look at how Disney posted blockbuster numbers while Netflix disappointed investors. And the recent stumbles for Facebook owner Meta Platforms weren’t a sign of broader tech weakness. Google owner Alphabet, Apple and Amazon all posted extremely strong results.
With that in mind, we figured it’s time to bring back the CNN Business Stocks We Love feature:
https://www.cnn.com/2021/02/14/investing/stocks-to-love/index.htm/
[Companies include Google/Alphabet, Analog Devices, Regeneron, Pulte, CBRE, JB Hunt, Ollie’s Bargain Outlet, Sleep Number.]
Using screening software from data provider Refinitiv, we looked for companies in the main three S&P indexes that trade at reasonable valuations, have strong earnings growth prospects, healthy sales, high returns on equity and little debt.
We started with 1,500 companies and whittled down the list from there. Here’s a closer look at nine companies that made the cut.
Interestingly, Meta looks attractive. The stock is certainly cheaper now following its massive drop after its earnings report. Mark Zuckerberg’s company is still posting solid profit and revenue growth. So investors may be overreacting to concerns about the company’s metaverse pivot.
Wall Street giant Goldman Sachs, which fell after its latest earnings report when the investment bank disclosed a big increase in worker pay, is also on the list. The company continues to benefit from the boom in mergers and initial public offerings.
Several other companies whose stocks have slid lately made it through our screening process too.
Semiconductor supply chain issues haven’t gone away, which has hurt companies like chip equipment leader Applied Materials and processor manufacturer Analog Devices. Both might be attractive investments now.
Homebuilder DR Horton may be another bargain as investors worry about rising mortgage rates leading to a slowdown in housing. Still, rates remain relatively low. The lack of inventory in the housing market could also help DR Horton, which raised its 2022 sales forecast earlier this month.
Finally, a bunch of retailers and consumer companies are in Wall Street’s discount bin. Farm equipment giant Tractor Supply, hair care company Ulta Beauty, furnishings retailer Williams-Sonoma and Dick’s Sporting Goods all made our cut.
The-CNN-Wire
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