Daily roundup of research and analysis from The Globe and Mail’s market strategist Scott Barlow
BofA Securities U.S. quantitative strategist Savita Subramanian screened for American stocks with inflation-protected yield,
“Despite the recent rise in the 10-yr, real rates remain well below 0% and we recommend buying what’s scarce: inflation-protected yield. Dividend growth stocks sit in between bonds (pure income, no inflation protection) and commodities (all inflation-exposure, no income) and benefit from inflation given that earnings are nominal.”
The list of stocks is too long at 45 members to copy all of them here. Those likely to be of interest to Canadian investors (although they will need to be careful about tax treatment) include Best Buy Co. Inc., Celanese Corp. , Blackrock Inc., Comcast Corp., Cisco Systems Inc., Eastman Chemical Co., JP Morgan Chase & Co., LyondelBasell Industries, Newmont Corp., QUALCOMM Inc., Sysco. Corp., Texas Instruments Inc., and Union Pacific Co.
“@SBarlow_ROB BofA: Buying what’s scarce: Inflation-protected yield’ – (full table) Twitter
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Also from BofA, a recap of the firm’s top 10 long and short ideas continues to beat the hedge fund index handily. Over the past 12 months, the ideas generated a 38 per cent return versus the index’s 21.4.
Right now, the top ten futures recommended longs are APA Corp., CNH Industrials NV, East West Bancorp Inc., Extra Space Storage Inc., Fox Corp., General Electric Co., Medtronic Inc. and Uber Technologies Inc.. The recommended shorts are AutoZone Inc. and Williams-Sonoma Inc.
“@SBarlow_ROB BofA’s top 10 ideas continue to outperform the hedge fund index by a good margin’ – (research excerpt) Twitter
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Citi strategist Scott Chronert updated his list of “Value Creators” – top picks for U.S. small and mid cap stocks - and one Canadian company remains,
" We are adding OneMain Holdings to our “Value Creators” focus list. OMF is a $7B market cap consumer finance company specializing in providing personal loans, direct auto loans, and insurance products to nonprime and subprime borrowers … OMF syncs with our sector overweight call on SMID Financials and provides very good optionality to increasing macro confidence. Further, the stock presents an attractive entry point after selling off almost 10% post its Q3 earnings report where full-year guidance was left unchanged.”
Albertsons was removed because of an analyst downgrade. AS it stands, the list includes TripAdvisor Inc. A, PulteGroup Inc., Boot Barn Holdings Inc., Petco Health and Wellness Co A, LPL Financial Holdings Inc., Onemain Holdings Inc., Reata Pharmaceuticals Inc. A , Tandem Diabetes Care Inc., Oshkosh Corp., Upwork Inc., MasTec inc., Billtrust Holdings Inc., Logitech International SA , Entegris Inc., Jabil Inc., Rackspace Technology Inc., Canadian Solar Inc., Berry Global Group Inc., Eagle Materials Inc. and Hudson Pacific Properties Inc.
“@SBarlow_ROB Citi’s ‘Value Creators’ - top picks in U.S. small and mid” – (table) Twitter
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Diversion: “All the Fast Food You Love Contains Hormone-Disrupting Chemicals, Study Finds” – Gizmodo
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Scott Barlow