As the stock market sways due to inflation, rising interest rates, and Russia’s invasion of Ukraine, one of Wall Street’s largest analysts has given investors a list of top stocks to make it through the “perfect storm of headwinds.” Revealed.
Citi’s US equity strategist Scott Kronato said in a recent note that investors are facing a difficult environment, but “the light is visible beyond the tunnel,” finance, retail, consumer goods, technology, and more.
We have selected stocks that have the potential to rise significantly in the sector.
The big stock recommended by Citi is the traditional car maker General Motors (GM).
Many analysts are looking forward to the company’s entry into EVs (electric vehicles), but GM’s share price has fallen by nearly 28% amid the market downturn since the beginning of the year, remaining in the $ 40 range. There is.
Citi has set GM’s target price at $ 100 and said it could rise nearly 130% from its current price.
Citi has also nominated financial services stocks such as One Main Holding (OMF) as potential buyers and sees a potential rise of more than 100%.
Investment bank Raymond James and broker-dealer LPL Financial are expected to rise by more than 30% and 50%, respectively.
Other stocks that Citi expects to rise by at least 30% include solar energy Enphase Energy and Disney, plastic maker Berry Global, travel agency TripAdvisor, and auto parts maker Advanced Auto Parts. Was done.
Despite headwinds in the current market, Citi expects some of these pressures to ease later this year, and recent rises in commodity prices will eventually converge, helping to reduce inflationary pressures. He says he will buy it.
Meanwhile, the Federal Reserve Board (FRB) expects to raise rates seven times in 2022, so GDP growth over the next year will be “slow but sustainable.”
With rising inflation and geopolitical instability, experts warn that the threat of stagflation of high inflation and slowing economic growth is imminent.
Jeffreys analysts said in a recent note that they should buy companies with high dividend yields and strong cash flow to combat stagflation, as well as healthcare companies such as Pfizer and Medtronic, and Procter & Gambling.
It recommends consumer goods stocks such as Best Buy, Hasbro, and Home Depot.