The last few months have been confusing for investors and market observers. Amidst the talk of a global slowdown and a possible banking crisis in America, tech companies reported higher-than-expected revenues. Tech stocks have soared on Wall Street and revived market sentiment the world over.
However, investors continue to be confused about what to expect from the market. Federal interest rates are expected to be moderate from mid-June to the end of the year. This is seen as a sign that the inflation rate might be finally under control. However, certain renowned analysts like BoA’s Micheal Gapen forecast an economic slowdown mid-year. Such contrasting news has the investors confused. To create clarity through obfuscating contradictions there are five stocks that analysts suggest.
Matt Furhan, the portfolio manager at Fidelity Investment picked America’s aerospace sector. He is bullish on commercial aerospace companies like Boeing and General Electric. He pointed out that air travel was picking up after the pandemic. Mr.Furhan has been investing in these companies for the last 12 to 18 months. He believes that the recovery phase is still not over.
The latest air traffic report indicates that air traffic has increased by 55% compared to last year and it has still not reached the pre-pandemic levels. The current air traffic is at 85% compared to air traffic in Feb 2019. This means that the sector has a lot of growth potential.
Furhan also invests with the French aerospace supplier Safran. The company supplies spare parts to airlines and has seen a 10% increase in value since 2021.
Another unique perspective was offered by Spencer Adair. He is a portfolio manager with Baillie Gifford, and he loves to invest in luxury brands. He believes that makeup companies show resilience in the macro environment. He considers them to be absolutely essential.
Estee Lauder is his favorite pick since the brand has been picking up sales ever since China re-opened and fixed the global supply chain.
Jennison Associates’ large-cap growth equity portfolio manager Natasha Kuhlkin, also likes to invest in global luxury brands. She sees the demand pickup for these brands as the economy slowly revives after the Pandemic. She believes that LVMH Moët Hennessey, Louis Vuitton, and athletic leisure brand Lululemon Athletica are picking up sales once again.
These unique investment opportunities are often missed by investors as they tend to look at more flashy tech companies. These opportunities are deduced by analysis of consumer behavior and should be availed to strategically diversify portfolios.
