Now is the time to take a breath and hunt for bargains as investors weigh the risks associated with President-elect Donald Trump’s picks for top Cabinet and government positions. Much of the market has retreated since the Nov. 5 election. Vaccine manufacturers and processed food companies have been hit hard after noted vaccine skeptic Robert F. Kennedy Jr. was appointed to lead the Department of Health and Human Services. Solar stocks fell, as did Chinese stocks. Shares of defense contractors and other companies with heavy exposure to government spending also fell after Elon Musk and Vivek Ramaswamy announced they would lead an outside group called the Ministry of Government Effectiveness. . However, for investors, the resulting turmoil also represents the opportunity to buy cheaply a company with strong earnings potential, a great management team, a fortress-like balance sheet, and a competitive moat. “Every time an announcement is made, the market reacts quickly and paints the picture in one fell swoop,” said Nanette Abuhoff Jacobson, global investment strategist at The Hartford Funds. out of entire industries. “This is an opportunity for active investors and stock pickers to find those sub-sectors and companies that are stronger than others and can withstand political headwinds. Likewise, Luke O’Neill, portfolio manager at Catalyst Dynamic Alpha Fund, said the “major knee-jerk reaction” after every Cabinet or White House staff selection will eventually wear off, and at that point, “it will still be there.” Back to the essence of the company”. In doing so, (which) companies’ businesses are experiencing positive changes. Here are some stocks that have pulled back since the election. Vaccine maker Moderna has plunged about 30% since the election, but its shares could roughly double from current levels, according to FactSet data. Just this week , HSBC upgraded Moderna to buy from hold, saying its “pipeline value exceeded market expectations.” The pharma stock has a consensus Hold rating on Wall Street, according to the London Stock Exchange. BioNTech has retraced more than 5% this month and was considered a buying opportunity by Evercore ISI this week. The Wall Street firm upgraded the stock to outperform from consensus on Tuesday, saying investors could use the “chaos” following the Robert F. Kennedy Jr. news to buy into a company with a rich pipeline of cancer treatments. AbbVie and First Solar are two other stocks with strong upside potential, according to consensus analyst price targets compiled by FactSet.
Knee-jerk reaction to Trump’s choice could mean buying opportunity | Real Time Headlines
RELATED ARTICLES