With the S&P 500 decreasing by 17% this year, it may be a good time to pick up excellent stock prices on the cheap.
Wells Fargo has created a list of signature picks, a wide spectrum of research findings based on our research department''s most powerful conviction ideas, according to its analysts in a commentary.
While it is a diverse group, there are a variety of common portfolio themes, such as increased Covid beta (bias toward the reopening trade), a smaller-cap tilt, and increased price momentum.
The following sections are summarized.
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Constellation Brands (STZ) - Get Constellation Brands, Inc. Class A Report, an alcoholic beverage company
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Get AbbVie, Inc. Report, a huge pharmaceutical company, by AbbVie (ABBV).
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NextEra Energy, Inc. Report, a major utility, will be available for download.
Disney''s website is now available for download.
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Neil Macker, a Morningstar analyst, enjoys the company by assigning it a wide moat. He believes the stock''s fair value is $170, according to a recent estimate of $102.
Macker said that Disney is successfully transforming its business in order to deal with the ongoing evolution of the media industry.
As the business transitions to a streaming future, Disney+, Hotstar, Hulu, and ESPN+ are taking over as the drivers of long-term growth.
According to Macker, streaming will benefit from the new content used at Disney and Fox television and film studios as well as the deep libraries at the studios. We anticipate that Disney+ will continue to leverage this content to build a large, valuable subscriber base.
Amazon is offering a range of services.
Dan Romanoff, an analyst for Morningstar, is bullish about the company, imposing a big moat. He puts fair value at $3,850, compared to a recent estimate of $2,134. However, he dropped that estimate from $4,100, following Amazon''s first-quarter earnings report in April.
The results were mixed, and the second quarter guidance was less than predicted. Amazon Web Services, which continues to benefit from the continued shift in enterprise workloads to the cloud, according to Romanoff.
While revenue was ahead of the forecast midpoint, first-party sales suffered its second quarter of year-over-year decrease. As inflation, excess labor, and excess capacity ate into profitability.
Jaime Katz, a Morningstar analyst, likes the company, putting it at an all-time high. She puts fair value for the stock at $262, comparative to a recent estimate of $242.
Her opinion has been that several factors make the profit possible. One of the most important are:
The Veracruz brewery has added additional capacity, which would enable the business to meet growing consumer demands.
Get Coca-Cola Company Reportshould allow Constellation to gain more exposure to the spirit-based ready-to-drink market.
Given that the higher price points in the Constellations premium portfolio mean higher margins than its traditional ones, the continued consumer shift should increase gross margins.
As a result, we are maintaining our forecast of 5% sales growth and a 53.5% brut margin on average over the next ten years, according to Katz.
The author of this publication owns shares of Amazon, AbbVie, Apple, and Coca Cola.