Epicenter

Covid must hurt stocks

This list was published in the FIRST WORD dated April 9, 2020. We’ve republished it here in order to highlight it for our valued subscribers.

STRATEGY: Updating our Power Trifecta, adding net 10 stocks, now Power Trifecta 35 (*)We are updating our Power Trifecta list. In this rebalance, 3 stocks are deleted and 13 stocks are added. Thus, the total number of stocks has risen by 10 to 35. This makes sense given the recent pullback in the Epicenter names (more stocks are attractive).

3 Deletions:
 PBCT,  NVT 0.64% ,  VNO

13 Additions:
 AZO 0.04% ,  HOG 2.13% ,  GRMN 0.39% ,  MGM 0.30% ,  WH 1.43% ,  GPS -1.55% ,  LB,  VIRT 0.20% ,  AGCO 3.49% ,  OC 1.86% ,  UBER 0.26% .  EXP -0.35% ,  NUE 2.32%

35 “Power Trifecta” Stocks Ideas:
Consumer Discretionary:
 AZO 0.04% ,  HOG 2.13% ,  GRMN 0.39% ,  RL 1.97% ,  MGM 0.30% ,  NCLH 5.65% ,  RCL 2.08% ,  WH 1.43% ,  GPS -1.55% ,  LB

Financials:
 NYCB 4.06% ,  VIRT 0.20%

Industrials:
 AGCO 3.49% ,  OC 1.86% ,  DAL 3.00% ,  KEX -0.08% ,  UBER 0.26%

Energy:
 XOM,  HP 2.13% ,  NOV 0.79% ,  SLB 1.54% ,  COP 0.67% ,  EOG 0.48% ,  MRO 1.09% ,  MUR 0.80% ,  HFC,  PSX 1.51%

Materials:
 EXP -0.35% ,  NUE 2.32%

Real Estate:
 BXP 3.41% ,  HIW 4.35% ,  JBGS 2.85% ,  UDR 1.65% ,  KIM 2.92% ,  WRI

COVID-19 UPDATE: Death rates collapse when state vaccine penetration >33%. Even as equities favor quality trade, credit sticks with cyclical trade (hint, credit usually wins). Implies IWM $239

Source: FSInsight, Bloomberg

(*) the 35 “Power Epicenter Trifecta” stock ideas are the subset of the original 108 “Epicenter Trifecta” stock list. For the full list of our original “Epicenter Trifecta” stock list, please click the link below. Please note that the stocks rated OW on this list meet the requirements of our investment theme as of the publication date. We do not monitor this list day by day. A stock taken off this list means it no longer meets our investment criteria, but not necessarily that it is neutral rated or should be sold. Please consult your financial advisor to discuss your risk tolerance and other factors that characterize your unique investment profile.

For the full list of the 108 “Epicenter Trifecta” stock ideas, please click here

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