Eq: Large Cap

(San Francisco)

While most publications have been running stories arguing that it may be time to get out of the FAANGs, Barron’s has a run a piece to the contrary, saying that they have more room to run. While the piece admits that the group of stocks is under a lot of pressure and is highly priced, it contends that it is not time to pull out yet. The argument is that despite accusations of misbehavior and threats from Trump, the sector will remain the centerpiece for growth investors. If the economy continues to chug (meaning stay under 3% growth), then tech’s steady growth will remain attractive.


FINSUM: We tend to like this view. Despite how richly these companies are valued, we think there is still room for medium-term value growth as regulation is still a way off and their fundamental businesses are solid.

(New York)

A lot of investors are looking for income, and over the last several years it has been hard to come by. While yields are rising, they are still very low by historical standards. With that in mind, Barron’s has run a piece selecting the best income stocks from a sector not considered as much as it should be—biotech. Many biotech companies have strong overseas cash flow, and solid yields. For instance, Pfizer, which rose just over 13% last year, sports a 3.7% yield. Abbvie and Amgen are also good looking stocks, both offering dividends just below 3%. Eli Lilly, Johnson & Johnson, and Bristol-Myers Squibb are also names to look at.


FINSUM: These are definitely some good names to look at, especially as there has not been much focus on biotech for income over the last year.

(New York)

Banks are soon to be reporting their fourth quarter earnings, and Barron’s has put out an article advising investors on which stocks to buy ahead of the release. JPMorgan will report first and its numbers will have big implications for the sector. The piece cites analysts and says that Wells Fargo, Zion’s Bank, and Suntrust Bank look likely to do well, while investors should be underweight Goldman Sachs, CIT Group, and US Bancorp.


FINSUM: The tax package is going to be an interesting part of bank earnings both this earnings season and next, as some banks may do unusual tax maneuvers.

Page 93 of 96

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