In this episode, MarketBeat contributor Chris Markoch returns. He and Kate discuss three stocks Chris has been evaluating in light of the escalating Russia-Ukraine crisis. Chris discusses two stocks to buy, and one to sell.
Points discussed in this episode:
-Markets hate uncertainty: This is a time when investors need to be very careful; things can change quickly. Volatility is likely to be around for some time
-You have to invest for how things are; not how you might want them to be. Some sectors will perform well. You owe it to yourself to invest where the growth is
Stocks to Buy:
Energy Sector: Chevron (NYSE: CVX)
- Stock is up approximately 14% since the invasion (2/24)
- Record free cash flow in 2021
- “significant” debt pay down
- Higher dividends for 34 consecutive years
- Continued plans for share buybacks
Cybersecurity Sector: Palo Alto Networks (NYSE: PANW)
- Up approximately 15% since the invasion (2/24)
- Top cybersecurity pick by Morgan Stanley – believes PANW stock will outperform sector
- Beat on top and bottom lines in February 21 – days before the invasion
- Significant analyst price target increases
Stock to Sell: John Deere (NYSE: DE)
- Love the long-term story but short-term outlook looks challenging
- Deere’s presence in Russia spans 130 years
- In 2018, they announced plans to expand Russian operations
- In September 2021, agribusiness was rated one of the most promising sectors of Ukraine’s economy
- Both countries are important fertilizer producers
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Before you consider Chevron, you'll want to hear this.
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