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Piper Sandler named Microsoft as its "highest conviction" large-cap stock to own into the year-end. Analysts from the financial services company pointed to a few drivers for the stock in an Oct. 15 note. Piper Sandler also described Microsoft's upcoming M365 Copilot in November as a catalyst. Piper Sandler is optimistic, noting there's been increased traffic to Microsoft's Copilot adoption website. Piper Sandler believes it has further upside, giving it a price target of $400.
Persons: Piper Sandler, there's, Amy Hood, It's, — CNBC's Michael Bloom, Jordan Novet Organizations: Microsoft, OpenAI
Developments surrounding the drugs, also popularly used for weight loss, have been disrupting anything from owners of dialysis centers to bariatric surgery providers and the food industry. But one investment advisor, Brian Krawez, president of Scharf Investments, says there are opportunities. "Many investors are concerned about the impacts of the GLP-1 drugs on a host of companies ranging from restaurants to consumer staples. Those mechanisms are the ones that help patients taking the drugs to lose weight and regulate their diabetes. They got roughly 35% market share, but a lot of people don't know the company," he said, adding that specialty pharmaceuticals — including the GLP-1 drugs —account for roughly 35% of the company's earnings.
Persons: Brian Krawez, Scharf, Mounjaro, Krawez, CNBC's, McKesson, It's, , Christina Cheddar Berk, Julie Coleman Organizations: Scharf Investments, CNBC, Novo Nordisk, Walmart, Unilever, Unilever isn't Locations: GLP, U.S
Small-cap stocks were on investors' radar last week. The Russell 2000 index turned in five straight days of gains for the first time since mid-July, according to CNBC analysis. "We're in consumer staples stocks and Russell 2000 stocks," said Niles, adding that Pepsi is the fourth-largest holding in his Satori Fund's consumer staples basket. Both Citi and Morningstar said small-cap stocks now look cheaper than the broader market. How to play small-caps One of the more popular ways to invest in small-cap stocks is through the iShares Russell 2000 ETF (IWM).
Persons: Russell, Dan Niles, CNBC's, Niles, David Bailin, Morningstar, Davidson, — CNBC's Michelle Fox, Fred Imbert Organizations: CNBC, Russell, Pepsi, Citi, Citi Global Wealth's, Morningstar Equity Research, Ionis Pharmaceuticals, Screen CNBC Pro Locations: Israel, Gaza
But according to Deepwater Asset Management, there's one under-the-radar AI stock that will be essential for the long-term infrastructure rollout of artificial intelligence. "An under-the-radar AI stock is Vertiv," Doug Clinton, managing partner at Deepwater, told CNBC's "Street Signs Asia" last week. The company's specialty is graphics processing units, or GPUs, which have become the preferred chips for the large AI models that underpin generative AI software. "We think [Vertiv has] a great tailwind for the next three to five years as this AI hardware buildout continues," Clinton added. Alphabet Alphabet , which Clinton described as Deepwater's largest AI holding, has a "great catalyst" for the latter half of this year: the launch of its latest AI model Gemini.
Persons: Doug Clinton, CNBC's, Clinton, Kif Leswing Organizations: Nvidia, Microsoft, Asset Management, Deepwater, Deepwater Frontier Tech, Ark, Global, Robotics, Intelligence, Deepwater Frontier, Adobe, Unity Software Locations: U.S, LOUP, Netherlands, Taiwan, South Korea
Semiconductors are looking undervalued, thanks to the selloff in some parts of the sector, according to Morningstar. That's even more undervalued than the wider tech sector, which it believes is 5% undervalued. Morningstar noted such stocks have sold off a little in September, especially in analog and mixed signal names — two types of chips in the semiconductor industry — and even in artificial intelligence chipmakers. Outside the AI sector, the firm also likes autos, expecting more chips to be used in cars, especially electric vehicles, in the years to come. That will enable the company to achieve high single-digit long term revenue growth, Morningstar said.
Persons: Morningstar, Brian Colello, Jack Keegan, it's Organizations: Nvidia, Infineon Technologies, NXP Semiconductors, Qualcomm, Morningstar, Skyworks Locations: Taiwan
Some analysts recommend buying dividend stocks as a way around it. Morgan Stanley equity strategist Mike Wilson said in an Oct. 9 report that high-dividend stocks are one way investors can navigate the uncertainty. Automaker Stellantis boasted the highest dividend yield of the lot, offering around 10%, with a decent 76% buy rating from analysts, who gave it 28% potential upside. Other automakers that made the cut include Mercedes-Benz , which offered the next highest dividend yield at 8.5%, and Hyundai Motor . Prominent investor Oakmark Funds' Bill Nygren said this week that energy stocks deserve a place in the portfolio , especially when the market is especially volatile.
Persons: Morgan Stanley, Mike Wilson, Oakmark, Bill Nygren, Yun Li, Michael Bloom Organizations: BMO, CNBC Pro, Energy, Stellantis, Benz, Hyundai Motor, Hyundai, ConocoPhillips, Diamondback Energy Locations: Israel
Oil prices jumped 4% on Monday during Asia hours , in the wake of the attack. Young said names in international and offshore oilfield services should pick up as oil prices rebound. "It just executed a large set of acquisitions and is well positioned for higher oil prices and more interest in the sector." Generally, Young said oil and gas stocks are "particularly compelling." Neuhauser said small-cap energy stocks that have leveraged to increased oil prices are the ones to own right now.
Persons: Josh Young, Young, Saturday . Young, Antony Blinken, Biden, CNBC's, David Neuhauser, Stocks, Neuhauser, Scott Nations Organizations: Bison, Hamas, Saturday ., United Nations, Reuters, U.S . Energy Information Administration, Livermore Partners, CNBC Pro, Nasdaq, Weatherford, Vital Energy, Exxon, Global Energy, Vista Energy, Jadestone, Brent, Scott, Chevron, ConocoPhillips Locations: Israel, Asia, Iran, U.S, Tehran, Strait, Hormuz
It's a good time to buy cheap stocks in some sectors right now, according to Oakmark Funds' Bill Nygren. "What that means to us is the hunting ground of low P/E stocks provides more opportunity than it typically does," he said, adding that the company's portfolio includes many single-digit P/E stocks. Nygren added that he's buying up stocks in high-quality companies in financial services, insurance, energy and some consumer durables — mostly paying single-digit P/E multiples for them. Nygren, who joined Oakmark Funds in 1983, manages the $18 billion Oakmark Fund with Michael Nicolas and Robert Bierig. Energy Nygren said they own "a lot of stocks where there is risk, where investors are worried about the futures of the [companies]" — but because of that, the entry level price is very low.
Persons: Bill Nygren, what's, Nygren, CNBC's, It's, Michael Nicolas, Robert Bierig, Russell, Banks Nygren, he's, Wells, they've, that's, it's, Energy Nygren Organizations: Oakmark Funds, Energy Locations: Wells Fargo, Capital, U.S
Goldman Sachs has a new list of top stock picks for Europe, which it called its "most differentiated" ideas for the region. The "European Conviction List - Directors' Cut" is the bank's "curated and active" list of 15 to 25 buy-rated stocks. Goldman already has a conviction list of stock ideas across regions — which includes its top buy-rated stocks it expects to outperform. "The subcommittee will collaborate with each sector analyst to identify top ideas that offer a combination of conviction, a differentiated view and high risk-adjusted returns," Goldman wrote in the Oct.1 note. Goldman presented 18 European names in this new list, which it will update monthly.
Persons: Goldman Sachs, Goldman, Puma, Philips, Enel, — CNBC's Michael Bloom Organizations: Europe, bank's, Investment, Puma, Volvo, Philips, BT, Veritas Locations: Europe
"This would suggest very fertile ground for the Green Energy Majors," they said, referring to the major stocks. Revisiting green energy stocks Goldman said these buy-rated stocks are among the "most interesting names": German offshore wind power generation company RWE . Goldman's price target: 54 euros ($56.60), giving it an implied upside of about 58%. Goldman's price target: 5.25 euros, giving it an implied upside of about 37%. Spanish solar energy firm Solaria : Goldman's price target: 17.5 euros, giving it an implied upside of about 24%.
Persons: Goldman Sachs, Goldman, Michael Bloom Organizations: Green Energy Locations: Europe, United States, U.S, Portuguese, Spanish
Many stocks have become "a bit cheaper" and investors could get good returns, according to one portfolio manager. "Now, we've seen quite a lot of stocks coming up and there's quite a lot of discounted stocks out there," he said. "So we've been looking a lot at the industrials and consumer stocks that have been quite beaten up in the last few months. He was previously portfolio manager of the Orca Global Fund, which is now closed. Five discounted names He named these five global stocks in the industrials and consumer sectors: Germany's DHL and Siemens , Hong Kong's Techtronic , China's Nari and India's Infosys .
Persons: Ted Alexander, BML, CNBC's, we've, Alexander, Hong Kong's, China's, Techtronic Organizations: Global Fund, Orca Global Fund, Nasdaq, Germany's DHL, Siemens, Hong, India's Infosys, Infosys
Cathie Wood says a U.K.-founded company is "one of the best AI companies in the world." It now operates as Google DeepMind. This year, Alphabet said it's merging DeepMind with an internal Google Research team called Brain . It's a move designed to bring two groups focused on AI closer together as the battle for AI heats up. Google is racing to compete with Microsoft and other tech companies in AI, with Microsoft already making huge strides with its investment in OpenAI.
Persons: Cathie Wood, Ark, CNBC's, DeepMind, Wood Organizations: Google, Google Research, Microsoft, Wednesday Locations: OpenAI
Matt Orton, chief market strategist at Raymond James Investment Management, was the latest to urge investors to "strategically add" to small-cap stocks right now. Tom Ognar, senior portfolio manager at Allspring Global Investments, said small- and mid-cap stocks look the "most incrementally interesting" among growth stocks. "We're very attuned to the valuation discounts currently being afforded to small- and mid-cap stocks after protracted periods of underperformance relative to large-cap stocks," he said. It screened for the best small-cap stocks to play an economic recovery. RBC Capital Markets also released, in a September note, an updated list of what it called "high conviction" U.S. small-cap growth recommendations.
Persons: Matt Orton, Russell, CNBC's, Orton, Tom Ognar, Ognar, CNBC'S, Valvoline, it's, — CNBC's Michael Bloom Organizations: Raymond James Investment Management, Allspring Global Investments, . Bank of America, Microsystems, Technologies, RBC Capital Markets, Automotive, RBC, Clearwater Analytics, Clearwater, Xenon Pharmaceuticals
Ark Invest CEO Cathie Wood says she believes that Tesla is the "biggest AI opportunity in the world" today. She says that Tesla's autonomous taxi opportunity "is going to be a winner." "Again, this isn't the biggest AI project in the world right now. Wood gave Tesla a $2,000 price target by 2027 – representing potential upside of a whopping 650% from Tuesday's close. AI is the biggest catalyst," Wood said.
Persons: Cathie Wood, Tesla, CNBC's, Wood, Elon Musk, we're, , Yun Li Organizations: Reuters, Innovation Locations: United States, Tuesday's
Tech giant Alphabet is "the cheapest" of all the mega-cap names, according to Matt Orton, chief market strategist at Raymond James Investment Management. With the U.S. consumer "holding up well," its ad-driven revenues are "incredibly strong," he told CNBC's " Street Signs Asia " on Monday. "That's probably the cheapest by far — the cheapest of all the mega-cap names, and so I think there's a lot of durability to Alphabet," he concluded. Orton said what's "most exciting" about Alphabet is the long-term artificial intelligence opportunity, adding that the tech giant is underappreciated in that regard. Alphabet versus Microsoft Alphabet and Microsoft will be the two long-term winners in AI, according to Orton.
Persons: Matt Orton, CNBC's, Orton, That's, what's Organizations: Raymond James Investment Management, Google, Microsoft Locations: Office360
Public electric vehicle charging infrastructure remains "critical" in driving further EV adoption, said analysts at investment bank TD Cowen. "A ubiquitous and reliable network of public EV charging infrastructure remains critical in driving further adoption to curtail CO2 emissions from the transportation sector," said TD Cowen. Here are some areas that will take up the bulk of that opportunity, as well as stocks that could benefit, according to TD Cowen. Passenger EV charging hardware The bank estimates that $91 billion in investment is required for publicly available U.S. EV charging hardware and installations for passenger vehicles, and another $14 billion for commercial vehicles by 2030. "Ultimately, we think the next wave of EV charging companies will have a keen focus on the fleet /medium/heavy-duty sector," it said.
Persons: TD Cowen, Cowen, Gage, They're, ChargePoint, — CNBC's Michael Bloom Organizations: EV, ChargePoint Holdings, ABB, Software, DC Locations: U.S, United States, America
U.K.-based chip design company Arm debuted on the Nasdaq on Thursday, and now it's trading at a premium to even fellow semiconductor firm Nvidia . But hedge fund manager Dan Niles told CNBC's " Squawk Box Asia " that he'd "much rather own" Nvidia for the AI play. He pointed out that 75% of Nvidia's revenues are data center-driven, whereas less than 15% of Arm's revenues are driven by AI. Nvidia is also down around more than 7% so far in September and Niles describes that as a "very healthy consolidation." "Those are all names you can buy at much better valuations than you can buy Arm and I'm not arguing Arm isn't a great company," Niles said.
Persons: Dan Niles, CNBC's, Niles Organizations: Nasdaq, Nvidia, Fund, it's, Intel, Meta
"As cash yields remain elevated and inflation has cooled significantly from last year's levels, cash yields moved into positive territory on a real, inflation-adjusted basis after a few years of negative real yields," said Veronica Willis, global investment strategist at the firm. The pros weigh in on whether it's a good idea to stay in cash for the remainder of the year. Cash to 'outperform' stocks In a Sept. 7 note, Barclays said it believes cash will, in the fourth quarter, outperform stocks for a second straight quarter. So, for a second straight quarter, we prefer the company of cash over stocks and bonds," Barclays wrote, describing major asset classes as "still unattractive." "If short-term interest rates fall, short-term investments or cash investors will need to reinvest at a lower rate, reducing future returns.
Persons: it's, Veronica Willis, Cash, David Kostin, CNBC's, JPMorgan, Ray Dalio, Willis, Schroders, , Balakrishner, Michael Bloom Organizations: U.S . Federal, Treasury, Fargo Investment Institute, Barclays, Billionaire, Bridgewater Associates, Milken Institute Asia Summit, Wells, Wells Fargo Investment Institute Locations: Fargo, U.S, Singapore, Wells Fargo
A "recovery narrative" has been playing out in a corner of the semiconductor market this year, according to Morgan Stanley. They benefit from NAND recovery on cash flows, and a "strong competitive position" in high bandwidth memory, said the bank. Meanwhile, the potential for NAND improvement in the U.S. seems "most positive" for Western Digital, which isn't discounting a material recovery in NAND profits, Morgan Stanley said. Improving conditions Morgan Stanley said it's become more optimistic on the memory sector given that pricing and inventory conditions are improving further. Overall, Morgan Stanley expects a shortage building up in the fourth quarter and an upturn in 2024 — before peaking in 2025.
Persons: Morgan Stanley, it's, Michael Bloom Organizations: Korean chipmaker SK Hynix, Western Digital Corporation, Western Digital, SK Hynix, Samsung, Micron Locations: U.S, Asia
Tech investor Paul Meeks said he's looking to buy into the weakness surrounding tech stocks — once the correction has run its course. The S & P 500 has rallied hard for most of this year on the strength of tech stocks. "I don't know if you buy it today, but once it this this dip in the video shares is exhausted itself. Meta and Alphabet: The two companies are likely to see a "nice rebound" in digital advertising as they dominate the market, Meeks said. Amazon: Meeks said Amazon is his favorite of all the mega-cap U.S. tech stocks, because of the rebound in its cloud business in the United States.
Persons: Paul Meeks, Meeks, Stock, Meek, CNBC's, it's Organizations: Tech, Nasdaq, Fed, Nvidia, Meta, Oracle, Devices, Microsoft, Arista Networks, Palo Alto Networks, Networks Locations: United States
Many growth funds have performed on pace with the S & P 500 this year, driven by mega-cap names such as Nvidia , Alphabet and Tesla . The Needham Aggressive Growth Fund , however, has outperformed. Aggressive growth funds are focused on investing in growth stocks, with high potential future to grow — but also higher risk. Picking companies Portfolio manager Barr, who has managed the fund since 2010, told CNBC Pro that "there is a rich universe of investment opportunities beneath the big tech companies like Nvidia." "There are small-cap companies with rapid growth, and also with the steady growth that Needham prefers."
Persons: It's, John Barr —, Barr, Needham Organizations: Nvidia, Big Tech, Morningstar, CNBC, Apple, Needham Funds Locations: industrials, Barr, United States
Global stocks, too, were bumpy last month: The MSCI World index fell in the middle of the month before paring some losses toward the end. The relative strength index (RSI), which measures the magnitude and speed of price moves, can be used by investors to determine if shares are overbought or oversold. CNBC Pro screened the MSCI World index for major global stocks that are among the most overbought and oversold, based on their 14-day RSI. Oversold names These names are among the most oversold global stocks, spanning health care, autos and banking. Overbought names These names are among the most oversold global stocks, including some in the tech sector.
Persons: It's, Johnson, Japan's, BYD Organizations: CNBC Pro, Global, Volkswagen, BMW, CVS Health, Johnson, UnitedHealth Group, IBM, Dell, Cisco, Horizon Therapeutics Locations: U.S
This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. China's Shanghai Composite lost 0.72% as the country's service sector logged its slowest expansion in eight months, according to a Caixin survey. Overinvestment in ChinaChina is "overinvested," said Jitania Kandhari, a managing director and deputy chief investment officer at Morgan Stanley. By contrast, India is underinvested, Kandhari said, giving its economy and markets investment opportunities.
Persons: Narendra Modi, China —, Jitania Kandhari, Morgan Stanley, Kandhari, Weizhen Tan Organizations: CNBC, Labor, Shanghai, Indian, BMW, Ford, Mercedes Locations: Miami Beach , Florida, U.S, Asia, Pacific, India, Russia, China, China China, Munich, Germany
Dividend stocks aren't evergreen, but investing in them over several years can pay off, according to one portfolio manager. He isn't the only one to appreciate dividend stocks right now. Neuberger Berman senior portfolio manager Sandy Pomeroy told CNBC earlier in August that dividend stocks haven't been this cheap since the tech boom of the 1990s. CME : Kirby expects the derivatives exchange will "benefit" from volatility in September, a traditionally weak month for stocks. TotalEnergies : The stock has a 5.5% dividend yield, 12% free cash yield, and a "great balance sheet," Kirby said.
Persons: Ben Kirby, Neuberger Berman, Sandy Pomeroy, Kirby, TSMC, Charles Schwab Organizations: Thornburg Investment Management, CNBC, Stock, Big Tech, CME, Kirby Locations: Taiwan
The pros share their expectations and tips for how investors can trade in the month ahead. The volatility isn't over The "potential bite" of aggressive Fed policy could lead to more volatility, said Richard Saperstein, chief investment officer at investment firm Treasury Partners, in a Tuesday note. Avoid tech — but not completely Avoid mega-cap tech stocks such as the "Magnificent Seven" now, the pros said, referring to Apple , Amazon , Alphabet , Meta , Microsoft , Nvidia and Tesla — tech stocks that have made massive gains this year. "Big tech stocks have run and valuations are richer than they have been. Dave Sekera, chief U.S. market strategist at Morningstar, said on Thursday that not all tech stocks are overvalued.
Persons: Richard Saperstein, Ben Kirby, CNBC's, Carol Schleif, George Ball, Sanders Morris Harris, Schleif, Ball, it's, Dave Sekera, Kirby, Thornburg, Morgan Stanley, Andrew Slimmon Organizations: U.S . Federal Reserve, Treasury Partners, Thornburg Investment Management, BMO Family Office, Apple, Microsoft, Nvidia, Tesla, Big Tech, Morningstar, Autodesk, Software, Teladoc, CNBC, CME, Hyatt Hotels, Hotels, Resorts, Hilton Hotels, Morgan, Morgan Stanley Investment, United Rentals Locations: U.S, China, Argentine
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