The US stock market has been terrible so far in 2022. I know it’s an understatement. S&P 500 is down 15% Year to Date, but this masks the damage one has seen in the portfolios this year. NASDAQ, a proxy for growth stocks is still down 27% YTD. But here’s the good news, the market is always staging a comeback on signs that the US Central Bank might slow down or Pause next year when it comes to rate hikes. S&P500 and NASDAQ posted decent gains in Nov, all thanks to the move that came in the last 2 hours yesterday. We have seen so many strong moves this year but they never last. Will this time be different? Will Dec end well
I like Toast TOST
In a bad market environment, every company gets punished, even those doing good. Toast TOST a restaurant-management software company. It came out with a good set of earnings and has raised guidance for the rest of the year.
The stock has built a base at 16 and with a bullish cross-over (100 dma above 200 dma) – the stock looks like an attractive buy at the current market price.
Post Pandemic Demand makes Norwegian Cruise Line NCLH attractive
The company reported better-than-expected onboard revenue last quarter — even better than 2019 levels. Despite economic uncertainty, the bookings for next year is extremely robust with revenue per passenger above 2019 levels.
On Charts, one can see a clear turnaround above 200 dma and levels of 16. The stock is a buy at the current market price with a stop loss below 15.
Gap up makes Petco WOOF look attractive
People can cut back on everything but not on Pet food and expenses. Petco earnings just confirmed that. Also, the percentage of households that own a pet is higher than ever and hence these companies continue to grow. The stock is extremely cheap on valuations trading at 14 times forward earnings. The stock can rally to 16.
Current Portfolio
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purposes. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers
Barrick Gold Corp GOLD is a buy
As the US Central Bank becomes less hawkish, the dollar will cool off prompting surge in Gold mining stocks
Abercrombie & Fitch ANF is a Buy at 24
The Job market is strong. Although inflation is forcing consumers to pare back their discretionary spending, people are still buying clothes as they return to traditional work locations and resume social activities.
The Sectoral Strength will help the stock
Deepak – Any updates to the list you have above ?