Every day roundup of analysis and evaluation from The Globe and Mail’s market strategist Scott Barlow
Wells Fargo analyst Colin Langan has added Ford Motor Co. (F-N) as a tactical commerce concept – as a brief,
“We see quite a few earnings challenges for Ford in 2023,” he stated. “Due to this fact, we embrace Ford on our Tactical Concepts checklist for Q1-23. Most significantly, we see pricing strain pushed by increased rates of interest, falling used automobile costs & combine normalization. We already see proof that pricing headwinds are rising. Pricing has added roughly $15.3-billion to N America income since 2019. We’re forecasting adj EBIT [earnings before interest and taxes] of $6.8B-billion in 2023, effectively under consensus of $10.4B. Combine can even be a headwind pushed by elevated gross sales of decrease trim fashions in addition to the rise in decrease revenue EV [electric vehicle] combine. As well as, Ford adj EBIT can be impacted by greater than $1-billion in decrease pension earnings and rising EV & software program funding prices. Lastly, there’s excessive threat of price inflation and probably manufacturing disruptions across the UAW contract expiration in Sept 2023. Ford is buying and selling at 11.5 instances our 2023 estimated EPS, above its 10-year common of 8.9 instances. We price Ford as UW [underweight].”
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BofA Securities strategist Anthony Cassamassino printed his prime U.S. commerce concepts for the primary quarter of 2023,
“This checklist represents a few of our basic fairness analysts’ highest conviction concepts for the first quarter… Extra broadly, our Head of US Fairness Technique, Savita Subramanian, has set her 2023 year-end goal for the S&P 500 at 4000 primarily based on $200 EPS (down 9 per cent year-over-year). Within the close to time period, ache from EPS cuts (Road [estimates] are 15 per cent increased than our 2023 forecast of $200… Savita’s bull case, SPX 4600, is predicated on our Promote Aspect Indicator being as near a ‘Purchase’ sign because it was in prior market bottoms – Wall Road is bearish, which is bullish … Our 1Q23 checklist consists of 9 Buys and 1 Underperform throughout 10 industries. Our Buys are Chart Industries, Domino’s Pizza, Emerson Electrical, Goldman Sachs, Humana, NVR Inc, Procter & Gamble, Southwestern Power, and Tapestry Inc. Our Underperform is Whirlpool Corp.”
“BofA’s prime U.S. commerce concepts for Q1 ‘23″ – (analysis excerpt) Twitter
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Michael Batnick, director of analysis at New York-based Ritholtz Wealth administration, admitted that predictions are foolish however made them anyway,
“Market predictions are foolish. All of us discovered this a very long time in the past. However that doesn’t imply they’re utterly nugatory. Although forecasts are virtually all the time incorrect, they are often entertaining and academic… I ‘m not doing something with my portfolio primarily based on these predictions, and neither must you … These are my ten predictions for 2023. Bonds maintain their very own as a diversifying asset. Tech continues its layoffs. Jeff Bezos returns to Amazon. The IPO market stays frozen. Worth Outperforms Development Once more. Gold makes a brand new all-time excessive. The Housing Market Doesn’t Crash. Worldwide Shares Outperform. Crypto goes nowhere. Power shares proceed to outperform. Bonus. The market avoids a recession, and shares acquire double digits.”
“10 Predictions For 2023″ – Batnick, Irrelevant Investor
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Diversion: “The 35 Finest Podcasts of 2022″ – The Atlantic
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