© Reuters. Why Microsoft, ServiceNow, and Coca-Cola Are Among This Investor’s Top Stock Picks
The Federal Reserve raised rates by 50 basis points on Wednesday, marking the first rate increase of at least half a percentage point in more than 20 years. Stocks jumped following the announcement, but retreated significantly on Thursday.
Nancy Tengler of Laffer Tengler Investments sees opportunity amid the sell-off.
“I think it’s going to fix itself,” Tengler said Thursday on CNBC’s “The Exchange”.
Whatever happens to the Fed, he sees opportunity in a few names that reported strong earnings in the first quarter.
“We’re still seeing growth in revenue levels. I’m amazed at how good the earnings have been this last quarter,” Tengler stressed.
See also: If You Invested $ 100 In SPY (NYSE :), Apple (NASDAQ 🙂 Or Amazon (NASDAQ 🙂 When The Fed Last Raised The Rate By 0.5%, Here’s How Much You Have Now
Tengler’s Top Stocks: He likes it Microsoft Corp (: NASDAQ 🙂 and ServiceNow Inc (NYSE: NOW) in the technology space.
“Both are part of the inflation solution because of the productivity improvements they make by using their products,” Tengler said.
Both companies reported strong quarterly results and provided guidance for continued strength in their businesses, he added.
He also likes Steel Dynamics Inc (NASDAQ: STLD), which had a “fantastic quarter” and raised its dividend by 20%, he said.
Other top picks from Laffer Tengler CEO include Public Storage (NYSE: NYSE 🙂 and Coca-Cola Co (NYSE: NYSE :).
“There’s a lot of good news at the bottom of the market … it’s the more speculative names that have had a hard time this quarter,” Tengler said.
SPY Price Action: The SPDR S&P 500 (ARCA: SPY) was down 3.57% to $ 413.75 at press time, according to data from Benzinga Pro.
Photo: courtesy of Microsoft.
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