In its Tuesday publication, Argus provided the analysis of several asset classes and top picks.
• Equities. The analysts believe the large-cap stocks represent the better value compared to small-caps, based on estimated trends in P/E, P/S and dividend yields, stating their 15 percent small and mid-caps equity allocation recommendation. They also favored value stocks versus growth stocks.
• Bonds, Interest rates. Taking into consideration the recent developments, the analysts expect 1 or 2 Fed rate hikes this year and favor high-rated corporate bonds. "We also recommend that investors seeking higher yields and willing to take on a higher degree of risk consider diversifying bond portfolios by including an allocation to preferred stocks." wrote Argus.
• Commodities. The analysts look for a recovery in this asset class over the next two years. According to them, oil prices will range from $32 to $55 per barrel and gold prices in a range of $1000-$1,400 this year. "Low oil prices are not good for highly indebted exploration & production companies. Avoid them. But low oil prices are good for refiners, and we would not be surprised to see well-capitalized integrated oil companies snap up assets on the cheap." suggested the analysts. They mentioned Valero Energy Corporation VLO, Phillips 66 PSX, Chevron Corporation CVX, Occidental Petroleum Corporation OXY and EOG Resources Inc EOG, as their top oil picks.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in