Crista Huff lead analyst at Cabot Undervalued Stocks Advisor, combines a strict fundamental methodology with technical analysis, to identify growth and value stocks whose charts are turning bullish. In this exclusive interview, Crista shares some of her current investment ideas.
Amongst stocks discussed in this interview, Crista likes Netflix (NASDAQ: NFLX) as a as the ultimate defensive stock in a world of coronavirus and other viral outbreaks. Crista views NFLX as one of the few businesses which will not be harmed by coronavirus fears, because there are no supply chain issues which are harming manufacturers, and it is the ultimate “cocoon” stock. She recommended NFLX at $334 in January, and her upside target is $420. Crista remains a fan of Apple (NASDAQ: AAPL) at the right price, and would buy it at a pullback if it goes to $280 saying ”don’t second guess yourself…AAPL would be such a bargain”.
In terms of undervalued stocks with upside, Crista likes the financials like Equitable Holdings (NYSE: EQH), Lincoln Financial (NYSE: LNC) and Voya (NYSE: VOYA) which recently broke out of a trading range. She believes a wave of M&A activity in the financial space, such as the recent Morgan Stanley acquisition of E-trade will unleash value.
Crista sees value in oil refiners such as Marathon Petroleum (NYSE: MPC) which she believes is currently undervalued, and has upside as it sells off its gas stations. She sees upside for refiners as a result of new international regulations which now require the global maritime industry to use low sulphur fuel for all ships and tankers. The low sulphur fuel has high margins and will drive increases profits for MPC.