News Analyst
Now is the time to take a breath and identify bargains, as investors weigh the risks of a host of President-elect Donald Trump’s picks for top posts in his Cabinet and administration. Large parts of the market have declined since the November 5 election. Vaccine makers and processed food companies suffered after Robert Francis Kennedy Jr., a prominent vaccine skeptic, was chosen to lead the Department of Health and Human Services. Solar stocks fell, as did Chinese stocks. Defense contractors and other companies heavily exposed to government spending also fell, after the announcement that Elon Musk and Vivek Ramaswamy would lead an external panel called the Department of Government Effectiveness to eliminate inefficiencies in the government. For investors, however, the resulting tumult may also mean an opportunity to acquire a company that has strong earnings potential, a great management team, strong balance sheets and a competitive advantage, at a bargain price. “With every announcement, the market reacts very quickly and puts an entire sector in one picture,” said Nanette Abuhoff Jacobson, global investment strategist at Hartford Funds. “And this is an opportunity for active investors and stock pickers to find the subsectors and companies that are stronger than others and can withstand political headwinds.” Similarly, Luke O’Neill, portfolio manager at Catalyst Dynamic Alpha Fund, said the “major knee-jerk reaction” following every Cabinet or White House staff choice will eventually fade, in which case, “this always comes down to what companies do. , [which] Here are some stocks that have fallen since the election. Moderna, a vaccine maker that has fallen about 30% since the election, is nonetheless a stock that could roughly double from current levels, according to FactSet. Just this week, HSBC upgraded Moderna to a buy position, saying its “pipeline deserves more than the market gives it credit for.” Elsewhere on Wall Street, the pharmaceutical stock is considered a consensus on the Street, according to LSEG. BioNTech, which has fallen more than 5% this month, was identified this week by Evercore ISI as a buying opportunity. The Wall Street firm upgraded the stock to outperform on Tuesday, saying investors can take advantage. of the “chaos” that followed news of RFK Jr. acquiring a company with a rich portfolio of cancer treatments AbbVie and First Solar are two other stocks with strong upside potential, based on targets. consensus prices analysts compiled by FactSet.
https://www.cnbc.com/2024/11/21/knee-jerk-reactions-to-trumps-picks-could-spell-buying-opportunities.html
