In times of market volatility and uncertainty, investors are often left wondering where to turn for solid investment opportunities. With the ongoing unease in the market, Piper Sandler has suggested that now might be the time to consider quality stocks as a safe haven for investment. The investment firm emphasizes the importance of focusing on stocks with strong fundamentals and growth potential in order to weather the storm of market fluctuations.
Identifying Quality Stocks
Piper Sandler’s strategy for investing in quality stocks involves looking for specific characteristics that indicate a strong investment opportunity. These include attractive value, cash flow profitability, realized growth, and expected near-term growth. By focusing on stocks that meet these criteria, investors can potentially benefit from solid returns even in the face of market uncertainty.
Among the names mentioned by Piper Sandler as attractive quality stocks are Verizon, United Airlines, and Microsoft. These companies have demonstrated strong performance and growth potential, making them appealing options for investors looking to build a quality stock portfolio.
Verizon
Verizon, a communications services giant, has moved up the ranks in Piper Sandler’s Macro Select model, indicating its attractiveness as an investment. Despite some mixed ratings from analysts, Verizon has shown resilience in its stock performance with a 13% rally this year. The company has also received an upgrade to neutral from sell, suggesting positive subscriber trends and healthy dividend cover.
United Airlines
United Airlines, another company identified as a quality stock by Piper Sandler, has faced challenges related to its fleet of Boeing aircraft. Despite these setbacks, analysts have overwhelmingly given the stock a buy rating, with an average price target indicating a potential 42% upside. The recent decline in stock price presents an opportunity for investors to consider adding United Airlines to their portfolio.
Microsoft, a tech titan and key player in the industry, has been identified as a quality stock with significant growth potential. With a 12% rally in stock price this year, Microsoft has demonstrated its resilience in a volatile market. Analysts have assigned the stock a strong buy or buy rating, with a predicted 9.4% upside to its average price target.
Investing in quality stocks during times of market uncertainty can be a strategic move for investors looking to mitigate risks and capitalize on growth opportunities. By focusing on stocks with strong fundamentals, growth potential, and attractive valuations, investors can build a resilient portfolio that can weather the storm of market fluctuations. Piper Sandler’s recommendations provide a roadmap for identifying quality stocks that have the potential to outperform in the long run.