Invest for long term and sleep at night with quality stocks, BMO says

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Invest for long term and sleep at night with quality stocks, BMO says

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for U.S. stocks (i.e., 2024 base case S & P 500 price target of 5,600, bull case 6,000), we do believe that investors will be forced to contend with higher levels of volatility over the near term as investors contemplate the strength of the economic

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and the resulting policy stance from the Fed,” the firm wrote in a note to clients Tuesday. Indeed, the CBOE Volatility Index , known as the market’s ***** gauge, has made some big moves. While it fell below 18 on Wednesday, its lowest level since Aug. 1, the index exceeded 65 during the Aug. 5 sell-off. BMO said it screened the S & P 500 for high-quality names that have low volatility for earnings per share growth as well as high levels of cash and return on equity. These kinds of stocks historically perform well during periods of increased volatility as well as periods of market strength. Here are some stocks that made the screen: Alphabet is one of the high-quality stocks on the list. Shares of the company are up more than 15% this year, and BMO sees more upside ahead, with an outperform rating on the stock. The firm isn’t alone, as Wall Street is largely bullish on the tech giant as well. To be exact, 45 of the 55 analysts reporting on the stock have a buy or strong buy rating, according to FactSet. There may be some trouble ahead for Alphabet, however. On Wednesday, a Bloomberg News report , citing people familiar with the discussions, revealed that the Department of Justice is contemplating breaking up the company. Shares fell more than 2% following the news. Kroger also made the screen, but the Street has mixed feelings about the grocer. Half of the 22 analysts covering the stock rate it a strong buy or buy, 10 have issued a hold rating and one has it at underperform. The company has recently come under ***** for adopting an electronic shelf labeling technology that could allow it to raise prices more easily when there is strong demand for a product. Kroger shares are down more than 4% over the past three months. Year-to-date, however, Kroger’s stock is up more than 15%. Cummins , a high-quality industrial stock, has seen shares climb around 25% in 2024. Morgan Stanley recently named it one of its top picks, saying the company could see earnings upside due to strong data center demand.

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#Invest #long #term #sleep #night #quality #stocks #BMO

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