Most financial experts think that the market won’t be able to keep going up for long this year. Against a backdrop of a looming recession, most financial commentators are talking up the prospect of more uncertainty ahead.
But not everyone. In fact, the strategy team at Bank of America believes there are plenty of reasons for owning stocks right now. Market sentiment is resolutely bearish, and a recession is practically accepted by everyone – both offering a chance for a contrarian take. And there’s trillions in ‘dry powder’ waiting to enter the market, while there’s also the prospect of the Fed taking a step back from its rate-hiking activities.
BofA also has an idea where the best opportunities are right now. “In what feels like a conviction-less market, we have high conviction in upside risk cyclical sectors within the S&P 500 this quarter,” said team leader Savita Subramanian.
So, let’s take a look at a couple of names that fit such a description. We opened the TipRanks database and got the lowdown on two stocks that share a particular set of attributes: cyclical stocks by nature, part of the S&P 500, and both boasting a Strong Buy consensus rating. Here are the details.
Constellation Brands (STZ)
We’ll start with Constellation Brands, a giant of the consumer-packaged goods segment. The alcoholic beverage leader oversees a drinks portfolio with many household names amongst the 100+ brands. From Corona, Modelo Especial and Negra Modelo on the imported beers list to spirits including Svedka vodka, High West Whiskey and Casa Noble Tequila to a wine collection including Robert Mondavi, the Prisoner Wine Company and Ruffino. Aside from being the U.S.’s biggest beer importer by sales, Constellation also boasts of cannabis and healthcare investments.
Investors seemed sanguine about the company’s latest financial statement, for F4Q23, despite the report not hitting all the right notes. Revenue hit $2 billion, coming in $20 million below expectations although the company highlighted the beer business’s outperformance which showed depletion growth…
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