Tech stocks are in a tricky position for 2022. If the economy is too strong, the share price will be punished due to fear of interest rate hike. If the economy is too weak, the EPS of these tech giants will be severely eroded. Hence, I ruled out Apple, Amazon and Alphabet. However, I could be wrong if the Fed is more dovish than expected or if CPI slows down significantly.
Walmart is undergoing inventory destocking, and I foresee it has to give more aggressive discounts to push out all their stockpile.
Pfizer and Berkshire don't really have an immediate catalyst for now.
Initially, I am more bullish on Lockheed Martin. Lockheed Martin is the largest defense contractor in the world, with a diverse portfolio of products and services, including military aircraft, missile defense systems, and satellite technology. It is also the prime contractor for the U.S. Department of Defense's largest program, the F-35 Lightning II fighter jet. Due to the Ukraine-Russia war, governments around the world are increasing their defense spending in order to modernize their militaries and protect their national security. I expected this trend to continue in the coming years, which could provide significant opportunities for Lockheed Martin to expand its business and increase its revenues, However, Lockheed Martin has already gone up by 37% YTD! Hence I am hesitant to pick LMT as i am unsure how much more headroom can the share price go.
Finally, OXY, being a potential acquisition target of Warren Buffet and Berkshire, needs no mention. Occidental is a leading oil and gas exploration and production company with operations in the United States, Middle East, and Latin America. It has benefitted from the increased fuel price brought on by inflation and Russia's invasion of Ukraine. With chronic underinvestment from oil producers in the past few years, oil price will remain elevated as renewable energy will not be enough to meet the world's increasing energy demand. Hopefully with the Buffet effect, OXY will finish well in 2022 [Miser].
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- JuliusGoldsmith·2022-12-09indeed the defense industry has excellent potentials due to increasingly volatile geopolitics.8Report
- DaveLewis·2022-12-09Good post. Hopefully OXY can be acquired as soon as possible!8Report
- Gloria112·2022-12-09Walmart needs more discount to clear the stockpiles, people r out of money lol7Report
- CET 789·2022-12-09[What] [What] [What]7Report
- Trevelyan·2022-12-09Mine is Pfizer though it's not so much a possibility but I hope to...6Report
- DouglasMalan·2022-12-09Yup me two. OXY has great market to purchase to keep growing its profits3Report
- icycrystal·2022-12-09thanks for sharing1Report
- skyblue8·2022-12-10Hope you are right!2Report
- GarethTan·2022-12-09[Miser] [Miser]2Report
- BellaFaraday·2022-12-12OXY's moves are closely tied to the price of crude oil.LikeReport
- MortimerDodd·2022-12-12Lockheed martin is a special company, and I'm looking at it.LikeReport
- DonnaMay·2022-12-12I don't think OXY is going to shine in the future.LikeReport
- PandoraHaggai·2022-12-12Of these, AMZN is my favorite.LikeReport
- EvanHolt·2022-12-12BRK is always worth our investment.LikeReport
- DannDann·2022-12-11Thanks for sharing 👍🏻👍LikeReport
- LMSunshine·2022-12-11Nice Analysis❣️ Hope oil goes up❣️LikeReport
- Jenjorjack·2022-12-09Inflation to stay highLikeReport
- 钱山压力大·2022-12-11[微笑]LikeReport
- Than·2022-12-11GoodLikeReport
- darrius·2022-12-11wiwLikeReport