This asset manager's stock pullback looks like an opportunity.
Why I'm bullish on this stock for the long term.
There'll be a gradual reacceleration of organic growth throughout 2014.
Its conference season in New York and one presentation that I attended was Capital One.
The bank stocks continue to be laggards following the disappointing 1Q results, a flurry of management missteps (think Bank of America's capital change) and the flat yield curve.
One of the industrial themes that I have been focused on has been the recovery potential in the US non-residential construction market. Non-residential construction activity typically follows residential construction, which has seen steady improvement over the last 2 years due to an improving economy, low interest rates, improving pent-up demand, and better affordability.
Since my investment bias is a GARP style, I always look for groups and stocks that have lagged the broader averages. One group that has lagged for a while has been the home builder stocks - and that's piqued my interest.
Some of the aerospace stocks have stalled recently after a putting up stellar performance last year, including one of my long time favorites - Precision Castparts. I like it here on the pullback and see a few catalysts to move the shares back up to its highs.
I am sticking with my recommendation of a Panera turnaround - and think this multi-year restructuring will eventually lead to better earnings and growth. It may not happen in the next quarter or two, but I believe it will happen and for those who have a little longer term horizon the stock is a buy.
The industrial stocks are one of my favorite sectors in the S&P 500 and have been over the past several months. We own quite a few in Action Alerts PLUS, Jim Cramer's Charitable Trust, with our two largest positions being Eaton and Johnson Controls. The industrial sector is one of the most levered to an improving economy and also to higher interest rates. Over the last few weeks, I've been encouraged to see the pickup in several manufacturing economic data points.