How will the stock market trade in 2024? Trends.be asks stock market watchers about their favorite securities.
This week it’s the turn of Rebecca Irwin, portfolio manager of Jennison Associates’ PGIM Jennison Global Equity Fund.
1/ Nvidia
“Nvidia is one of our largest holdings and we currently see the company as the best way to benefit from increased investment in AI infrastructure. The revenue increase in data center operations is huge, from $15 billion a year ago to $90 billion expected next year.
“With generational AI, we are entering the fourth century of computing, which will affect our lives in ways we are only beginning to understand. And the first investment opportunities have just presented themselves. But, at the moment, Nvidia is the purest AI investment.”
2/ Microsoft
“Microsoft will ultimately benefit greatly from the continued growth of AI applications. For now, however, the most important factor is not its investment in OpenAI, but the three main sectors that are growing strongly: Office 365, the PC market and the Azure cloud platform. The latter is taking market share from rival Amazon Web Services and should see strong growth as next-generation AI is more widely adopted. “
3/Farray
“Leading luxury brands thrive because of their well-positioned brands, high pricing power and direct-to-consumer sales channels. Ferrari can basically be considered a luxury car manufacturing company.
“It has an amazing history and heritage to be proud of, a very loyal and attractive customer base that is growing. Like other companies in the luxury sector, Ferrari’s products cannot be easily countered, allowing it to charge high prices and increase sales and margins even in a challenging, inflationary market.”
4/ Novo Nordisk
“Innovation in healthcare has led to new treatments for chronic diseases such as diabetes and obesity. The Novo Nordisk from Denmark, together with Eli Lilly, is far above the rest in solutions for obesity. The fact that their drugs also reduce the risk of heart attack or stroke expands the potential market and makes it more likely that insurance companies and governments will cover the use of these so-called GLP- 1.
“A number of catalysts could fuel growth for Novo Nordisk in the coming years. For now, the biggest concern is that it can’t produce enough GLP-1 drugs to meet the demand.”
5/ Eli Lilly
“Eli Lilly, another major player in healthcare, has a strong R&D pipeline, and few patents are expiring in the next decade. Together with Novo Nordisk, he is poised to achieve sales growth, margin expansion and profit growth that is many times what you can expect from a pharmaceutical company.
“Many investors underestimate the size and duration of that growth. While the ratios appear high year-over-year, they look much more attractive when you look even two years out, as management points to a future growth pipeline -strong input coupled with greater financial control.”
Last week:
2024-04-29 21:48:42
#Top #Stocks #by.. #Rebecca #Irwin #Jennison #Associates
