[ad_1]
Artificial intelligence isn’t just benefitting technology companies. Many stocks in other industries could also rise, said Nancy Tengler, CEO and chief investment officer at Laffer Tengler Investments. While the stock prices of mega-tech companies such as NVIDIA and Metaplatform have soared on expectations that AI will bring new technological advancements and increased productivity and profits, Tengler said non-tech companies are also using AI. He named the companies that would benefit from the investment. “Our investment thesis is old economy companies that embrace digital and generative AI axes,” said Tengler, author of The Women’s Guide to Successful Investing: Achieving Financial Security and Realizing Your Goals. He spoke on CNBC’s “Money Movers” last week. ” The asset manager highlighted industrial and consumer discretionary stocks that employ robotics and artificial intelligence to improve productivity and profitability. Tengler cited several stocks with attractive value that she called the “picks and shovels” of AI, including Emerson Electric, L3Harris Technologies, Visa, Walmart, and McDonald’s. With the help of AI, these companies are expected to continue to enjoy strong growth and stock performance, she said. Tengler said that “generative AI is in many ways a much more compelling story than the Internet era” when it comes to driving productivity and growth. But “there’s always a need for calculations. That’s why we want to make sure that all of our strategies were able to significantly outperform their benchmarks last year, even if our portfolio includes old economy companies. And that I expect this to continue in the future,” Tengler said. Tengler cited Emerson Electric and L3Harris as industrial companies that are leveraging digitalization to increase automation, and she said her company has recently strengthened its position in both areas. Additionally, Laffer Tengler is generally too focused on industrial products, she said. Shares of Emerson Electric, which makes products such as fluid control equipment and industrial valves, have risen more than 13% so far this year, nearly double the S&P 500’s 7.4% rise. Mr. Berenberg named Emerson to the company’s stock last Wednesday. She is a top pick in the electrical equipment industry and raised her price target on the stock to $130 from $100, suggesting the stock could rise 18% from Friday’s closing price. The Street consensus is $120, according to FactSet. The investment bank said Emerson’s earnings outlook continues to rise on the back of the company’s December quarter results and upward revisions to its fiscal year 2024 guidance. Meanwhile, aerospace and defense company L3Harris is up almost 2% this year. The Melbourne, Florida-based company has been leveraging AI and machine learning for years, and in 2022 signed its five-year contract with the Department of Defense to provide artificial intelligence services to both the defense and intelligence communities. provided to you. JPMorgan analyst Seth Seifman recently upgraded L3Harris to overweight, saying that despite past execution issues, this year’s “relatively attractive valuation, cash flow that should be positive, and The company expects “an increased focus on shareholder value,” it wrote in a January memo. Nearly two-thirds of all 10 analysts covering L3Harris rate the company a “buy,” and their average price target of $244 means the stock is up nearly 14% from Friday’s closing price. It suggests that. Walmart, another of Tengler’s “old economy” AI giants, is up 14.4% so far this year, twice as much as the broader market. Tengler highlighted Walmart’s recent 3-for-1 stock split and dividend increase of approximately 9% as evidence of the nation’s largest retailer’s strong quarterly performance and positive earnings momentum. Walmart boasted double-digit growth in global e-commerce sales in the fourth quarter, driven by increased efficiency and automation at distribution centers that restock store shelves and fulfillment centers that fulfill online customer orders. It was supported by Tengler said Walmart is benefiting from “not only robotics and digitization, but also generative AI in its e-commerce business to improve margins.” “They’ve increased productivity, removed some of the very menial tasks with robotics, and driven very strong continued growth not just in the advertising business but also in the e-commerce business.” Perhaps more traditional. In short, part of Tengler’s investment strategy is to focus on companies that offer “growth at a fair price,” but he also has more mainstream AI businesses like Broadcom, Amazon, and Microsoft. It means.
[ad_2]
Source link
