TheStreet.com’s Action Alerts Plus team has offered commentary – mostly bullish – about several major stocks.
McCormick MKC
The spice and flavors specialist's "flavor solutions business (40% of sales, 26% of operating profit) will continue to benefit from consumers dining out,” the team wrote.
In addition, “we continue to see the core consumer business (60% of revenue, 74% of operating income) benefiting from consumers shifting their dining dollars to grocery ones, as they contend with higher prices, greater borrowing costs, and pressured disposable income,” the AAP team said.
Also, “McCormick is a leading supplier of private-label items, which insulates its revenue from consumer trade down shopping,” the team said.
Nvidia NVDA
The graphics-chip icon is benefiting from “continued strength in data center, coupled with favorable personal computer comments from HP (HPQ) and Dell (DELL) , particularly for higher-end models,” the AAP team said.
Microsoft MSFT
The software major will likely face further foreign-exchange headwinds in the second half of the year, the team said.
Still, “we continue to see Microsoft benefiting from continued cloud adoption, ... PC strength, and the continued shift in its business mix toward subscription services, including Office.”
Airbnb ABNB and Disney DIS
For these stocks, “we will continue to examine consumer spending prospects to see whether the travel data begin to soften or other data indicate travel and tourism spending is rolling over,” the team said.
“Quarter-to-date Transportation Security Administration checkpoint data are up 42% year-over-year.”
Morgan Stanley MS
The Action Alerts PLUS team sees “a rebound in investment banking activity.” But “so far, the initial public offering market has been quiet,” it said.
“We chalk that up to the ongoing market volatility, but per data from IPO Monitor, the backlog of filed, but not priced, IPOs continued to rise over during April and May,” the team said.
“This suggests pent-up demand for companies to tap the IPO window once market conditions find their footing.”
The team also likes Morgan Stanley's strategy to grow assets under management and its fixed-fee business.
