In this uncertain market environment, investors are constantly being bombarded on where the economy stands and how it will dictate the course of the Federal Reserve Bank's actions.
The outcome — and whether raising interest rates too fast to combat inflation will choke the growth in the economy and instigate a recession — will not be known for quite some time.
Investors may want to consider stocks that may perform well during a recession and could also benefit from the “reopening trade.”
The movie theater industry and related companies fit that bill, according to Alicia Reese, who covers the media and entertainment sector for Wedbush Securities.
Reese joined this week’s segment of “Wednesday’s With Wedbush” on PreMarket Prep to discuss issues in her coverage area that may prosper in 2022 and beyond.
Reese's Featured Issue: At this time, Reese has a Buy rating on Imax Corp with a $27 price target. She noted the company is growing globally and may benefit from cinema upgrades that are in the works.
Reese outlined her bullish thesis below.
An Ancillary Play: Although the company has been in a prolonged downtrend, mainly due to currency headwinds, Logitech Intl ADR (NASDAQ:LOGI) may be poised for a rebound, the analyst said.
The return to office or hybrid work environment will require more of Logitech's products, Reese said.
More specifics on Logitech can be found here:
During Wednesday's interview, Reese also provided comments on Disney Co. (NYSE:DIS), Netflix Inc. (NASDAQ; NFLX), Amazon.com (NASDAQ:AMZN) and Turtle Beach Corp (NASDAQ:HEAR). The full interview can be found here:
