Las Vegas Sands and Others Shine When Rates Rise: BofA
TheStreet
5/20/2022
© TheStreet
Las Vegas Sands and Others Shine When Rates Rise: BofA
Interest rates have soared this year, with the 10-year Treasury yield to 128 basis points to 2.79%, though it peaked at 3.13% May .
With the Fed poised to unleash numerous rate hikes in coming months, you might want to think about stocks that do well when rates climb. Bank of America put together a list of such stocks.
It includes S&P 500 companies and is based on their relative performance sensitivity to changes in the 10-year Treasury yield. The companies must have 10 years of monthly returns, and the analysis goes back to 1972.
The Top Stocks in Order Are ...
1. Marathon Petroleum , a refining company
2. Qorvo , a semiconductor company
3. Live Nation Entertainment , an entertainment company
4. Las Vegas Sands , a casino company
5. NXP Semiconductors , a Dutch semiconductor company
Morningstar on Marathon
Video: If valuations overshoot below fair value, the market is pricing in a recession, says Fidelity's Timmer (CNBC)
-
U.S. sends more long-range rockets to Ukraine, as Russia continues hitting civilian targets
CNBC -
New hires want to work for companies that share their values
CNBC -
Supply chain disruptions cause ongoing shortages nationwide
CNBC -
Biden warns Republicans looking for nationwide abortion ban
CNBC -
Cheney warns House Jan. 6 committee could seek criminal charges for witness tampering
CNBC -
Inflation hits the holiday as food costs rise
CNBC -
Airlines hope to avoid July 4th disaster
CNBC -
Retail investors should exercise caution here, says crypto writer
CNBC -
How the crypto collapse compares to the dotcom bubble
CNBC -
Square's aura makes it seem bigger than it is, says Mizuho's Dan Dolev
CNBC -
What else does Sam Bankman-Fried have up his sleeve?
CNBC -
Three Arrows files for bankruptcy
CNBC -
Most Fortune 500 companies are exploring crypto, says Alchemy CEO
CNBC -
Crypto's problem is it's having trouble attracting new buyers, says Duke's Lee Reiners
CNBC -
Final Trades: BUD, TAN, DISH & BYND
CNBC -
Ally's Lindsey Bell's second-half outlook
CNBC
-
U.S. sends more long-range rockets to Ukraine, as Russia continues hitting civilian targets CNBC's Eamon Javers reports the U.S. has sent more long-range rockets and missile systems, even as NATO welcomes Finland and Sweden to the alliance.
CNBC
-
New hires want to work for companies that share their values CNBC's Sharon Epperson joins 'The News with Shepard Smith' to report on how new hires are prioritizing jobs with companies that share their values.
-
Supply chain disruptions cause ongoing shortages nationwide CNBC's Andrea Day joins 'The News with Shepard Smith to report on how supply chain issues and labor issues are impacting stores and shoppers nationwide.
Morningstar analyst Allen Good was impressed with the company's first-quarter results.
"Marathon Petroleum turned in another strong quarter, with earnings improving to $845 million from a loss of $242 million a year ago on an improved refining market," he wrote in a commentary.
"The refining market continues to gain strength as margins widen, given strong demand and Russia sanctions-related disruptions to supply. Marathon stands to be a beneficiary, while its large repurchase program sets it apart from peers."
Good puts fair value for the stock at $87, and it recently traded at $96.44.
Morningstar on Qorvo
"[The company's latest earnings report] provided investors with a predictably weak forecast for the June quarter in light of soft smartphone demand in China, which should weigh on revenue for the next two quarters," said Morningstar analyst Brian Colello.
"We still view no-moat Qorvo as fundamentally undervalued and still anticipate healthy 5G radio frequency chip content gains in the years ahead," he said.
"But we would point investors toward narrow-moat Skyworks Solutions , because of its better execution over the years and its lower exposure to Chinese smartphone [makers]."
Colello puts fair value for the stock at $169. It recently traded at $108.29.
Morningstar on Live Nation
Morningstar analyst Neil Macker noted strength in the company's first-quarter earnings report.
"Live Nation's 2022 focus on returning to pre-pandemic levels appears on track, with over 70 million tickets sold for 2022 shows, 36% above the same point in 2019," he wrote in a commentary.
And 90% of planned sponsorship for the year is already booked, he said.
"Both the level of demand and supply for live music continue to expand despite limited activity in certain markets," Macker said.
He puts fair value for the stock at $105. It recently traded at $89.28.
This article was originally published by TheStreet.
TheStreet
