Reply To: Traders Market Weekly: US Elections, Rates and Inflation


Barron’s mentions:

Visa (V) attracted a bullish recommendation from the publication this week with shares down sharply amid the broad market sell-off this year. Visa has fallen all the way back to where shares were in January of 2020 before supercharged growth in digital payments drove the stock higher during the pandemic. On the plus side, Visa is noted to have impressive free cash flow, no net debt, and continues to be a double-digit sales and earnings compounder. The kicker is that on a valuation basis – Visa looks cheaper than it has been in years. While concerns about a possible recession have cut into sentiment, Barron’s reminded that history shows that Visa continued to grow even through the financial crisis of 2008-2009.

The cover story this week called out the potential upside for small cap stocks in a market that is as choppy as it has been in years.

Small-cap companies were noted to be mainly domestic, which has helped them avoid much of the effects of the U.S. dollar’s 17% surge against other currencies. Even more important, multinationals are observed to be in an onshoring trend with supply chains in what could end up being a major tailwind for small-cap companies.

Stocks from small cap universe mentioned as looking attractive were Veritex Holdings (VBTX), Advanced Energy Industries (NASDAQ:AEIS), Patterson-UTI Energy (PTEN), ChampionX (CHX), AAR Corp, (AIR), KAR Auction Services (NYSE:KAR), Flowserve (NYSE:FLS).