Wolfe Research has a selection of favorite long-term stock ideas to weather the stock market's summer volatility. Recent market action has been unpredictable, as the three major U.S.
indexes climbed to records in July, followed by a steep global sell-off in early August and a recent rebound rally. The S & P 500 slipped on Thursday, however, moving away from levels near the mid-July peak, as traders await clues on Friday from Federal Reserve Chair Jerome Powell about the central bank's rate-cutting path. The 30-stock Dow and Nasdaq Composite also edged lower.
"While we expect continued choppy trading in the market, we expect companies with solid fundamentals to outperform," Wolfe Research chief investment strategist Chris Senyek wrote in a recent note to clients. He presented the firm's "Greatest Hits List," representing companies that appear most frequently on the firm's 31 long idea stock screens encompassing a range of investable themes, including value, growth, capital creation, earnings quality, cash use and dividends. Ten of the stocks that made the Wolfe screen include these: Expedia and Walgreens Boots Alliance are among the companies that appear most frequently on the firm's stock screens.
According to Wolfe, Expedia has returned just 3% over the last twelve months and an estimated 2024 price-to-earnings ratio of 10. The online travel agency is rated overweight by analysts polled by FactSet, who have a consensus price target implying 11% potential upside. Shares are d.