David Katz: these stocks are a ‘buy’ at current levels

  • February 7, 2022

The benchmark S&P 500 index has recovered nearly 5.0% since its low on January 27th. According to Matrix Asset Advisors’ David Katz, however, the following three notable names are still on sale.

Goldman Sachs (NYSE: GS)

His first pick is Goldman Sachs Group Inc that’s down roughly 10% from its high at the start of 2022. Katz likes the stock for its strong fundamentals. On CNBC’s “Worldwide Exchange”, he said:

Goldman Sachs is making a boatload of money. They had a robust year; we think they’ll earn a lot of money this year too. The stock has sold up very significantly in January, which sets the stage for a much better year.

Katz is bullish on financials at large but sees Goldman Sachs as particularly a great pick at 10 times earnings and a reasonable yield.

Medtronic plc (NYSE: MDT)

The Matrix Asset Advisors’ CIO agrees that Medtronic is likely to report a weak quarter but says the outlook for the back half of 2022 continues to be positive.

They might have a light quarter because hospitalisations were up so much due to Omicron. But hospitalisations due to COVID are now dropping, which means elective surgeries will be back in place in the next three to six months. That’s when their stock will come back with a vengeance.

The leading U.S. cardiovascular company is an attractive buy here at 18 times earnings, added Katz.

Thermo Fisher Scientific Inc (NYSE: TMO)

Lastly, he’s bullish on Thermo Fisher that reported strong results for its Q4 and gave upbeat guidance for the future last week. Making his case for the company that also makes testing equipment, Katz said:

This is a company that’s growing at 15% or better. We love the management. It’ll still do good as COVID testing drops. At about 25 times earnings, you’re getting it on one of the more attractive prices in some time. So, it’s a great entry point.

He also has a positive stance on Alphabet Inc for 2022.

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