2 Stocks to Buy, 1 Stock to Sell

In this episode, MarketBeat contributor Chris Markoch returns. He and Kate discuss three stocks Chris has been evaluating in light of the escalating Russia-Ukraine crisis. Chris discusses two stocks to buy, and one to sell. 

MarketBeat.com – MarketBeat

Points discussed in this episode: 

-Markets hate uncertainty: This is a time when investors need to be very careful; things can change quickly. Volatility is likely to be around for some time

-You have to invest for how things are; not how you might want them to be. Some sectors will perform well. You owe it to yourself to invest where the growth is

Stocks to Buy:

Energy Sector: Chevron (NYSE: CVX)

• Stock is up approximately 14% since the invasion (2/24)
• Record free cash flow in 2021
• “significant” debt pay down
• Higher dividends for 34 consecutive years
• Continued plans for share buybacks 

Cybersecurity Sector: Palo Alto Networks (NYSE: PANW)

• Up approximately 15% since the invasion (2/24)
• Top cybersecurity pick by Morgan Stanley – believes  PANW stock will outperform sector
• Beat on top and bottom lines in February 21 – days before the invasion
• Significant analyst price target increases

Stock to Sell: John Deere (NYSE: DE)

• Love the long-term story but short-term outlook looks challenging
• Deere’s presence in Russia spans 130 years
• In 2018, they announced plans to expand Russian operations 
• In September 2021, agribusiness was  rated one of the most promising sectors of Ukraine’s economy
• Both countries are important fertilizer producers

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