Citi U.S. strategist goes bargain hunting for ‘20 growth stocks to consider on a pullback’

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Daily roundup of research and analysis from The Globe and Mail’s market strategist Scott Barlow

“The Russell 1000 Growth index is down modestly from recent highs. But there is more carnage under the surface. Our recent view to buy growth on pullbacks is coming into play. We advocate adding names that have declined at least 10 per cent from recent highs but have a stable fundamental outlook and reasonable implicit medium-term free cash flow growth expectations. 20 Large Cap Growth stocks stand out … The Russell 1000 Growth Index has sold off over 6% from its mid-July high.

The 20 stocks are Las Vegas Sands, Teradata, Datadog, TKO Group Holdings, Lockheed Martin, Bruker, Draftkings, Insulet, Pinterest, Chipotle Mexican Grill, Netflix, Hubspot, Lam Research, Rockwell Automation, MongoDB, Apple, KLA Corp., Paycom Software, Nvidia and Intuitive Surgical.BMO economists continue to hammer away with their belief that home construction can’t be a complete solution to the nation’s housing affordability crisis.

“Our view: In this report, as a result of analyzing NIMs, we make adjustments in most cases to our NIM assumptions . At the all-bank level, NIM expansion has been “best” at TD, whereas BNS has had NIM declines since interest rates started rising. Looking at recent NIM performance and NIM sensitivity, we note that there were larger differences in the disclosed vs. implied NIMs for BNS and CM than for the other banks in our coverage.

 

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