Jeff Mills of Bryn Mawr Trust recommends stocks involved in supply chains, cybersecurity, and e-commerce because they have “staying power”.
He credits corporations with the ability to protect investors from the tug-of-war between growth and cyclical stocks.
Mills’ first choice focuses on companies that support supply chains.
“You are slowly starting to hear a narrative of things that are improving there, but it is not going to fall within the purview of many companies trying to figure out how we can do things more efficiently,” the company’s chief investment officer told CNBC, “Trading.” Nation “on Monday.
Mills prefers PTC Inc. in this area, which is focused on productivity, maximizing revenue and reducing costs.
“They do all sorts of things on the industrial Internet of Things,” he said. “This will be extremely important for companies around the world.”
But Mills admits the chart is ugly. PTC is reduced by 10% in the last month.
“This is a stock that is a long way from its all-time highs here,” he said.
Mills, who manages $ 22 billion in assets, also likes cybersecurity because of its tremendous longevity.
“It is probably one of the biggest threats not only to national defense but also to American businesses,” said Mills. “There is definitely a runway for further growth.”
His best cybersecurity game is CrowdStrike. It’s a rocky month, down 15%. However, this year it’s up 13% so far.
“[It’s] Sales growth of 40% compared to the previous year. The recurring sales growth increases the cash flow. The metrics are getting better, “he said.” This is a company that I really like.
His third choice is e-commerce with a focus on Amazon.
“You can’t talk about thematic investments without talking about e-commerce. And Amazon is such an interesting stock, ”noted Mills. “It’s been a favorite for so long. But the stock hasn’t gone anywhere all year.”
This year, Amazon stocks are up about 10%. Performance pales in comparison to 2020, when the stock rose 76%.
“A fairly significant outbreak”
Mills highlights Amazon’s vast e-commerce logistics network as a major upward trend during the holiday season.
“The shortage of supply that everyone is facing right now could actually help Amazon because they are probably in the best position. You can probably reach people faster, so I think they can potentially gain market share, ”said Mills. “I think you will see an outbreak of pretty significant proportions for Amazon in 2022.”
Disclosure: Jeff Mills has extensive experience with PTC Inc, CrowdStrike, and Amazon.
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