Down Market, Good Stocks, Southern Company, PepsiCo, CaterpillarKate's guest on The MarketBeat Podcast this week is Brian Mulberry, client portfolio manager at Zacks Investment Management.
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Kate's guest onThe MarketBeat Podcastthis week is Brian Mulberry, client portfolio manager at Zacks Investment Management. Brian brings three large-cap ideas today and discusses why one utility may have potential beyond the traditional role of a dividend payer. He also discusses why a very familiar beverage and packaged food company is growing beyond its namesake product by focusing on the youth market, and why a maker of heavy machinery appears set for big gains.
Stick around until the end, because Brian shares how to access Zacks research to get more ideas.
-Why Brian's utility pick, Southern Company, has earnings durability that causes him to think it can withstand the higher cost of capital as interest rates rise
-The company has strong earnings growth, relative to the S&P 500 and may be able to pass along higher costs to its customers
-Brian attributes the company's recent blowout quarterly report to investments that the company has made over the years
-Should investors be looking to utilities for a return beyond dividend yield?
-Does a stock like Southern Company make sense in a roaring bull market?
-Why Southern Company happens to be in a good geographical area that's helping to grow market share and higher revenue lately
-Brian's second stock, PepsiCo, also has earnings durability
-How the company's growth through acquisition has allowed it to have pricing power, by focusing on strong brand names
-How Pepsi's focus on Gatorade and its distribution deal with Celsius is helping the company expand its presence and loyalty in the youth market
-The company has been making investments outside the carbonated beverage market, which is a declining portion of its brand portfolio
-Why Brian sees Pepsi's distribution strategy as an edge in the supply chain where other manufacturers have fallen short
-Brian's third stock is an old-school industrial, Caterpillar, which has also navigated supply chains well
-Why Brian sees Caterpillar as large earnings per share grower, based on increased infrastructure spending and the Inflation Reduction Act.
-Why he sees this stock as attractive, although it's not one he expects to behave like a red-hot growth stock
-Why Brian thinks infrastructure spending will finally ramp up and benefit companies like Caterpillar?
Stocks mentioned in this episode
Southern Company (SO)
PepsiCo (PEP)
Caterpillar (CAT)
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