From Nvidia to Boeing: Portfolio manager reveals the stocks she’s loving right now
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Portfolio manager Barbara Doran has revealed a number of her favorite stocks, reiterating a bullish outlook on the stock market more broadly. “People are reluctant to embrace this bull market after a couple of years of deep skepticism,” the chief investment officer and senior portfolio manager at BD8 Capital Partners told CNBC’s “Street Signs Asia” on March. 28. “But this is what bull markets do. They make new highs. And of course, given the rapidity and speed with which we’ve gone up, it’s normal to expect a pullback.” Boeing One of Doran’s picks — Boeing — might come as a surprise. The aerospace giant has been grappling with a slew of manufacturing and quality issues. In January, a panel blow-out on an Alaska Airlines 737 Max 9 led to increased scrutiny of the company, and the Federal Aviation Administration stepped up its oversight. Shares in Boeing have also taken a hit, sliding around 13% over the last 12 months and falling 28% year-to-date. “I’d stayed away from the stock for a few years, but then it really seemed they were past … the troubles. And really, the cash flow projections of 10 million in the [20]25/26 timeframe seem very attractive. And then, of course, the door blow off,” she said. However, Doran says she now sees promise in the stock following announcements on an impending change in its senior management . According to Factset data, of 31 analysts covering the stock, 19 give it a buy or overweight rating. The average price target is $243.60, giving it around 30% potential upside. Nvidia A more popular name on Doran’s list of stocks to watch is U.S. chipmaker Nvidia . The stock has dominated headlines over the past year and its shares logged an astronomical 240% rise in 2023. Its popularity shows little sign of abating, and although the stock is slightly lower over the past week, it is still up by more than 80% over the year to date. It has led some fund managers and analysts to say the stock now looks too expensive, although Doran is not concerned. “Investors think it is over given its massive run,” she wrote in notes to CNBC. “But quarterly earnings a year ago were $.98 vs $5.51 estimated this quarter, a 460% increase. With a price-to-earnings of 37x this year and 29x next, the stock is attractive vs its growth rate.” FactSet data shows that 53 analysts have a buy or overweight rating on Nvidia, while 7 give it a hold rating. Analysts’ average price target for the stock is $968.14, giving it around 8% potential upside. Starbucks Beyond the headline-makers, Doran is also a fan of coffee chain Starbucks . Calling it a “largely discounted” stock trading at 22 times forward earnings, the portfolio manager highlighted its branding, pricing, product innovation and cost savings of $3 billion over the next three years as areas of strength. She also sees the company benefitting from additional store openings. By 2030, the company plans to expand to 35,000 locations outside of North America ; as of Oct. 1 last year, it had roughly 20,200 international cafes. These developments come despite “disappointing” trends in China, according to Doran. However, she said she still sees promise as the “premium luxury brand” starts to open up more stores in the country. Shares in Starbucks are down around 14% over the past 12 months. FactSet data shows that, of the 33 analysts covering the stock, 13 give it a buy or overweight rating. Analysts’ average price target for the stock is $106.37, giving it 19.9% potential upside.
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