Jeff Mills of Bryn Mawr Trust recommends stocks related to supply chain, cybersecurity, and e-commerce because of their “staying power.”
He believes that these groups have the ability to protect investors from the tug of war between growth stocks and cyclical stocks.
Mills’ first priority is to help companies in the supply chain.
The company’s chief investment officer told CNBC: “You are starting to hear narratives of improvements there, but this will not go beyond the scope of many companies trying to figure out how we can improve efficiency.” “Trading Nation” on Monday.
Mills favors PTC Inc. in this area, which focuses on productivity, revenue maximization, and cost reduction.
“They do all kinds of things in the Industrial Internet of Things,” he said. “This is extremely important for companies all over the world.”
But Mills admitted that the chart was ugly. PTC has fallen 10% in the past month.
He said: “This stock is a far cry from the historical highs here.”
Mills manages $22 billion in assets, and he also likes the field of cybersecurity because of its long lifespan.
“This may be one of the greatest threats not only to national defense, but also to American companies,” Mills said. “There must be a runway for further growth.”
His top online security game is CrowdStrike. This has been a difficult month, with a decline of 15%. However, it has risen by 13% so far this year.
“[It’s] Revenue increased by 40% year-on-year. Recurring income growth is increasing cash flow. The indicators are getting better and better,” he said. “This is a company I like very much.
His third choice is e-commerce, with an emphasis on Amazon.
“You can’t talk about thematic investments without talking about e-commerce. Also, Amazon is such an interesting stock,” Mills pointed out. “It has been a darling for a long time. But the stock hasn’t really risen for a whole year.”
This year, Amazon’s stock price has risen about 10%. This performance pales in comparison with the 76% surge in stock prices in 2020.
“A very important breakthrough”
Mills emphasized that Amazon’s huge e-commerce logistics network is the main bullish driving force during the holidays.
“The supply squeeze that everyone is dealing with now may actually help Amazon because they may be in the best position. They may be able to get things into people’s hands faster, so I think they may gain market share, “Mills said. “I think that by 2022, Amazon will have a considerable breakthrough.”
Disclosure: Jeff Mills has long-term contact with PTC Inc, CrowdStrike and Amazon.
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