Portfolio manager Chad Morganlander currently outlines a range of sectors and stocks for investors and revealed he is bullish on small caps. Speaking about the performance of the Russell 2000, the U.S. small-cap benchmark, the senior portfolio manager at Washington Crossing Advisors noted that these smaller companies have been on an upward trend and “will likely continue to do so.” “At the end of the quarter, the Russell 2000 was about two standard deviations away from the broader market valuation benchmark, particularly on the growth side,” Morganlander told CNBC’s “Street Signs Asia” on Tuesday. up 12%. By comparison, the S&P 500 gained 18.8% and the Nasdaq 100 gained 21.7%. In addition to small-cap stocks, Morgan Rand also likes “large-cap stocks.” “For the first time in the past 18 to 24 months, we have increased our exposure to large-cap stocks and used growth earnings to add to our exposure,” he added. Value stocks are generally cheaper than so-called growth stocks and often trade at below The price shown by the company’s performance. Stocks Worth Investing Morganlander believes that there are currently several industries and stocks that are good choices for investors. His asset manager’s tactical portfolio strategy for the second quarter “continues to favor domestic (U.S.-listed) equities over bonds and international stocks,” according to the most recent 2Q 2024 outlook report. One of the companies on Morgan Rand’s radar is rail transportation company Union Pacific. “We think Union Pacific is fairly cheap at 15 times earnings and 25 times retail,” Morganlander said in explaining why he likes the stock. In health care, portfolio managers are also bullish on Union Healthy, because he said the company’s price-to-earnings ratio of about 17 times gives it a “competitive position.” It’s “pretty attractive,” he added. The P/E ratio is an important metric used by traders to measure value and is defined as the share price divided by earnings per share. Morgan Rand also likes tech giant Microsoft. However, he noted that he is shying away from and “cutting back” some large technology companies and companies in the oil and gas industry that he believes are “vulnerable” to a global economic slowdown that he believes will last until 2025.
