Tom Lee highlights top picks in his market-leading portfolio
by trendswire · 24 May 2023
Fundstrat Global Advisors founder Tom Lee highlighted five must-watch stocks from his Granny Shots portfolio, which has outperformed the market for roughly five years in a row. The Granny Shots portfolio is a distillation of over 30 of Fundstrat’s best stock ideas. Since its inception in 2019, the portfolio has outperformed the S&P 500, gaining 133%, while the broader index is up 58%, according to the website. This year, Granny Shots is 8.3% higher, better than the S&P 500’s 7.4% gain. The portfolio is named after a simple clandestine method of shooting in basketball that is considered to have a high reward with low risk. On Tuesday, however, Lee introduced Super Grannies for investors wondering which stock to buy first in their Granny Shots portfolio. These are the five stocks that he ranks as the best of the best. Here are the selections. Fortinet was named Super Granny. Fundstrat’s Mark Newton said cybersecurity stocks could rise to new heights, even after rising 39% this year, although he expects some challenges ahead. “At present, it seems likely that FTNT will show some slowdown or pause in June if it hits previous highs,” Newton wrote. “However, barring any material evidence of technical weakness, it’s hard not to buy dips into any upcoming consolidation. Overall, a rally back to new all-time highs is expected to occur in the second half of this year.” Monster Beverage also stood out on the list, with Newton saying the stock remains “one of the hottest technical names” within consumer staples after rising 14% this year. “Overall, MNST’s relative outperformance against many other Granny Shot names makes this middle ground attractive, and one to consider buying dips into weakness, when this occurs,” he wrote. “Any return to the low or mid $50s would make MNST more attractive from a technical perspective.” On the other hand, On Semiconductor “continues to show an excellent technical structure” among all semiconductor names, according to Newton. “Until ON begins to show evidence of a deteriorating trend over the medium term, this is believed to be the best candidate within the Semiconductor space and appears to be a better technical risk/reward at this time than NVDA,” he wrote. Other names are Fiserv and Intuitive Surgical.