Barron’s is bullish on Chevron, Apple

Apple’s (AAPL) smart speaker is a “turning point” for personal technology

Comerica (CMA), SVB Financial (SIVB) and Zions Bancorp (ZION) are among banks that “should continue to benefit” from near-term rate hikes

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Barron’s, the weekly publication owned by the Wall Street Journal, in its latest issue is bullish on several names. They include:

The unveil of Apple’s (AAPL) smart speaker is a “turning point” for personal technology and possibly for the company itself, Barron’s contends in a ‘Technology Trader’ column. The product and its array of “enticing” audio tech shows that Apple continues to innovate, the publication says, while cautioning that some observers see Apple’s arguably lackluster Siri digital assistant as a “giant hole” in the product as compared to competing offerings from Amazon (AMZN) and Alphabet (GOOG).

Shares of ATM-maker Diebold (DBD) could return 25%-40% over the next two years, Barron’s contends in a feature article. The company should lift EPS to at least $3 through 2020 as it realizes cost cuts and synergies from its acquisition of Wincor Nixdorf, the publication says. Additionally, while cash is sometimes called a declining medium amid the proliferation of online payment platforms, Diebold CEO Andy Mattes tells Barron’s that such pessimism is countered by the 5%-6% annual growth rate of paper notes in circulation.

Lam Research (LRCX) could gain 20% in a year, Barron’s contends in a feature article. The publication argues that as memory chip usage in cars, home appliances, and other machines increases — and China ramps its catch-up efforts in the space — investors should buy the industry’s “arms dealers;” that is, the companies that manufacture etching and lithography equipment. Barron’s names both Lam Research and Applied Materials (AMAT), but favors Lam Research.

Banks

Comerica (CMA), SVB Financial (SIVB) and Zions Bancorp (ZION) are among banks that “should continue to benefit” from near-term rate hikes, Barron’s contends in a feature article. The publication explains that most banks haven’t paid depositors more despite the start of rate hikes in late 2015, a trend which is expected to continue with the likely hike in June, which means higher profits for the banks. Small and mid-market names with significant depositor bases, good balance sheets, and many commercial customers will gain the most from the trend, Barron’s says, leading it to recommend the above-mentioned banks.

Energy Stocks

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Certain North American energy names “look attractive,” including Chevron (CVX), EOG Resources (EOG), Canadian Natural Resources (CNQ) and Noble Energy (NBL), Barron’s contends in a feature article. The sector “could be near a bottom” after dipping on the recent surprise gain in crude inventories, the publication adds.

Regeneron (REGN) appears expensive against short-term profit expectations, but the stock still looks good for growth investors given the company’s “long-term ability to generate more attempts at hit drugs than do peers,” Barron’s contends in a ‘Follow Up’ column.

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The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.

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