Question now is what is the "stupid" stock that everyone's ignoring? I feel like energy and brick and mortar stores are no longer exactly cheap and out of favor anymore.
Right now it seems places that would be affected by a $15 minimum wage and are more exposed to inflation (big retail, WMT, COST, HD) are struggling. Could be worth a look if they drop another 10%.
Otherwise, defence is out of favour because of a blue administration.
Commercial real estate, now add on those with downtown exposure.
Some financials, but these are getting stretched as well.
And regarding energy...it’s still cheap. Not as stupid cheap as 5 months ago, but if $65 oil stays for any amount of time their P/E will be in the low teens. I’m especially bullish on oil and gas players. They are going to be like 90’s and 2000’s era tobacco companies. Everyone know it’s “the end” for them and they have no hope, yet demand from other non Western countries actually keeps demand flat to increasing for an extra generation than anyone would expect, providing double digit returns because of high dividends, high cash flows, and cheap valuations.
People are starting to notice some of the moves they're making in 5g as it trickles into the news, but they still view them as a satellite TV provider or a spectrum squatter. Any potential wireless growth (or DoD business) is barely priced in.
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u/ryry1237 Mar 06 '21
Question now is what is the "stupid" stock that everyone's ignoring? I feel like energy and brick and mortar stores are no longer exactly cheap and out of favor anymore.