“Granny shot” stocks.
Getty Images
Our call of the day offers up stock ideas from a portfolio that has returned 34.1% year to date, versus 9.4% for the S&P 500. The so-called “Granny Shots” portfolio from Fundstrat Global Advisors gets its name from National Basketball Association legend Rick Barry, who shot free throws underhanded, “granny style,” for a career percentage of around 90%.
As Fundstrat founderThomas Lee explains, the “Granny Shots” portfolio is about “the best of the best” of their portfolios — stocks that have an attractive long-term thesis, though at times gain traction slowly, therefore require patience. Since its inception in January 2019, the portfolio has been beating the S&P by 2,470 basis points.
Note, that the granny portfolio has gotten a boost from some of those all-star tech performers this year — Apple, Alphabet
GOOGL,
,
and Microsoft
MSFT,
.
Fundstrat rebalanced the portfolio for the third quarter to add five new names and deleting six. Lee highlights these 35-year charts to illustrate how these stocks might be ready for a revival. Among the new additions is semiconductor equipment maker KLA Corp.
KLAC,
.
Fundstrat/Bloomberg
Also included is global media group Omnicom
OMC,
,
which Fundstrat notes has suffered some big “headwinds” from the pandemic this year. Another pick is WW Grainger
GWW,
,
an industrial that plays into the idea of an economic rebound:
Fundstrat/Bloomberg
They also added chip makers — Intel
INTC,
,
which appears to be “shaking off its 2020 setbacks,” and Qualcomm
QCOM,
,
which seems like it is “waking up from a 20-year slumber.”
Fundstrat/Bloomberg
As for those leaving the portfolio, online travel group Booking Holdings
BKNG,
,
multinational Emerson Electrics
EMR,
,
hardware and software company HP
HPQ,
,
automotive parts supplier BorgWarner
BWA,
,
fertilizer maker CF Industries
CF,
,
and consumer goods group Procter & Gamble
PG,
are out.
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