The market analysts on CNBC’s ‘Halftime Report Final Trades’ shared their final picks for the day, offering insights into the potential of various sectors and individual stocks.
Starbucks Brewing Up Gains?
Joshua Brown of Ritholtz Wealth Management cast his vote for Starbucks Corporation (SBUX), predicting a potential surge to $100 per share. While Starbucks recently reported weaker-than-expected fourth-quarter results, Brown remains optimistic about the coffee giant’s prospects. The company’s earnings of 80 cents per share fell short of the analyst consensus estimate of $1.03, and revenue of $9.074 billion missed the anticipated $9.375 billion. Despite these challenges, Brown believes Starbucks has the potential to rebound and reach new heights.
Utilities in Focus
Shannon Saccocia of NB Private Wealth opted for a more diversified approach, selecting The Utilities Select Sector SPDR Fund (XLU) as her final trade. Utilities often provide a sense of stability during market volatility, and Saccocia’s choice reflects her belief in the sector’s potential for steady growth. The fund represents a basket of utility companies, providing a diversified exposure to this sector.
Copper’s Shine
Sarat Sethi of DCLA put his faith in Freeport-McMoRan Inc. (FCX), a major copper producer. Freeport-McMoRan recently reported strong third-quarter results, exceeding revenue expectations. The company generated $6.79 billion in revenue, beating the consensus estimate of $6.47 billion. While copper sales dipped slightly year-over-year, Sethi’s optimism stems from the potential for continued growth in the copper market.
Energy’s Uncertain Path
Joseph M. Terranova of Virtus Investment Partners chose Constellation Energy Corporation (CEG) as his final pick, despite the stock’s recent decline. Constellation Energy reported third-quarter results on November 4th, revising its FY24 adjusted EPS guidance downwards, falling short of estimates. Terranova’s decision to back Constellation Energy, despite the recent downward revision, suggests he sees potential for a turnaround in the company’s performance.
Market Performance
The Utilities Select Sector SPDR Fund closed the day down 1.2%, indicating a slight dip in the utilities sector. Starbucks shares slipped by 1.9% to settle at $97.03, reflecting the market’s reaction to the company’s earnings report. Conversely, Freeport-McMoRan shares gained 1.5% to close at $46.27, showcasing the market’s positive response to its strong results. Constellation Energy’s stock experienced a significant decline, falling 12.5% to close at $225.95, reflecting the impact of the revised guidance.
