3 top post-shutdown stocks to buy
Canaccord Genuity's David Rovelli says Qualcomm could benefit from strong performances at Apple, Samsung and Google.
Beyond a resolution of the budget fight in Congress, three companies stand to do well over the next year, Canaccord Genuity Managing Director of U.S. Equity Trading Dave Rovelli said Wednesday.
"You have about $4 billion into the buyback so far," he said. "You have the new rollout of the 5s and 5c are going to be in last quarter's earnings, and also you have the iPad upgrade coming Oct. 22 from Apple. Plus, you have all the royalties on top of that from Android, Samsung and so on."
Gulfport, he added, would be "the next Pioneer (PXD), the next PXD" and would likely see a 150 percent increase in production next year. Following news of a deal in Washington to end the partial government shutdown and raise the debt ceiling, Rovelli said that he had not expected the United States to default on its debt obligations.
"In my view, there's no way Congress could ever let that happen just because if it did happen it would be so catastrophic, none of them would ever get re-elected again—and that's all they care about—not to mention what it would do to our society as a whole," he said.
Rovelli also said that he was bullish on stocks, noting that the 100-day moving average in the S&P 500 ($INX) had served as an important support level over the past 11 months.
"Every time we come close to it, the most we stay below it is two days and we have anywhere from a 3 to 15 percent rally afterward, and I say stay long it," he said. "If we don't go through 1,725, you buy as you gradually come in. As long as we hold the 100-day, I'm bullish on the market."
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