In a politically divisive ecosystem, about the only thing we can achieve bipartisanship on are Nancy Pelosi stocks. Yes, the former House Speaker herself represents a lightning rod for controversy. Yet she seems to know her way around the market.
That’s not surprising. Love her or not love her (let’s not get too negative here), we must respect her shrewd gamesmanship and intellect. Of course, depending on where you land in the political spectrum, you’re going to disagree with that last point. That’s okay. The point is you can’t be a complete fool to be elected to Congress.
Well, maybe I shouldn’t have said that. Let’s move on – below are still-relevant Nancy Pelocy stocks still worth buying in the second quarter.
Palo Alto Networks (PANW)
Falling under the broader technology ecosystem, Palo Alto Networks (NASDAQ:PANW) plies its trade in the software infrastructure space. Specifically, it’s one of the top names in the cybersecurity realm, an increasingly important arena. While we talk a great game about rising innovations such as artificial intelligence, they also potentially leave us vulnerable to nefarious activities.
Fundamentally, it’s one of the Nancy Pelosi stocks to buy for the obvious reason that cybercriminals will continue committing crimes. What’s worse, AI could lower the threshold for budding hackers, making enterprise security all the more relevant. Therefore, it’s not at all surprising that in the last fiscal year, the company beat all four quarterly bottom-line targets.
For the current fiscal year, analysts anticipate earnings per share of $5.50. That’s a significant increase over last year’s print of $4.44. On the top line, they believe revenue could reach $7.98 billion. Again, that’s a noticeable bump (15.8%) over fiscal 2023’s $6.89 billion tally. It’s easily one of the Nancy Pelosi stocks to buy in Q2.
Apple (AAPL)
Consumer technology giant Apple (NASDAQ:AAPL) needs no introduction, if only for the reason that there’s a very good chance you own one of its products. If viewership metrics are anything to go by, there’s also a solid chance you’re reading this on an Apple device. Naturally, AAPL stock makes for a solid investment despite pressures against the economy.
Yes, discretionary spending faces significant headwinds. That’s not a shocking statement after years of high inflation and high borrowing costs. Nevertheless, Apple has a social cachet that can’t be ignored. People need its products even though technically, they don’t need it. Such a backdrop has led to consistent profitability. Last fiscal year, Apple beat all its quarterly bottom-line targets.
For the current fiscal year, analysts are looking for EPS of $6.56. That’s a decent bump from last year’s metric of $6.13. On the revenue front, we’re not looking at great numbers: an average estimate of $387.95 billion against last year’s print of $383.29 billion. Still, for overall stability, AAPL could make a solid case for Nancy Pelosi stocks to buy.
Microsoft (MSFT)
Another big play among Nancy Pelosi stocks that requires no introduction, I’m definitely using Microsoft (NASDAQ:MSFT) products to write this story. So, you know who to blame. In all seriousness, Microsoft’s Software as a Service (SaaS) is an indispensable asset in the business or academic world. You can play around with other platforms but when things need to get done, Microsoft is the name (almost) everyone turns to.
Yes, the spotlight centers on the company’s major investments in AI. So far, this directive has proved very lucrative. Nevertheless, I like Microsoft for its everyday relevancies: the aforementioned SaaS as well as its practically universal operating system and cloud-computing network. It’s difficult to imagine life without the tech juggernaut. Unsurprisingly, it has been consistently profitable.
For fiscal year 2024, analysts are seeking EPS of $11.65, well above last year’s print of $9.81. Notably, even the least-optimistic projection stands at $11.40. For revenue, we’re talking about $244.22 billion, up a massive 15.2% from last year’s haul of $211.91 billion.
I think it’s a buy, irrespective of the Nancy Pelosi connection.
American Express (AXP)
Even with the vaunted category of Nancy Pelosi stocks, you come across some tricky narratives. For me, that would be American Express (NYSE:AXP). Don’t get me wrong – I think it’s a fine company. You never leave home without it, am I right? Still, with so many Americans indebted (to the tune of over $1 trillion), I’m a bit concerned about credit-card companies.
Let’s get that out of the way first. Having said that, let me also say that if I had to invest in a credit card company, it would be AXP stock. Why? American Express generally caters to a wealthier clientele. And so, even with rising plastic delinquencies, AmEx customers should be the least impacted. It’s still a tricky play though. In the first and fourth quarters last year, the company missed analysts’ EPS targets.
Looking to the end of fiscal 2024, experts believe that AmEx will post EPS of $12.80. That’s up noticeably from last year’s print of $11.21. For revenue, we’re looking at $66.15 billion, up 9.3% from 2023’s tally of $60.52 billion.
Disney (DIS)
To start, Disney (NYSE:DIS) is one of the Nancy Pelosi stocks that the namesake legislator has been selling. It’s understandable. While the entertainment giant – which features an enviable content library along with a portfolio of theme parks and resorts – commands a massive brand, it has also struggled since late 2021. Still, a clear recovery is in play.
Since the beginning of the year, DIS stock gained over 35% of equity value. Over the past 52 weeks, it’s up more than 23%. Sure, at this point, it does trade at 75.81X trailing-year earnings. As well, it runs a sales premium of 2.52X last year’s revenue. Nevertheless, it’s also possible that the entertainment leader is attempting to return to its throne. I think it’s worth considering.
In Q1 2023, Disney met the analysts’ EPS target of 93 cents. From Q2 to Q4, the positive earnings surprise came out to 8.4%, then 17.1%, finally culminating at 23.2%. That’s earnings growth if I’ve ever seen it.
For fiscal 2024, analysts are looking for EPS of $4.68 against last year’s result of $3.76. Given the trend, it’s a solid wager.
Alphabet (GOOGL)
The former House speaker has both bought and sold shares of tech juggernaut Alphabet (NASDAQ:GOOGL). Most recently, she has trimmed her exposure to GOOGL stock. Still, even without her direct show of support, I think it’s one of the Nancy Pelosi stocks to consider. Yes, GOOGL has enjoyed a solid run, moving up 48% in the past 52 weeks. There could still be more gains to be had.
One of the criticisms against Alphabet is that it’s not particularly winning the generative AI game. Microsoft’s investment in OpenAI and its chatbot ChatGPT has taken the world by storm. Alphabet’s Gemini (previously called Bard) is okay but doesn’t have first-mover advantage. Still, as I argued previously, Alphabet could eventually tweak its platform to become a true AI winner. It practically owns the internet so an exploitable synergy exists.
For fiscal 2024, covering experts believe EPS will reach $6.81. That’s a big jump from last year’s print of $5.80. Also, they’re looking for revenue to land at $342.34 billion. Again, we’re talking a large gap from last year’s result of $307.39 billion.
PayPal (PYPL)
Finally, we come to the riskiest idea among Nancy Pelosi stocks, financial technology (fintech) stalwart PayPal (NASDAQ:PYPL). It’s so risky that she decided to sell it. I can understand the decision and I’d say it’s worked out for her. While PYPL is up more than 5% since the beginning of the year, it’s down 14% in the trailing year. Obviously, that’s not encouraging amid wider tech bullishness.
Still, I’m not ready to abandon ship on PYPL just yet. For example, with the Covid-19 crisis imparting massive changes in the workforce, the gig economy could rise higher than expected. That would certainly be the case as more companies demand a return to the office. It’s also interesting to note that PayPal has performed quite well last year against bottom-line targets.
For fiscal year 2024, analysts are looking for EPS of $5.07. That’s a bit disappointing compared to last year’s result of $5.10. However, revenue might land at $31.86 billion. If so, that would be a 7% bump from last year’s tally of $29.77 billion. It’s worth looking into if you’re a contrarian.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
