Marc Pinto, the head of oversees and equity strategies at JanusCapital Group Inc. Has recommended Home Depot Inc (NYSE:HD) as a good investment. Pinto also recommended Apple Inc. (NASDAQ:AAPL) and Union Pacific Corporation (NYSE:UNP) as good stocks to buy.
Home Depot Inc (NYSE:HD) is an American retailer of home improvement and construction products. The company is the largest home improvement retailer in U.S. The company as such is dependent on housing market. The company had a setback during the housing crisis. However, the recent positive trends in economic and housing market growth willhave a good effect on the home improvement market.
In an interview to Bloomberg television, Pinto stated that Home Depot will perform well if the economy does better, and the housing market improves. The only impediment could be the Federal Department, according to Pinto.
The Central Bank of the U.S. will raise the interest rates for the first time since June 2006. The raise comes amidst stronger job market and growth in consumer spending.
Pinto also noted the “absolute dominance of the high end” of Apple in high-end products and is optimistic about its future.
Apple has legendary brand loyalty and is the most valuable brandin the world according to International Global Brands Report. However, the company has come under some criticism regarding its treatment of workers and business practices.
On Union Pacific, Pinto sees some problems due to lowering of commodity prices. However, Pinto is still optimistic in the long run.
Union Pacific stock though are down 10% from the previous year due to downgrade by analysts and revised revenue guidance by its peers.Coal prices have plummeted due to low demand and high supply. This has led to steep decline in railroads’ export coal carloads.
Low prices in the coal market and weak demand of utilities are main reasons for the prediction of weak energy sector volume and the lower revenue expectations.
Crude oil prices have also declinedputting additional pressure to the stock price.