Peter Burpo is the portfolio manager at Legg Mason Clearbridge US Large Growth Fund, part of the Franklin Templeton Group. His five favorite stocks are Intuitive Surgical, Sherwin-Williams, Netflix, Palo Alto Networks, and Nike.
1. My surgeon is intuitive
this Manufacturer of robotic instruments for soft tissue surgery. The market for soft tissue procedures is huge, including those performed using the company’s DaVinci machines, whose 3D imaging capabilities require smaller incisions. DaVinci machines can run continuously throughout the day, allowing more procedures to be performed with less stress for the physician.
we wait that intuitive surgery benefits from more indications of devices,Acceleration in the growth of procedures and one Increase Sales In hospitals and surgical centers.
2. Sherwin Williams
We are attracted to the sustainability of this growth Manufacturer of paints and coatings. SHW has a strong brand portfolio and a history of pricing power that outweighs rising raw material costs. Coating is still a small part of the total input cost that can be passed on during inflation and sustained during deflation.
We like SHW over other competitors because Better sizesFrom Revenue base focused on the domestic market and strong relationships with the home builders and professional community.
After a disappointing period of subscriber losses, which followed a growth spurt during Covid-19, Netflix is resetting its business to more attractive evaluation. More details about internal management, third-party advertising partners, and costs of creating ad activity has improved sentiment towards equity.
In addition, How quickly the company has converted to an advertising model And he also wanted to Managing content spending growth Over time, managing returns also encourages long-term shareholder value.
4. Palo Alto Networks
this is Enterprise Cyber Security Solution Providerincluding next-generation firewalls and threat detection software, delivers strong operational results with Strong customer demand for its security products. in particular, Palo Alto’s next-generation security cloud suite Growing at very strong levels and the company continues to introduce new product improvements to its portfolio.
the event It, along with other security firms, benefited from the anticipation of an increase in global cybersecurity attacks After the Russian invasion of Ukraine.
A new management team is focused on controlling the Nike brand with a Better distribution managementincluding continuous migration to direct channel to the consumer (DTC). The company continues to post a figure below the benchmark in the women’s category.
Although stocks have suffered recently, we believe that inventory reduction should not impede the company’s long-term revenue growth or margin expansion. Estimates may carry some risk, but part of the revision and a large part of the multiple deflation is in the present value.