The markets are off to a rough start this year, but despite the noise, these are three stocks to bet on, says RBC Capital Markets’ head of global research, Marc Harris.
Placing Aramark in its transformative bucket, RBC considers that the food service company is resilient in this tough economic environment and the kind of stock that investors would want to own now.
“This is a [earnings-per-share] doubling store over the next couple of years,” he said in a conversation with “Power Lunch.” “This is a company that only six months ago hardly had technology managing 200,000-plus employees in their scheduling.”
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Analysts see a buying opportunity at thisretailer
Favoring companies that “do not need a robust economic environment” to function, Harris is bullish on Dollar Tree.
The company is “focused on items for a dollar; we know the way that works and that’s good,” he said on Thursday.
Dollar Tree, which concluded its acquisition of Family Dollar in the second quarter of fiscal year 2015, reported earnings that exceeded the expected revenues, but missed on the bottom line, according to analysts at Zacks.
The investment research firm gives the discount store a “hold” rating, arguing that “the giant arising from the combination of these two companies is likely to be strong enough to single-handedly counter competition from retail bellwethers such as Wal-Mart Stores Inc.”
Newell Rubbermaid, a company the expert favors after it was recently announced that it will be merging with Jarden, the consumer products company, also made the cut.
“They can take out costs [and] they can get revenue synergy out of the combination,” he told CNBC.
[“source-businesstoday”]
