Librarian Capital's Monthly Top Buys And Price Moves - March 2022

(Preview) Portfolio Strategy

Summary

• PayPal offers a 30%+ forecasted annualized return, while Visa and Mastercard are also attractive, having been flattish year-to-date.

• Charter's Q4 2021 results demonstrated the earnings algorithm in U.S. Cable is still intact, and we expect an annualised return of 32%.

• Meta stock is down 37% year-to-date, more than pricing in low forecasts; Alphabet is down 7%, despite multiple growth engines.

• Tobacco stocks have been resilient as expected, except Swedish Match, which has been weak despite key U.S. market share gains in Q4.

• Zoetis has been upgraded to Buy after its shares fell 22% from their peak. Structural growth in its pet business should drive a 12% EPS CAGR.

Introduction

In this monthly newsletter, we try to identify the most attractive opportunities in our research coverage by reviewing price moves and key news by sector.

2022 has been tumultuous for equity markets so far, first with Technology stocks like Meta Platforms, PayPal and Netflix falling 20%+ in a single day after resu…