Main Street Research's chief investment officer, James Demmert, advises investors to sell shares of McDonald's and Charles Schwab, citing concerns about earnings weakness and shareholder overhang. He recommends buying SAP, highlighting its exposure to artificial intelligence and potential for growth.
have been outperforming the market this year, but now may be the time for investors to sell the stocks, according to James Demmert, chief investment officer of Main Street Research.on Monday to share his opinions on where he thinks some of the biggest stocks in the market are headed. Here are his thoughts on the two stocks to sell, as well as one name he encourages traders to buy., the move higher belies the weakness in the earnings report, Demmert said.
The stock's climb higher on Monday is the perfect opportunity for investors to sell on the strength, Demmert added. The stock is already trading at 23 times earnings, with limited further upside potential in a very competitive market, he added.Broker Charles Schwab is another name investors should look to leave, according to Demmert."You don't want to wake up as a public shareholder or company and find out that your largest stakeholder is selling shares.
"With this overhang of one of the largest shareholders selling, I think it's going to put some brakes on the stock's ability to go to higher," said Demmert."I think this is a stock that — yes, maybe buy it cheaper — but here we'd be a seller."
STOCK MARKET INVESTING MCDONALDS CHARLES SCHWAB SAP
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Quantum computing stocks sell-off accelerates as Zuckerberg becomes latest tech CEO to temper sector enthusiasmQuantum computing stocks sold off Monday after Meta Platforms CEO Mark Zuckerberg cautioned that quantum computing uses remain years away.
Read more »
JPMorgan Identifies Stocks to Sell Short Ahead of New YearJPMorgan Chase & Co. has released a list of stocks it believes are likely to decline in value heading into the new year, citing factors such as rising interest rates, a strengthening dollar, and investor pessimism towards Big Tech. The list includes a range of companies across various sectors, such as healthcare, technology, consumer goods, and industrials.
Read more »
DeepSeek's AI Challenge Sparks Global Sell-Off in Tech StocksChinese startup DeepSeek's rapid development and deployment of a powerful open-source AI model has triggered a global sell-off in technology stocks, raising concerns about American dominance in the AI sector.
Read more »
DeepSeek's Low-Cost AI Model Sparks Global Sell-Off in Tech StocksA Chinese startup's development of a highly competitive AI model at a fraction of the cost of Western counterparts has sent shockwaves through the global tech sector, triggering a sell-off in U.S. technology stocks. DeepSeek's impressive achievements raise questions about the efficiency of investments made by major tech companies and the potential for disruption in the AI landscape.
Read more »
Treasury yields drop as investors look for safety after AI sell-off in stocksU.S. Treasury yields fell on Monday as investors flocked to bonds amid a stock market selloff.
Read more »
DeepSeek AI Model Sparks Sell-Off in US Tech StocksChinese firm DeepSeek's launch of its competitive generative AI model R1, capable of rivaling OpenAI's technology at a fraction of the cost, triggered a panic sell-off in US tech stocks on Monday. Investors are concerned about the potential disruption to American tech giants' dominance in the AI market.
Read more »