economy
Looking for strong returns outside of AI? Buy these ‘non-tech compounders,’ says Trivector Research
Volatility in July reminded investors of the risks tied to increasingly crowded trades powered by the AI boom and a massive run in semiconductor shares.
TL;DR
- Trivector Research recommends 'non-tech compounders' for investors seeking diversification from AI and semiconductor stocks.
- These companies are selected based on strong free cash flow margins, positive price momentum, and expanding gross margins.
- Eli Lilly, a healthcare company, is highlighted for its growth in obesity drugs and recent acquisitions.
- Parker-Hannifin, an industrial equipment maker, shows consistent sales growth and dividend increases.
- Tapestry, the parent company of Coach and Kate Spade, demonstrates strong revenue growth and has raised its full-year outlook.