High-profile voices warning of an impending recession are growing louder. Judging by Wall Street’s performance, it appears that a recession is almost inevitable. A prominent name who has expressed an opinion on the subject is the billionaire David Rubenstein.
The co-founder of Carlyle Group believes that, due to the current economic environment of high interest rates, gross domestic product growth is bound to slow down, thus increasing the chances of a recession.
Moreover, Rubenstein believes the Fed is unlikely to curb aggressive rate policy until the unemployment rate reaches around 6%the threshold from which inflation should cool down.
As a co-founder of a company of private equity with almost $400 billion in assets under management, we can say that Rubenstein knows the dynamics of the markets and has some experience in “stock picking.” Currently, the Carlyle Group co-founder is heavily invested in two stocks representing the 76% of his company’s portfolio.
Moreover, Rubenstein is not the only one to show confidence in these two names, according to the TipRanks database, Wall Street analysts rate both companies with a “buy” rating.
David Rubenstein’s two favorite titles
- ZoomInfo Technologies, the company’s shares carry weight within Rubenstein’s entire portfolio pari al 39% with an equivalent of almost $1.6 billion. The company also known as – The Other Zoom. The B2B data and software provider collects information about companies and professionals and uses artificial intelligence (AI) to provide sellers with a better understanding of the market and potential customers. According to Q3 numbers, ZoomInfo remains resilient in the current market environment. THE revenues have increased by 45,5% su base annua a 287,6 millions dollars, beating Wall Street forecasts by 9.12 million of dollars. Earnings per share also nearly doubled from the year-ago quarter since $ 0,13 a $ 0,24also surpassing the consensus estimate of $ 0,20. While analyst expectations for 2023 guidance were more ambitious, the company’s outlook for the fourth quarter and 2023 remains cautious.
- QuidelOrtho Corporation, shares in Rubenstein’s second favorite company carry weight within his portfolio 37% for an equivalent of $1 billion. QuidelOrtho, a result of the $6 billion acquisition of Quidel by Ortho Clinical Diagnostics earlier this year, is a leading developer and manufacturer of diagnostic testing solutions. Quidel released its third quarter numbers in early November. Revenues amount to $ 783.8 millioni, growing by 54% compared to the same period a year ago. However, net income dropped quite dramatically and led to a decline in earnings per share from 54% to $1.85. That said, the results exceeded Wall Street’s expectations. More recently, the stock experienced a slight sell-off following the company’s investor day, in which the company lowered its three-year financial outlook for both revenues and adjusted EBITDA margins, disappointing investors.