In a volatile scenario, in which 55% of Nasdaq companies have fallen more than 50% from the peaks of the previous 12 months, stock picking is essential. Word of Christophe Nagy, manager of Comgest’s Comgest Growth America fund, that the recent sell-off could awaken interest in US equities, based on a solid economy, and open up exciting new opportunities. However, the objective remains unchanged: to select “quality companies, profitable and with interesting growth prospects”.
Here are some names to keep an eye on according to the expert. Johnson & Johnson, for example, reported organic revenue growth of 12% last quarter, buoyed by its Covid-19 vaccine and successful launch of new pharmaceuticals and medical devices. Similarly, Microsoft increased revenue by 20%, thanks to Azure cloud services and Office offerings, increasing operating margins to 43%. Product innovation contributed to Apple’s 11% increase in sales, underscoring the company’s resilience despite difficulties in the global supply chain. Finally, Activision Blizzard received a takeover offer from Microsoft, which raised its shares over the period.