The
year
has
reached
its
halfway
mark
and
several
stocks
have
seen
massive
rallies
as
investors
remain
bullish
on
themes
like
artificial
intelligence,
electric
vehicles
and
more.
The
S
&
P
500
benchmark
and
Nasdaq
Composite
have
been
on
the
uptrend,
with
both
hitting
new
52-week
highs
on
Friday,
the
last
trading
day
of
the
quarter.
Looking
ahead
to
the
second
six
months
of
the
year,
one
long-term
investor
is
“pretty
positive”
on
the
market,
naming
stocks
he
is
betting
on
as
the
“market
goes
from
strength
to
strength.”
“In
terms
of
opportunities
for
the
rest
of
the
year,
I
feel
it
is
worthwhile
to
have
a
good
weighting
in
technology
and
communications
services.
I
would
also
look
to
have
exposure
to
industrials,
energy,
healthcare
and
large
financials,”
Christopher
Carey,
portfolio
manager
at
the
U.S.-headquartered
Carnegie
Investment
Counsel
which
manages
around
$4
billion,
told
CNBC
Pro.
Speaking
on
June
26,
Carey
described
his
investment
strategy
as
finding
“the
best
of
the
breed,”
which
offer
“great
margins,
superior
moats,
fantastic
financials
and
superior
management
teams.”
“The
goal
is
to
be
able
to
hold
these
stocks
for
a
while
to
benefit
from
the
magic
of
compounding,
which
can
take
a
long
time.”
he
added.
Cintas
Corp
Top
of
Carey’s
list
is
Cintas
,
which
offers
products
and
services
for
businesses
ranging
from
uniforms
to
cleaning
supplies
and
safety
courses.
Calling
it
a
“great
company,”
the
portfolio
manager
likes
the
size
and
scale
of
its
operations
and
focus
on
acquisitions.
“Cintas
is
getting
stronger
and
stronger
with
each
acquisition
they
make
and
every
new
customer
they
get.
There
are
many
other
companies
in
the
industry,
but
over
time,
they
either
sell
out
to
Cintas
or
their
financials
look
terrible
in
comparison,”
Carey
said.
Shares
in
Cintas
have
been
on
the
rise,
gaining
around
16.2%
year-to-date
and
nearly
41%
in
the
last
12
months.
According
to
FactSet
data,
of
19
analysts
covering
the
stock,
10
give
it
a
buy
or
overweight
rating.
The
average
price
target
on
the
shares
is
$710.34,
which
implies
a
slight
upside.
Deere
&
Company
Another
company
that
Carey
likes
is
Deere
&
Company
,
or
John
Deere.
The
agricultural
equipment
manufacturer
is
set
to
“benefit
from
precision
agriculture
and
less
arable
land
worldwide,”
he
said,
as
climate
conditions
get
harsher
and
put
pressure
on
the
need
for
alternate
food
sources.
“This
is
a
company
that
has
demand
regardless
of
how
the
economy
performs.
It
is
not
like
AI
which
can
go
out
of
fashion.
Everyone
needs
to
eat,
so
it
will
never
go
out
of
fashion,”
Carey
added.
Deere’s
stock
has
underperformed
of
late
following
a
lower
full-year
profit
forecast
,
falling
6.6%
year-to-date
and
around
7.8%
over
the
last
12
months.
Of
27
analysts
covering
the
stock,
14
give
it
a
buy
or
overweight
rating,
according
to
FactSet
data.
The
stock’s
average
price
target
of
$425.27
gives
it
upside
potential
of
13.8%.
Charles
Schwab
Financial
services
player
Charles
Schwab
is
another
of
Carey’s
favorites
given
its
pivot
away
from
the
traditional
banking
and
brokerage
model
toward
the
more
niche
registered
investment
advisors
(RIA)
space.
This
transition
has
given
Schwab
“tremendous
growth
in
terms
of
their
client
base
and
the
assets
under
their
custody,”
the
portfolio
manager
said.
“I
have
seen
the
dollars
that
are
going
into
RIA
firms
—
the
flow
is
set
to
overtake
the
bank
and
brokerage
world
within
the
next
couple
of
years,
which
is
remarkable
and
Schwab
is
becoming
a
completely
different
company.”
The
company
completed
the
integration
of
former
rival
TD
Ameritrade
earlier
this
year.
It
is
also
planning
to
roll
out
an
alternatives
platform
for
investors
with
more
than
$5
million.
Shares
are
up
around
7.1%
year-to-date
and
about
30%
in
the
last
12
months.
Fourteen
of
21
analysts
covering
the
stock
give
it
a
buy
or
overweight
rating,
according
to
FactSet
data.
The
average
price
target
of
$79.67
gives
it
upside
potential
of
8.1%.
Stryker
Another
stock
Carey
is
watching
is
medical
technology
player
Stryker
.
The
company,
which
manufactures
hospital
equipment
and
implants
used
in
joint
replacement
and
trauma
surgeries,
is
set
to
see
strong
demand
and
“incredible
margins
and
gains”
from
a
globally
ageing
population,”
he
said.
“Stryker
is
a
company
that
should
capitalize
on
multi-decade
trends,
and
that’s
where
we
want
to
be
positioned,”
Carey
added.
Shares
in
Stryker
are
up
around
13.6%
year-to-date
and
12.5%
in
the
last
12
months.
FactSet
data
shows
that
21
of
31
analysts
covering
the
company
have
a
buy
or
overweight
rating
on
the
stock,
with
an
average
price
target
of
$378.58
indicating
around
11.3%
upside.
