Barron’s First Picks And Pans Of 2021: Disney, Home Depot, Intel, Nike, Nordstrom And More

Market Trading EssentialsJanuary 2, 2021

3 minutes read

This weekend’s Barron’s cover story offers 12 alternatives to bonds for income investors.
Other featured articles examine values stocks worth a look, parallels between internet and transportations stocks, and how to play a consumer discretionary rebound.
Also, the prospects for a luxury retailer, a struggling semiconductor giant, a media colossus and more.

Cover story “Bonds Offer Slim Pickings for Yield-Hungry Investors. 12 Places to Look Instead” by Andrew Bary indicates that while the bond market has been a barren field for income, there are rich pickings elsewhere. See why energy pipeline companies like Enterprise Products Partners L.P. (NYSE: EPD) and dividend stocks like Verizon Communications Inc. (NYSE: VZ) top the Barron’s list of the best yield plays for 2021.

Nicholas Jasinski’s “These 7 Value Stocks Deserve a Fresh Look” suggests that investors and strategists are betting that 2021 finally will be the year when value stocks outperform growth. But finding the right value stocks for 2021 is not easy. Barron’s thinks Bank of America Corp (NYSE: BAC) and Coca-Cola Co (NYSE: KO) are among those that could outperform.

In “How the Railroad Tracks Led to the Internet Age,” Kenneth G. Pringle says that early railroads were the internet of their day, connecting people and commerce and ushering in cultural change. See what Barron’s believes the likes of CSX Corporation (NYSE: CSX) and Facebook, Inc. (NASDAQ: FB) have in common.

Nordstrom, Inc. (NYSE: JWN) has invested in online business, cut costs and even tried out smaller stores. That should lift the shares as the economy recovers. So says “Why Nordstrom Looks Like a Department Store Survivor” by Teresa Rivas. How much room to run does the stock have?

In Jack Hough’s “It’s Best to Think Small When Playing a Rebound in Consumer Spending,” the case is made that 70% of people in developed markets will be vaccinated by fall and that U.S. corporate profits this year will hit new records. Is Costco Wholesale Corporation (NASDAQ: COST) a way to play the consumer discretionary rebound? Is Mcdonald’s Corp (NYSE: MCD)?

“An Activist Scolds Intel, Giving Its Investors Hope for 2021” by Max A. Cherney points out that Intel Corporation (NASDAQ: INTC) shares fell handily in 2020, despite increased demand for computing power. Find out how activist investor Dan Loeb could force the semiconductor maker to shake things up in the coming year.

The pandemic has been a boon for big-box home improvement store operator Home Depot Inc (NYSE: HD) as consumers poured money into their homes. This according to Teresa Rivas’s “Why Home Depot Could Be a 2021 Success Story.” See why Barron’s believes the stock could continue to flourish this year as well.

In “Nike Has Soared During Covid. So Have Investors’ Expectations For 2021,” Teresa Rivas claims that Nike Inc (NYSE: NKE) rebounded fast from the initial strain of the COVID-19 pandemic, but the stock’s stellar financial performance sets the bar high for the coming year. Can the footwear purveyor prevail again?

Nicholas Jasinski’s “Disney Ended the Year on a High Note. Why 2021 Could Be Even More Exciting” discusses how the rapid growth and future potential of the Walt Disney Co (NYSE: DIS) streaming services have far outshined the challenges facing the rest of the company’s businesses. What comes next for the Mouse House?

Also in this week’s Barron’s: