Looming recession and the Ukraine war; there’s sufficient at present that could scare investors out of the stock market. Still, Grace Capital’s Catherine Faddis remains bullish on U.S. equities.
Faddis likes ResMed Inc stock
We have an aging population. 25% of the population over age 30 suffers from some form of Sleep Apnea. And ResMed sells a breathing machine and a mask you wear during sleep. Addressable market is $900 million globally, it’s a growing company, debt-free, enormous FCF margins.
At a PE multiple of 65.77, she agreed that RMD wasn’t a cheap stock, but reiterated that the growth prospects still made it a “buy”.
Faddis doesn’t see a recession coming
Part of the reason why Faddis still has a positive outlook on the U.S. stock market is that she doesn’t see a recession coming. The founder and CEO of Grace Capital said:
I disagree with Carl Icahn. I don’t see a recession. I’m looking at jobs. So long as people are employed, we’re not going to see a recession. I’m not concerned about the Fed, the flattening of the yield curve doesn’t concern me, inflation I think of as temporary.
Her outlook is starkly different from Phil Palumbo, who said a day earlier that investors should brace for recession by the end of 2022 and into 2023.
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