Compound and Defend
In this edition of the Smart Investor newsletter, we examine the stock of the leading U.S. cybersecurity company. But first, let’s dive into the latest Portfolio news and updates.
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Market & Portfolio Update
As we enter uncharted territory with the onset of a global tariff war, markets are experiencing a notable surge in volatility. This environment has reduced visibility into earnings and valuations to nearly zero, leaving analysts at a loss on how to factor near-total uncertainty into their outlooks.
The only thing that seems to matter for stock-market participants right now is news on tariffs – with wild swings following any update, rumor, or flicker of hope. After the carnage induced by the initial announcements, stocks tried to stage a rebound on rising hopes for negotiated deals. Still, we’re not getting our hopes up – optimism can give way to another bloodbath at the click of a keyboard. But even if a bear market emerges, we will “keep calm and carry on,” as history helps us keep firm hands on the wheel.
Since 1940, the S&P 500 has weathered 32 corrections and 14 bear markets – including three with drawdowns over 40% – and rebounded from all of them with powerful rallies to new all-time highs. While the speed and extent of current market swings are exceptional – and no one can predict the full fallout of this trade war – this is not the end of the world. It may mark the end of the world’s existing trade order – but not of long-term stock investing.
In this environment, Smart Investor is staying focused on what matters: fundamentals and business quality. We are not chasing short-term narratives or fear-driven swings. Instead, we continue to monitor industry leaders and resilient growers, prepared to act when quality names reach compelling valuations relative to their long-term earnings power and historical benchmarks.
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Portfolio Updates
❖ BlackRock (BLK) CEO Larry Fink warned that stocks could fall another 20% and suggested the U.S. may already be in a recession. Still, he framed the selloff as a long-term buying opportunity rather than a reason to panic. Meanwhile, JPMorgan Chase (JPM) CEO Jamie Dimon said that while tariffs might not trigger an outright recession, they could weigh on economic growth and contribute to higher inflation.
❖ Analysts are slashing price targets across sectors and market caps as they attempt to catch the falling knife of a broad market selloff. Bucking the trend, analysts at Raymond James and Scotiabank raised their price targets on Verizon (VZ), citing strong fundamentals and the company’s defensive positioning in a volatile environment.
❖ Another “old tech” name to receive a price-target upgrade amid widespread downgrades was IBM (IBM), earning a vote of confidence from Morgan Stanley. Additionally, analysts at Wedbush noted that IBM – along with Microsoft (MSFT), Oracle (ORCL), Salesforce (CRM), and other large-cap software names – is relatively insulated from tariff-related headwinds, though none are immune to slower enterprise spending or delayed deals in the event of a capex pullback.
In other company news, IBM announced it has acquired Hakkoda Inc., a U.S.-based data and AI consultancy. The deal, completed on April 2, 2025, will expand IBM Consulting’s data transformation services, adding specialized platform expertise to help clients prepare their data for AI-powered business operations.
❖ Outside the tech universe, price-target upgrades remain scarce as analysts adjust forecasts to reflect sudden multiple compression across sectors. One notable exception: Progressive (PGR), which just received a $20 price-target hike from JPMorgan. The bank maintained its “Buy” rating, citing a favorable outlook for the P&C insurance industry and Progressive’s strong underwriting profitability.
❖ Microsoft’s (MSFT) joint venture, Wicresoft, will cease its China operations immediately, aligning with the tech giant’s strategic retreat amid escalating U.S.-China trade tensions and increased competition from local firms. This move is part of a broader trend of U.S. tech companies reducing their presence in China. For instance, IBM (IBM) closed its research and development operations in China in 2024, relocating functions to other countries due to rising competition and a challenging business environment. These developments underscore the ongoing decoupling between the U.S. and China in the technology sector, driven by geopolitical tensions and efforts to diversify supply chains.
❖ According to a Bloomberg report, Microsoft (MSFT) has paused or delayed data center developments across several locations, including Indonesia, the U.K., Australia, Illinois, North Dakota, and Wisconsin. This includes withdrawn lease negotiations, delayed construction, and lapsed exclusivity agreements – some involving sites designed to support high-end Nvidia AI hardware.
While Microsoft remains publicly committed to its $80 billion fiscal-year data center capex, the pullbacks suggest increased scrutiny around project prioritization and return on investment in AI infrastructure. TD Cowen analysts noted that Microsoft may be facing a near-term oversupply risk and is adjusting its buildout pace based on updated AI demand forecasts. There is also speculation that OpenAI’s evolving partnership with Oracle (ORCL) and SoftBank may be diverting workloads away from Azure, reducing internal pressure to expand hyperscale capacity.
Microsoft attributed the changes to strategic flexibility and logistical factors such as labor, power availability, and material constraints. Still, the timing has raised questions. Bloomberg emphasized that the pullback may reflect a reassessment of AI and cloud demand, compounded by the well-known infrastructure challenges that are widely affecting the industry.
❖ Salesforce (CRM) announced a 4% hike in its quarterly dividend, underscoring the company’s commitment to delivering value amid challenging market conditions. In additional news supporting investor confidence, Salesforce’s director Oscar Munoz purchased nearly $1 million-worth of company shares.
❖ According to media reports, Japanese semiconductor startup Rapidus is in discussions with major U.S. tech companies – including Apple, Meta, Alphabet (GOOGL), Amazon (AMZN), and Microsoft (MSFT) – to mass-produce advanced chips by 2027. The company has initiated partial operations of a prototype chip production line in Hokkaido, aiming for full functionality within the month. This initiative seeks to diversify global chip manufacturing amid U.S.-China tensions and reduce reliance on dominant players like Taiwan’s TSMC (TSM). The Japanese government plans to invest 200 billion yen (approximately $1.37 billion) in Rapidus starting April 2025 to support these efforts.
❖ Broadcom’s (AVGO) stock surged after the company announced a $10 billion new buyback plan, reinforcing management’s confidence in the future growth. The new share repurchase plan will be valid through December 31, 2025.
❖ Taiwan Semiconductor Manufacturing (TSM) shares declined after Reuters reported that the world’s largest chip foundry may face a fine of up to $1 billion for allegedly violating U.S. export controls related to technology sales to China. The U.S. Department of Commerce is reportedly investigating whether an AI chip manufactured by TSMC matches one found in Huawei’s high-end processor, raising concerns about potential indirect supply to the blacklisted Chinese firm.
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Portfolio Stocks Under Review
❖ We are placing Uber (UBER) under review for a potential sale. The company remains a category leader in ride-hailing and food delivery, with a scalable platform, strong brand equity, and growing international reach. Its asset-light model has historically allowed it to navigate economic headwinds better than its peers, and its mobility segment – covering airport trips, commuting, and urban travel – still plays a semi-essential role in the U.S., where public transport alternatives are limited.
But Uber sits at a crossroads. It operates as a hybrid business: part essential transport utility, part discretionary service. That duality now cuts both ways. Uber Eats, its delivery arm, is particularly exposed to a pullback in consumer spending. As trade tensions and inflation expectations rise, food delivery is quickly shifting from convenience to luxury for many households. Consumers under pressure simply eat out less – and order in even less frequently.
Meanwhile, broader trade war fallout poses indirect but real risks. If tariffs push up vehicle costs or parts prices, the impact could flow through to Uber’s driver base, which leases or finances most of its cars independently. Higher maintenance costs could shrink driver availability or increase Uber’s costs to keep the platform fully supplied. That squeeze comes at a time when competition for drivers is already rising in several markets.
Further uncertainty looms in Europe, where the regulatory environment is turning sharply more aggressive toward U.S. tech. Increased scrutiny, potential antitrust fines, and retaliatory tariffs could drag on Uber’s profitability in key cities like Paris, London, and Berlin – markets where Uber has invested heavily and relies on steady legal clarity to operate.
We are not turning bearish on Uber’s long-term prospects. Its diversified platform and urban relevance offer some protection in a slowing economy. However, if macro conditions worsen or consumer spending continues to decline, Uber’s earnings power could come under pressure. With that in mind, we’re placing the stock under review for a potential exit. The situation is fluid, and we will be watching ride volume trends, consumer sentiment, and trade policy developments closely over the coming months.
❖ We are placing Charles Schwab Corporation (SCHW) under review for a potential sale. As a leading brokerage and financial services firm, Schwab has shown resilience through various market cycles, benefiting from a robust client base and a comprehensive suite of investment products.
However, recent developments call for a reassessment of its position within our portfolio. Shareholder activist John Chevedden has submitted proposals advocating for the declassification of Schwab’s board structure, aiming to enhance shareholder influence over the company’s management and make the board more accountable to shareholders. The board has expressed opposition to these changes ahead of its upcoming annual meeting on May 22, 2025.
This internal governance dispute comes during broad market turmoil driven by a global trade war, with elevated economic uncertainty triggering investor panic and driving heavy losses in major stock indices. Schwab’s internal dispute may lead to larger losses than at its peers due to the added uncertainty pressuring investor sentiment.
Schwab’s core business remains fundamentally sound, and we are not turning bearish on its long-term viability. However, in a market where stability and clarity are in short supply, we believe it is prudent to reassess exposure to companies facing both internal and external headwinds. We are placing SCHW under review and will revisit its position following the outcome of the shareholder meeting and further clarity on the direction of markets and trade policy.
❖ We are placing Howmet Aerospace (HWM) under review for a potential sale. Howmet, a key supplier for Airbus and Boeing, has raised the prospect of shipment disruptions following the latest tariffs announced by U.S. President Donald Trump. According to Reuters, the company notified customers via letter that the new trade measures could impede its ability to fulfill contracts, and formally declared a “force majeure” event – a legal clause that allows companies to suspend contractual obligations under extraordinary, unforeseeable external circumstances.
Howmet, a major player in the $150 billion jetliner supply chain, sources materials like aluminum and steel globally – many of which were already impacted by earlier tariffs. The new duties target additional countries critical to its operations, amplifying the pressure. This marks the first known instance of a major aerospace firm invoking force majeure in response to the latest round of tariffs, underscoring the strain on an industry still recovering from supply chain shocks.
While the letter does not announce a halt in shipments, it signals that HWM may be unable to fulfill some orders if compliance becomes economically or logistically unviable. The company also left room for negotiation, suggesting discussions with customers around cost-sharing.
In the short term, the declaration introduces legal and margin uncertainty that could weigh on sentiment and trigger a pullback in the stock. Analysts from Jefferies noted tariffs add “an extra layer of complexity” to an already strained industrial recovery, particularly in the first half of 2025, which could keep HWM volatile.
However, there are counterbalancing factors that may limit the downside or even support a rebound. Howmet’s CEO has emphasized the strength of existing contracts, which may allow tariff costs to be passed through to customers. If successful, this could protect profitability, though negotiations could delay resolution. Additionally, HWM’s role as a Tier 2 supplier provides structural leverage – Boeing and Airbus cannot easily replace it without deepening their own supply chain bottlenecks. The company’s underlying fundamentals remain solid, and its financial flexibility should help it weather near-term turbulence.
Longer term, Howmet’s strong position in aerospace metals remains intact, but persistent tariffs or strained customer relationships could impair growth or compress margins. We will re-evaluate after more clarity emerges around deliveries, negotiations, and trade policy direction.
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Portfolio Earnings and Dividend Calendar
❖ The Q1 2025 earnings season for the Smart Portfolio companies is beginning with the reports from Bank of New York Mellon (BK), BlackRock (BLK), Interactive Brokers (IBKR), and Progressive (PGR), schedule to be released in the next week.
❖ The ex-dividend date for Oracle (ORCL), Verizon (VZ), and Salesforce (CRM) is April 10.
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New Buy: CrowdStrike Holdings (CRWD)
CrowdStrike Holdings Inc. is a leading U.S. cybersecurity company focused on cloud-delivered protection for endpoints, cloud workloads, and identities. Its Falcon platform provides threat detection, prevention, and response capabilities through a single lightweight agent and unified interface. The company serves a broad range of enterprise customers, including governments and Fortune 500 firms, and operates entirely on a subscription-based model. Built for scale and remote deployment, CrowdStrike has become a key vendor as organizations modernize their security infrastructure. With a modular product approach and a focus on automation, it enables customers to consolidate tools and reduce complexity. CrowdStrike’s software-centric model positions it to benefit from long-term shifts toward cloud adoption and increased cybersecurity spending.
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Growth by Design
Founded in 2011, CrowdStrike initially built its reputation by identifying nation-state actors and cyberattacks through cloud-based threat intelligence. Its early focus on endpoint protection evolved into a broader cybersecurity platform, with the launch of Falcon in 2013 marking a turning point. By offering threat detection and response through a lightweight agent and centralized cloud delivery, CrowdStrike differentiated itself from legacy on-premise vendors. The company went public in 2019, leveraging its first-mover advantage in cloud-native security during a time when enterprises began modernizing IT infrastructure at scale.
The inflection point came over the past five years, as CrowdStrike aggressively expanded its platform and global reach. Between 2020 and 2024, the company launched and scaled multiple product modules beyond endpoint protection, including identity protection, cloud workload security, log management (Falcon LogScale), and IT automation (Falcon Foundry). These expansions increased its addressable market and positioned the Falcon platform as a full-suite solution for modern SOC (Security Operations Center) environments.
M&A played a strategic role in extending CrowdStrike’s capabilities. The acquisition of Humio in 2021 gave the company a high-performance log management engine, which was later rebranded as LogScale and deeply integrated into Falcon. Smaller acquisitions in cloud security, attack surface management, and identity analytics helped accelerate roadmap execution without bloating the product stack. These bolt-ons were complemented by consistent investment in R&D – amounting to over 20% of revenue in most years – fueling continuous improvements in threat detection speed, machine learning models, and UI/UX performance.
CrowdStrike also expanded its ecosystem through key partnerships with cloud hyperscalers like AWS and Azure, deepening integration into customer workflows and enabling joint go-to-market initiatives. The company’s modular SaaS model proved particularly attractive to managed service providers, mid-sized enterprises, and global integrators, helping CrowdStrike scale internationally without significant infrastructure costs.
In July 2024, CrowdStrike experienced a significant but temporary disruption when a software update introduced instability across certain customer environments. The incident led to brief and triggered lawsuits, but the company responded swiftly – rolling back affected updates within service outages hours, launching an independent audit, and issuing credits to impacted clients. By year-end, customer retention remained high and module adoption growth resumed, signaling that long-term trust was not materially damaged.
Today, CrowdStrike stands as a key cybersecurity vendor to Fortune 500 companies, government agencies, and mid-market enterprises alike. Its cloud-native architecture, rapid innovation cycle, and expanding product suite continue to drive adoption in an environment of escalating digital risk.
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Fortress in the Fog
CrowdStrike enters 2025 in a position of structural strength, with its business model well-aligned to current global pressures. As geopolitical tensions and trade barriers escalate, CrowdStrike’s software-only architecture allows it to operate without exposure to hardware tariffs, logistics disruptions, or rising component costs. Its entire Falcon platform is delivered via the cloud, and its lightweight agent design removes the need for physical infrastructure. In a climate where global supply chains are under pressure, CrowdStrike’s asset-light model – with no hardware or supply chain exposure, and approximately 70% of revenue derived from the U.S. – offers insulation from the margin compression impacting hardware-dependent peers.
The company’s operational model also supports resilience during economic slowdowns. CrowdStrike earns the bulk of its revenue from subscriptions, providing strong visibility and recurring cash flow. Its platform is modular, allowing customers to adopt capabilities incrementally without needing to rip out existing infrastructure – an attractive option in recessionary IT budgets. CrowdStrike’s existing customers continue to expand wallet share, with most using multiple Falcon modules across endpoint, identity, and log analytics. This expansion dynamic has helped support high net retention rates even as enterprise spending becomes more selective.
Security demand is also proving countercyclical. Cyberattacks tend to rise during periods of instability, and boards remain reluctant to cut investment in breach prevention. CrowdStrike’s tools focus on attack surfaces that are non-negotiable – user devices, credentials, cloud environments – making them essential even amid cost containment. With automation and efficiency built into its platform, CrowdStrike often replaces multiple point solutions, enabling customers to consolidate vendors without compromising protection.
The company’s July 2024 software incident tested its credibility, but the fast and transparent resolution reassured customers and investors alike. The affected update was reversed within hours, communications were immediate, and an external review validated the containment effort. Importantly, there was no long-term customer fallout, and usage growth resumed within the following quarter.
With no hardware dependencies, high gross margins, and a product suite aligned to durable cybersecurity priorities, CrowdStrike is positioned to outperform in a contracting economy. Its platform-centric model, growing international reach, and scalable delivery make it not only recession-resistant, but well suited to capture share in a more price-sensitive, risk-focused market.
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Modular Defense
Over the past three fiscal years, CrowdStrike’s revenue has grown at a CAGR of approximately 40%, while its non-GAAP EPS has expanded at a CAGR of over 80%, reflecting the company’s strong operating leverage as it scales its subscription-based model.
As of fiscal year-end 2025 (ended January 31, 2025), CRWD reported strong financial momentum across its key metrics, with top-line growth, margin stability, and expanding cash generation. Total revenue rose 29% year-over-year to $3.95 billion, with subscription revenue growing 31% to $3.76 billion – underscoring the continued shift toward multi-module platform adoption.
Annual recurring revenue (ARR), a key forward-looking indicator for SaaS companies, reached $4.24 billion, up 23% from the prior year. In Q4 alone, CrowdStrike added $224 million in net new ARR, supported by growing traction in newer verticals like cloud security, identity, and next-gen SIEM. Importantly, gross retention held steady at 97%, highlighting customer durability despite a tougher macro environment.
Profitability remained solid on a non-GAAP basis. Full-year non-GAAP operating income climbed to $837.7 million, representing a 21% margin – flat year-over-year despite higher R&D and go-to-market investment. Non-GAAP net income grew to $987.6 million, or $3.93 per diluted share, compared to $3.09 the year before. CrowdStrike continues to operate with high subscription gross margins of 80%, and total non-GAAP gross margin was 78% for the year.
Free cash flow reached a record $1.07 billion, translating to a 27% FCF margin, with operating cash flow at $1.38 billion. This margin strength reinforces the platform’s efficiency and cash-generative nature – critical traits in a risk-off environment. The company ended the year with $4.32 billion in cash and equivalents and no near-term refinancing needs.
Customer expansion also remained a highlight. As of end-January, 67% of customers used five or more modules, while 21% had adopted eight or more. These cross-sell dynamics support durable revenue growth without relying on aggressive new logo acquisition.
Looking ahead, CrowdStrike guided for fiscal 2026 revenue between $4.74 billion and $4.81 billion, representing 20%-22% growth. Non-GAAP EPS is projected between $3.33 and $3.45. The company also reaffirmed its long-term operating model target by FY2029. This target includes sustained non-GAAP operating margins in the mid-20s, subscription gross margins above 80%, and consistent free cash flow margins above 30%, reflecting CrowdStrike’s confidence in scaling efficiently over the long term.
Despite the July 2024 outage and ongoing economic and geopolitical headwinds, CrowdStrike’s financial trajectory remains intact. This resilience is reinforced by CRWD’s strong fundamentals, including a low debt-to-equity ratio and $4.3 billion in cash – well in excess of its long-term liabilities. High retention, expanding cash flows, and a modular SaaS model continue to position the company for profitable scale through periods of uncertainty.
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Multiplying Confidence
Despite a market cap nearing $85 billion and a secure place among industry leaders, CRWD continues to position itself as a growth company first, reinvesting the majority of its free cash flow into R&D, go-to-market expansion, and strategic M&A. Buyback activity remains limited and is not a primary focus of its capital allocation strategy. The company repurchased $15.8 million worth of stock in July 2024 to support the share price following a service outage that briefly shook investor confidence, but it has not repurchased shares since.
Like many technology stocks, CRWD experienced a sharp pullback from its February highs, giving back most of the gains from its post-July 2024 rally. As a result, the stock is up only about 5% over the past 12 months, underperforming many of its cybersecurity peers. However, as investors reassess CrowdStrike’s tariff-resilient business model against the broader cybersecurity backdrop, the stock appears well positioned to recover.
Wedbush analysts note that cybersecurity names may emerge as a defensive play for tech investors rotating out of hardware and semiconductor stocks more exposed to supply-chain disruption and tariffs. Among these, cloud-native firms like CrowdStrike – particularly those with a higher share of U.S.-based revenue – could hold an advantage.
Given these defensive features, along with CrowdStrike’s rapid growth and industry-leading margins, its premium valuation appears justified. While CRWD trades above the non-GAAP P/E average of its peers, it also delivers faster historical and expected growth, along with greater resilience to macro and geopolitical headwinds. Following the decline from February’s peak, the stock now trades 60-70% below its five-year average valuation multiples.
Discounted cash flow models suggest the stock remains undervalued by approximately 20%, and top Wall Street analysts currently rate CRWD a “Strong Buy,” with consensus price targets implying more than 30% upside over the next 12 months.
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Investing Takeaway
CrowdStrike is a cloud-native cybersecurity leader positioned at the core of enterprise digital defense. Its modular, subscription-based platform enables scalable protection across endpoints, identities, and workloads, aligning with long-term shifts toward automation, consolidation, and Zero Trust architecture. The company operates with a capital-light model, high gross margins, and no exposure to hardware or global supply chains – providing structural resilience in volatile markets. Continued investment in R&D and product expansion supports durable growth, while strong customer retention and platform adoption drive recurring revenue. With a U.S.-anchored revenue base and growing strategic relevance, CrowdStrike combines the defensive traits of essential infrastructure with the upside of a high-growth SaaS business – making it a strong candidate for quality-focused, long-term portfolios.
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New Sell 1: PayPal Holdings (PYPL)
PayPal is a world-class company that has executed a meaningful turnaround. After years of bloated costs and misfires, the new leadership team has refocused the business on profitable growth, driven by margin discipline, tighter capital allocation, and renewed product innovation. Its expanding role in crypto transactions, rollout of the Fastlane one-click checkout, and increasing adoption of PayPal’s branded and unbranded payment solutions are all strong tailwinds. We held PYPL in the portfolio because of this turnaround story – one that showed clear signs of working, with improving free cash flow and growing earnings power.
But the world has changed faster than anyone could predict. The sudden escalation in trade tensions, including the across-the-board U.S. import tariffs and China’s swift retaliatory tax on American goods, has created a new reality. This isn’t a narrow skirmish – it’s the onset of a broad, unpredictable trade war. Combined with intensifying U.S.-EU trade frictions, where European regulators are openly targeting U.S. tech firms with antitrust actions, fines, and very likely counter-tariffs, the risk landscape has flipped. For consumer-facing companies like PayPal, this couldn’t come at a worse time.
The macro environment is turning hostile. Consumer sentiment is sliding fast as inflation expectations rise again and recession fears return. Tariffs don’t just hit goods – they fuel higher prices and weaken real incomes, which ultimately depress spending. PayPal is highly exposed to consumer discretionary trends, and its growth depends on confidence, volume, and velocity of digital commerce. If people pull back, PayPal’s transaction revenues – especially cross-border flows – will take a hit.
We now see elevated risk of a prolonged demand slump in key regions, including the U.S. and Europe, where inflation and trade disputes could drag on for months. At the same time, regulatory overhang from Europe’s increasing scrutiny of American tech adds legal and financial uncertainty to the mix. In this environment, it’s unwise to hold stocks whose performance hinges on consumers feeling flush and spending freely like they did last year.
This isn’t a judgment on PayPal’s long-term trajectory – we still believe in the company’s future. But in a volatile, risk-off market, capital needs to be nimble. We’re exiting PYPL now to avoid potential downside in the coming months and will look to reenter once the dust settles and the macro picture becomes clearer. Great business – wrong time.
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New Sell 2: ITT (ITT)
ITT Inc. is a high-quality industrial name with strong engineering depth and a history of operational execution. We held ITT for its exposure to transportation, energy, and general industrial markets, believing that its diversified product mix and steady margin expansion positioned it well for a late-cycle environment.
But the ground has shifted. The onset of a global tariff war has introduced a level of macroeconomic uncertainty that no earnings model can account for. With broad-based import tariffs and growing international retaliation, companies like ITT – reliant on global supply chains and cyclical end markets – face unclear cost structures and demand visibility. In this kind of environment, even well-managed manufacturers risk being caught flat-footed.
The core question now is whether ITT has a defensible moat or pricing power strong enough to absorb the shocks that are coming. Probably not in the near term – at least not in a way that’s forecastable. Unlike our other industrial holdings – Amphenol, Parker-Hannifin, Howmet Aerospace, GE Aerospace, and EMCOR – ITT lacks scale, strategic tailwinds, or margin leverage sufficient to offset a broad downturn in global capex or a deterioration in industrial demand. It does not benefit meaningfully from defense spending, electrification, or infrastructure stimulus, and its customer base in automotive and heavy equipment is particularly vulnerable to demand compression if tariffs push input costs higher.
We’re not questioning ITT’s long-term potential or management’s capability. But in a portfolio where every position must earn its keep, ITT no longer clears the bar. The balance of risk and reward has shifted: while upside remains possible in a broad recovery, the stock is now more likely to underperform as cross-border costs rise and industrial sentiment weakens.
With better-positioned names already in the portfolio, we’re locking in gains on ITT and reallocating capital toward companies with stronger visibility and more defensible economics in this fractured global landscape. We’ll revisit if clarity returns – but for now, we’re out.
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Smart Investor’s Winners Club
The 30% Winners Club includes stocks from the Smart Investor Portfolio that have risen at least 30% since their purchase dates.
After last week’s bloodbath, our Winners’ ranks have shrunk by two, losing IBKR and ITT. Now, our exclusive club includes 10 stocks: GE, AVGO, TPL, ANET, HWM, EME, ORCL, TSM, APH, and PH.
The first contender is now IBKR with 22.78% gain since purchase. Will it stage a comeback, or will another stock outrun it to the finish line?
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Disclaimer
The information contained in this article represents the views and opinions of the writer only, and not the views or opinions of TipRanks or its affiliates and should be considered for informational purposes only. TipRanks makes no warranties about the completeness, accuracy, or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. TipRanks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by TipRanks or its affiliates. Past performance is not indicative of future results, prices, or performance.
