US stocks likely to have bottomed out amid upward rate trend, recovery: Tisco

Wiwat Techapoonpol, deputy managing director and head of technical analysis at Tisco Securities, said that this month investors could accumulate foreign stocks and wait for the next round of likely rises. 

This month, stocks across the world are expected to move sideways as a way to build up bases, having already been through the bottom in October, he said. Stocks will likely go on an upward trend on gradual US rate rises and signs of recovery.

The brokerage house’s picks include stocks with sound fundamentals and high upside risks like MasterCard Inc, which shares a market from financial transactions with banks in the Europe through SEPA (Single Euro Payment Area) and July/August financial transactions’ increase from 10 to 11 per cent after economic improvement. 

According to a Bloomberg consensus, MasterCard’s one-year targeted price is US$88.70 a share with 20-per-cent upside risk.

Boeing Co, the world’s largest aircraft manufacturer, is also recommended, given high demand for aircraft across the world. In 2012, the firm was the biggest US exporter in US dollar terms. This quarter, its backlog is about $400 billion. With its robust financial status and 50-per-cent rise in dividend yield, the Bloomberg consensus sets the stock’s one-year target price at $154.10 a share with 21-per-cent upside risk. ConocoPhillips Co, PepsiCo Inc and Diageo are also stock picks.

Google Inc is also picked for investors who are interested in technology stocks. Its one-year target price is $654.70 a share with 22-per-cent upside risk. Google is expected to continue its high growth from the search-engine business. Its display ads on YouTube and mobile phones also continue generating income. 

Tesla Motors is also suggested with its sales growth of 89 per cent.  

Baidu Inc, Intel Corp and Western Digital Corp are also picked.