Navigating the technology sector requires careful consideration amid current market fluctuations and potential trade policy impacts. For investors seeking stability and growth, insights from seasoned professionals can be invaluable. Nancy Tengler, the Chief Executive Officer of Laffer Tengler Investments, recently shared strategic selections designed to weather economic headwinds, including potential tariffs from the Trump administration.
Tengler emphasizes companies demonstrating robust operational performance and a commitment to returning value to shareholders through dividends, particularly those positioned to better withstand market volatility and trade-related uncertainties.
Investment Ideas for a Shifting Landscape
During a discussion on CNBC, Tengler outlined three specific companies she believes offer attractive prospects even as the tech sector faces pressures.
Microsoft (MSFT): Resilience in Software
Despite recent pullbacks in its stock price, Tengler views Microsoft as a compelling opportunity. She anticipates the technology giant will achieve revenue and earnings growth in the range of 10% to 11%. Tengler highlighted the company’s solid dividend growth (around 10.3%) and the strength of its leadership. She suggests that periods of market weakness could be opportune moments to build positions in MSFT. Furthermore, its focus on software makes it potentially less exposed to tariff impacts compared to hardware-centric tech giants, adding a defensive quality.
Spotify (SPOT): Growth Potential Beyond the Noise
Although Spotify experienced a recent share price dip following its latest earnings report – where operating results fell short of consensus despite meeting revenue and user targets – Tengler maintains a positive outlook. She identifies Spotify as a favoured pick, pointing to its growth strategy centered on advertising and its robust financial health. Tengler anticipates that improving cash flow could lead to capital allocation plans that benefit shareholders, a factor she believes the market hasn’t fully priced in yet. The stock has shown significant gains recently, reflecting growing market confidence in its strategic direction.
AbbVie (ABBV): Pharmaceutical Strength
Turning to the healthcare sector, Tengler highlighted AbbVie following its strong quarterly performance, where it exceeded expectations on revenue and earnings while also raising its annual forecast. Despite significant gains over the past year (around 20%), Tengler believes the stock hasn’t exhausted its potential. Key strengths include its consistent dividend growth (approximately 7.2%), the successful performance of Humira’s successors – Skyrizi and Rinvoq – and a lack of significant patent expirations for the next decade. Crucially, Tengler noted that AbbVie’s substantial US-based manufacturing operations make it less vulnerable to potential tariffs under the current Trump administration.
Jason Walker, aka “Crypto Maverick,” is the energetic new member of cryptovista360.com. With a background in digital finance and a passion for blockchain, he makes complex crypto topics engaging and accessible. His mix of analysis and humor simplifies volatile market trends. Outside work, Jason explores tech, enjoys spontaneous road trips, and American cuisine. Crypto Maverick is ready to guide you through the ever-changing crypto landscape with insight and a smile.