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Two stocks that are ‘immune’ to what the Fed does

By:
on Nov 4, 2022
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  • Fed Chair Jerome Powell says "pausing" is not an option just yet.
  • Andersen makes a bull case for Caesars and Shockwave Medical.
  • He's convinced both of these stocks are insulated from the Fed.

Fed Chair Jerome Powell made it somewhat clear this week that “pausing” was not an option just yet. (read more)

That paints a not-so-healthy picture for stocks moving forward. But there are names, as per Peter Andersen – the Chief Investment Officer of Andersen Capital Management – that remain a great pick regardless of what the Fed does.

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Andersen is bullish on Caesars Entertainment

His first pick is Caesars Entertainment Inc (NASDAQ: CZR) that reported market-beating results for its fiscal third quarter only a couple days ago. Making a bull case around this hotel and casino operator on CNBC’s “Power Lunch”, Andersen said:

That database [of 55 million users] is invaluable. It’s the largest database for gaming clients. Try to put a value on that. Caesar is that category that makes you free of thinking about where interest rates are going.

He likes it also because the Nasdaq-listed firm is committed to quickly getting rid of debt. At writing, Caesars stock is down more than 50%.

Andersen also likes Shockwave Medical Inc

Another one of his picks to forget about the Fed, so to speak, is Shockwave Medical Inc (NASDAQ: SWAV) – a California-based medical devices company that has a treatment for clogged arteries. Andersen said:

Its revenue has been growing over 100% every quarter. Do you think people who booked for that kind of a procedure will put it off depending on what the Fed says? They need that now and that, in my sense, is a staple.

Clogged arteries is one of the leading cause of deaths in the United States.

Andersen’s outlook is in line with Wall Street that also currently rates the healthcare stock at “overweight”.