Evans sees ‘buy signal on S&P 500’ despite today's PCE inflation data

S&P 500 is trading up this morning after the U.S. Bureau of Economic Analysis said the core personal consumption expenditures price index rose in line with expectations in March.

Pro remains bullish on S&P 500

For the month, the Fed’s preferred inflation gauge climbed 0.3% creating at least some room for the central bank to consider another hike next week.

Still, Elizabeth Evans of Evans May Wealth continues to prefer stocks over bonds. On CNBC’s “Worldwide Exchange”, she said:

Versus last year, the said inflation measure stood at 4.6% in March versus 4.5% expected. Headline PCE was up 0.1% for the month and 4.2% for the year.

Why Evans likes Broadcom stock

One of the names that particularly pop out to Evans is Broadcom Inc (NASDAQ: AVGO) that’s already up more than 10% for the year at writing.

She likes “AVGO” also because it’s a dividend stock that currently pays a yield of near 3.0%.

Broadcom has another $12 billion in authorised share repurchase as well. It’s expected to earn $9.35 a share this quarter versus $8.39 per share a year ago.