Amazon, Disney, Boeing boosted in Wells Fargo Signature Picks portfolio
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Wells Fargo is adding to positions in its Signature Picks portfolio to take its cash position below 10%.
The SigPix portfolio represents the best ideas of the equity research team.
The team is closing out its 2.11% position in Marriott (MAR), which has been in the portfolio since its 2021 inception, as Wells Fargo dropped coverage of the stock. The stock had contributed a +37% total return.
The team is increasing positions Disney (DIS), to 4.9% from 2.8%, NextEra Energy (NEE) to 2.7% from 1.6%, Boeing (BA) to 3.6% from 3.1%, Amazon (AMZN) to 6% from 5.5% and Yum! Brands (YUM) to 1.9% from 1.4%.
"We are putting money to work in two underweight sectors (Communications (XLC) and Industrials (XLI)); maintaining a benchmark-like weighting in Consumer Discretionary (XLY) (YUM, AMZN); and adding to Utilities (XLU) to offset a recent REIT sale (XLRE)," analyst Chris Harvey wrote in a note. "Most of the additions either have underperformed year-to-date or pulled back recently."
"Through Sep 18, SigPix (+17.8% YTD total return) has slightly outperformed the S&P 500 benchmark (SP500) (NYSEARCA:SPY) (IVV) (VOO) (+17.4%) despite its outsized cash position," Harvey said. "The unusually large cash balance was a result of company coverage drops, which triggered the liquidation of several sizable portfolio (and SPX index) positions."
"With (just under) 10% of the portfolio in cash, we remain positioned to take advantage of the recent seasonal weakness in the stock market."
The Signature Picks Portfolio (all stocks rated Overweight)
Communication Services (XLC)
Disney (DIS), SigPix weighting 4.87%, S&P weighting 0.42%
Consumer Discretionary (XLY)

AutoZone (AZO), 2.52%, 0.12%
Amazon (AMZN), 6.04%, 3.41%
Caesars (CZR), 0.70%, 0.03%
Yum! Brands (YUM), 1.85%, 0.1%

Consumer Staples (XLP)
Constellation (STZ), 4.19%, 0.11%
Energy (XLE)
SLB (SLB), 4.07%, 0.23%
Financials (XLF)

Arch Capital (ACGL), 4.66%, 0.08%
Citi (C), 0.81%, 0.22%
Everest Group (EG), 3.74%, 0.04%
JPMorgan Chase (JPM), 1.72%, 1.16%
Mastercard (MA), 3.52%, 0.93%

Healthcare (XLV)

AbbVie (ABBV), 3.48%, 0.73%
Avantor (AVTR), 1.68%, 0%
J&J (JNJ), 4.08%, 1.05%

Info Tech (XLK)

Apple (AAPL), 11.37%, 7.01%
Crowdstrike (CRWD), 1.9%, 0%
Nvidia (NVDA), 7.65%, 2.91%
NXP Semi (NXPI), 2.82%, 0.14%
Synopsys (SNPS), 5.16%, 0.19%

Materials (XLB)

Albemarle (ALB), 1.13%, 0.06%
Celanese (CE), 1.76%, 0.03%

Utilities (XLU)

CMS Energy (CMS), 1.33%, 0.04%
NextEra (NEE), 2.66%, 0.37%


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