Investing

Oppenheimer Triple Play Sector Swap Ideas for Third Quarter

With a market roaring ahead at full speed, investors looking to stay long the market are also looking to move capital from names that are slowing down to those with solid prospects. A new report from Oppenheimer’s Portfolio Strategy team tackles just that assignment with their Triple Play stocks.

Oppenheimer Triple Play stock picks combine a rating of Outperform with positive earnings revisions and a technical profile that is bullish. The new report highlights six swap ideas for investors to move out of stocks rated Underperform with negative earnings revisions, to top Triple Play stocks that meet the investment criteria.

Here are some swap suggestions to consider by sector. You may want to examine your own holdings to see if any of these swap ideas will work in your portfolio.

Abercrombie & Fitch Co. (NYSE: ANF) is a suggested swap name in retail with the Fossil Group. Abercrombie shows up very well in the social media race, especially on Facebook with its 19 million Facebook followers. The company has slowly but surely started to rebuild what was once a very dominant brand. Its social media presence is cited by top Wall Street firms as helping boost the image and sales. Investors are paid a 1.9% dividend. The Thomson/First Call consensus price target is $43.87. The stock opened Monday at $43.22 a share.

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Apache Corp. (NYSE: APA) is suggested as an energy stock to swap to from Marathon Petroleum. Apache is a top exploration and production name on the list, and the Oppenheimer team likes the fact that the stock trades at a discount in valuation to their peers. As one of the largest investors in the thriving Permian basin in West Texas, the company is able to drive outstanding production growth while selling off almost $10 billion in assets to raise capital. Investors are paid a 1% dividend. The consensus price target is $100.44, and the stock began the week at $100.46.