If Fundstrat’s Tom Lee isn’t consistently Wall Street’s biggest bull, he’s certainly one of the most vocal. Either way, the man’s track record has been nothing short of respectable. And while time will tell if he’s right to stay bullish on the broad stock (and especially the small caps), I do think that he’s a market strategist who’s worth listening to closely whenever he has another call to make.
Even if you’re not the biggest fan of Tom Lee or market strategist calls, I do think that the man’s “Granny Shots” investment strategy is worth exploring, especially after the recent inflow of capital. Indeed, given Tom Lee’s recent calls, he’s become somewhat of a Wall Street rockstar of sorts, at least in the investment world.
In any case, here are three stocks within the Tom Lee-run Fundstrat Granny Shots U.S. Large Cap ETF (NYSEARCA:GRNY) that I find the most enticing and even fairly cheap in today’s “fairly highly priced” stock market.
Oracle
Few saw Oracle (NYSE:ORCL) stock melting up on the back of the AI revolution as it did in the past year. Tom Lee is one of the folks who saw the opportunity to be had in the legacy tech company that’s grown hotter than most members of the Magnificent Seven.
While it may be a bit too late to be chasing shares of Oracle if you missed the latest post-quarter move, I do think there’s no rush to hit the sell button for current holders. With ORCL shares moving higher in Thursday’s after-hours session following the U.S. TikTok stake news, perhaps Larry Ellison and company have enough new developments to keep the growth engine humming well into the year’s end.
Either way, Oracle is a premier AI infrastructure stock to stash away for the long haul. Though I would prefer to buy on a pullback closer to $260 per share, rather than loading up after the post-earnings spike. Given the pick-up in market volatility following Jerome Powell’s comments, it might not take long before there’s a better entry point into the shares.
Tesla
Tesla (NASDAQ:TSLA) is a Magnificent Seven laggard that’s rewarded shareholders for their patience over the past six months, gaining around 56% in the timespan. Just like that, Elon Musk’s empire is close to making new highs again, thanks in part to high hopes for Tesla’s autonomous driving and robotics projects.
Indeed, Wall Street analysts have been sounding more upbeat as well, not just with robotaxis and the longer-term potential of Optimus and its like, but with Tesla’s ability to make up ground in the Chinese market as well as the future launch of a cheaper Model 2.
There are some seriously impressive catalysts in place to propel TSLA stock towards a breakout. And that makes Tesla a top-tier Granny Shots stock to stick with.
American Express
Finally, we have a non-tech name with American Express (NYSE:AXP), a credit card company that checks a lot of the thematic boxes that Tom Lee and his team look for. Over the past two years, shares of AXP have gained more than 125%. The premier credit card firm is really starting to gain momentum with younger users, like those in the Millennial and Gen Z generations. With price hikes on its Platinum card and an even bigger boost to the perks, I think American Express will have very few issues in retaining users.
At the end of the day, American Express is a premier name in the credit card industry and, if anything, it’s poised to gain even more users after the price hike in its Platinum Card, which now costs a whopping $895 per year, but offers $3,500 worth of benefits.
Indeed, for generations that value experiences (think fine dining, luxury hotels, massages, and more), I’d argue that the slightly higher price of admission is worth paying for if it means getting so much more in return. With a growing dividend and a lot of secular tailwinds behind it, I find AXP stock to be a generational winner that’s still going for cheap (23.9 times trailing price-to-earnings).
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