The U.S. economy is headed for a recession that warrants switching to high growth stocks, says the CEO of Firsthand Funds. The U.S. GDP fell at an annualised pace of 1.4% in the first quarter of 2022.
Kevin Landis likes Wolfspeed Inc
A name Kevin Landis is convinced can withstand recession is Wolfspeed Inc (NYSE: WOLF), down more than 25% year-to-date. Explaining why on CNBC’s “Closing Bell”, he said:
Wolfspeed makes Silicon Carbide power electronics. Why does that matter? Because it goes into EVs and the EV trend is just taking off. It doesn’t matter what the Fed does and what Putin does, Wolfspeed is going to do great.
Wolfspeed shares were hit hard on Thursday after the Durham-based company blamed China shutdowns as it reported weaker-than-expected revenue for its fiscal Q3. Wall Street has an average price target of $116.71 on the stock.
Landis remains bullish on Roku
Interestingly, Landis also dubs the beaten down streaming company, Roku Inc (NASDAQ: ROKU), a recession-proof stock. Making a case for owning shares that are down over 55% for the year, he said:
Some days it feels like Cathie Wood and I are the only ones who own Roku. But streaming is not going away. Roku wants to be everybody’s partner. They’re uniquely positioned. It’s a great play. Roku is going to grow through any recession.
Lasts week, the San Jose-headquartered company said it had 61.3 million active accounts at the end of its fiscal Q1 versus 61.8 million expected. On average, Wall Street sees a close to 60% upside in Roku Inc.
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