U.S. equities remained volatile on Friday, closing down 4.0% from the weekly high. Amidst the turmoil, the Sanctuary Wealth CIO says the following two “boring” stocks now look like exciting buys.
Illinois Tool Works Inc (NYSE: ITW)
The first name that pops out to Jeff Kilburg is Illinois Tool Works Inc, which climbed above its 50-day moving average on Friday. This afternoon on CNBC’s “Power Lunch”, he said:
Here’s a name that topped first-quarter earnings by about 2.0% estimates. We also saw the sales beat by about 4.0%. Only being out 15% year-to-date, I think this industrial name has the ability to move up.
Kilburg agreed that the stock was relatively expensive than peer John Deere on a forward PE basis, but reiterated that he likes the stock and owns it at present. ITW declared a per-share quarterly dividend of $1.22 today.
BorgWarner Inc (NYSE: BWA)
Another name that he hasn’t yet bought but is interested in is BorgWarner Inc, down nearly 25% from its year-to-date high. Speaking with CNBC’s Tyler Mathisen, Kilburg noted:
This is a leading auto supplier and we have certainly seen a lot of car market inflation. They are going into electric vehicles. So, they’re doing a couple things and there’s reason to dig into a consumer typical like BorgWarner.
Borg Warner expects its EV revenue to hit $3.30 billion by 2025. For the current year, it sees over $800 million in EV revenue that represents a year-over-year growth of more than 100%.
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