Stock Of The Week: Expert Opinion On What To Sell And What To Buy

David Morrison, Senior Market Analyst at Trade Nation, and Michael Kamerman, CEO of Skilling, share their opinions on what stock you should sell this week, and what stock you should buy.

Buy: BP

As Russian hostilities in Ukraine continue to ratchet up, and after the West imposed its toughest set of sanctions on Russia, BP announced it would dump its 20% stake in Rosneft, estimated to be worth £25 billion. The news led to a delayed opening last Monday and BP’s stock price fell 7%. This took the stock down to 350 pence. BP began the year at 330 pence and then rallied to 418 by 11th Feb. It has sold off ever since until hitting 350 pence on Monday. It subsequently jumped to 375 pence, having recovered all losses after the Rosneft news. But the stock slid below 350 on Friday 4th March following news that Russian forces had attacked Ukraine’s largest nuclear power plant. BP is trading a long way below the 720 pence high from 2006, but it’s comfortably above its October 2020 low when it fell below 200 pence. BP is undeniably a volatile stock. Fortunately, investors have received decent dividends over time, as a reward for their loyalty.

Does the current sell-off open an opportunity for dip buyers? Quite possibly. Looking at the chart, since the October 2020 low BP has trended upwards, putting in a succession of higher highs and lower lows. This is bullish. On top of this, WTI crude oil has just traded at levels last seen eleven years ago, and the latest OPEC+ meeting showed that members were in no mood to raise output above their current meagre supply increase. This should help with BP’s profitability. BP is a good dividend payer and is open to buybacks. In addition, the divestment of BP’s Rosneft stake could, according to a report from Bloomberg, boost the company’s environmental credentials, thereby making it more acceptable to the ESG crowd.

Sell: Big Retailers Like Macy’s

Department store group Macy’s, whose brands include Bloomingdale’s and beauty outlet Bluemercury, could struggle if the current economic environment persists. Inflation hasn’t proved to be transitory and seems likely to rise further given the recent jump in energy and food prices. At the same time, we could be looking at a period of falling growth. If so, then we should expect consumers to adapt to conditions and look at where they can make quick and easy savings. Maybe cut back on streaming subscription services for instance. But which ones? Also, the monthly subscriptions aren’t too onerous if you’re working. But what about jewellery, clothing, kitchenware, bedding? US consumers may decide to stop purchasing luxury items  while deciding they can live a bit longer before replacing other household items. I think this could be a problem for Macy’s. In mitigation, last month Macy’s released a strong set of quarterly results. The group also offered positive forward guidance for 2022, citing fresh initiatives such as expanding its digital business, as well as private brands and small, off-mall stores. These, along with the opening of the global economy post-Covid 19, should all be positives for the group. But gains in the stock price will depend on the success of the fresh initiatives, against what could be challenging economic conditions for the year ahead.

Macy’s has also rejected calls from activist investor Jana Partners to spin off its e-commerce operations. Jana Partners calculate that a split could double the group’s valuation. But Macy’s insists it would cost too much to make the change. No doubt activists will continue to circle, but investors will have to do their own due diligence to work out how this could affect the share price going forward.

– David Morrison, Senior Market Analyst at Trade Nation


NVDIA has some of the most sought-after gaming graphics processing units (GPUs) globally and is outperforming many of its competitors in the industry. Despite recent blips for the stock including a cyberattack, NVDIA has reported its best quarter in ten years. With the added potential of the metaverse, NVDA stock is an exciting option for investors. 

Jaguar Land Rover has also just entered a partnership with NVIDIA to develop their upcoming vehicles on the platform. With the highly anticipated RTX 4000 GPU rumoured to be released later this year, NVDA stock is likely to gain momentum. The company is also expected to offer a 150% performance increase with a forecasted revenue of $8.11 billion for Q1 2023.

However, investors need to be mindful of market volatility. After prolonged global chip shortages, it could take months for the supply of Nvidia GPUs to catch up with demand. As a result, investing in this stock can cause big losses as NVDA tumbles from recent highs and may take some time to be actionable once again.  Despite this, NVIDIA is still a dominant force in the chip space. By focusing on gaming, AI and the emerging metaverse, the company is expanding its business offerings exponentially.

Whilst the sluggish price momentum due to political triggers shouldn’t deter investors completely, as with any investment, investors need to understand what they’re investing in and make a rational, emotionally intelligent decision. 

– Michael Kamerman, CEO of Skilling

Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 89% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Not investment advice. Past performance is not indicative of future results.

Disclaimer: The information contained within this article is for educational and entertainment purposes ONLY. The commentary provided is the opinion of the author and should NOT be considered as personalised advice or recommendation. The information provided in this article should NOT be a person’s sole basis for an investment decision. All investments are made at the reader’s own risk. 

Stock Of The WeekExpert OpinionMacy'sBPNVDIAinvestment