Stocks are off to a sluggish start in 2014 but that doesn’t mean there aren’t places to put your money. In the attached clip JMP Securities President Mark Lehmann () says sticking with the companies that have already reported earnings could pay off for the risk tolerant. “These are names we’ve liked for a long time at JMP,” says Lehmann, “but they’ve put up spectacular 4th quarters and I think a continued ascent for these stocks is in the cards.”
In other words you won’t be catching the bottom on any of these picks.
“This is no mystery to people,” concedes Lehmann, “When you see the kind of pricing power they have and the kind of growth they have there’s no question people’s eyeballs are going to stick to Facebook.”
As Twitter’s (TWTR) disastrous quarter proved not all social media is created equal. Facebook’s operational excellence sets it apart in a way that doesn’t figure to be threatened anytime soon.
Moving off the beaten path, Lehmann likes fast growing software company Workday. The company has taken market share from the incumbents and figures to keep putting up wins thanks to strong management. For the sake of investors Workday better keep it’s roll going; the shares are priced for perfection.
“It is not a name for people to look at and say it’s cheap because it’s not going to be, but as long as they keep executing they’re going to do well.”
Tableau Software (DATA)
Tableau has been knocking the cover off the ball and the shares show it. The stock is already up over 30% in 2014 after a big earnings beat boosted shares earlier this month. Workday and Tableau both compete with software heavyweights and Lehmann says that’s part of the appeal.
“Look at SAP’s (SAP) market cap, look at Oracle’s (ORCL), there’s a lot for these two companies to steal.” That makes them both nimble competitors and decent acquisition candidates, a solid one-two punch for a potentially toppy stock market.
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