CNBC: 3-Stock Lunch: Verizon, Texas Instruments and Twilio

January 24, 2025

“There’s a lot of value in reassessing where growth is headed and focusing on sectors with strong earnings potential,” says Michael Landsberg, Chief Investment Officer at Landsberg Bennett Private Wealth Management, during CNBC’s 3-Stock Lunch segment. Landsberg analyzed three stocks, weighing in on their performance, growth trajectory, and the strategies investors might consider when evaluating similar names.

Landsberg’s commentary centered on the importance of understanding sector dynamics, aligning valuations with growth potential, and approaching market opportunities with caution.

Key Takeaways:

  1. Avoid Long-Term Stagnant Names: Landsberg expressed skepticism about companies that have not delivered meaningful returns over decades, despite operational improvements. “When a stock’s price is the same today as it was in the mid-2000s, it’s not where you want to be,” he said. Such names may provide dividends, but they lack the growth potential needed for meaningful capital appreciation.
  2. Growth Needs to Justify Valuations: For companies with limited exposure to transformational trends, Landsberg stressed that valuations should align with their growth outlook. “Paying high multiples for companies outside the growth-driving segments of technology doesn’t make sense. You can find better opportunities in other parts of the market,” he noted. Investors should avoid overpaying for companies with minimal upside tied to emerging sectors like AI.
  3. Watch Companies Transitioning to Profitability: Landsberg took a cautious stance on names moving from a focus on revenue to profitability. “There’s been a lot of talk about improving margins, but we need to see actual results before making a move,” he explained. While there’s potential, Landsberg emphasized the need to wait for proof of execution before committing to such investments.
  4. The Importance of Diversification: While mega-cap growth names have led market rallies, Landsberg highlighted the value of broadening exposure. “Don’t just rely on the biggest names. There are opportunities across other sectors if you’re disciplined,” he said. Diversification across themes and sectors can help reduce risk while capturing broader market trends.

Landsberg concluded the discussion by emphasizing a disciplined approach to investing. “Focus on fundamentals, align valuations with growth prospects, and ensure your portfolio is diversified,” he advised. His measured take reinforces the importance of prioritizing quality and sustainable growth in navigating today’s markets.

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