November 8, 2019
By April Joyner
NEW YORK (Reuters) – Forget FANG: Better opportunities in stocks lie among undervalued telecom and healthcare shares, according to the manager of Ariel Investments’ global equity strategies.
Companies such as Verizon Inc
“I’m telling you, telecom is the new staple,” Bhansali said this week at the Reuters Global Investment Outlook 2020 Summit in New York.
For Bhansali, certain healthcare companies, including GlaxoSmithKline PLC
Equity investors have not fully registered the risk of extended corporate leverage, Bhansali said. General Electric Co
Several tech and internet companies have hidden liabilities, she said, such as obligations from restricted stock units issued to employees.
“Netflix has this balance sheet that is tottering because it has taken on so much debt, and this is a company that can’t even hold onto its subscribers in the U.S.,” she said.
Bhansali has not shunned all of Wall Street’s high-flying stocks. Among the holdings in her global portfolio is Microsoft Corp
Microsoft’s xCloud video-game streaming device, which is in development, could be another growth engine for the company, Bhansali said.
“There’s a lot that is still left to go right in the Microsoft story that is not in the stock,” she said.
(For other news from the Global Investment Outlook 2020 Summit, click on http://www.reuters.com/summit/investment20)
(Reporting by April Joyner; Editing by Steve Orlofsky)