January Pick: TP ICAP (LSE:TCAP)
The inter-dealer broker contains Tullet Prebon and ICAP as the two main companies within the TP ICAP Group. The business act as a middleman between trading desks at large banks and asset management funds. By making a slim margin on each trade, and by facilitating different trades, the company can grow revenue. This is particularly true during periods of volatility, when activity is heightened.
Therefore, we like TP ICAP as a stock to hold within the portfolio to weather potential upcoming volatility. Even if we see a stock market slump in Q1, TP ICAP shares should outperform the FTSE 250 benchmark. This is because volatility is seen as a supportive for the firm, particularly for the equity and credit derivative desks.
In terms of risks, quieter markets could continue to push shares lower. Over a one year period, the share price is down almost 40%. Part of this was due to H1 results , in which pretax profit fell to £28m versus £78m a year earlier
January Pick: Fisker (NYSE:FSR)
The EV sector looks like it will be a top watch for many this month. Tesla released their delivery numbers and the stock gained 13.5% yesterday. Another mover in the sector was Lucid Motors, who gained 7.6%. Fisker is also an EV company and has a great chart setup right now.
With the other names leading the way, a bullish sentiment will come to Fisker which has dropped down to $16.70 from $23 in November. The chart has found support from the daily trend-line and has bounced well off of it. If the EV sector maintains this new momentum, I think Fisker could reclaim $20 soon.
Fisker has a smaller market cap ($5B) than Lucid has. This will allow more room for growth in the stock price over the next month.
January Pick: Oxford Nanopore (LSE:ONT)
We’ve been keeping a close eye on an emerging UK biotech stock, Oxford Nanopore (LSE:ONT), which had a strong IPO this year and has outperformed the market since the listing. We expect the company to go from strength to strength and for their outperformance to continue in 2022.
ONT started as a spin-off project from the University of Oxford has an industry leading platform for molecular analysis and the technology can be used in a wide range of applications. A key beneficiary of this analysis is in COVID surveillance, which looks to be a strong revenue stream that will be supported for the foreseable future by the ongoing emergence of novel COVID variants.
The stock was priced at 425p at IPO and is now trading at the ~700p mark, up nearly 65% in just a few months. The analyst community is also forecasting further strength for ONT, as a Bloomberg survey of Equity Research Analysts indicates that 86% have recommended the stock as “BUY”, whilst 14% have a “HOLD” rating. There are no analysts with “SELL” ratings.
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