[Music] And there it is the closing bell at the New york stock exchange signaling the End of the trading day the dow jones Ended the day up almost 300 points the Nasdaq and s p 500 both following the Dow's lead both Posting gains today both are up more Than one percent and for more on the Stock market let's bring in david Gero he is the portfolio manager of the T rowe price capital allocation fund he Is also the author of a new book called Capital allocation david thank you very Much for joining us Thank you for having us for having me Absolutely you know david 2022 has Obviously been a volatile year so far For the stock market so what are some of Your top investment picks right now Well i think two names i'm kind of Excited about right now would be beckton Dickinson and therma fisher Becky dickinson is an interesting story And that has been had a tough three or Four years Post the bar transaction they had too Much debt they had a lot of Idiosyncratic things that kind of went Against them and they're important to Larry's pumpkin taking off the market They had fx they had covered but i think We're actually at an inflection point Now the balance sheets in a good place
We think alaris pump comes back under The market They're buying they're buying back stock They're making acquisitions And their margins honestly are about 700 Basis points below where they should be And you know from my perspective this is A company that should be able to Compound earnings at a double-digit rate For the next five years and the multiple Should go up so we think you can double Your money Embedded over the next five years Thermo fisher it gives a little bit Different story not doesn't have the Same kind of tough three to four year Story But it's just a company that basically Can grow earnings Twice out of the market organic growth Rate twice into the market with below Average cyclicality and so it's a little Bit out of favor right now Because it's not an inflation story it's Not a value store it's just a nice Coffee can garb stock that you can kind Of own forever that's going to compound Earnings at a mid-teens kind of rate we Think again you're going to probably Double your money in thermo over the Next let's say the next five years we'd Like to double our money that sounds Good david stocka facebook's parent Company meta is up today for the first
Time after dropping more than 100 points Since last week we know there are a lot Of Naysayers out there at the moment but do You think that meta will bounce back I i would say you know we've been Underweight uh facebook or meta for a While now i mean we've we've kind of Favored amazon google but i think it's Time to start doing the work on facebook Especially in the low 200s i mean There's a lot of uncertainty around Facebook around tick tock Around margins about capital intensity There's just a lot of uncertainty Around apple and what their apple Continues to do to meta now the question Really is You know is a lot of that bad news Priced in from the sum of the parts Argument from a valuation argument below 200. now we haven't closed the Underweight yet but i say we're doing More work uh as it's as it's come under Pressure here You know david also a big issue we keep Hearing about certainly feeling also is Inflation the consumer price index Report out tomorrow is expected to show Inflation increased even further last Month so a lot of us want to know when Are we going to see those prices stop Rising I think the answer is actually q2 i
Think that's when comparisons get a Little more difficult for inflation and So you'll see probably inflation Starting to come down A lot of the supply chain challenges That have been driving inflation should Start to get better as we go into the Second half of the year and it's 23
