QUALCOMM, Inc. (QCOM), Schlumberger Limited. (SLB) and Johnson Controls Inc (JCI): David Katz’s Top Picks

QUALCOMM, Inc. (NASDAQ:QCOM)Schlumberger Limited. (NYSE:SLB) and Johnson Controls Inc (NYSE:JCI) earned Matrix Asset Advisors CIO, David Katz’s thumbs up. The chief investment officer was on CNBC, explaining which companies have the zing to be accredited as profitable in the long run.


While QUALCOMM, Inc. (NASDAQ:QCOM)’s legal troubles in China and their resolution were the main impetus for the tech company to be included in this list, for Schlumberger Limited. (NYSE:SLB) it was the track record of the oil services provider, especially in terms of earnings growth. However, this year those earnings are expected to drop given the mayhem in the oil market. This is being cashed in by Johnson Controls Inc (NYSE:JCI), since people have much more disposable income, now that their gas bills have shrunk considerably.

“Big antitrust probe. We think it is going to be settled. There is going to be a multibillion dollar fine, but they are going to be able to do business in China. The stock is 14 times earnings, when they get that China clarity, we think the stock starts to do a lot better,” remarked Katz.

Katz further elaborated that in terms of QUALCOMM, Inc. (NASDAQ:QCOM)’s stock price, he sees this overhang to be in the vicinity of 5 points.

“Schlumberger Limited. (NYSE:SLB) is the best oil service company in the world. They have grown earnings over the last decade in north of 15 percent. We think long term they will continue to do that, but you are a hundred percent right, oil is rotten right now […],” said Katz.

Johnson Controls Inc (NYSE:JCI) provides temperature regulation systems for buildings, besides manufacturing lead-acid automotive batteries. Lower fuel prices mean expansion of businesses, which in turn means more business for Johnson Controls. The stock was trading around $46.09, when the closing bell rang today.

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.