A day after JPMorgan’s Jamie Dimon said the U.S. Federal Reserve should raise rates at least four times in 2022, Odyssey Capital Advisors’ Jason Snipe says the PNC Financial Services Group Inc (NYSE: PNC) will do good in such an economic environment.
Why Snipe likes PNC Financial for 2022?
PNC Financial closed 2021 with an over 35% stock gain, but Snipe expects the rally to continue this year. Making a bullish case for the bank holding company, he said on CNBC’s “Halftime Report”:
PNC has some sensitivity to rate hikes. I really liked the BBVA acquisition they made last year, which was accretive to the balance sheet. It increased their geographical perspective. It’s our favourite regional, and I think they have continued tailwinds going into 2022.
According to Snipe, PNC Financial will likely commit to share buybacks this year that could serve as another catalyst for the stock. The financial services company is now in all thirty of the country’s biggest metros.
How to play the energy space this year?
From the demand perspective, energy is Snipe’s pick for 2022, and he sees Chevron Corp (NYSE: CVX) as one of the best ways to play the space.
Chevron’s got the cleanest balance sheet in the industry. Fully integrated oil company with a great management team. 4.28% yield, 7.0% compound annual growth rate. They’ve done a great job from cost containment perspective as well. So, I really like this name here.
The Energy Select Sector SPDR Fund is already up more than 10% for the year. Last week, RBC Capital Markets’ Lori Calvasina also said energy was a good bet for when the central bank is tightening its fiscal and monetary policy.
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