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Betting on supply chains, cybersecurity and e-commerce in 2022: Bryn Mawr

Jeff Mills of Bryn Mawr Trust recommends actions involved in supply chains, cybersecurity and e-commerce because they have “enduring power.”

He attributes the ability of groups to isolate investors from the standoff between growth stocks and cyclical stocks.

Mills’ top pick focuses on companies that help supply chains.

“You are starting to hear a story that things are improving there, but it will not be beyond the purview of a lot of companies trying to figure out how to make things more efficient,” said the chief investment officer of the company. at CNBC. “Trading Nation” Monday.

Mills favors PTC Inc. in the space, which focuses on productivity, revenue maximization and cost reduction.

“They’re doing all kinds of stuff in the industrial Internet of Things,” he said. “This is going to be extremely important for businesses around the world.”

But Mills admits the graph is lousy. PTC has fallen 10% over the past month.

“This is an action that is quite far from its historic highs here,” he said.

Mills, who has $ 22 billion in assets under management, also likes the cybersecurity space because it has enormous longevity.

“This is probably one of the biggest threats not only to national defense, but also to American businesses,” Mills said. “There is certainly an avenue for future growth here.”

His best cybersecurity piece is CrowdStrike. It’s a tough month, down 15%. However, it is up 13% so far this year.

“[It’s] 40% revenue growth year over year. Recurring revenue growth increases cash flow. The metrics are improving, “he said.” It’s a company that I really like.

Her third choice is e-commerce with a focus on Amazon.

“You can’t talk about thematic investing without talking about e-commerce. And Amazon is such an interesting stock,” Mills noted. “He’s been a darling for so long. But the stock hasn’t really gone out for really all year.”

This year, Amazon shares are up about 10%. The performance is paltry compared to 2020 when the stock climbed 76%.

“A break of fairly large proportions”

Mills highlights Amazon’s huge e-commerce logistics network as a major bullish driver during the holiday season.

“The supply crunch that everyone is facing right now could actually help Amazon because they’re probably in the best position. They can probably get things to people faster, so I think they can potentially take it. market share, ”Mills said. “I think 2022 you see a break of pretty big proportions for Amazon.”

Disclosure: Jeff Mills has long exposure to PTC Inc, CrowdStrike, and Amazon.


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