Stephanie Link of Hightower Sells Occidental Petroleum, Points Out Superior Energy Options
It’s time to take some profits from what was one of the best-performing energy stocks last year, according to investor Stephanie Link. The chief investment strategist and portfolio manager at Hightower said she sold shares of Occidental Petroleum , which outperformed last year on the back of rising oil prices. Occidental shares posted a return of 119% in 2022. This year, however, the energy name is down more than 3%. “It’s still a wonderful story,” Link said Tuesday on CNBC’s ” Halftime Report .” “I like [Warren] Buffett being involved as well. I think they’re doing a really good job in terms of paying down debt, and using their free cash flow wisely, but I just think there are better places within energy that I prefer.” Aureus Asset Management’s Karen Firestone considered the decision a “smart move,” saying, “It can’t ever hurt to sell a big winner.” OXY 1Y mountain Occidental Petroleum shares 1-year Instead, the investor said she prefers shares of Schlumberger, saying she would add to the name if the stock starts to come down. Schlumberger shares are more than 1% higher in 2023. “So, I’m not getting more negative on energy. I’m just trying to get more particular, and the ones that I like better, I want to be buying, and I want to have a little cash to be able to do that,” Link said. Another name the investor sold was D.R. Horton , which tumbled about 17% in 2022. Link worries the setup for the homebuilder is “challenging,” given higher interest rates. Instead, Link picked up shares of manufacturing firm Ingersoll Rand , which she said is poised to grow earnings by double digits, and expand margins. Ingersoll Rand shares jumped 13% this year. “So this is, really, again, another capex onshoring pure play, and I think the valuation is pretty compelling,” Link said.
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