Key takeaways:
Runnymede currently maintains a positive outlook with additional US government stimulus expected and strong corporate earnings comparisons year over year.
Many investors are looking past uncertain quarters in the near-term to bet on the eventual reopening of the economy.
Spirit Airlines (SAVE)
- Airlines are among the best places to be coming out of a recession.
- There is huge pent-up demand for leisure travel as multiple COVID vaccines provide a path toward reopening the economy.
- Spirit Air is taking share with its low-cost structure and business built around leisure travelers who are expected to return first.
- Forthcoming earnings reports will show strong growth when compared to the lock downs of Spring 2020.
- While Spirit Air lost $8.34 in 2020, forecasted earnings per share point to a recovery of -$0.96 and $2.11 in 2021 and 2022, respectively.
Fiserv (FISV)
- Fiserv enables money movement for thousands of financial institutions and millions of people and businesses.
- Stellar track record of delivering double digit EPS growth for 35+ consecutive years.
- A compelling growth story: migration to electronic payments and digital transformation of the banking industry.
- Cloud-based POS platform Clover is growing faster than Square (SQ).
- Zelle network and mobile payment app have outperformed p2p volumes over main rival Venmo.
- Stock currently priced at 17.6x '22 EPS of $6.33.
What segments of the economy do you feel will recover and might be worth your investment?
