Yahoo Finance Video
Aptus Capital Advisors Portfolio Manager David Wagner joins Yahoo Finance Live to discuss some of his preferred stock trades: Buy Lennar (LEN) and UnitedHealth (UNH), sell utilities (XLU) and Vanguard's Real Estate Index Fund (VNQ). Homebuilder Lennar's stock is on the path to reach new heights in 2023, closing at an all-time high of $133.24 on July 14. Wagner calls the homebuilder company the "alpha architect" in housing buydowns that see homebuyers squeezed out of markets due to mortgage rates. Next is UnitedHealth Group, whose stock price sits above $500. The health care provider may be "one of the highest quality stocks in the S&P 500" while positioned to utilize AI in its data. Wagner outlines how the utilities sector, with its defensive nature, could be competing with Two-Year Treasury Yields. "It's the most expensive house in the most expensive neighborhood," Wagner said of utilities' position in the S&P 500. Lastly, Wagner takes on the commercial real estate sector, warning that there could be "more degradation in the valuation of these securities." As housing market and banking pressures weigh on the commercial real estate market, brokers aren't "going to take these projects on, so you're not going to have growth in that."
