Evercore's 'All-Weather' Stock Picks: NRG, Vistra, Vertex, IBM, ASML & More

Evercore's All-Weather Stock List Rationale

• 💡 Evercore ISI identifies stocks where current price dislocations are at odds with strong underlying fundamentals, suggesting they can outperform in the next 12 months regardless of market uncertainties.

Energy Sector Plays: NRG and Vistra

• ⚡ NRG Energy and Vistra are highlighted as ways to play the data center power consumption trend.
• 💰 NRG is considered a more attractive investment due to its lower valuation (12 times earnings) compared to Vistra (18 times earnings).

Vertex Pharmaceuticals: Beyond Pain Management

• 🔬 Vertex Pharmaceuticals is praised for its strong performance and exciting pipeline beyond pain drugs.
• 📈 The company's T1D program is expected to have a pivotal readout this year, potentially opening a significant market.

IBM and ASML: Long-Term Holdings

• 🧠 IBM is recommended as a long-term hold, despite its current valuation (23 times earnings), due to its involvement in AI consulting.
• 📊 ASML is seen as a long-term investment, holding up better than peers, though its immediate performance may depend on the NASDAQ's pressure.

Tech Giants and AI Spending

• 🚀 Stocks like Alphabet, Nvidia, Microsoft, and Amazon are on the list, trading at lower multiples than earlier in the year.
• 💻 The inclusion of these tech giants makes sense if earnings hold up and AI-related spending and data center investments remain robust despite political headlines.