Investment Committee Discusses Eaton, Blackstone, Amgen, EOG Resources, Chevron, and ExxonMobil

Eaton Corp PLC: Electrification Play

• ⚡ Eaton beat earnings expectations but maintained guidance, signaling conservatism.
• 💡 The key driver is Electrical Americas, which saw 13% organic growth, exceeding expectations.
• 📈 Margins and backlog also expanded, reinforcing the company's electrification story.
• 📉 Despite a 3% drop at the open, the speaker bought more, making it their largest electrification play.

Blackstone: Alternative Asset Growth

• 🚀 Blackstone is up nearly 4%, trading at a 25x forward PE, down from a peak of 35x and 10% below its 10-year average.
• 💰 Assets Under Management (AUM) are growing in the high single digits, with strong operating margins.
• 🧩 The primary growth opportunity lies in perpetual evergreen vehicles and expanding into individual and retirement channels.
• 📈 With only 5% of individual investor allocations in alternatives, Blackstone is poised to benefit from this migration.

Amgen: Strong Earnings and Potential

• 💥 Amgen reported an incredibly strong quarter, beating earnings estimates.
• 💊 The company is developing a GLP1 drug that could be revolutionary.
• 🤷 Despite strong performance, the stock is down 2%, which the speaker finds surprising and suggests it's a buying opportunity.

EOG Resources: Independent Oil Play

• 🛢️ EOG Resources is highlighted as one of the best independent oil plays, offering a 3.5% dividend with potential for special dividends.
• 📉 Capex has been slightly reduced to monitor prices, but it remains a core holding for long-term investors.

Chevron & ExxonMobil: Energy Majors

• 📈 Both Chevron and ExxonMobil are in the green, with Chevron's EPS in line and revs missing expectations.
• 💰 Both companies continue to buy back shares, and their dividends are close to 5%, providing support.
• 🤝 Their strong balance sheets allow for potential acquisitions if oil prices decrease.
• 📊 The committee views owning both majors as a way to gain exposure to the energy sector, alongside EOG and Schlumberger.