Stephanie Link's Portfolio Moves: Selling Eaton, Buying Zoetis & Natera

Industrial Sector & AI Data Center Theme

• 💡 Stephanie Link is taking profits from Eaton to invest more in Rockwell Automation, preferring it for its underappreciated potential in the robotics and AI data center theme.
• 🚀 While acknowledging Eaton's strength, Link favors other industrial names like Quana Services, GE Vernova, Verdive, and Rockwell due to their growth prospects and current valuations.
• ⚠️ Concerns about new chips requiring less cooling are seen as an overreaction, with backlogs in companies like Eaton, Verdive, and GE Vernova supporting continued growth.

Zoetis: A Healthcare Play

• 🎯 Link is adding to her position in Zoetis, despite its previous underperformance, due to its strong market position in the animal health industry.
• 💰 With a significant total addressable market and five blockbuster drugs expected in the next five years, Zoetis is viewed as a potential turnaround play.
• 📈 The company faces competition, and execution will be key for its CEO to deliver on its product pipeline and operational growth.

Natera: Focus on Women's Health

• 🧠 Link is increasing her stake in Natera, a company she believes leads the MRD market and is a strong player in women's health.
• 📊 Natera is experiencing double-digit earnings growth, with improving gross margins projected to reach 70%.
• 🧩 The company offers significant operating leverage and growth potential within its diagnostic markets.