The current bearish market sentiment has overturned the fortunes of the most seasoned investors. Whether the U.S. economy will slip into a recession and when it can be anticipated is hard to tell. Financial companies take the maximum brunt when markets start to topple. Inflationary pressures coupled with the Russia-Ukraine war have trapped the world in an ugly corner with no near-term relief in sight.
Making investment decisions at such times is difficult, to say the least. To provide some meaningful guidance for your investment decisions, we will look at expert blogger Tim Travis from Seeking Alpha and learn about his view on stocks. Travis conducts in-depth research on companies and holds expertise in the financial sector.
Travis is the Founder, CEO, and CIO of T&T Capital Management, a California-based investment advisory firm that utilizes a deep value investment approach. Travis has majored in Business and Economics at the University of California, Santa Barbara, and has also studied international economics at the University of Richmond, Italy.
Before launching his own investment advisory firm, Travis worked at the Vanguard Group in Arizona and also worked at a small futures and commodities firm in Mission Viejo, California.
Expert Blogger’s Standing and Performance
According to the TipRanks Star Ranking System, Tim Travis ranks #20 out of the 11,795 bloggers tracked in the TipRanks universe. Furthermore, the five-star blogger ranks #64 out of the total 19,736 experts tracked by TipRanks, including hedge fund managers, Wall Street analysts, corporate insiders, financial bloggers, and individual investors.
Notably, Travis boasts a success rate of 77% with an average return of 23.4% per rating over the past year.
However, compared to the S&P 500 (SPX), Travis’s calls have generated a success rate of 58% with an average return of 6.3%. Meanwhile, compared to the sector’s performance, his calls have generated a weaker average return per rating of 4.8% with a success rate of 59%.
Out of the overall 243 ratings, Travis has a Bullish rating on 97.1% of stocks and a Bearish rating on the rest. Keeping our expert’s history and performance in mind, let’s look at two of his top picks for 2022.
Ally Financial (NYSE: ALLY)
Ally Financial is a bank holding company offering digital financial services to consumers, businesses, automotive dealers, and corporate clients.
To date, Ally remains one of Travis’s best financial picks. Notably, his Buy recommendation on ALLY between April 21, 2020, and April 21, 2021, generated a humongous 252.5% return.
Ally is currently trading at a price to earnings (P/E) multiple of 5.4, which according to Travis is ridiculously low. He firmly believes that Ally will outperform over the next 24 months based on its high-teens producing return on average tangible common shareholders’ equity (ROTCE).
Although ALLY stock has lost 10.5% year to date, Travis has recommended consistent Bullish ratings on the stock since 2015. Impressively, Travis enjoys a success rate of 92% on the stock and has generated a whopping 50.9% average profit on ALLY.
Bank of America Corporation (NYSE: BAC)
Next up is the banking behemoth, Bank of America, the second largest in the U.S. BAC offers a multitude of banking and non-banking services, including consumer banking, global wealth, and investment management.
BAC stock is hovering around $36, nearly 28% off from its yearly high of $50.11. Currently, the stock trades at a P/E of 10.3 times, which Travis believes is way too cheap for a company with such strong earnings potential and stability.
Notably, Travis believes that BAC will be one of the biggest beneficiaries of the rising interest rate environment. Moreover, he thinks that it is difficult for the bank to lose money in any imaginable environment because the current expected credit losses (CECL) standard is so stringent that all probable credit losses are front-loaded into the financials.
Similar to ALLY, Travis has endorsed consistent Bullish calls on BAC stock since 2013. The blogger has earned a 68% success rate on his BAC calls, with an average profit on the stock of 31.2%.
Ending Thoughts
Considering Tim Travis’s performance and his optimism in the financial sector, these two stocks would be worth looking at. For more expert guidance on stocks, you can visit TipRanks’ Expert Center which consolidates the recommendations of top experts from different realms of the investment world.
Read full Disclosure
