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2 Top Picks From Expert Blogger Tim Travis’ Trunk

The current bearish market sentiment has turned the fortunes of the most seasoned investors upside down. It is difficult to say whether the US economy will slip into a recession and when it can be anticipated. Financial companies are the hardest hit when markets begin to crash. Inflationary pressures associated with the Russian-Ukrainian war have trapped the world in an ugly corner with no short-term relief in sight.

Making investment decisions at such times is difficult, to say the least. To provide meaningful advice for your investment decisions, we’ll review an expert blogger Tim Travis of Looking for Alpha and find out his view on stocks. Travis conducts extensive research on companies and has expertise in the financial sector.

Travis is the Founder, CEO and CIO of T&T Capital Management, a California-based investment advisory firm that uses a deep value investing approach. Travis majored in Business and Economics at the University of California, Santa Barbara, and also studied International Economics at the University of Richmond, Italy.

Prior to starting his own investment advisory firm, Travis worked for the Vanguard Group in Arizona and also worked at a small futures and commodities firm in Mission Viejo, California.

Expert Blogger Status and Performance

According to the TipRanks star ranking system, Tim Travis ranks 20th out of 11,795 bloggers followed in the TipRanks universe. Additionally, the five-star blogger ranks 64th out of a total of 19,736 experts tracked by TipRanks, including hedge fund managers, Wall Street analysts, corporate insiders, financial bloggers and individual investors. .

Notably, Travis boasts a 77% pass rate with an average return of 23.4% per rating over the past year.

However, compared to the S&P 500 (SPX), Travis’ calls generated a 58% success rate with an average return of 6.3%. Meanwhile, relative to sector performance, his calls generated a lower average return per note of 4.8% with a 59% success rate.

Of the 243 overall ratings, Travis has a bullish rating on 97.1% of the stock and a bearish rating on the rest. With our pundit’s history and performance in mind, let’s take a look at two of his top picks for 2022.

Ally Financial is a bank holding company providing digital financial services to consumers, businesses, car dealerships and corporate customers.

To this day, Ally remains one of Travis’ top financial picks. Notably, its buy recommendation on ALLY between April 21, 2020 and April 21, 2021 generated a whopping 252.5% return.

Ally is currently trading at a price/earnings (P/E) multiple of 5.4, which Travis says is ridiculously low. He strongly believes that Ally will outperform over the next 24 months based on its high-teens producing return on average tangible common equity (ROTCE).

Although ALLY stock is down 10.5% year-to-date, Travis has recommended consistent bullish ratings on the stock since 2015. Impressively, Travis boasts a 92% success rate on the stock and generated a whopping average profit of 50.9% on ALLY.

Bank of America Corporation (NYSE: BAC)

Next is the banking giant, Bank of America, the second largest in the United States BAC offers a host of banking and non-banking services, including consumer banking, global wealth management and investment management.

BAC stock is hovering around $36, nearly 28% below its yearly high of $50.11. Currently, the stock is trading at a P/E of 10.3x, which Travis says is far too cheap for a company with such high earnings potential and stability.

Notably, Travis believes BAC will be one of the biggest beneficiaries of rising interest rates. Additionally, he believes it is difficult for the bank to lose money in any conceivable environment, because the current Expected Credit Loss (CECL) standard is so stringent that all probable credit losses are preloaded in finance.

Similar to ALLY, Travis has endorsed consistent bullish calls on BAC shares since 2013. The blogger has had a 68% hit rate on his BAC calls, with an average profit on the stock of 31.2%.

end thoughts

Given Tim Travis’ performance and bullishness in the financial sector, both of these stocks would be worth considering. For more expert advice on stocks, you can visit the TipRanks Expert Center which brings together recommendations from top experts from different areas of the investment world.

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