These bargain stocks will shine when AI trade falters, says Ariel's John Rogers
The runup in AI stocks is the "same situation" as the tech bubble of 1999-2000, said Ariel Investments' John Rogers.
TL;DR
- Investors are overlooking quality companies poised for a breakout when the AI trade falters.
- John Rogers compares the current AI market to the dot-com bubble burst, expecting a shift towards less flashy companies.
- Many world-class consumer brands are currently undervalued, trading at less than 10x next year's earnings.
- Recommended picks include health and wellness company OneSpaWorld, entertainment venues Madison Square Garden Entertainment and Sphere Entertainment, and food and beverage company J.M. Smucker.
- These companies are expected to perform well as AI is unlikely to disrupt their business models.