Barrons 2020-12-28

72 Pages·2020·5.88 MB·English

VOL. C
NO. 52
DECEMBER 28, 2020
$5.00

SMALL-CAP STOCKS ON EIGHT-WEEK WINNING STREAK • PAGE M1

>

63142

As shares of hotels,
cruise lines, and casinos
rally on hopes for
vaccines, investors need
to be selective.
Six stocks that could
go the distance.

PAGE 18

THENEWSHAPE
OFTRAVEL:
HOWTOPLAYIT

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CONTENTS
12.28.20
VOL.C NO.52

Index
P.4

Review&Preview
P.8

Mailbag
P.31

13DFilings
P.M7

ChartingtheMarket P.M8

Winners&Losers
P.M9

ResearchReports
P.M11

MarketView
P.M12

Cover background: Yuko Yamada/Getty Images;
Neel Kashkari photograph by Ackerman + Gruber

P. 4
Up & Down Wall Street:
Gauging Sentiment
The bulls haven’t been dissuaded
by troubling economic news and
dysfunction in Washington.

By RANDALL W. FORSYTH

P. 7
Streetwise: Cashing In
on Connected Fitness
Chasing IPOs probably isn’t the
best way to fatten your wallet.

By JACK HOUGH

P. 10
Alibaba Gets Some
Coal in Its Stocking
Follow-Up: Antitrust crackdowns
highlight the risks in China.

By AL ROOT & LIZ MOYER

P. 11
Weigh In With Your
2021 Predictions
Test your skills with Barron’s 20th
annual forecasting quiz.

By ANDREW BARY

P. 12
A Pool Stock to Get
Pumped Up About
A wave of pool purchases lifted
Pool Corp. stock. Maintenance fees
could buoy it for years to come.

By TERESA RIVAS & AL ROOT

P. 13
Yelp Is a Reopening
Play That’s Cheap
A better business model sets up
the online review site up for gains
once the economy fully reopens.

By ERIC J. SAVITZ

P. 25
Emerging Markets Are
Ready to Shine
Profile: Here are a few of the
William Blair Emerging Markets
Growth fund’s favorite things.

By SARAH MAX

P. 27
Funds: The SEC Seeks
to Rein In Leverage

By LEWIS BRAHAM

P. 30
Other Voices: Getting
Back to Investing
Basics After Covid-19

By CHRISTOPHER SMART

P. 31
Economy: Squeeze on
Cities Hurts Payrolls

By ALEXANDRA SCAGGS

P. 18
These Travel Stocks
Are Just the Ticket
Cover Story: Why Wynn Resorts,
Caesars, and four other stocks are
especially good plays on the
postpandemic travel recovery.

By LAWRENCE C. STRAUSS

P. 23
Five Airlines to Keep
on Your Radar
Carriers such as Delta, Southwest,
and Ryanair are ready to reward
investors as they rise above
coronavirus-related turbulence.

By DAREN FONDA

P. 15
Tech Trader: Apple’s
Slice of the Car Market

By ERIC J. SAVITZ

P. 17
Income: The Benefits
of ESG Bonds

By LESLIE P. NORTON

P. M1
Trader: Small-Caps
Could Cool Off

By BEN LEVISOHN

P. M4
Euro Trader: BASF
Looks Like a Buy

By RUPERT STEINER

P. M4
Emerging Markets:
Hot Stocks—for a Price

By CRAIG MELLOW

P. M5
Striking Price: How to
Capture Disney’s Magic

By STEVEN M. SEARS

P. M6
Commodities: Higher
Soybean Prices Ahead

By SIMON CONSTABLE

Photograph by
Andrew B. Myers

VOL. C
NO. 52
DECEMBER 28, 2020
$5.00

SMALL-CAP STOCKS ON EIGHT-WEEK WINNING STREAK • PAGE M1

>

63142

As shares of hotels,
cruise lines, and casinos
rally on hopes for
vaccines, investors need
to be selective.
Six stocks that could
go the distance.

PAGE 18

THENEWSHAPE
OFTRAVEL:
HOWTOPLAYIT
Barron’s Roundtable
on Fox Business

Watch our TV show Fridays at 10
p.m. or 11:30 p.m. ET; Saturdays at
10 a.m. or 11:30 a.m.; or Sundays
at 7 a.m., 10 a.m., or 11:30 a.m.
This week, analysis of potential
market surprises in 2021 and an
interview with Kevin Landis, CEO
of Firsthand Capital Management.

P. 28
The Fed’s Role Beyond Rates

Q&A: Minneapolis Fed Chief Neel Kashkari discusses the responsibility that regulators
have in addressing racial disparities, his beef with big banks, and why he isn’t concerned
about rising government debt. By LESLIE P. NORTON

Neel Kashkari, head of the Minneapolis Federal Reserve

December 28, 2020
BARRON’S
3

Company Name
Symbol
Weight

Amazon
AMZN
22.88%

Tesla
TSLA
15.63%

Home Depot
HD
8.64%

McDonald’s
MCD
4.75%

Nike B
NKE
4.35%

Starbucks
SBUX
3.66%

Lowe’s
LOW
3.61%

Booking Holdings
BKNG
2.60%

Target
TGT
2.58%

TJX Companies
TJX
2.45%

XLY

Sector SPDRs allow you to invest in pieces of the S&P 500. Like Consumer Discretionary. While adding diversification and reducing single stock risk.

These ETFs combine the diversification of a mutual fund and the tracking of an index with transparency and liquidity.
THECONSUMERDISCRETIONARYSECTOROFTHES&P500INONEETF

CONSUMERDISCRETIONARYSECTORSPDRETFTOP10HOLDINGS*

An investor should consider investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus, which contains this and other information, call 1-866-SECTOR-ETF or
visitwww.sectorspdrs.com.Readtheprospectuscarefullybeforeinvesting.
The S&P 500, SPDRs®, and Select Sector SPDRs® are registered trademarks of Standard & Poor’s Financial Services LLC. and have been licensed for use. The stocks included in each Select Sector Index were selected by the compilation agent. Their composition and
weightingcanbeexpectedtodiffertothatinanysimilarindexesthatare publishedbyS&P.TheS&P500Indexisanunmanagedindexof500commonstocksthatisgenerallyconsideredrepresentativeoftheU.S.stockmarket.Theindexisheavilyweightedtoward
stocks with large market capitalizations and represents approximately two-thirds of the total market value of all domestic common stocks. Investors cannot invest directly in an index. The S&P 500 Index figures do not reflect any fees, expenses or taxes. Ordinary
brokeragecommissionsapply.ETFsareconsideredtransparentbecausetheirportfolioholdingsarediscloseddaily.Liquidityischaracterizedbyahighleveloftradingactivity.
SelectSectorSPDRsaresubjecttoriskssimilartothoseofstocks,includingthoseregardingshort-sellingandmarginaccountmaintenance.AllETFsaresubjecttorisk,includingpossiblelossofprincipal.Fundsfocusingonasinglesectorgenerallyexperiencegreater
volatility.Diversificationdoesnoteliminatetheriskofexperiencinginvestmentlosses.
ALPSPortfolioSolutionsDistributor,Inc.,aregisteredbroker-dealer,isdistributorfortheSelectSectorSPDRTrust.

Visit www.sectorspdrs.com or call 1-866-SECTOR-ETF

*Components and weightings as
of 12/21/20. Please see website for
daily updates. Holdings subject
to change.

w003_p2bw363000_0_w00300_1________xa2020_01.pdf 1
26-Dec-20 04:35:24

4
BARRON’S
December 28, 2020

INDEX

Our index lists significant companies mentioned in stories and columns,
plus Research Reports, and Corrections & Amplifications. The references
are to the first page of the item in which the company is mentioned.

For Customer Service, call 1 [phone], or go to
customercenter.barrons.com. For reprints of articles,
call 1 [phone], or go to djreprints.com.

A Adobe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Aerojet Rocketdyne Holdings . . . . . . . . . . . . . . . 8
Agios Pharmaceuticals . . . . . . . . . . . . . . . . . . . . M8
Airbnb. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .M7
Airgain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Alibaba Group Holding . . . . . . . . . . . . . 6,8,10,M8
Allegiant Travel . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Alphabet . . . . . . . . . . . . . . . . . . . . . . . 10,13,M2,M11
Amazon.com. . . . . . . . . . . . . . . . . . . . . . . . . .M2,M11
Apartment Investment & Management. . .M12
Apple . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,8,9,15,M2

B Best Buy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Blink Charging . . . . . . . . . . . . . . . . . . . . . . . . . . . M8
Bonanza Creek Energy . . . . . . . . . . . . . . . . . . . M7
Booking Holdings. . . . . . . . . . . . . . . . . . . . . . . . . .13
Boyd Gaming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

C Caesars Entertainment . . . . . . . . . . . . . . . . . . . . 21
Carnival . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
CBRE Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Check Point Software Technologies . . . . . . . . . 8
Chewy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . M7
Choice Hotels International . . . . . . . . . . . . . . . . 21
Cisco Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Contemporary Amperex Technology . . . . . . . . 9
Continental . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
CrowdStrike Holdings . . . . . . . . . . . . . . . . . . . . . . 8

D Delta Air Lines . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Denso . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Devon Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Diamondback Energy . . . . . . . . . . . . . . . . . . . . . . . 8
DoorDash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .M7

E Evolent Health . . . . . . . . . . . . . . . . . . . . . . . . . . . M7
Extended Stay America. . . . . . . . . . . . . . . . . . . .22

F Facebook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,M2
Fiat Chrysler Automobiles . . . . . . . . . . . . . . . . . 15
FireEye . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,M7,M8
Ford Motor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,15

G GameStop . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . M7
General Motors . . . . . . . . . . . . . . . . . . . . . . . . . . 9,15
Globant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Goldman Sachs Group . . . . . . . . . . . . . . . . . . . M12
GOL Linhas Aereas Inteligentes . . . . . . . . . . . 24

H Hilton Grand Vacations . . . . . . . . . . . . . . . . . . . . 20
Hilton Worldwide Holdings . . . . . . . . . . . . . . . . 20
HP Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Hyatt Hotels. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22

I
IAC/InterActiveCorp. . . . . . . . . . . . . . . . . . . . . . . . 8
Inseego . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . M7

J
JD.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

K Keysight Technologies . . . . . . . . . . . . . . . . . . . . . 17
Kilroy Realty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

L Las Vegas Sands. . . . . . . . . . . . . . . . . . . . . . . . . . .22
Leslie's . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
LG Chem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Lockheed Martin . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
LVMH Moet Hennessy Louis Vuitton . . . . . . . 9

M Marriott International . . . . . . . . . . . . . . . . . . . . . 20
Marriott Vacations Worldwide. . . . . . . . . . . . . .20
MGM Resorts International . . . . . . . . . . . . . 20,22
Microsoft . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . M2
Moderna . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,M1
Morgan Stanley. . . . . . . . . . . . . . . . . . . . . . . . . .M12

N Nantkwest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . M8
Nautilus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Netflix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . M2
Nikola . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . M8
Nordic Semiconductor . . . . . . . . . . . . . . . . . . . . . 15
Norwegian Cruise Line Holdings . . . . . . . . . . 21

Nvidia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

P Palo Alto Networks . . . . . . . . . . . . . . . . . . . . . . . . . 8
Panasonic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Peloton Interactive . . . . . . . . . . . . . . . . . . . . 7,8,M8
Penn National Gaming . . . . . . . . . . . . . . . . . . . . . 21
Pfizer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .M1
Pool Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

Q QEP Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
QuantumScape . . . . . . . . . . . . . . . . . . . . . . . . . . 9,M8

R RealPage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
RELX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Riot Blockchain . . . . . . . . . . . . . . . . . . . . . . . . . . . M8
Royal Caribbean Group . . . . . . . . . . . . . . . . . . . . 21
Ryanair Holdings . . . . . . . . . . . . . . . . . . . . . . . . . . 24

S Samsung. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
Sea Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26
SecureWorks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
SolarWinds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Solid Biosciences. . . . . . . . . . . . . . . . . . . . . . . . . .M7
Sorrento Therapeutics . . . . . . . . . . . . . . . . . . . . M8
Southwest Airlines. . . . . . . . . . . . . . . . . . . . . . . . .23
StoneCo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

T Taiwan Semiconductor Manufacturing. . . . . .26
Target . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . M3
Tencent Holdings . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Tesla . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,9,15,M12
Tiffany. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
TripAdvisor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

U UniQure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . M8
United Airlines Holdings . . . . . . . . . . . . . . . . . . 23

W William Hill. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
WPX Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
W.W. Grainger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Wyndham Destinations . . . . . . . . . . . . . . . . . . . . 20
Wyndham Hotels & Resorts . . . . . . . . . . . . . . . 20
Wynn Resorts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

X XL Fleet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . M8

Y Yelp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13,15

Z Zscaler . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

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