CNBC Television
Look to use market downside opportunistically and fade the frothiness: Raymond James' Matt Orton
11/4/2025, 8:50:24 PM
Economic Summary
- Intermittent market declines are healthy and provide opportunities to buy quality names on weakness; investors should use downside opportunistically and 'fade the froth.'
- Priority should be on earnings growth: favor companies with sustainable double-digit top- and bottom-line growth that are levered to durable secular trends such as AI and the CapEx/data-center super cycle.
- Earnings season is validating durable trends like AI and data-center buildouts, benefiting firms with visible backlogs and margin expansion—cited example: Sterling Infrastructure reporting double-digit earnings growth and backlog visibility into 2029.
Bullish
- Buy high-quality companies with double-digit revenue and earnings growth.
- Companies levered to durable trends like AI and the CapEx super cycle likely outperform.
- Sterling Infrastructure: double-digit earnings growth, long backlog, expanding margins.
Bearish
- Euphoria in nuclear, crypto, and quantum tech names may be unsustainable.
- Speculative trading/gambling behavior inflates valuations detached from earnings.
- Disproportionate rallies not supported by revenue or earnings risk sharp reversals.
Bullish tickers
STERLING INFRASTRUCTURE
STERLING INFRASTRUCTURE
Bullish
Reported double-digit earnings growth, margin expansion, and backlog visibility into 2029, benefitting from data-center buildouts and AI-related CapEx.
People mentioned
Matt Orton