Halister News

(Bloomberg) -- Foreign stocks could rally if the U.K. remains in the European Union, and they’re favored over bonds for “any extended period,” Barron’s said in its June 20 issue. The Euro Stoxx 50 index has dropped 13% so far this year; Japan’s Topix has tumbled 19%. Valuations and rich dividends make equities attractive, especially compared to negative bond yields in most of Europe and Japan. Global plays include:

• The Vanguard FTSE Europe (VGK) exchange traded fund, which yields 3.5% and has slipped 6% this year.

• IShares Core MSCI EAFE (IEFA), which tracks Europe and other developed markets including Japan. It’s down 3.4% this year and yields 2.7%.

• IShares MSCI Japan (EWJ), which is down 5.7% this year, and the harder-hit Wisdom-Tree Japan Hedged ETF (DXJ), down 21%.

• Separately, Germany’s Adidas (ADS GR) and Switzerland’s Roche (ROG VX) offer solid returns, Brexit or not, Barron’s reported.

Other highlights from this week’s magazine (subscription required):

• Top 100 Hedge Funds: Little-known Parametrica Management, with $476 million under management, led the Barron’s list. The Hong Kong-based fund returned 45% last year. About a third of this year’s picks were based outside the U.S. Jonathan Herbert’s Camox fund came in No. 2, focusing on small and mid-cap European shares. David Tepper’s Appaloosa and Ken Griffin’s Citadel made top 50, while Third Point while David Einhorn’s Greenlight Capital missed the list.

• Delphi (DLPH) could soar 60%, helped by strong industry trends, Barron’s reported. It has focused on fuel efficiency, making the auto-parts supplier poised for client demand under stricter federal standards by 2025. It also invested in technology and electronics, as clients including BMW and Dodge turned to Delphi for hybrid vehicle battery chargers. The company also is at the forefront of developing self-driving cars.

• Celgene (CELG) could climb 30% in the next year, based on rising demand for its multiple myeloma drug Revlimid, Barron’s said. The company also is testing Revlimid as a treatment for lymphoma. Data is expected from 18 late-stage clinical trials by 2018, and EPS may at least double by 2020. Last year’s acquisition of Receptos is expected to boost sales of new drugs, including Ozanimod, which could receive first approvals in 2018 and generate sales of up to $6 billion.

• Oracle (ORCL) may rise 20% or more after the software giant reported strong quarterly sales of cloud-based products on Thursday, Barron’s said. Macquarie analyst Sarah Hindlian raised her price target on the shares to $52, and the stock closed Friday at $39.68.

• Square (SQ) could tumble to $5 a share from the current $9.04, Barron’s said. The unprofitable electronic payments processor has a “huge overhang of stock” after a recent lockup expiration, and a “sizable short position.” Its fees for merchants are higher than rivals, and analysts cite concerns about customer acquisition and pricing. New regulations also may add to costs.

• Monster (MNST) could rise 15%, helped by new products including Mutant, a “supersoda” recently announced that could kick Monster’s growth into “higher gear,” Barron’s reported. The company also just launched Hydro, a 100- calorie sports drink, that could sell well with women. A distribution deal with Cola-Cola is also expanding its reach.