Quick Read
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Google (GOOG) trades at 27 times trailing P/E despite a 45% gain year to date, positioning it as the value play in big tech.
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Palo Alto Networks (PANW) has surged 81% over two years, trading at 55 times forward P/E as its AI agent addresses rising cybersecurity threats.
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Vistra (VST) has gained over 425% in two years and trades at 29.7 times trailing P/E, capitalizing on surging power demand from AI infrastructure.
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Congresswoman Nancy Pelosi is more than just a widely recognized politician; she’s actually a pretty good investor. And while her portfolio’s performance may be enviable, even when compared to big-name hedge funds, I still think that investors should be careful when copying the big names. Either way, I think it’s more than worthwhile to check in on Nancy Pelosi’s portfolio, especially since there’s a reason her trading activity is public for all to see. In this piece, we’ll check in on three recent buys that I view as great bets this November.
Alphabet
Alphabet (NASDAQ:GOOG) is an AI giant that’s found a spot in Nancy Pelosi’s portfolio. It’s not a surprising one, either, given that many big-name money managers have held onto the attractively valued Magnificent Seven darling in recent years. Even after melting up more than 45% year to date, I still see Alphabet shares as the value play in big tech.
Shares trade at just over 27 times trailing price-to-earnings (P/E), which still seems to be undervalued given the company’s AI advantage. I think a multiple closer to 35 times P/E would make more sense, especially if the strong third quarter is just the start of its AI liftoff.
As Gemini looks to top ChatGPT in the new year, the AI race could get closer. With a profound trove of data, I think it’ll become harder to stop Google as it looks to really explore what AI is capable of, especially in the enterprise. With a robust cloud business that can use AI to pull ahead, I certainly wouldn’t bet against Alphabet, even if the AI trade were to pull back at some point over the next year.
Either way, Alphabet stands out as my favorite Nancy Pelosi-owned stock, and I still don’t think it’s too late to buy despite the latest upside surge.
Palo Alto Networks
Palo Alto Networks (NASDAQ:PANW) appears to be Pelosi’s cybersecurity stock of choice, and it’s a fantastic one, even though the price of admission is getting a tad frothy after an 81% two-year surge. Undoubtedly, the stakes and risks are growing as AI empowers cyberthreats.
At the same time, Palo Alto’s automated AI agent looks like the perfect weapon to combat rising threats. In many ways, a good cyber defence might have more to do with AI than anything else. At just shy of 55 times forward P/E, the valuation is quite steep. But if you lack cybersecurity names, especially those with impressive agentic AI capabilities, I think it might be time to nibble into a small position, even as shares hover near all-time highs.
While there are cheaper names in the Pelosi portfolio, I don’t think there are names that offer such a vital defensive growth narrative. As such, Palo Alto Networks stands out as one of the names worth paying a fat premium for in the age of AI agents.
Vistra
Finally, we have shares of Vistra (NYSE:VST), which have been a massive gainer for the Pelosi portfolio. Shares are up over 425% in just two years, and while the name has more recently cooled down, I certainly wouldn’t stand in the way of the firm, especially as power demands continue to surge at the hands of the AI infrastructure boom.
With a mere 29.7 times trailing P/E multiple, I’m not even sure you can call Vistra an expensive stock. The $63 billion company can certainly capitalize on the back of its contracts with the hyperscalers. While Vistra won’t be spared from an AI sell-off, I do view the name as a prime buy once it comes in. Perhaps Vistra is the growthiest and most exciting option in the Pelosi portfolio this month.