Tom Lee just made a bunch of new stock recommendations to play this year's tough market

Published Wed, Apr 6 20221:08 PM EDTUpdated Thu, Apr 7 202212:51 PM EDT

Fundstrat Global Advisors founder Tom Lee refreshed his outperforming "Granny Shots" portfolio, naming seven new top stock picks and a style rebalance for the second quarter. After rebalancing his portfolio that includes 31 top stock picks across six thematic and quantitative portfolios, Lee said "pure growth" and "quality defensive" plays will be the two top-performing themes out of 12 investing styles for the next six months, according to a note sent Wednesday from Fundstrat. The investor expects that the two sectors will outperform the S & P 500 in the coming months. The average expected 12-month relative gains for "pure growth" and "quality defensive" styles are 11.1% and 6.4%, respectively. Meanwhile, the win ratio is 60% and 57% respectively, according to the firm. The investor recommends large-cap steady growers. Investors watch Lee's "Granny Shots" portfolio for its market-beating performance. Year to date, the portfolio has outperformed the S & P 500 by 9.4%, according to the firm. The "Granny Shots" portfolio has gained 3.4% this year, while the broad market index lost 6.3% over the same time period. Lee calls them granny shots because he believes they have high reward and low risk, similar to the simple underhanded foul shot shooting method in basketball. Here are the seven new top stock picks from the investor: Source: Fundstrat Global Advisors Information technology stocks tumbled this year as rising interest rates spurred a pivot away from growth names. Semiconductor names such as Broadcom and Qualcomm were dinged, cratering nearly 10% and 25% respectively year to date. The two chip stocks extended those losses in Wednesday trading, falling about 2% and 5%, respectively. Real estate stocks also declined this year. Wireless and broadcast communications infrastructure firm American Tower Corporation fell 9% this year. Real estate investment trust (REIT) firm Crown Castle International Corporation , which invests in shared communications infrastructure such as cell towers and fiber networks, fell nearly 6%. Extra Space Storage , a REIT that invests in self storage units, plummeted almost 8%. Still, all three companies are positive this month. On Wednesday, they posted 1.2%, 2% and 2% gains respectively. By contrast, shares of insurance firms Allstate and Cincinnati Financial Corporation have been on a tear this year on the strength of rising premiums, rising nearly 19% and 21% respectively. On Wednesday, the two stocks continued those gains, both jumping about 2%.

Tom Lee, Fundstrat Global Advisors

Scott Mlyn | CNBC

Fundstrat Global Advisors founder Tom Lee refreshed his outperforming "Granny Shots" portfolio, naming seven new top stock picks and a style rebalance for the second quarter.