Thomas J. Lee, CFA [email protected] 1/28/2021

FSInsight Granny Shots Portfolio Strategy Publication Date: 1/28/2021, Pricing as of 1/28/2021

THIS MESSAGE IS BEING SENT SOLELY TO CLIENTS OF FS INSIGHT Below we’ve highlighted stocks that we recommend across at least two of our investment strategies for 2021. These companies could benefit from multiple themes and secular tailwinds – clear picks in our view for the first half of 2021.

The tickers are AAPL, CSCO, INTC, MXIM, NVDA, EBAY, KLAC, GRMN, GOOG, MNST, MSFT, AMZN, QCOM, TSLA, PYPL, AXP, BF/B, PM, XLNX, TGT, PG, XOM, VLO, GL, RF, ATVI, BBY, GE, AMAT, LRCX, MU, HPQ

Granny # overlaps Tactical (6M-12M) “layups” Tickers

# stocks Shots 5 AAPL Style tilt 39 4 CSCO

Seasonality 20 3 INTC, TGT, MXIM NVDA, EBAY, KLAC PMI Recovery 35 GRMN, GOOG 2 ATVI, BBY, AMAT Thematic (3Y-5Y) LRCX, XOM, VLO GL, RF, GE, MNST # stocks Rick Barry career free throw percentage PG, MSFT, MU Millennials 28 was eye-popping 90%, incredible considering Shaquille O’Neal’s only AMZN, QCOM, HPQ 52%. Automation/ AI 49 XLNX, TSLA, PYPL His secret? The unorthodox style of Asset intensity 26 underhanded throws, which is AXP, BF/B, PM considered “not macho” enough for most players.

Source: Fundstrat

1 FSInsight 150 East 52nd St, 3rd floor New York, NY 10022 Thomas J. Lee, CFA [email protected] 1/28/2021

YTD perf Mkt Cap (relative to P/E Ticker Company ($M) S&P 500) ('21E) Value / SeasonalityGrowthPMI Tilt RecoveryMillennialsAI / AutomationAsset IntensityStrategy Count 1 AAPL Apple Inc $2,306,301 2.5% 31.5x • • • • • 5 2 CSCO Inc $191,380 0.5% 14.3x • • • • 4 3 INTC Corp $227,736 11.7% 11.8x • • • 3 4 TGT Target Corp $91,932 3.2% 21.1x • • • 3 5 MXIM Maxim Integrated Products Inc $23,856 (0.4%) 30.6x • • • 3 6 NVDA Corp $323,143 (0.9%) 45.1x • • • 3 7 EBAY Ebay Inc $38,906 11.5% 15.3x • • • 3 8 KLAC Kla Corp $45,153 11.6% 22.8x • • • 3 9 GRMN Garmin Ltd $22,465 (2.7%) 22.8x • • • 3 10 GOOG Alphabet Inc $1,171,732 5.5% 30.1x • • • 3 11 ATVI Inc $69,766 (3.6%) 25.9x • • 2 12 BBY Best Buy Co Inc $29,082 11.7% 14.6x • • 2 13 AMAT Inc $92,486 16.4% 19.9x • • 2 14 LRCX Corp $72,655 6.6% 20.4x • • 2 15 XOM Exxon Mobil Corp $194,752 10.9% 23.0x • • 2 16 VLO Valero Energy Corp $23,786 2.3% 122.3x • • 2 17 GL Globe Life Inc $9,708 (3.2%) 12.4x • • 2 18 RF Regions Financial Corp $16,906 8.4% 10.0x • • 2 19 GE General Electric Co $97,147 1.9% 37.5x • • 2 20 MNST Corp $46,842 (4.9%) 33.7x • • 2 21 PG Procter & Gamble Co/The $321,008 (7.1%) 23.0x • • 2 22 MSFT Corp $1,802,062 6.6% 32.8x • • 2 23 MU Inc $87,693 3.4% 18.8x • • 2 24 AMZN .Com Inc $1,624,480 (1.4%) 71.8x • • 2 25 QCOM Inc $175,927 1.3% 21.5x • • 2 26 HPQ Hp Inc $32,073 0.3% 9.5x • • 2 27 TSLA Tesla Inc $791,905 17.6% 213.2x • • 2 28 PYPL Paypal Holdings Inc $278,617 0.7% 52.3x • • 2 29 AXP American Express Co $95,771 (2.4%) 18.2x • • 2 30 BF/B Brown-Forman Corp $34,488 (7.5%) 39.4x • • 2 31 PM Philip Morris International In $126,579 (2.7%) 14.0x • • 2 32 XLNX Inc $32,741 (6.6%) 39.9x • • 2

Average (relative to S&P 500) $328,096 2.8% 35.0x Median (relative to S&P 500) $92,209 1.6% 22.9x Source: Fundstrat, Bloomberg, FactSet

2 FSInsight 150 East 52nd St, 3rd floor New York, NY 10022 Thomas J. Lee, CFA [email protected] 1/28/2021

Disclosures

This research is for the clients of FS Insight only. For additional information, please contact your sales representative or FS Insight at http://www.fsinsight.com/.

Conflicts of Interest This research contains the views, opinions and recommendations of FS Insight. At the time of publication of this report, FS Insight does not know of, or have reason to know of any material conflicts of interest.

General Disclosures FS Insight is an independent research company and is not a registered investment advisor and is not acting as a broker dealer under any federal or state securities laws. FS Insight is a member of IRC Securities’ Research Prime Services Platform. IRC Securities is a FINRA registered broker- dealer that is focused on supporting the independent research industry. Certain personnel of FS Insight (i.e. Research Analysts) are registered representatives of IRC Securities, a FINRA member firm registered as a broker-dealer with the Securities and Exchange Commission and certain state securities regulators. As registered representatives and independent contractors of IRC Securities, such personnel may receive commissions paid to or shared with IRC Securities for transactions placed by FS Insight clients directly with IRC Securities or with securities firms that may share commissions with IRC Securities in accordance with applicable SEC and FINRA requirements. IRC Securities does not distribute the research of FS Insight, which is available to select institutional clients that have engaged FS Insight. As registered representatives of IRC Securities our analysts must follow IRC Securities’ Written Supervisory Procedures. Notable compliance policies include (1) prohibition of insider trading or the facilitation thereof, (2) maintaining client confidentiality, (3) archival of electronic communications, and (4) appropriate use of electronic communications, amongst other compliance related policies. FS Insight does not have the same conflicts that traditional sell-side research organizations have because FS Insight (1) does not conduct any investment banking activities, (2) does not manage any investment funds, and (3) our clients are only institutional investors. This research is for the clients of FS Insight only. Additional information is available upon request. Information has been obtained from sources believed to be reliable, but FS Insight does not warrant its completeness or accuracy except with respect to any disclosures relative to FS Insight and the analyst's involvement (if any) with any of the subject companies of the research. All pricing is as of the market close for the securities discussed, unless otherwise stated. Opinions and estimates constitute our judgment as of the date of this material and are subject to change without notice. Past performance is not indicative of future results. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The opinions and recommendations herein do not take into account individual client circumstances, risk tolerance, objectives, or needs and are not intended as recommendations of particular securities, financial instruments or strategies. The recipient of this report must make its own independent decision regarding any securities or financial instruments mentioned herein. Except in circumstances where FS Insight expressly agrees otherwise in writing, FS Insight is not acting as a municipal advisor and the opinions or views contained herein are not intended to be, and do not constitute, advice, including within the meaning of Section 15B of the Securities Exchange Act of 1934. All research reports are disseminated and available to all clients simultaneously through electronic publication to our internal client website, fsinsight.com. Not all research content is redistributed to our clients or made available to third-party aggregators or the media. Please contact your sales representative if you would like to receive any of our research publications.

Copyright 2021 FS Insight LLC. All rights reserved. No part of this material may be reprinted, sold or redistributed without the prior written consent of FS Insight LLC.

3 FSInsight 150 East 52nd St, 3rd floor New York, NY 10022