Investors seem complacent on oil prices, says Trivariate's Adam Parker

Watch on YouTube ↗  |  April 27, 2026 at 22:01  |  5:52  |  CNBC
Speakers
Adam Parker — Head of Quantitative Research, Houlihan Lokey

Summary

Adam Parker warns that investors are complacent about oil prices staying elevated, which could lead to downward revisions in consumer discretionary stocks. He also argues that institutional investors need to increase their exposure to mega-cap tech stocks, particularly NVIDIA, due to persistent underweight positions.

  • Adam Parker says oil prices may stay elevated longer than currently priced in.
  • He is cautious on consumer discretionary stocks due to the risk of downward earnings revisions from high oil.
  • He believes institutional investors are underweight mega-cap tech and need to own more to avoid underperformance.
  • He specifically recommends NVIDIA as a good stock to own within the mega-cap tech group.
  • He discusses that Fed cuts might not be bullish if they signal a growth scare.
  • He notes that tech earnings growth remains strong even if estimates are too high.
Trade Ideas
Adam Parker Head of Quantitative Research, Houlihan Lokey 1:19
Avoid consumer discretionary due to elevated oil.
Investors are complacent about oil prices remaining elevated for a long time, and this is not embedded in estimates. As a result, consumer discretionary stocks are vulnerable to downward earnings revisions, so investors should be cautious on that sector.
XLY MED
Adam Parker Head of Quantitative Research, Houlihan Lokey 4:31
Own more mega-cap tech, especially NVIDIA.
Most long-only institutional investors are underweight mega-cap tech (Mag-7 plus Broadcom) due to concentration rules, and these stocks have massively outperformed. Investors need to own more of them to avoid underperformance. NVIDIA in particular is a good stock to own.
Mega-cap Tech (Mag-7 + Broadcom) NVDA HIGH
Up Next
5:24
Bottlenecks could be 'healthy thing' for Big Tech, says Gabelli's John Belton
CNBC · Apr 27
5:02
Tom Lee: Upside case for stocks the rest of this year is strengthening
CNBC · Apr 27
4:53
Can Stock Momentum Hold Up?
Morgan Stanley · Apr 27
1:44
U.S. Attorney Pirro: There will be additional charges against the suspected WHCD shooter
CNBC · Apr 27
1:25
California Man Charged With Trying to Kill Trump at DC Dinner Saturday Night
Bloomberg Markets · Apr 27

This CNBC video, published April 27, 2026, features Adam Parker discussing XLY, Mega-cap Tech (Mag-7 + Broadcom), NVDA. 2 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Adam Parker  · Tickers: XLY, Mega-cap Tech (Mag-7 + Broadcom), NVDA