Opinions
The Panic-Proof Portfolio (Stockchase Research)
Hyster-Yale Materials Handling, Inc.
HY-N
TOP PICK
May 16, 2024
Stock price when the opinion was issued
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Premium contentPremium contentHY manufactures robotic forklifts, trucks and other automated material handling products for sale globally. The company has made significant investment into AI enhancements and the company possesses a backlog of $2.3 billion in orders. We like that cash reserves are holding steady as the company aggressively retires debt and buys back shares. It trades at 10x earnings, 1.8x book and supports a ROE of 37%. We recommend setting a stop-loss at $40, looking to achieve $72 -- upside potential over 30%. Yield 2.5%
(Analysts’ price target is $72.50)Premium contentPremium contentThis global manufacturer of lift equipment offers diversification across several geographical regions as the economy stabilizes. It trades at 15x earnings, 1.5x book and supports a ROE of 21%. Recently reported earnings showed a strong backlog of orders and management is confident they can adjust strategies to deal with the fully-discounted tariff uncertainty. This is backed by cash reserves continuing to grow, while debt is retired and shares bought back. We recommend setting a stop-loss at $34, looking to achieve $56 -- upside potential of 28%. Yield 3.2%
(Analysts’ price target is $56.00)
HY is a Ohio based manufacturer of lift trucks and fork lifts. The company recently reported a record high quarterly operating profit and profit margin. It trades at 9x earnings, 3.2x book and supports a 43% ROE. Its dividend is backed by a payout ratio under 20% of cash flow. We recommend setting a stop-loss at $56, looking to achieve $88 -- upside potential of 18%. Yield 1.7%
(Analysts’ price target is $88.50)