Opinions
The Panic-Proof Portfolio (Stockchase Research)
Weis Markets, Inc.
WMK-N
TOP PICK
Oct 29, 2020
Stockchase Research Editor: Michael O'Reilly The pandemic has created great opportunity for regional food stores. WMK is a lesser known chain operating 197 stores in the US Mid-Atlantic that is putting out good numbers and has a solid dividend backed by a 33% payout ratio of cash flow. Recently reported EPS doubled over the year, with comparable same-store sales up 24% while ecommerce sales grew over 240%. We would trade this with a stop-loss at $38, looking to re-visit recent highs near $56 -- 25% upside. Yield 2.71%
$45.450
Stock price when the opinion was issued
food stores
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BUY
Allan Tong’s Discover Picks Weiss it trades at a PE of 11x and pays a 2.58% dividend which is safe, given the 28.18% payout ratio. On Nov. 2, WMK reported a Q3 YOY sales increase of 14.4% and a Q3 comparable stores sales move of 14.8%. Over a five-year span, Weis boasts 4.26% average profit growth and a 16.15% total return. E-commerce sales, which is essential to any business today, is up 240%. Intriguingly, WMK has gotten cheaper lately. Its trailing PE has slid from 16.76x over the summer to nearly 11x now. As of Nov. 16, Weis is trading $12 below its 52-week high of $59.39 as well as its 50- and 200-day moving averages. Read 4 Reliable Covid Stocks and Recovery Stocks for our full analysis.
food stores
PAST TOP PICK
(A Top Pick Oct 29/20, Up 38.3%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with WMK is progressing well. We recommend trailing up the stop (from $46) to $55. If triggered this would result in a net investment gain over 22%, when combined by our previous recommendation to cover half.
food stores
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