Latest Stock Buy or Sell?

Stockchase Research Editor: Michael O'Reilly We are being rewarded for our patience and are making MMM a Top Pick following a recent pullback in the stock. As previously reported, the maker of the N95 masks has been in the spot light as they have directly been keeping front line workers safer during the pandemic. For 2020 they expect to have produced 2 billion of the masks and continue to partner with the US Department of Defense. The company is mulling over selling the food safety business for $3.5 billion -- 10 times annual revenues of the segment. The segment contributed 1% of total sales in 2019. Their health care segment is expected to pick up as well, after seeing a 12% yoy slowdown, as delays in elective procedures are removed. It has an attractive yield that is backed by a payout ratio of 65% of cash flow. We look for this to test $185 and would use $149 as a stop-loss. Yield 3.69% (Analysts’ price target is $166.47)

(A Top Pick Aug 11/20, Down 9.3%)Stochchase Research Editor: Michael O'Reilly We have recommended to stop out of EPD as it has violated the $16.50 threshold we recommended. We see technical indications that the stock could retrace to $12. We will look for better opportunities elsewhere.

Stochchase Research Editor: Michael O'Reilly PFE is a defensive Top Pick that pays a strong yield, with history of dividend growth and a strong balance sheet. It is one of the world's leading pharmaceutical companies with a robust pipeline of new products in development (targeting 25 new drugs to market by 2025). They are partnering to develop a COVID-19 vaccine that is now in stage 2/3 testing and has a contract with the US government for $1.95 billion for the first 100 million doses if successful. The company holds $1.8 billion in cash reserves. The yield is strong and is supported with a 58% payout ratio. We would buy this using a $31 stop-loss, looking for a return towards $42. Yield 4.22% (Analysts’ price target is $41.79)

Stochchase Research Editor: Michael O'Reilly As the pandemic appears to be heading towards wave two, take-out vendors will continue to benefit. PZZA has done well thus far, with recently reported revenues rising by 15% over the year and sales up 28%. We recommend picking up this Top Pick with an eye to return return to $100 -- nearly a 20% return-- using $72 as stop-loss. Yield 1.05% (Analysts’ price target is $106.21)