Latest Expert Opinions

Signal
Opinion
Expert
TOP PICK
TOP PICK
November 17, 2020
Stockchase Research Editor: Michael O'Reilly In a market that is getting tougher to find upside value, TSN also pays a good dividend with growth potential. The meat processing company trades at only 13 times current earnings and its dividend is backed by a 33% payout ratio. Recent earnings showed a 40% increase in operating income and EPS of $1.90 -- $0.70 above expectation. They also hold $3.2 billion in cash. The dividend has grown by 36% annually over the past five years. We would trade this with a $55 stop-loss, looking to achieve $79 -- over 20% upside. Yield 2.59% (Analysts’ price target is $79.30)
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Tyson Foods Inc. (TSN-N)
November 17, 2020
Stockchase Research Editor: Michael O'Reilly In a market that is getting tougher to find upside value, TSN also pays a good dividend with growth potential. The meat processing company trades at only 13 times current earnings and its dividend is backed by a 33% payout ratio. Recent earnings showed a 40% increase in operating income and EPS of $1.90 -- $0.70 above expectation. They also hold $3.2 billion in cash. The dividend has grown by 36% annually over the past five years. We would trade this with a $55 stop-loss, looking to achieve $79 -- over 20% upside. Yield 2.59% (Analysts’ price target is $79.30)
TOP PICK
TOP PICK
November 17, 2020
Stockchase Research Editor: Michael O'Reilly CRMT is a unique auto dealer, selling through e-commerce and brick & mortar locations. Recently released earnings showed EPS of $3.05 -- beating expectations by $0.70. Revenues are up over 17% over the year -- again beating expectations. The company is accumulating cash, while keeping debt flat. With peers trading at 23 times earnings, CRMT trades only 10 times. We would trade this with an $85 stop-loss, looking to achieve $134 -- over 20% upside. Yield 0% (Analysts’ price target is $134.00)
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Stockchase Research Editor: Michael O'Reilly CRMT is a unique auto dealer, selling through e-commerce and brick & mortar locations. Recently released earnings showed EPS of $3.05 -- beating expectations by $0.70. Revenues are up over 17% over the year -- again beating expectations. The company is accumulating cash, while keeping debt flat. With peers trading at 23 times earnings, CRMT trades only 10 times. We would trade this with an $85 stop-loss, looking to achieve $134 -- over 20% upside. Yield 0% (Analysts’ price target is $134.00)
TOP PICK
TOP PICK
November 17, 2020
Stockchase Research Editor: Michael O'Reilly This bank offering services in Metro New York and New Jersey as well as Ohio, Florida and Arizona trades at 11 PE, almost half of the sector average of 20 times. With growth expectations in earnings of over 16%, this makes the company undervalued. The dividend yield is stellar and backed by a payout ratio of 82%, but projected to 65% next year. We would buy this with a $7.50 stop-loss, looking to achieve $11.50 -- 27% upside. Yield 7.55% (Analysts’ price target is $11.42)
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Stockchase Research Editor: Michael O'Reilly This bank offering services in Metro New York and New Jersey as well as Ohio, Florida and Arizona trades at 11 PE, almost half of the sector average of 20 times. With growth expectations in earnings of over 16%, this makes the company undervalued. The dividend yield is stellar and backed by a payout ratio of 82%, but projected to 65% next year. We would buy this with a $7.50 stop-loss, looking to achieve $11.50 -- 27% upside. Yield 7.55% (Analysts’ price target is $11.42)
PAST TOP PICK
PAST TOP PICK
November 17, 2020
(A Top Pick Sep 03/20, Up 33.2%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK BG has achieved its objective of $61, so we are being disciplined and recommending to cover 50% of the position. We would also recommend trailing the stop up to $53 -- currently at $51.
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Bunge Ltd. (BG-N)
November 17, 2020
(A Top Pick Sep 03/20, Up 33.2%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK BG has achieved its objective of $61, so we are being disciplined and recommending to cover 50% of the position. We would also recommend trailing the stop up to $53 -- currently at $51.
DON'T BUY
DON'T BUY
November 17, 2020
All infrastructure has been hit this year with the oil price collapse. However, these oil storage companies depend on volume, not the price of oil. That said, everyone dislikes the energy sector, so sentiment is negative. KEY's payout ratio is 65% as the dividend reaches 9%. There's not much growth here. The dividend is probably okay, but if the price of oil plummets, the dividend could be cut (along with many oil stocks). This is merely okay, not exciting. He wants to see growth before buying it.
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Keyera Corp (KEY-T)
November 17, 2020
All infrastructure has been hit this year with the oil price collapse. However, these oil storage companies depend on volume, not the price of oil. That said, everyone dislikes the energy sector, so sentiment is negative. KEY's payout ratio is 65% as the dividend reaches 9%. There's not much growth here. The dividend is probably okay, but if the price of oil plummets, the dividend could be cut (along with many oil stocks). This is merely okay, not exciting. He wants to see growth before buying it.
WEAK BUY
WEAK BUY
November 17, 2020
It has great exposure to China and is a strong brand. Likes it. The balance sheet is okay, but sales should increase next year in China where they are recovering far better from Covid than we are in the West. That said, the stock is pricey.
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It has great exposure to China and is a strong brand. Likes it. The balance sheet is okay, but sales should increase next year in China where they are recovering far better from Covid than we are in the West. That said, the stock is pricey.
BUY
BUY
November 17, 2020
Likes it. It's cheap vs. its peers. They did financing and have a lot of cash. Expect acquisitions. Own this for 4-5 years. Buy for now, but hold for that long. It will bounce around with the tech sector. They've done the right things this year to shore up their balance sheet.
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Likes it. It's cheap vs. its peers. They did financing and have a lot of cash. Expect acquisitions. Own this for 4-5 years. Buy for now, but hold for that long. It will bounce around with the tech sector. They've done the right things this year to shore up their balance sheet.