Latest Stock Buy or Sell? Make More Informed Decisions!
Today, The Panic-Proof Portfolio (Stockchase Research) and Stockchase Discover commented about whether JWEL-T, ABBV-N, ABT-N, AMD-Q, MAN-N, HAS-Q are stocks to buy or sell.
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Premium content
TOP PICK
Stockchase Research Editor: Michael O'Reilly Although recently reported revenue missed projected targets for the quarter, margins are expanding thanks to cost savings. Earnings by this toy manufacturer beat expectations by over 20% and support a ROE of 21%. We like that cash reserves grew in the quarter despite retiring debt. It pays a good dividend that is projected to be less than 50% of cash flow next year. We recommend placing a stop loss at $69, looking to achieve $108 -- upside potential over 30%. Yield 3.53% (Analysts’ price target is $108.18)
Premium content
TOP PICK
Stockchase Research Editor: Michael O'Reilly This staffing and employment services company operates in 75 countries in 2200 offices, providing recruitment, career development and other human resources services. Recently reported earnings per share beat expectations by 20%. Demand for their services will further intensify as companies emerge from the pandemic. It trades at 1.8x book value and only 11x earnings. Its dividend is backed by a payout ratio under 40% of cash flow. We recommend placing a stop loss at $63.50, looking to achieve $97 -- upside potential over 21%. Yield 3.56% (Analysts’ price target is $96.70)
consulting
Premium content
TOP PICK
Stockchase Research Editor: Michael O'Reilly The $127 billion market cap developer of microprocessors expects 20% revenue growth and earnings growth of 24% annually over the next five years. Recently reported earnings beat expectations by over 20% and support a 20% ROE. We like how it is building cash reserves while buying back shares. We recommend placing a stop loss at $68, looking to achieve $130 -- upside potential over 50%. Yield 0% (Analysts’ price target is $130.51)
electrical
electronic
BUY
Allan Tong’s Discover Picks Abbott stocks trade at a 25.18x PE at a low 0.74 beta, and pays a 1.73% dividend. Its valuation is significantly lower than peers Stryker (36.4x) and Becton Dickinson (37.3x) while its profit margin scores much higher at 17.35% vs. 11.56% and 9.59% respectively. ROI is also comparably higher while Abbott stock’s 1.73% divvy is in-line with this sector (and safe at a 42.17% payout ratio). Back to earnings: Abbott stocks have beaten their last four quarters handily. Read Our 3 defensive healthcare stocks picks for our full analysis.
biotechnology
pharmaceutical
BUY
Allan Tong’s Discover Picks When I last recommended AbbVie in mid-April, this popular dividend-payer was trading at 52-week highs nearing $175. In three months, shares had raced from $135, so $175 was unsustainable. Last month, shares dipped below $138 and since then it has trended around a reasonable $150. I still like AbbVie stocks. It pays a solid 3.75% dividend, trades below 22x earnings, is safe at a 0.75 beta in a rockly market, and its shares have risen 120% in five years. Read Our 3 defensive healthcare stocks picks for our full analysis.
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BUY
Allan Tong’s Discover Picks Vitamins are defensive, something you need in today’s uncertain markets where the street keeps chattering about recession. The street likes JWEL stocks with seven buys and no holds or sells and expects about 30% upside at a $45.64 price target. JWEL stocks are still a ways off their $41.70 52-week high. Read Our 3 defensive healthcare stocks picks for our full analysis.
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COMMENT
U.S. corporate earnings so far have flagged a strong USD as a headwind. Will earnings be revised downward? JNJ, which she owns, is maintaining their earnings guidance this year, which is encouraging, because it means earnings in general are growing. The US banks state that the consumer is still healthy, loan balances remain healthy, card balances are growing and default rates are low. However, it remains uncertain the impact of higher interest rates on consumer spending and lending. JPM is raising loan provisions. Generally speaking so far according to earnings, the consumer remains strong. A lot of pessimism in the market now can be a positive, contrarian indicator. Also, there's a lot of cash on the sidelines which drives rallies like today.
BUY
Shares have fallen because of the general PE contraction in growth stocks. Also, their ratings business closed a merger last February, and it accounts for a third of company revenues and 40% of profits. Last month, they pulled their guidance because they saw the issuance for high-yield debt and leveraged loans dry up. Unusual, but it speak to uncertain about the economy. SPGI will add more insight when they report this month. She likes it that 76% of its revenues are recurring. The PE and share price are attractive and you can start a position now.
publishing
printing
BUY ON WEAKNESS
It pulled back over 20% at one point. She's been starting partial positions on down days. She likes this long-term. Their phone user base is a great background to lay on services which total 20% of its revenues but a third of its operating profits. Services are recurring, tool. Also, the PE is better now. Great long-term hold.
electrical
electronic
PARTIAL SELL
Semis are a cyclical business, so share prices swing a lot. TSM is seeing softness in smartphones and PC's post-pandemic. There's been a semi shortage the past year, but eventually demand will be met. TSM has strength in other segments, but the global economy remains uncertain and can weaken. Semis are not long-term holds. You can play the cycle. Can't predict what TSM will do over the next 6 months. Take your losses and invest in tech that has smoother growth.
electrical
electronic
BUY
The Canadian banks have pulled back this year, though are outperforming the U.S. ones. The concern is higher interest rates, the impact on the housing market, and high inflation that could tip the economy into recession. Now, the banks are attractive; forward PE are single-digit and price-to-book are historically low. Share prices are discounting a slowdown, but the banks will continue to grow. The banks set up a lot of provisions during the pandemic and haven't released all of them; rather, they will slowly rebuild those provisions. The yields remain attractive.
banks
PAST TOP PICK
(A Top Pick Jul 13/21, Down 47%) Disappointing, but she still holds it. They launched their streamer during the pandemic and captured a lot of subscribers. Meanwhile, the parks were closed. The market remains focused on the streaming are is worried by it, given Netfli'x comments. DIS has targeted ads on streaming by fiscal 2024. The stock has been hampered because DIS hasn't opened parks in China or France, though other parks are doing well. DIS is attractively valued and she is buying it.
entertainment services
PAST TOP PICK
(A Top Pick Jul 13/21, Down 2%) An industrial gas company within an oligopoly. Very defensive. Shares fell the past month over market fears of a recession. Boasts a diversified client base. They can pass inflationary costs to customers. Company raised guidance in Q1 and can grow earning 9-10% in a weak environment, the company said. Attractive PE now. Would buy now.
chemicals
