Latest Stock Buy or Sell?
Today, The Panic-Proof Portfolio (Stockchase Research) and Stockchase Discover commented about whether ZEB-T, LVMUY-OTC, BAM-N, BNS-T, TD-T, NXPI-Q are stocks to buy or sell.
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TOP PICK
Stockchase Research Editor: Michael O'Reilly This producer of semiconductors used in EV for power management and for powering 5G infrastructure -- both set for explosive growth going forward is reiterated as a TOP PICK. The second largest supplier of chips to the automobile sector sees demand remaining strong and is reporting sales up 28% over the year. It is prudently using some cash reserves to buy back shares in support of a 40% ROE. We recommend trailing up the stop loss (from $135) to $140, looking to achieve $213 -- upside potential over 20%. Yield 1.93% (Analysts’ price target is $213.14)
INDUSTRIAL PRODUCTS
$175.900
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TOP PICK
Stockchase Research Editor: Michael O'Reilly As a safe, steady dividend payer TD is selected as a TOP PICK. Trading at 10x earnings and with a PEG ratio under 1.0, it is good value here. It also trades presently at under 2x book value. It continues to beat analyst earnings expectations and supports a 15% ROE. It pays a valuable dividend backed by a payout ratio of under 45% of cash flow. We recommend setting a stop loss at $68, looking to achieve $102 -- upside over 20%. Yield 4.3% (Analysts’ price target is $102.33)
banks
TOP PICK
Stockchase Research Editor: Michael O'Reilly With a reliable dividend growing annually at 5%, BNS is selected as a TOP PICK. Analysts expect earnings grow of 7% over the year. It trades at 9x earnings and only 1.3x book value. Earnings continue to beat expectations and support a 15% ROE. The dividend yield is great and is backed by a payout ratio under 50% of cash flow. We recommend a stop loss at $67.50, looking to achieve $90 -- upside potential over 18%. Yield 5.45% (Analysts’ price target is $90.04)
banks
BUY
Allan Tong’s Discover Picks BAM is no income stock, because it yields only 1.16%. Rather, you’re buying this for share appreciation. Its chart since the market bottomed in March 2009 (during the Great Recession) has climbed from roughly $8 to recent all-time highs above $71. BAM has been compounded annually over 20%, offering total returns as high as 45% in 2019 and 46.45% last year to -2.96% in 2018 as the only negative return in the past decade. True, BAM is down this year, but which stocks outside of commodities are not? A more telling metric is PE, currently right below 20x which is higher than in 2018-19, but far lower than 2021’s 28.13x. A caveat is its high 1.41 beta, and given this market the stock has been choppier than usual. That said, the street targets $78.04 for BAM or 26% higher than current prices, based on four buys. Read 3 Money Stocks to Beat Inflation for our full analysis.
management / diversified
BUY
Allan Tong’s Discover Picks Vuitton trades at a 26.7x PE and stable 0.91 beta. It pays only a 1.67% dividend yield, but it’s safe at a 41.82% payout ratio. For the past month,Vuitton has been climbing from its low of $112.04 to around $130. It currently trades above its 50-day moving average of $122.25, which would have been the best time to buy this, but is still far behind its 200-day of $143.39. Read 3 Money Stocks to Beat Inflation for our full analysis.
clothing
BUY
Macros winds should push ZEB stock higher. Given the fall in commodity prices (i.e. oil, copper), inflation appears to have peaked and market nerves are calming. Certainly, housing and the wider market are slowing down, but it’s no slam dunk that we are marching into a recession. Given these factors, the banks should continue to climb, as they traditionally in the second half of the year, according to seasonality. ZEB stock pays a 3.33% dividend yield, and charges an 0.6% MER. An alternative is to buy one of the stocks held in this basket, though it’s always a case of guessing which bank will come out on top in a given year. ZEB stock avoids that game. Read 3 Money Stocks to Beat Inflation for our full analysis.
E.T.F.'s
COMMENT
We've been through world wars and depression. Further, after these downturns, markets rally strongly. This is the time to buy. He looks for companies with a record of free cash flow generation and earnings.
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