A Value Stock in the High Flying Tech Sector
Unlike many unprofitable tech firms whose stocks have outperformed, the stock of this high-ROIC tech firm has lagged significantly over the past year. A strong competitive position and recent roll-out of new products make the profit growth expectations embedded in this stock look too low.
Position Update: Carter’s, Inc. (CRI)
CRI was downgraded to Neutral by our rating system on 9/28/17. Despite the downgraded risk/reward rating, we are maintaining our Long recommendation due to solid fundamentals and the stock’s low valuation.
A High-Quality ETF in the Neutral Rated Industrials Sector
This ETF has ranked in the top 5 of Industrials sector ETFs for six consecutive quarters. It is poised to remain near the top of the rankings based on its superior holdings and low total annual costs.
Position Close Update: Tenneco, Inc. (TEN)
Following a downgrade in its risk/reward rating, and a subsequent accounting-related rating suspension, we are closing out our long recommendation on Tenneco, Inc. (TEN) with a modest gain.
A Standout ETF in the Recently Upgraded Financials Sector
This focused sub-sector ETF stands out as a potential alpha-generating opportunity within Financials sector funds. It ranks fifth among 59 Financials sector ETFs and mutual funds, which include 31 Attractive-or-better rated funds.
Dividend Growth Stock with Strong Corporate Governance Trading at a Discount
Not often do investors get an opportunity to invest in a global leader at an attractive valuation, yet the expectations baked into this firm’s stock price seem overly pessimistic and create significant upside potential.
Long Idea Update: Spirit AeroSystems (SPR)
Spirit AeroSystems (SPR) was selected as a Long Idea on 6/26/17. SPR is up 40% since publication, but still earns an Attractive risk/reward rating based on earnings quality and low market-implied expectations for future profits.
Position Update: Lear Corp (LEA)
Lear Corp was selected as a Long Idea on 7/22/16. The stock still earns a Very Attractive rating and is up 49% since the original report was published. Despite the price increase, LEA remains undervalued.
Excellent Corporate Governance Driving ROIC Higher
This firm aligns executives’ and shareholders’ interests by tying compensation to economic earnings and has increased its return on invested capital (ROIC) for five straight years. We expect management’s strategic focus on “maximizing economic profit” to continue creating value for shareholders.
This Diamond Still Shines in the Rough Retail Sector
This firm has proven its ability to succeed in a market where many competitors are fighting for survival. The firm’s efficient distribution of off-price luxury brands to value conscious consumers has proven to be a resilient strategy during the current period of retail disruption.
Position Update: Knoll, Inc. (KNL)
While our original thesis has proven too optimistic in the short run due to the industry slowdown, we believe KNL remains best positioned to benefit from the expected improvement in 2H17 industry trends.
Position Update: Tenneco Inc. (TEN)
TEN was downgraded to Neutral by our rating system on 8/10/17. Despite the downgrade, we are maintaining our Long recommendation due to expectations for a 2H17 margin recovery and the stock’s low valuation.
Solar Stock Face Off for The Solar Eclipse
With investors’ eyes turned towards the sun today, which of these solar stocks is the best bet to make your portfolio shine?
Fatten Your Nest Egg with Sanderson Farms
The stock’s of chicken producers have been on a tear this year. We selected Sanderson Farms (SAFM) and Pilgrim’s Pride (PPC) as Long Ideas in mid-2015, but we are honing in our focus on SAFM as the best way to play growing chicken demand.
Disney Dumps Netflix, And So Should Investors
Investors should capitalize on the opportunity provided by Disney’s streaming service announcement and the market’s overreaction to earnings. Buy into a great company at an attractive valuation (Disney) and sell an overvalued company with holes in its business model (Netflix).
An Industry Leader In A Rapidly Growing Market
We previously highlighted the semiconductor equipment sector as a “pick and shovel” play to benefit from trends such as artificial intelligence, autonomous driving, and the Internet of Things. Today we are digging deeper into one of those stocks.
Look to the Sky for Industrials Sector Value
Our Robo-Analyst technology drills down to the stock level of all 7,000+ ETFs and mutual funds under coverage. In the process, we uncovered an attractive ETF that traditional, backward-looking fund research overlooks.
5 Unappreciated Stocks With High ROICs
In order to find value, it’s time to get back to the basics of reading footnotes and focusing on economic earnings and return on invested capital (ROIC), the true drivers of valuation.
Position Close Update: MDLZ, PRGO, ORCL & VZ
Our Long Idea and Danger Zone research reports are part of an ongoing effort to identify hidden gems in the market and help clients avoid portfolio blowups. In this Position Update report, we are closing out two Long Ideas and two Danger Zone picks previously published on the Research Blog.
An Undervalued Stock That’s Ready for Take-Off
This under appreciated industrials company is benefiting from internal profitability initiatives and external growth drivers, while low profit expectations embedded in the stock price make for an attractive risk/reward scenario.