It’s time to look beyond technical price movements, earnings estimates, or analyst opinions. The reconciliation between cash flows and valuations has arrived. The market is beginning to distinguish between those companies that earn a quality ROIC and those that do not.
We’ve put together a list of ten stocks that could continue to earn strong returns even if the market turns bearish. These stocks have three things in common
The Consumer Staples sector ranks first out of the ten sectors as detailed in our 1Q16 Sector Ratings for ETFs and Mutual Funds report. It gets our Attractive rating.
What do these companies have in common? They are the only surviving S&P 500 stocks to rise 10% or more in 2008. In the midst of a collapsing market and the subsequent damage, these seven stocks made good money for investors.
Last week, the Financial Accounting Standards Board (FASB) voted to update standards on operating lease accounting that would force companies to record as much as $2 trillion worth of lease obligations on their balance sheets.
Don’t get burned buying a stock without business operations that cannot support the dividend. Chasing yield could leave you holding the bag once dividends get cut and share prices fall. Find out how to avoid these traps in this week’s webinar “ How To Avoid Dividend Traps.”
In late August, we wrote that Wal-Mart shares were a bargain and today’s overreaction to management’s guidance presents an even better buying opportunity.
At the beginning of the fourth quarter of 2015, only the Consumer Staples sector earns an Attractive-or-better rating. Our sector ratings are based on the aggregation of our fund ratings for every ETF and mutual fund in each sector.
Retailers have been under attack in recent years but not by the online competitors that may first come to mind. Instead, retailers have been under attack from Wall Street analysts who can’t wait to bury the next traditional retail business.
Some believe the best implementation of ecommerce solutions will ultimately win the retail battle. Others believe online stores, such as Amazon, have simply accelerated the inevitable extinction of the brick and mortar store. However, this week we’re taking a look into a brick and mortar company that also has a strong online presence and shows signs of improvement.
This company’s products can be seen in grocery stores, restaurants, and fast food eateries. The company is vertically integrated across the entire production process, from production to marketing to distribution, giving it tight controls on safety and quality. Today we’re talking about chicken.
The Large Cap Value style ranks second out of the 12 styles for the first quarter of 2015 and receives our Neutral rating. The Large Cap Value style as a whole outperformed the Russell 3000 in 2014
The Consumer Staples sector ranks first out of the 10 sectors for the first quarter of 2015 and receives our Very Attractive rating. The Consumer Discretionary sector as a whole outperformed the S&P 500 in 2014, rising 15% to the S&P’s 12%
At the beginning of the first quarter of 2015, only the Consumer Staples sector earns an Attractive-or-better rating. Sector ratings are based on the aggregation of our fund ratings for every ETF and mutual fund in each sector.
At the beginning of the fourth quarter of 2014, only the Industrials and Consumer Staples sectors earn an Attractive-or-better rating.
Liberty Tax (TAX: $34/share) has carved out a successful niche as the discount option for tax return preparation. Despite its significantly smaller scale and brand awareness compared to competitors such as H&R Block (HRB) and Intuit (INTU), TAX still earns a comparable return on invested capital (ROIC). The beauty here is that the market values TAX at a considerable discount to HRB and INTU.
At the beginning of the third quarter of 2014, only the Consumer Staples sector earns an Attractive-or-better rating.
Icahn might be able to engineer a sale to DG or someone else that will earn himself and other shareholders a quick profit, but unlocking long-term value will be a much more difficult task.
For the second quarter of 2014, only three sectors manage to even earn a Neutral rating. My sector ratings are based on the aggregation of my fund ratings for every ETF and mutual fund in each sector.
Any brick and mortar retailer carries some risk in this environment, but investors who really want exposure to this sector should look for higher quality companies than TUES. Other retailers have superior profitability metrics, better branding and e-commerce capabilities, and a cheaper valuation. The only reason to touch TUES is to short it.
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