5 Leading Healthcare Stocks Surging on Pent-Up Demand
As Mr. Valuation, I find myself constantly reminding investors that value investing requires patience. However, value investing also requires the willingness to get your money in front of attractive valuation when it is discovered. Trying to time your purchases perfectly can just as easily cause you to miss out on significant gains as it is to participate in them.
Unum: Although Life and Health Insurance Companies Are Cheap This One May Be the Cheapest
I recently did a search of the life and health insurance subsector and came up with 25 names that I considered the highest quality in the overall subsector. All of them carried investment grade credit ratings of BBB+ or better – except for one.
Interest Rates and Their Impact On Stock Values
Many investors are attempting to justify higher stock “valuations” because interest rates are at historical lows. I would agree that lower interest rates could affect “market valuations” based on the simple law of supply and demand. The concept is simple, when fixed income offers lower returns it logically stimulates more demand for equities where higher returns can be found.
Apple, Microsoft, Visa: Crazy Or Crazy Like A Fox
There are technical distinctions between investing versus speculating. Nevertheless, both concepts are often thought about or utilized interchangeably. Moreover, there are nuanced distinctions between a rational or well-thought-out speculation versus outright gambling.
3 New York Stock Exchange Homebuilders: When Value and Momentum Converge
Value often comes when good companies go out of favor, this is especially true in bull markets like we have been in the last several years. Almost by definition, when stocks are out of favor it further implies that their near-term performance may not be all that attractive.
5 Midcap Magic Formula Stocks for Total Return
This week I did a complete re-read of Joel Greenblatt’s classic “The Little Book That Beats The Market.” For any of you that are not familiar with the book, Joel Greenblatt presents his magic formula for picking stocks that his research indicated will beat the market most of the time.
Alexion Pharmaceuticals: Growth At A Reasonable Price (GARP)
I find it very interesting that Alexion Pharmaceuticals Inc. (ALXN) after going public in 2001, did not generate their first profit until December 2008. As we all know, this was in the throes of what is now known as the Great Recession of 2008.
FedEx Corp.: Fundamentals Support the Price Increase
After reporting better than 4th quarter results on Tuesday, the stock price of FedEx Corp. (FDX) has been on a tear. With this article, I plan to demonstrate that the fundamentals support the current price rise.
Oracle: All Important Fundamental Metrics Say Buy
I consider Oracle an attractively valued dividend growth stock with an emphasis on growth. Oracle has a long history of generating above-average growth of earnings and cash flows, and since paying its first dividend in 2009, its dividend growth has been nothing short of extraordinary.
Why Record Corporate Debt Might Not Be So Bad: 8 Debt Laden Blue Chips: Part 1
The accelerated use of debt to fund the capital needs of publicly traded companies is clearly attributed to today’s unprecedented low cost of debt. Although we have all been trained and perhaps even indoctrinated into the belief that debt is bad, these are clearly unusual circumstances.
Newsflash: Even After Covid-19 The Market Is Not Cheap
From January 31, 2020 through March 31, 2020 the market as measured by the S&P 500 fell approximately 20%. As a result, I published an article on March 26, 2020 titled “It’s A Buyers’ Market – Choose Quality If You’re Scared: 20 A-Rated, Low-Debt Blue Chips To Consider” where I implied that the market as measured by the S&P 500 had gone from being overvalued to undervalued.
NetApp: A Dividend Kings High-Quality Total Return Selection
In today’s uncertain investing world, I believe it is extremely important to first and foremost focus on safety and quality. Since my primary investment focus is now on dividends and dividend growth, safety to me is primarily about valuation along with dividend coverage and predictability.
Next 10 S&P 500 Stocks That Rose In The Crisis: It’s A Market Of Stocks: Part 2
In part 1 of this 3 part series I provided a quick cursory look at 10 of 30 stocks that MarketWatch pointed out have done very well in spite of the coronavirus market crash. In that first group of 10, there were several names that were reasonably valued.
30 S&P 500 Stocks That Rose In The Crisis: It’s A Market Of Stocks: Part 1
I have long asserted that it is a market of stocks and not a stock market. Perhaps the veracity of that statement has never been clearer than it is today. We are all aware of the devastation to the stock market in general that the shutdown instigated by the coronavirus has cost
Cisco, Apple and Oracle: Strong Cash Positions Indicate Safe Long-Term Returns
During this horrible crisis, I feel very fortunate that “social distancing” is very practical and easy for my family and me. We are blessed to live in the country on a 20-acre estate with a private lake and a backyard that is steaming with wildlife.
It's a Buyers’ Market: 20 A Rated Low Debt Blue Chips to Consider
When markets get as volatile as they’ve been lately, it’s extremely difficult for investors to avoid our innate “fight or flight” response. In our states of heightened emotion (fear) our logical minds try to tell us that we are witnessing an incredible buying opportunity for long-term oriented investors.
Even With This Crisis It’s a Market of Stocks
It’s stating the obvious to say that the stock markets have been in a freefall as a result of the coronavirus. However, I think it’s also important to point out that what we have recently experienced in the stock markets more resembles a flash crash than it does a correction.
The Dow Jones – How Bad Is It?
The Dow Jones Industrial Average is an index of 30 stocks that is often utilized as a proxy for the whole market. Since it is such a small index, I thought you all might find it interesting to see what the market looks like considering the recent volatility.
Top 10 Dividend Aristocrats to Buy In This Crazy Market
For those investors interested in investing for an increasing dividend income stream, the Dividend Aristocrats represent the crème de la crème. Standard & Poor’s produces this premier list of blue-chip dividend growth stocks that have increased their dividends for 25 consecutive years.
Recent Market Action A Value Investor’s Perspective
For some time now I have been pointing out that the stock market as measured by the S&P 500 has become moderately overvalued. However, even more to the point, I still believe that to be true even after the price corrections we have experienced recently as a result of the coronavirus.
Is the New Pfizer an Attractive Investment?
Pharmaceutical giant Pfizer (PFE) is a company in transition that will soon be smaller but hopefully more profitable. Since many of their established drugs are coming off patent, the company is divesting its older drug platform under the Upjohn brand and selling it to Mylan a leading generic pharmaceutical company. Pfizer believes that this will position them for more profitable growth going forward.
Passive and Buy-and-Hold Investing Don't Work Unless!
Legendary investor and mentor to many investing greats Benjamin Graham once aptly stated that: “investing is most intelligent when it is most businesslike.” Personally, I agree which is why I refer to what I personally adhere to and practice with my own investing as “business perspective investing.”
How To protect Your Dividend Growth Portfolio from the Pending Market Crash
Ever since I first entered the investment industry circa 1970, I have been confronted with a constant and persistent admonition about the next pending market crash. In those early days I contributed much of the negativity toward stocks to a lingering overhang from the Great Depression...
The Top 3 Medical Distributors Are On Sale: AmerisourceBergen, Cardinal Health and McKesson Corp.
The top 3 Medical DistributorsAmerisourceBergen (ABC), Cardinal Health (CAH) and McKesson Corp. (MCK) dominate the distribution of pharmaceuticals and are estimated to represent 90% to 95% of the market. Moreover, each are dividend growth stocks, and as a specific subsector group all appear significantly undervalued.
Interest Rates and Stock Values Truth Be Told
The idea that interest rates directly affect stock prices is a commonly held belief among many investors. There are some that even go as far as to say that the only reason the stock market is up is because interest rates have been artificially kept low by the Fed.
Value Investing Is A Long-Term Strategy and Should Be Judged Accordingly
Almost by definition, value investing rarely performs well in the short run. This is especially true when you are in a strong bull market like we’ve been in since March 2009. Most companies as represented by the S&P 500 are currently trading at fundamental multiples that are significantly above historical norms.
This is How You Can Beat the Market Without Fail
With this article I am going to present several ways that investors, especially retired investors, can beat the market without fail. However, what I will be presenting may not be what you are expecting, particularly if you have a narrow notion of what beating the market means.
Investing Is Hard Enough: Here Is How to Avoid Making Obvious Mistakes
The Key to Avoiding Obvious Mistakes Understanding how to value a business is the key to avoiding making obvious mistakes when purchasing or selling common stocks. When you know what your investment is worth, the market cannot take advantage of your gullibility.
Principles of Valuation Part 2: Price Is What You Pay, Value Is What You Get
The venerable investor Warren Buffett has a real knack of putting complex concepts and ideas into simple and easily understood terms. In my opinion, his quote, “Price is what you pay. Value is what you get” is one of the more profound and important statements he has ever uttered.
Cisco Systems Inc: Quality, Dividend Growth & Attractive Valuation
Cisco Systems Inc. (CSCO) is one of the highest quality large-cap technology companies in the world. After being overvalued for most of 2019, this high-quality once pure growth stock, now dividend growth stock, has come into fair value.
For Long-Term Investors Only: It’s A Market of Stocks!
Since the beginning of April 2009, the Standard & Poor’s 500 (the stock market) has enjoyed one of the longest bull markets on record. As a result, I am starting to hear from a lot of investors that they are becoming worried that this great bull market must soon come to an end.
Even After the Recent Correction I Still Think McDonald’s Is Overvalued
This article is offered as part of our ongoing FAST Graphs YouTube request series. Although time does not allow me to cover every stock that is requested, I do try to provide analyze out loud videos on stocks that either are currently in the news, or that offer special lessons on valuation.
CBS and Viacom Merger: High Risk Tempered by Extremely Low Valuation
14 years ago the Redstone family spun out Viacom (VIA) from CBS Corp (CBS). However, the companies have decided to once again merge into what they hope will become a dominant entertainment company. Given that the entertainment market is extremely competitive and quite risky, future visibility is very muddy in my humble opinion.
Forecasting the Future: Part 2
The primary purpose of this article on the importance of forecasting the future results of a business is offered to illustrate the conceptual validity of forecasting earnings (and every other metric) as the key to long-term investor success.
Forecasting Future Business Results are The Key to Successful Stock Investing: Part 1
As investors, we can learn a great deal from the past about the businesses we are contemplating investing in. However, as investors, we must also recognize that we can only truly invest in the future.
Why Value Investing Works for All Stock Categories
I would like to credit my good friend Jeff Miller for providing the inspiration for this article. In his recent article titled “Weighing The Week Ahead: Falling Confidence A Possible Threat To Markets” he suggested a must read article by Safal Niveshak titled “Why Value Investing Works.”
Time In The Market and Value Investing Is Not Market Timing
I am a value investor, and all my investments are made with a long-term objective in mind. Consequently, I am a believer that time in the market is often what matters most. However, I will qualify that remark by saying that you also make your money on the buy side.
Valuation Is More Important Than Politics or Interest Rates: And Most Stocks Are Overvalued Today
My personal investing strategy is based on the simple logic and reality that great businesses are by definition, better than average. Therefore, to my way of thinking, it logically follows that the best investment returns would be achieved by investing in the best businesses that you could identify.
A Very Attractive High-Yield Dividend Growth Stock You’ve Never Heard Of
This FAST Graphs analyze out loud video will cover a mid-cap dividend growth stock that many may not be familiar with. However, I believe this particular dividend growth stock offers an intriguing opportunity of high current yield, above-average growth yield and enticing capital appreciation potential based on its low valuation.
Why A 15 P/E Ratio Is Fair Value for Most Companies: Part 2
To me, fair value, as it relates to common stock investments, is manifest when the current earnings yield provided by the company’s profits compensates me for the risk I am taking by providing both a realistic and acceptable return on my invested capital.
The Essence of Valuation is Soundness Not Rate of Return: Part 1
When it comes to writing about investing in common stocks, my favorite theme typically revolves around valuation. In fact, I once had a reader dub me “Mr. Valuation.” Which, I might add was very flattering to me.
The Worst Reasons To Sell A Stock
An article on when to sell a stock would not be complete without some discussion about what I consider to be the worst reason to sell a stock. Ironically, this reason may be the one that is most commonly implemented by investors.
Microsoft Important Lessons in Valuation: Part 1
Before I get too deep into this article, I want to start out by stating that Microsoft (MSFT) has long been one of my favorite companies. Many years ago, I invested in Microsoft as a pure growth stock and sold it in 2000 when it became dangerous overvalued after making a very healthy long-term profit.
Answering the Question: When to Sell a Stock-Part 1A
The most common complaint that I have heard from investors over my 49+ years in the financial services industry is as follows: “Everyone wants to tell me what to buy and when, but no one ever tells me when to sell.”