Here are some portfolio notes, for those of you who like to assess your stocks over the weekend:
Energy stocks are having what appear to be normal pullbacks. Take advantage of the lower prices, and buy BP plc (BP), ExxonMobil (XOM), Total (TOT) and Tesoro (TSO).
ASML Holdings (ASML) reported fourth-quarter earnings that pleased the market, pushing the share price up nicely this week. Full-year 2016 earnings per share came in at $3.44. Consensus estimates point to $4.53 and $5.36 EPS in 2017 and 2018.
The stock rose about 10% since it joined the Buy Low Opportunities Portfolio on January 3. It will probably need to rest—or pull back—before continuing upwards. I’m changing the rating from Strong Buy to Buy because there’s less immediate upside now. Buy.
Adobe Systems (ADBE) is on the verge of breaking past 111 and, in theory, beginning a new run-up to new-high territory. Strong Buy.
Applied Materials (AMAT) continues to rise, amidst favorable market attention on semiconductor stocks. Shorter-term growth investors can continue to buy AMAT. Buy.
Goldman Sachs (GS) had a great earnings report this week, which I detailed in today’s Wall Street’s Best Daily feature, “Is Goldman Sachs Stock Still a Buy?” The short answer is “Yes, buy GS.” Strong Buy.
Kraft Heinz (KHC) appears ready to break out on the upside. I’m not recommending additional purchases, due to fair valuation, but I want you to keep your shares because I think there’s more upside. In my book, “Hold” does not mean “Sell.” (I mention that because people ask me about that, periodically.) When it’s time to sell, I’ll say so. Hold.
Mattel (MAT) announced a new CEO this week—and the news was well received by the market. I expect the stock to have a very good year. Bargain hunters, growth investors and dividend investors should buy MAT now. Buy.
Molina (MOH) just began rising again. Momentum investors, growth investors and value investors should buy MOH today. Buy.
Vulcan Materials (VMC) and shares of most other construction aggregate companies had big run-ups in October and November. Now that their share prices have had a chance to pull back and consolidate, they’re rising toward their recent highs. We could see VMC break past 135 this winter if the industry’s momentum stays strong. Strong Buy.
Broadcom (AVGO) Not all of my stock recommendations are featured in Cabot Undervalued Stocks Advisor. I also write occasionally for Cabot’s Wall Street’s Best Daily. On November 11, 2016, I recommended AVGO in “How to Profit from the Broadcom-Brocade Merger”. AVGO has been racing upwards to new highs in recent days, as the market embraces semiconductor stocks.
Like peers, Applied Materials (AMAT) and ASML Holdings (ASML), Broadcom is expected to have strong earnings growth this year, then slower earnings growth in 2018. That’s how a stock ends up with an undervalued P/E in the current year, but an overvalued P/E in the subsequent year.
Be careful with your AVGO shares because stocks often pull back after quick run-ups. And be alert to opportunities to buy AVGO on pullbacks.