Let’s turn our attention to additional profitable opportunities
In that light, I added four extra stocks at the end of this month’s issue; bonus stocks that won’t permanently join the portfolios, but nevertheless offer excellent money-making opportunities today.
Cabot Undervalued Stocks Advisor 1119
A CORNUCOPIA OF TRADING & INVESTING IDEAS
Two stocks are leaving the Buy Low Opportunities Portfolio today as they near their price targets: Alaska Air Group (ALK) and Synchrony Financial (SYF). While researching stocks that might join our portfolios, I came across half a dozen! It seemed a shame to just pick one or two, so I’m giving you FIVE NEW STOCK IDEAS today. One of them will officially join the Special Situation Portfolio, and that stock is Amazon.com (AMZN). If you will kindly scroll to the end of this November issue, you’ll see a bonus section with four extra investment ideas. I won’t be permanently adding the bonus stocks to the Cabot Undervalued Stocks Advisor portfolios, but feel free to enlist their assistance in your pursuit of capital gains and dividends.
Please send questions and comments to Crista@CabotWealth.com.
Be sure to review the Bulletins from October 29, 30 and 31 in which I mentioned news, rating changes and/or price action on Adobe Systems (ADBE), Baker Hughes Company (BKR), Blackstone Group (BX), Bristol-Myers (BMY), CF Industries (CF), Corteva (CTVA), Marathon Petroleum (MPC), Mercury General Group (MCY), Mosaic (MOS), Royal Caribbean Cruises (RCL), Total S.A. (TOT) and Universal Electronics (UEIC).
Quarterly Earnings Release Calendar
November 4 pm: Mosaic (MOS) – 3Q
November 5 pm: DaVita (DVA) and Voya Financial (VOYA) – 3Q
November 7 pm: Universal Electronics (UEIC) – 3Q
Earnings Season Scorecard
Big earnings beat: Alexion Pharmaceuticals (ALXN), Blackstone Group Inc. (BX), Bristol-Myers (BMY), CIT Group (CIT), Commercial Metals Company (CMC), Corteva (CTVA), Dow Inc. (DOW), Marathon Petroleum (MPC), Southwest Airlines (LUV), Synchrony Financial (SYF) and Total SA (TOT)
Earnings within 5% of consensus estimate: Alaska Air Group* (ALK), Citigroup* (C), Royal Caribbean Cruises (RCL) and Schlumberger* (SLB)
Big earnings miss: Baker Hughes Company (BKR), CF Industries (CF) and Mercury General Group (MCY)
*at or above consensus
Today’s Portfolio Changes
Alaska Air Group (ALK) moves from Hold to Retired.
Amazon (AMZN) joins the Special Situation Portfolio as a Strong Buy.
CIT Group (CIT) moves from Buy to Hold.
Southwest Airlines (LUV) moves from Strong Buy to Buy.
Synchrony Financial (SYF) moves from Hold to Retired.
Last Week’s Portfolio Changes
Adobe Systems (ADBE) moved from Hold to Buy.
Commercial Metals (CMC) moved from Buy to Hold.
Corteva (CTVA) moved from Hold to Buy.
Mercury General Group (MCY) moved from Strong Buy to Buy.
Synchrony Financial (SYF) moved from Buy to Hold.
Universal Electronics (UEIC) moved from Buy to Hold.
Voya Financial (VOYA) moved from Buy to Hold.
Growth Portfolio stocks have bullish charts, strong projected earnings growth, little or no dividends, low-to-moderate P/Es (price/earnings ratios) and low-to-moderate debt levels.
Updates on Growth Portfolio Stocks
Adobe Systems (ADBE) is a software company that’s changing the world through digital experiences. Watch for news and analyst upgrades stemming from this week’s Adobe MAX conference. Adobe is a large-cap aggressive growth stock. Analysts expect EPS to increase by 42.5% in 2019 and 23.7% in 2020 (November year-end), and the 2020 P/E is 29. This is a great stock for risk-tolerant growth investors and buy-and-hold equity portfolios. The price chart is improving, with the stock now rising above its 50- and 200-day moving averages. Buy.
CF Industries (CF – yield 2.6%) is a global leader in transforming natural gas into nitrogen, making products that fertilize crops and products that remove harmful emissions from industrial activities, with outstanding operational capabilities and a cost-advantaged production and distribution platform. Products include ammonia, granular urea, UAN, ammonium nitrate and diesel exhaust fluid. The company operates nine facilities in Canada, the U.K. and the U.S.
CF is an undervalued, mid-cap aggressive growth stock. Analysts expect EPS to increase 84% and 18.9% in 2019 and 2020. The 2020 P/E is 17.1. The stock has traded between 46-52 since mid-June. Continue to accumulate CF within that range. Strong Buy.
CIT Group (CIT – yield 3.2%) operates both a bank holding company with $35.3 billion in deposits and a financial holding company. CIT Group provides financing, leasing and advisory services to small and middle market businesses, consumer markets, and the real estate and railroad industries. CIT is a top-10 national online bank. The company is in the process of acquiring Mutual of Omaha Bank.
The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25) revealed that U.S. companies’ new business volume rose to $10.0 billion in September, up from $9.2 billion in August, and up 18% from a year ago. ELFA reports economic activity for the $1 trillion equipment finance sector.
The 2019 consensus earnings estimate rose after third quarter results were released, with analysts bullish on interest income and lower expenses. The 2020 earnings estimate now reflects modest growth, so I’m moving CIT from Buy to a Hold recommendation. I’ll wait one more week as additional analysts update their estimates, and then decide whether there’s enough projected earnings growth to keep CIT in the portfolio. Expect CIT to trade between 42-47 in the near term. Hold.
DaVita Inc. (DVA) is the largest provider of kidney care services and home dialysis in the U.S., treating patients with chronic kidney failure and end stage renal disease. DaVita’s services have significantly lowered the gross mortality rate among their patients, and also lowered their need for hospitalizations. DVA is an undervalued, mid-cap growth stock. DaVita is expected to report third-quarter EPS of $1.23, within a range of $1.12-$1.38, on the afternoon of November 5. Analysts expect full-year EPS growth of 32.5% and 12.1% in 2019 and 2020. The 2020 price/earnings ratio is 11.2. DVA is nearing price resistance at 63, and could reach the upper 60s during its next run-up. Buy DVA now. Strong Buy.
Marathon Petroleum (MPC – yield 3.2%) is a leading integrated downstream energy company and the nation’s largest energy refiner, with 16 refineries, majority interest in a midstream company, 10,000 miles of oil pipelines and product sales in 11,700 retail stores. Marathon has prepared its refining system for upcoming IMO 2020 regulations, and is confident in their ability to produce large amounts of ultra-low-sulfur diesel fuel to meet the new demand.
As I mentioned last week, activist investors have successfully caused a change in leadership at Marathon and successfully instigated a spinoff of the Speedway retail stores, which is expected to be completed by year-end 2020. The company is additionally strategizing ways to optimize their midstream business.
MPC is an undervalued large-cap stock. Full-year EPS are expected to fall 31% in 2019, then rise 75% in 2020. The 2020 P/E is low at 9.1. MPC has upside price resistance near 70, then again at 78 and 83. Buy on dips. Strong Buy.
Southwest Airlines (LUV – yield 1.3%) is the largest U.S. domestic air carrier, transporting over 130 million customers annually to 101 locations in the U.S. and 10 additional countries. The Boeing 737 MAX is currently removed from Southwest’s flight schedule through February 8. Wall Street expects EPS growth of 4.2% and 12.2% in 2019 and 2020. The 2020 P/E is 11.3. The price chart is bullish. There’s about 10% near-term upside as LUV travels to 62, where it last traded in September 2018. I’m moving LUV from Strong Buy to a Buy recommendation, because the projected 2020 earnings growth rate has come down. I intend to let LUV finish rising to the low 60s, then retire the stock from the Growth Portfolio in favor of a stock with a stronger earnings growth outlook. Buy.
Voya Financial (VOYA – yield 1.1%) is a U.S. retirement, investment and insurance company serving 13.8 million individuals and institutional customers. Voya has $560 billion in total assets under management and administration. Analysts expect EPS to grow 36% and 12.6% in 2019 and 2020. The 2020 P/E is 9.0. Voya is expected to report third quarter EPS of $1.40, within a range of $1.37-$1.45, on the afternoon of November 5. The price chart is leaning bullish. VOYA could reach 57 if the earnings report is well-received. Hold.
Growth & Income Portfolio
Growth & Income Portfolio stocks have bullish charts, good projected earnings growth, dividends of 1.5% and higher, low-to-moderate P/Es (price/earnings ratios), and low-to-moderate debt levels.agencies, and the company is focused on continued debt reduction.Updates on Growth & Income Portfolio Stocks
Updates on Growth and Income Portfolio Stocks
Blackstone Group Inc. (BX – yield 3.6%*) is the world’s largest and most diversified alternative asset manager with $545.5 billion in client assets. The company deploys capital into private equity, lower-rated credit instruments, public debt and equity, real assets, secondary funds and real estate. Watch for the November 7 semi-annual announcement of new additions to the MSCI Index. If BX is added to the index, that will create buying demand among some institutional portfolios. Consensus earnings estimates point to 34.1% EPS growth in 2020, and the 2020 P/E is 17.7. BX just emerged from a brief pullback, now reaching new all-time highs again. Strong Buy.
*The payout varies each quarter with the total of the last four announced payouts equaling $1.92 and yielding 3.6%.
Citigroup (C – yield 2.7%) is a global financial company that serves consumers, businesses, governments and institutions in 98 countries; and the third-largest U.S. bank by assets. Wall Street expects EPS to grow 16.5% and 9.7% in 2019 and 2020. The 2020 P/E is 8.7. The stock is approaching its January 2018 peak near 77, at which time I will likely retire C from the portfolio in favor of a dividend stock with a stronger projected 2020 EPS growth rate. Hold.
Commercial Metals Company (CMC – yield 2.4%) is the largest rebar producer in the U.S. with a broad basket of merchant and wire rod offerings. Operations are located from coast to coast in the U.S. and in Poland. CMC is a small-cap stock with a market capitalization of $2.3 billion. Now that analysts are fine-tuning their future earnings estimates for Commercial Metals, the numbers are disappointing, with 6.3% EPS growth projected for fiscal 2020 (August year end). I plan to Retire the stock from the portfolio shortly. The price chart remains bullish, with resistance at 20-21, so I’m giving the stock a little more rope. Hold.
Corteva Inc. (CTVA – yield 2.0%), a.k.a. Corteva Agriscience, provides farmers with seeds and crop protection products (herbicides, fungicides and insecticides), enabling them to maximize yield and profitability. CTVA is a mid-cap growth & income stock. Analysts expect 2020 EPS to increase 26.9%. The 2020 P/E is 17.3 and the dividend yield is 2.0%. CTVA remains within its recent price range of 25.5-28.5. Continue to accumulate shares. Buy.
Dow Inc. (DOW – yield 5.3%) is the materials science division of the former DowDuPont (DWDP). Dow is exhibiting concrete progress on cash flow, cost cutting, debt repayment, a litigation win and an ability to thrive during a weak global economy. DOW is an undervalued growth & income stock. The company is expected to achieve EPS of $3.55 and $4.27 in 2019 and 2020. The projected 2020 EPS growth rate is 20.3% and the corresponding P/E is 12.3. DOW seems to be pushing past five-month price resistance at 52. There’s additional resistance at 58. Buy DOW now. Strong Buy.
Guess?, Inc. (GES – yield 2.6%) is a global apparel manufacturer, selling their products through wholesale, retail, ecommerce and licensing agreements. There are 1724 Guess? Stores worldwide, in approximately 100 countries. Guess? will host an Investor Day during the first week of December. The management team will provide an overview of the Company’s long-term strategies and key initiatives to deliver global expansion, profit growth and value creation.
GES offers the best earnings growth outlook of all established U.S.-based apparel retailers. Wall Street expects to grow 32.7% and 17.7% in fiscal 2020 and 2021 (January year end). The 2021 P/E is 11.3. The stock has traded between 16.5-19 for two months. There’s 10% upside within that trading range, and a likelihood of additional capital gains after third quarter results are reported. Buy GES now. Strong Buy.
Royal Caribbean Cruises (RCL – yield 2.8%) is a cruise vacation company that delivers travelers to desirable and exotic destinations on all seven continents. The company operates a total of 63 ships, with 13 on order, under the brand names Royal Caribbean International, Celebrity Cruises, Azamara Club Cruises and Silversea Cruises, and partnerships with German and Spanish cruise companies. RCL is an undervalued, large-cap growth & income stock. Wall Street expects EPS to grow 8.0% and 11.4% in 2019 and 2020. The 2020 P/E is 10.4. The stock has recently been trading between 108-116. Buy RCL now. Buy.
Schlumberger NV (SLB – yield 5.8%) is the world’s largest oilfield service company. CEO Olivier Le Peuch is moving the company’s focus away from North American shale drilling toward asset-light software and services businesses. Management expects to produce higher margins and free cash flow in 2020, and lower capital expenditures. SLB is a large-cap stock with a hefty dividend yield. Wall Street expects EPS to fall 9.9% in 2019, and then to increase 17.8% in 2020. The 2020 P/E is 20.0. The stock has traded between 31-41 for six months, and does not appear likely to exceed that range in 2019. Buy.
Total S.A. (TOT – yield 5.6%) is a French multinational integrated energy company that produces and markets fuels, natural gas and low-carbon electricity, operating in over 130 countries. Total is the second-largest private global liquified natural gas (LNG) player, with a worldwide market share of 10%. TOT is an undervalued, large-cap growth & income stock with a large dividend yield. The market expects Total’s EPS to fall 13.5% in 2019, then to rise 20.8% in 2020. The 2020 P/E is 10.1. TOT is rising, and will likely pause in the 55-57 area. Strong Buy.
Buy Low Opportunities Portfolio
Buy Low Opportunities Portfolio stocks appear capable of a big rebound from recent lows. They have strong projected earnings growth; low-to-moderate price/earnings ratios (P/Es); no dividend requirement and low-to-moderate debt levels. Investors should expect volatility as the stock market alternately embraces the companies’ current successes and remains wary of the stocks’ recent downturns.
Updates on Buy Low Opportunities Portfolio Stocks
Abercrombie & Fitch (ANF – yield 4.7%) is a specialty retailer of Abercrombie & Fitch (a.k.a. A&F), abercrombie kids, and Hollister brand apparel and accessories for men, women and kids. The company operates over 850 stores globally. The company remains on track toward its multi-year goals of improving revenue, profits, expense-control, data analytics, online sales and global store expansion.
ANF is an undervalued small/micro-cap stock. Wall Street projects EPS to fall 34% in 2019, then rise 70% in 2020. The 2020 P/E is 13.2. The drop in 2019 profit largely reflects the expenses incurred by closing several flagship stores that were not built by the current management team, who are successfully focused on lease negotiations, small-store formats, revenue and gross margin. The ANF trading range is roughly 14-19. I think there’s a decent chance that ANF could surpass 19 in November. Buy.
Alaska Air Group (ALK – yield 2.0%) is now trading up near its recent peaks that date back to January and November 2018, at about 72. Since 2020 earnings growth is expected to be much slower than 2019 performance, I’m ready to Retire ALK from the portfolio in favor of a company with stronger 2020 earnings prospects. Buy-and-hold investors should feel comfortable holding ALK longer term. Retired.
Alexion Pharmaceuticals (ALXN) is a biopharmaceutical company that researches and manufactures treatments of severe and rare health disorders. Current marketable drugs include Soliris, Ultomiris, Strensiq and Kanuma. The company is focused on the development of pipeline products that will fuel continued long-term profit and revenue growth. ALXN is an undervalued growth stock. Full-year EPS are expected to grow 30.9% and 8.0% in 2019 and 2020. The 2020 P/E is 9.7, which is extremely low for a biopharmaceutical stock. The stock is cheap, profits are growing well, and the stock appears capable of rising to the low 120s this year. Buy ALXN now. Strong Buy.
Baker Hughes Company (BKR – yield 3.2%) offers products, services and digital solutions to the international oil and gas community. Both the Turbomachinery & Process Solutions segment and the Oilfield Equipment segment experienced very strong order growth during the third quarter, and are expected to carry that strength into 2020. BKR is an undervalued, mid-cap aggressive growth stock. The stock has traded between 21-25 for six months, and while there’s room for traders to make money, there’s no sign of a pending near-term move past 25. Buy.
Designer Brands Inc. (DBI – yield 5.7%) is one of North America’s largest designers, producers and retailers of footwear and accessories. The company operates DSW Warehouse, The Shoe Company and Shoe Warehouse stores with nearly 1,000 locations in 44 U.S. states and Canada; and Camuto Group. DBI is an undervalued, small-cap growth stock. The company has delivered 27 consecutive years of revenue growth. There’s very little corporate or Wall Street news on Designer Brands, in between the quarterly earnings reports. Analysts expect EPS growth rates of 14.5% and 14.7% in 2019 and 2020 (January year end); and company management is projecting 2021 EPS growth of about 24%. The 2020 P/E is very low at 8.0. DBI has traded between 16-17.5 since early September, and appears ready to climb toward price resistance at 19. Buy DBI now for outsized total return potential in 2019 and beyond. Strong Buy.
Mercury General Group (MCY – yield 5.3%) is an automobile and multi-line insurer that operates in 11 U.S. states. The company reported a disappointing third quarter and a dividend increase last week. Analysts are now expecting EPS to grow 58% in 2019 and 16.8% in 2020. The 2020 P/E is 14.4. Despite the less-than-favorable quarterly results, the full-year outlook continues to be attractive, and the dividend yield is huge at 5.3%. I’m keeping MCY with a Buy recommendation for dividend investors who might like to lock in the 5.3% current yield. Everybody else should hold off on purchases until the share price shows a readiness to recover. Buy.
The Mosaic Company (MOS – yield 0.9%) is the world’s largest producer of finished phosphate and potash, supplying crop nutrients and animal feed ingredients via production facilities in the U.S., Canada, South America and the Asia-Pacific region. Their mission is to help the world grow the food it needs. Mosaic is expected to report third-quarter EPS of $0.24, within a range of $0.12-$0.33, on the afternoon of November 4. Full-year profits are expected to fall in 2019 and then to surge dramatically in 2020. The stock will likely trade between 20-25 in the near future. Buy.
Synchrony Financial (SYF – yield 2.4%) is a consumer finance company with 75.5 million active customer accounts. Synchrony partners with retailers to offer private label credit cards, and also offers consumer banking services and loans. Synchrony will see a large impact to book value per share as a result of the new account standard pertaining to the current expected credit loss (CECL) calculation that goes into effect on December 15. As a result, 2020 EPS growth projections have come down since August from 11% to 6.6%. Knowing in advance that investors tend to overreact to news of changes to accounting and legislative policies, I’m going to take this opportunity to Retire SYF from the Buy Low Opportunities Portfolio today, as it’s nearing long-term price resistance at 38.5. If you choose to hold your SYF shares, continue to monitor statistics on unemployment claims and consumer finance net charge-offs, because once the current economic cycle begins to wane, Synchrony’s profit growth will slow down or turn negative, and its share price will likely follow suit. Retired.
Universal Electronics (UEIC) is a manufacturer and world leader of wireless and voice remote control products, software and audio-video accessories for the smart home; with over 400 patents and a strong pipeline of new products in the areas of safety and security, climate control and lighting. The company is expected to report third-quarter results on the afternoon of November 7. Analysts expect full-year EPS to increase 37% and 9.2% in 2019 and 2020. The 2020 P/E is 14.6. UEIC is an undervalued growth stock with very little analyst coverage, appropriate for risk-tolerant investors and traders. UEIC is inches away from reaching significant price resistance at 55. I expect the stock to stop rising soon, and possibly pull back to the mid-40s as it digests this year’s huge run-up. Feel free to buy on pullbacks. Remember that UEIC is a micro-cap stock, so it’s going to have exaggerated price movements. Hold.
Special Situation Stocks
Featured Stock: Amazon.com (AMZN)
You all know Amazon … even I know Amazon, and I’m one of the least-likely shoppers or entertainment viewers among your friend-circle. I don’t watch TV, I rarely shop online, and I’m definitely not an Amazon Prime member. That being said, Amazon is dominating the retail shopping experience, so the only question for me as a stock investor is this: are the numbers and price chart attractive enough that the stock offers a near-term profit opportunity? The answer is “YES”.
Amazon’s profits come in fits and starts, with slow or down years followed by years of explosive profit growth. The company is expected to deliver just 2.4% earnings growth in 2019, followed by 31.6% EPS growth in 2020, with a P/E of 66. Most equity portfolio managers will be paying attention to that growth spurt! The P/E on AMZN is always high, and there’s no getting around that. The high P/E is the reason that AMZN is landing here in the Special Situation Portfolio rather than the Growth Portfolio, since the stock doesn’t meet my normal P/E criteria.
Take a look at the price chart. The stock rose near 2,050 in August 2018 and again in July 2019, with lots of interim pullbacks. At this point, AMZN is on an upswing from recent lows. At 1,808 per share, there’s 13% upside at the stock travels toward 2,050. So unless you think people are going to stop shopping online, I think it’s fair to say that this stock is cheap vs. its two-year trading pattern, and the company has a bright future. Buy AMZN now. Strong Buy.
Updates on Special Situation Stocks
Bristol-Myers Squibb Company (BMY – yield 2.9%) markets a long list of pharmaceuticals, including Coumadin and Eliquis, to treat cardiovascular, oncology and immune disorders. The company is expected to complete the acquisition of Celgene Corporation (CELG) by year end. Celgene markets therapies for cancer and immunological diseases, including Revlimid. BMY is a vastly undervalued growth stock. Analysts expect full-year EPS to grow 7.5% and 44.2% in 2019 and 2020. The 2020 P/E is just 9.3. Let me reiterate that Bristol-Myers’ 2020 projected earnings growth rate is vastly bigger than those of its peers, and the stock’s P/E is far lower, creating a glaringly-obvious value opportunity for portfolio managers.
The stock just rose above 56 – a long-term resistance level. There’s more significant price resistance at 61 and 65. BMY has incredible momentum right now, and I expect additional immediate upside in the coming months, interspersed with pullbacks. Buy.
VanEck Vectors Oil Refiners ETF (CRAK) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVIS Global Oil Refiners Index (MVCRAKTR). The International Maritime Organization is mandating the use of either scrubbers or low-sulfur diesel fuels for the world’s 39,000 ships and tankers, beginning in January 2020. The purpose of the mandate is to minimize sulfur oxide (SOx) emissions into the atmosphere, and the mandate is nicknamed IMO 2020. Oil refining companies are expected to profit from the demand for low-sulfur diesel fuel. Read more here: IMO 2020: The Big Shipping Shake-Up. CRAK pays an annual dividend in late December, usually yielding 1-2%. Oil refining stocks performed well in October, pushing CRAK up nicely. I expect continued strength from this exchange-traded fund. Buy CRAK on pullbacks. Strong Buy.
BONUS TRADING/INVESTING IDEAS
I won’t be adding these stocks to the Cabot Undervalued Stocks Advisor portfolios because they don’t have all the qualities that I prefer to see in a stock, but they still offer opportunities, depending on the investor’s preferences.
Alphabet Inc. Cl. A. (GOOGL)
- Pro: 2020 EPS growth is expected to be 14.1%.
- Con: 2020 P/E is 22.4, which is high vs. EPS growth but low vs. the stock’s historical P/E range.
- Pro: The stock rose near 1300 in July 2018 and April 2019, each time trading back down near 1000. Now that GOOGL is again approaching 1300, bullish sentiment in the broader market could push GOOGL to new high territory.
Broadcom (AVGO – yield 3.6%)
- Pro: Broadcom increased the annual dividend by 100%, 72% and 51% during the first week of December in 2016 through 2018. There’s probably another hefty dividend increase coming a month from now.
- Con: Earnings growth is going from slow in 2019 (November year end) to moderate in 2020 (8%).
- Con: Debt levels are a bit high.
- Pro: The stock is suddenly racing toward its April 2019 all-time high at about 315. Good news pertaining to Broadcom, semiconductors, and/or broader market trends could easily cause AVGO to surpass 315 and begin a new run-up.
Royal Dutch Shell PLC (RDS/A – yield 5.4%)
- Pro: After a down year in 2019, 2020 EPS growth is projected to be 18.1%, the P/E is 10.5 and debt levels are relatively low.
- Pro: Dividend yield 5.4%, with an ex-dividend date coming up in mid-November.
- Pro: The stock has been trading between 53-68 for two years. There’s 16% upside within that range, plus a near-term dividend payout.
Tyson Foods (TSN – yield 1.8%)
- Fourth quarter results will be reported on November 12 (September year end).
- Pro: After a down year in 2019, 2020 EPS growth is projected to be 23.7%, the P/E is 12.2 and debt levels are fair.
- Possible dividend increase in November or December of approximately 20%.
- Con: The company produces pork, among other food products. There is a serious disease, African Swine Fever (AFS), that’s killing a significant number of hogs around the globe. If AFS begins killing hogs in the U.S., Tyson Foods’ revenues, profits and share price will be negatively impacted.
- Pro: TSN rose to a new high of 93 in August 2019, then pulled back to a recent support level. There’s 11% upside as TSN soon heads back to 93.
The next Cabot Undervalued Stocks Advisor issue will be published on December 3, 2019.
Cabot Wealth Network
Publishing independent investment advice since 1970.
CEO & Chief Investment Strategist: Timothy Lutts
President & Publisher: Ed Coburn
176 North Street, PO Box 2049, Salem, MA 01970 USA
800-326-8826 | firstname.lastname@example.org | CabotWealth.com
Copyright © 2019. All rights reserved. Copying or electronic transmission of this information is a violation of copyright law. For the protection of our subscribers, copyright violations will result in immediate termination of all subscriptions without refund. No Conflicts: Cabot Wealth Network exists to serve you, our readers. We derive 100% of our revenue, or close to it, from selling subscriptions to its publications. Neither Cabot Wealth Network nor our employees are compensated in any way by the companies whose stocks we recommend or providers of associated financial services. Disclaimer: Sources of information are believed to be reliable but they are not guaranteed to be complete or error-free. Recommendations, opinions or suggestions are given with the understanding that subscribers acting on information assume all risks involved. Buy/Sell Recommendations: All recommendations are made in regular issues or email alerts or updates and posted on the private subscriber web page. Performance: The performance of this portfolio is determined using the midpoint of the high and low on the day following the recommendation. Cabot’s policy is to sell any stock that shows a loss of 20% in a bull market or 15% in a bear market from the original purchase price, calculated using the current closing price. Subscribers should apply loss limits based on their own personal purchase prices.