Peak Private Equity
Private equity, the polished-up name for venture capital and leveraged buyout funds, is white-hot. If every market cycle has its own Masters of the Universe (the 1990s had tech mutual funds, the 2000s had hedge funds), the past decade’s MOTU was clearly private equity. Today, everyone wants to get in on the bonanza: MBA graduates, bankers, mutual funds, hedge funds, endowment and pension funds, insurance companies, wealthy individuals … and soon the average retail investor will get government-approved access to private equity investments. Exuberance1 abounds.
The money is certainly gushing. Venture capital firms invested $239 billion in young companies, particularly in the technology and health industries, through September 30 of this year. This compares to $166 billion in all of 2020 – itself a record year.
Leveraged buyouts are similarly reaching record volumes. This year, U.S. private equity transactions will likely accumulate to over $1 trillion. An estimated $250 billion of this was sourced from hedge funds, who had looked longingly at private equity profits but are now elbowing into the show.
It’s easy to see the appeal. Through 2020, venture capital and private equity strategies produced a 10-year rate of return of 14.2%, about 3.7 percentage points above public equities. The 2021 return will likely be even better.
But in the financial world, success creates its own problems. Outsized returns attract new money which inevitably leads to overpaying for the limited supply of worthy targets. And, with money to burn, investors then stretch the definition of “worthy” to include companies that fall well short of that mark. Not all of the 400 unicorns are worth 10x or 100x revenues. Aggressive overpaying almost by definition means future returns will be weaker, if not dismal.
As with start-up company valuations, buyout prices continue to reach for the sky. This year’s median EV/EBITDA multiple of 12.8x has set a record, eclipsing even the pre-global financial crisis years.
In a market where enthusiastic investors chase prices higher, cheap and easy borrowing conditions provide an enabling boost. Risky bonds2 now yield only 3.29%, fractionally above their record lows and well below the 6.8% inflation rate. Just over three years ago, in October 2018, the 10-year Treasury yield was essentially 3.29%. These fire-sale interest rates ease the burden of elevated borrowings – which are reaching jet-stream altitudes. As mentioned in a recent Almost Daily Grant’s article, the median buyout now sports debt of 6.5x Adjusted EBITDA, or perhaps as high as 8.1x without generous add-backs for yet-to-occur cost savings.
For comparison, in public markets most bond-holders and ratings agencies get the jitters when debt/adjusted EBITDA reaches perhaps 4x or 5x for a stable, cash-generating company. It would be reasonable to assume that the median private equity deal (not to mention the half with even higher leverage), liberally financed by up-and-coming cousin private credit, would be junk-rated. Many buyouts will prove to be unfeasibly leveraged, but when the party is rocking, like today, good judgement flies out the window.
All this adds up to what we see as Peak Private Equity. If one were to wonder where some of the seeds of the next market bust are planted, one needs to look no further than private equity and private credit. We can’t say for sure when the golden crown will tumble off the heads of today’s Masters of the Universe … only that it looks inevitable.
- Word selected specifically to mirror then-Fed Chair Greenspan comments in December 1996, “But how do we know when irrational exuberance has unduly escalated asset values….” Related to this, noted Yale professor Robert J. Shiller, said in his March 2000 book, Irrational Exuberance, “Irrational exuberance is the psychological basis of a speculative bubble. I define a speculative bubble as a situation in which news of price increases spurs investor enthusiasm, which spreads by psychological contagion from person to person, in the process amplifying stories that might justify the price increases, and bringing in a larger and larger class of investors who, despite doubts about the real value of an investment, are drawn to it partly by envy of others’ successes and partly through a gamblers’ excitement.”
- Based on the ICE BofA US High Yield Index, available at the St. Louis Federal Reserve Bank website, https://fred.stlouisfed.org/series/BAMLH0A0HYM2EY
Follow-up to Terminix (TMX): Late last year, we recommended Terminix as a new Buy recommendation. Over time, we become more concerned about the stock’s valuation relative to the company’s fundamentals and moved our rating to Sell at 49.85, with a 9% profit. Afterwards, the shares fell sharply, then on Tuesday, British pest control company Rentokil reached an agreement to acquire Terminix. While Terminix shares surged 19% on the news, they are now trading at about 44, noticeably below our Sell price. With our timely sale, subscribers picked up a useful profit, avoided a sharp price downturn and came out ahead of all of the current shareholders.
Share prices in the table reflect Tuesday (December 14) closing prices. Please note that prices in the discussion below are based on mid-day December 14 prices.
Note to new subscribers: You can find additional color on our thesis, recent earnings reports and other news on recommended companies in prior editions of the Cabot Undervalued Stocks Advisor, particularly the monthly edition, on the Cabot website.
Send questions and comments to Bruce@CabotWealth.com.
Today’s Portfolio Changes
None.
Last Week’s Portfolio Changes
None.
Growth/Income Portfolio
Bristol Myers Squibb Company (BMY) shares sell at a low valuation due to worries over patent expirations for Revlimid (starting in 2022) and Opdivo and Eliquis (starting in 2026). However, the company is working to replace the eventual revenue losses by developing its robust product pipeline while also acquiring new treatments (notably with its acquisitions of Celgene and MyoKardia), and by signing agreements with generics competitors to forestall their competitive entry. The likely worst-case scenario is flat revenues over the next 3-5 years. Bristol should continue to generate vast free cash flow, has a solid, investment-grade balance sheet, and trades at a sizeable discount to its peers.
If Bristol can demonstrate at least the reasonable potential for merely stable revenues during its patent expiration period, which we believe will happen, the shares are remarkably undervalued. On a free cash flow yield basis, assuming an average of $15 billion/year, the shares trade at a 12% free cash flow yield.
The company announced a 10% dividend increase (to $0.54/share) and an additional $15 billion share repurchase, to be completed at management’s discretion. This is a good move by the company to take advantage of the beaten-down shares. The total repurchase authorization is now $15.2 billion, equal to about 12% of the company’s market value.
BMY shares jumped 4% in the past week and have about 31% upside to our 78 price target. Valuation remains remarkably low at 7.6x estimated 2022 earnings, compared to 11x or better for its major peer companies. The stock’s 6.9x EV/EBITDA multiple is similarly cheap, compared to 9-10x or better for peers.
Either we are completely wrong about the company’s fundamental strength, or the market must eventually recognize Bristol’s earnings stability and power. We believe the earning power, low valuation and 3.6% dividend yield that is well-covered by enormous free cash flow make a compelling story. BUY
Cisco Systems (CSCO) is facing revenue pressure as customers migrate to the cloud and thus need less of Cisco’s equipment and one-stop-shop services. Cisco’s prospects are starting to improve under a relatively new CEO, who is shifting Cisco toward a software and subscription model and is rolling out new products, helped by its strong reputation and entrenched position within its customers’ infrastructure. The company is highly profitable, generates vast cash flow (which it returns to shareholders through dividends and buybacks) and has a very strong balance sheet.
Cisco’s presentations at various investor conferences provided more granular information on its tech product and service initiatives, including the software subscription model transition, the cloud transition, 5G and WiFi but no additional strategic or earnings-level disclosures. Management said they continue to look for acquisitions, including large ones. Even though the company talked its book, we found the detail helpful in understanding Cisco’s business and positioning.
CSCO shares slipped 1% this past week and have about 4% upside to our 60 price target. The shares remain attractively valued, and offer a 2.6% dividend yield, so we are sticking with the name and rating for now. BUY
Coca-Cola (KO) is best-known for its iconic soft drinks yet nearly 40% of its revenues come from non-soda beverages across the non-alcoholic spectrum. Its global distribution system reaches nearly every human on the planet. Coca-Cola’s longer-term picture looks bright but the shares remain undervalued due to concerns over the pandemic, the secular trend away from sugary sodas, and a tax dispute which could cost as much as $12 billion (likely worst-case scenario). The relatively new CEO James Quincey (2017) is reinvigorating the company by narrowing its oversized brand portfolio, boosting its innovation and improving its efficiency, as well as improving its health and environmental image. Coca-Cola’s balance sheet is sturdy, and its growth investing, debt service and dividend are well-covered by free cash flow.
There was no significant company-specific news in the past week.
KO shares moved up 5% this past week. The shares have about 11% upside to our 64 price target.
While the valuation is not statistically cheap, the shares remain undervalued given the company’s future earning power and valuable franchise. Also, the value of Coke’s partial ownership of a number of publicly traded companies (including Monster Beverage) is somewhat hidden on the balance sheet, yet is worth about $23 billion, or 9% of Coke’s market value. This $5/share value provides additional cushion supporting our 64 price target. KO shares offer an attractive 2.9% dividend yield. BUY
Dow Inc. (DOW) merged with DuPont to create DowDuPont, then split into three companies in 2019 based on product type. The new Dow is the world’s largest producer of ethylene/polyethylene, the most widely used plastics. Investors undervalue Dow’s hefty cash flows and sturdy balance sheet largely due to its uninspiring secular growth traits, its cyclicality and concern that management will squander its resources. The shares are driven by: 1) commodity plastics prices, which are often correlated with oil prices and global growth, along with competitors’ production volumes; 2) volume sold, largely driven by global economic conditions, and 3) ongoing efficiency improvements (a never-ending quest of all commodity companies). We see Dow as having more years of strong profits before capacity increases signal a cyclical peak, and expect the company to continue its strong dividend, reduce its pension and debt obligations, repurchase shares slowly and restrain its capital spending.
Industry conditions will likely be strong for a while. Dow remains well-positioned to generate immense free cash flows over the next few years, even as the stock market cares little about cash but rather is focused on the incremental newsflow related to economic growth, energy prices and any industry capacity changes. In the meantime, Dow shareholders can collect a highly-sustainable 5.2% dividend while waiting for more share buybacks, more balance sheet improvement, more profits and a higher valuation.
There was no significant company-specific news in the past week.
Dow estimates ticked up this past week, as confidence continues to increase in its earnings outlook and in the duration of the current economic cycle. Dow shares slipped 2% this past week and have 45% upside to our 78 price target. BUY
Merck (MRK) shares are undervalued as investors worry about Keytruda, a blockbuster oncology treatment (about 30% of revenues) which faces generic competition in late 2028. Also, its Januvia diabetes treatment may see generic competition next year, and like all pharmaceuticals it is at risk from possible government price controls. Yet, Keytruda is an impressive franchise that is growing at a 20% rate and will produce solid cash flow for nearly seven more years, providing the company with considerable time to replace the potential revenue loss. Merck’s new CEO, previously the CFO, is accelerating Merck’s acquisition program, which adds return potential and risks to the story. The company is highly profitable and has a solid balance sheet. It spun off its Organon business in June and we think it will divest its animal health segment sometime in the next five years.
There was no significant company-specific news in the past week.
Merck shares incrementally reversed their prior slide, rising 2% in the past week. The broad market seems to have given up on Merck. We think this is near-sighted – investor expectations are very low, yet the company won’t passively accept its assumed demise. The shares have about 34% upside to our 99 price target.
Merck produces generous free cash flow to fund its current dividend (now yielding 3.7%) as well as likely future dividend increases (the company recently raised its dividend by 6%), although its shift to a more acquisition-driven strategy will slow the pace of increases. BUY
Buy Low Opportunities Portfolio
Arcos Dorados (ARCO), which is Spanish for “golden arches,” is the world’s largest independent McDonald’s franchisee. Based in stable Uruguay and listed on the NYSE, the company produces about 72% of its revenues in Brazil, Mexico, Argentina and Chile. The shares are depressed as investors worry about the pandemic, as well as political/social unrest, inflation and currency devaluations. However, the company has a solid brand and high recurring demand and is well-positioned to benefit as local economies re-open. The leadership looks highly capable, led by the founder/chairman who owns a 38% stake, and has the experience to successfully navigate the complex local conditions. Debt is reasonable relative to post-recovery earnings, and the company is currently producing positive free cash flow.
Macro issues, including issues in Brazil such as its economic conditions (in particular, inflation, running at a 10.7% rate), currency and the chances that a socialist might win next year’s Brazilian presidential elections will continue to move ARCO shares. Brazil is one of the most Covid-vaccinated countries in the world, which reduces pandemic-related demand risks. Year to date, the MSCI Brazil index, as measured by the EWZ exchange-traded fund, has declined 16% while ARCO shares have risen by about 4%.
There was no significant company-specific news in the past week.
ARCO shares pulled back 4% this past week and have about 44% upside to our 7.50 price target. We remain steady in our conviction in the company’s recovery. The low share price offers a chance to add to or start new positions. BUY
Aviva, plc (AVVIY), based in London, is a major European company specializing in life insurance, savings and investment management products. Amanda Blanc was hired as the new CEO in July 2020 to revitalize Aviva’s laggard prospects. She divested operations around the world to re-focus the company on its core geographic markets (UK, Ireland, Canada), and is improving Aviva’s product competitiveness, rebuilding its financial strength and trimming its bloated costs. Aviva’s dividend has been reduced to a more predictable and sustainable level with a modest upward trajectory. Excess cash balances are being directed toward debt reduction and potentially sizeable special dividends and share repurchases.
Much of our interest in Aviva is based on its plans for returning its excess capital to shareholders, including share repurchases and dividends. These distributions could be substantial. We also look for incremental shareholder-friendly pressure from highly regarded European activist investor Cevian Capital, which holds a 5.2% stake.
On November 11, Aviva’s revenue-only interim update showed good growth in the core business, suggesting a renewed relevance and competitiveness to its product offerings. Please see prior notes for more details.
There was no significant company-specific news in the past week.
Aviva shares were flat this past week. Insurance company stocks are sensitive to financial market gyrations (in both directions) they have leveraged balance sheets with their principal tangible assets being investments and securities. Aviva shares have about 34% upside to our 14 price target. BUY
Barrick Gold (GOLD), based in Toronto, is one of the world’s largest and highest-quality gold mining companies. About 50% of its production comes from North America, with the balance from Africa/Middle East (32%) and Latin America/Asia Pacific (18%). Barrick will continue to improve its operating performance (led by its new and highly capable CEO), generate strong free cash flow at current gold prices, and return much of that free cash flow to investors while making minor but sensible acquisitions. Also, Barrick shares offer optionality – if the unusual economic and fiscal conditions drive up the price of gold, Barrick’s shares will rise with it. Given their attractive valuation, the shares don’t need this second (optionality) point to work – it offers extra upside. Barrick’s balance sheet has nearly zero debt net of cash. Major risks include the possibility of a decline in gold prices, production problems at its mines, a major acquisition and/or an expropriation of one or more of its mines.
There was no significant company-specific news in the past week.
This past week, commodity gold prices slipped fractionally to $1,773/ounce while the 10-year Treasury yield slipped to 1.44%. The U.S. Dollar Index, another driver of gold prices (the dollar and gold usually move in opposite directions) ticked up fractionally to 96.58. The index remains about 2% below its pre-Covid late-2019 level of about 99. Per-ounce gold prices seem range-bound between $1,700 and $1,900. Financial markets are now captive to Fed policy, which is now driven by high and rising inflation. Gold, 10-year Treasury rates and the dollar are caught between the push of higher inflation and the pull of tighter Fed policy, perhaps explaining why these three indicators haven’t moved even as the stock market slides.
Barrick shares fell 3% this past week and have about 50% upside to our 27 price target. The price target is based on 7.5x estimated steady-state EBITDA and a modest premium to our estimate of $25/share of net asset value.
Earnings estimates dipped again, which appear to be due to some true-ups for the current gold price.
On its recurring $.09/quarter dividend, GOLD shares offer a reasonable 2.0% dividend yield. Barrick is paying an additional $0.42/share in special distributions this year (no clarity on 2022 special dividends), lifting the effective dividend yield to 4.3%. BUY
Citigroup (C) – Citi is one of the world’s largest banks, with over $2.4 trillion in assets. The bank’s weak compliance and risk-management culture led to Citi’s disastrous and humiliating experience in the 2009 global financial crisis, which required an enormous government bailout. The successor CEO, Michael Corbat, navigated the bank through the post-crisis period to a position of reasonable stability. Unfinished, though, is the project to restore Citi to a highly profitable banking company, which is the task of new CEO Jane Fraser.
Mark Mason, Chief Financial Officer of Citigroup, presented at the 2021 Goldman Sachs U.S. Financial Services Conference last week. While there were no new disclosures, Mason said he continued to be confident in their fourth-quarter revenue and expense guidance, implying that earnings guidance remains intact. He also highlighted their three priorities: transformation (in no small part to earn relief from regulatory consent orders), strategic refresh and culture/talent. Mason also discussed the logic around their ongoing divestiture program (offload low-return and low-growth segments) and plans for returning excess capital.
Citi shares slipped 4% this past week and have about 40% upside to our 85 price target. The trimming of earnings estimates for 2023 appear to be driven by the recent flattening of the yield curve, which would imply lower net interest income for Citi.
Trading at 79% of tangible book value (compared to Wells Fargo at 132% and Bank of America at 200%) and 7.6x estimated 2022 earnings, Citi shares are among the cheapest in the banking sector – a major attraction as expectations are low. As the bank grinds along with its turnaround, the valuation should improve. Investors enjoy a 3.4% dividend yield and perhaps another 3% or more in annual accretion from the bank’s share repurchase program. BUY
ConocoPhillips (COP), based in Houston, Texas, is the world’s largest independent E&P company, with about two-thirds of its production in the United States. Conoco’s shares are depressed, as investors avoid climate-unfriendly companies, have low interest in exposure to volatile and unpredictable oil and gas prices, worry that company management will lose its new-found capital spending discipline, and are concerned that OPEC+ will reopen their spigots, sending oil prices tumbling.
We see resilient oil prices, as demand remains strong, alternatives aren’t yet plentiful enough, supply growth is restrained as shareholders prioritize cash flow rather than capital spending, and as majors seek to reduce their carbon footprint. We like Conoco’s low valuation, investment-grade balance sheet, strong free cash flow, and public commitment to limiting its capital spending to 50% of its annual cash flow. The shares offer a respectable base-level dividend to shareholders that appears rock-solid.
Conoco said it would exit its Indonesian operations through a $1.4 billion deal while increasing its stake in Australia Pacific LNG to 47.5%. We like Conoco’s combined moves to tighten the focus of its international asset base.
West Texas Intermediate crude is currently trading at $70.55/barrel, down 3% this past week, while natural gas in the United States is priced at $3.81, up about 28% from last week.
ConocoPhillips shares fell 5% this past week and have about 13% upside to our 80 price target. Earnings estimates ticked up this past week. Changes in estimates for commodity company earnings tend to lag changes in commodity prices by about a month or so. BUY
Molson Coors Beverage Company (TAP) is one of the world’s largest beverage companies, producing the highly recognized Coors, Molson, Miller and Blue Moon brands as well as numerous local, craft and specialty beers. About two-thirds of its revenues come from the United States, where it holds a 24% market share. Investors worry about Molson Coors’ lack of revenue growth due to its relatively limited offerings of fast-growing hard seltzers and other trendier beverages. Our thesis for this company is straight-forward – a reasonably stable company whose shares sell at an overly discounted price. Its revenues are resilient, it produces generous cash flow and is reducing its debt. A new CEO is helping improve its operating efficiency and expand carefully into more growthier products. The company recently reinstated its dividend.
There was no significant company-specific news in the past week.
TAP shares fell 2% in the past week. The shares have about 50% upside to our 69 price target. The stock remains cheap, particularly on an EV/EBITDA basis, or enterprise value/cash operating profits, where it trades at 7.9x estimated 2022 results, still among the lowest valuations in the consumer staples group and below other brewing companies. BUY
Organon & Company (OGN) was recently spun off from Merck. It specializes in patented women’s healthcare products and biosimilars, and also has a portfolio of mostly off-patent treatments. Organon will produce better internal growth with some boost through smart yet modest-sized acquisitions. It may eventually divest its Established Brands segment. The management and board appear capable, the company produces robust free cash flow, has modestly elevated debt and will pay a reasonable dividend. Investors have ignored the company, but we believe that Organon will produce at least stable and large free cash flows with a reasonable potential for growth. At our initial recommendation, the stock traded at a highly attractive 4x earnings.
Organon announced that it completed its acquisition of Forendo Pharmaceuticals, which includes a $75 million upfront payment, assumption of $9 million in liabilities, and additional payments of up to an additional $870 million upon reaching various milestones. We have a favorable view of structuring acquisitions with milestones payments, particularly for deals with early-stage companies, as they greatly reduce the high risks of acquisitions.
OGN shares slipped 1% this past week and have about 59% upside to our 46 price target (using the same target as the Cabot Turnaround Letter). The sharp post-earnings decline leaves OGN shares about 2% above our cost of $28.45. They continue to trade at a remarkably low valuation while offering an attractive 3.9% dividend yield. BUY
Sensata Technologies (ST) is a $3.8 billion (revenues) producer of nearly 47,000 highly engineered sensors used by automotive (60% of revenues), heavy vehicle, industrial and aerospace customers. About two-thirds of its revenues are generated outside of the United States, with China producing about 21%. Investors undervalue Sensata’s durable franchise. Its sensors are typically critical components that generally produce high profit margins. As the sensors’ reliability is vital to safely and performance, customers are reluctant to switch to another supplier that may have lower prices but also lower or unproven quality. Sensata has an arguably under-leveraged balance sheet and generates healthy free cash flow. The relatively new CEO will likely continue to expand the company’s growth potential through acquisitions. Electric vehicles are an opportunity as they expand Sensata’s reachable market.
Goldman Sachs highlighted Sensata as a beneficiary of the transition to electric vehicles.
ST shares slipped 4% this past week and have about 31% upside to our 75 price target. BUY
Disclosure:The chief analyst of the Cabot Undervalued Stocks Advisor personally holds shares of every recommended security, except for “New Buy” recommendations. The chief analyst may purchase or sell recommended securities but not before the fourth day after any changes in recommendation ratings has been emailed to subscribers. “New Buy” recommendations will be purchased by the chief analyst as soon as practical following the fourth day after the newsletter issue has been emailed to subscribers.
| Growth/Income Portfolio | |||||||
| Stock (Symbol) | Date Added | Price Added | 12/14/21 | Capital Gain/Loss | Current Dividend Yield | Price Target | Rating |
| Bristol-Myers Squibb (BMY) | 04-01-20 | 54.82 | 59.51 | 8.6% | 3.3% | 78.00 | Buy |
| Cisco Systems (CSCO) | 11-18-20 | 41.32 | 57.77 | 39.8% | 2.5% | 60.00 | Buy |
| Coca-Cola (KO) | 11-11-20 | 53.58 | 57.80 | 7.9% | 2.8% | 64.00 | Buy |
| Dow Inc (DOW) * | 04-01-19 | 53.50 | 53.88 | 0.7% | 5.2% | 78.00 | Buy |
| Merck (MRK) | 12-9-20 | 83.47 | 73.72 | -11.7% | 3.7% | 99.00 | Buy |
| Buy Low Opportunities Portfolio | |||||||
| Stock (Symbol) | Date Added | Price Added | 12/14/21 | Capital Gain/Loss | Current Dividend Yield | Price Target | Rating |
| Arcos Dorados (ARCO) | 04-28-21 | 5.41 | 5.19 | -4.1% | — | 7.50 | Buy |
| Aviva (AVVIY) | 03-03-21 | 10.75 | 10.45 | -2.8% | 5.8% | 14.00 | Buy |
| Barrick Gold (GOLD) | 03-17-21 | 21.13 | 17.86 | -15.5% | 2.0% | 27.00 | Buy |
| Citigroup (C) | 11-23-21 | 68.10 | 60.64 | -11.0% | 3.4% | 85.00 | Buy |
| ConocoPhillips (COP) | 9-24-21 | 65.02 | 70.68 | 8.7% | 2.6% | 80.00 | Buy |
| Molson Coors (TAP) | 08-05-20 | 36.53 | 45.87 | 25.6% | 3.0% | 69.00 | Buy |
| Organon (OGN) | 06-07-21 | 31.42 | 28.85 | -8.2% | 3.9% | 46.00 | Buy |
| Sensata Technologies (ST) | 02-17-21 | 58.57 | 57.30 | -2.2% | — | 75.00 | Buy |
*Note: DOW price is based on April 1, 2019 closing price following spin-off from DWDP.
Buy – This stock is worth buying.
Strong Buy – This stock offers an unusually favorable risk/reward trade-off, often one that has been rated as a Buy yet the market has sold aggressively for temporary reasons. We recommend adding to existing positions.
Hold – The shares are worth keeping but the risk/return trade-off is not favorable enough for more buying nor unfavorable enough to warrant selling.
Sell – This stock is approaching or has reached our price target, its value has become permanently impaired or changes in its risk or other traits warrant a sale.
Note for stock table: For stocks rated Sell, the current price is the sell date price.
| CUSA Valuation and Earnings | |||||||
| Growth/Income Portfolio | |||||||
| Current price | Current 2022 EPS Estimate | Current 2023 EPS Estimate | Change in 2022 Estimate | Change in 2023 Estimate | P/E 2022 | P/E 2023 | |
| BMY | 59.59 | 7.80 | 8.09 | -0.4% | -0.6% | 7.6 | 7.4 |
| CSCO | 57.73 | 3.42 | 3.68 | 0.0% | 0.0% | 16.9 | 15.7 |
| KO | 57.91 | 2.44 | 2.60 | 0.0% | 0.0% | 23.7 | 22.3 |
| DOW | 53.87 | 6.32 | 6.27 | 1.3% | 2.6% | 8.5 | 8.6 |
| MRK | 73.73 | 7.26 | 7.17 | 0.3% | 0.0% | 10.2 | 10.3 |
| Buy Low Opportunities Portfolio | |||||||
| Current price | Current 2022 EPS Estimate | Current 2023 EPS Estimate | Change in 2022 Estimate | Change in 2023 Estimate | P/E 2022 | P/E 2023 | |
| ARCO | 5.21 | 0.30 | 0.37 | 0.0% | 0.0% | 17.4 | 14.1 |
| AVVIY | 10.42 | 1.21 | 1.34 | 0.0% | 0.0% | 8.6 | 7.8 |
| GOLD | 17.97 | 1.17 | 1.18 | -1.4% | -3.3% | 15.4 | 15.2 |
| C | 60.67 | 8.00 | 8.63 | -0.4% | -0.8% | 7.6 | 7.0 |
| COP | 71.03 | 7.98 | 6.54 | 1.8% | 0.6% | 8.9 | 10.9 |
| TAP | 45.94 | 4.15 | 4.40 | -0.2% | -0.7% | 11.1 | 10.4 |
| OGN | 29.01 | 5.87 | 5.98 | 0.0% | 0.0% | 4.9 | 4.9 |
| ST | 57.35 | 4.06 | 4.67 | 0.0% | 0.0% | 14.1 | 12.3 |
Current price is yesterday’s mid-day price.
CSCO: Estimates are for fiscal years ending in JulyCurrent price is yesterday’s mid-day price.