The Stock Advisors released their top six stock picks based on the wisdom of Godfather of value investing Benjamin Graham and his prot?g?e Warren Buffett.
In fulfilling value investing criteria, these names "sell at sensible prices, offer reasonable appreciation potential and provide solid dividends." Other requirements include:
1) Free cash flow more than $20M2) Net profit margin more than 15%3) Return on equity more than 15%4) Discounted cash flow higher than current price5) Market capitalization more than $1 billion6) Standard & Poor?s rating of B+ or better7) Positive earnings growth during the past five years with no deficits8) Dividends currently paid The final six choices and reasoning are as follows: Caterpillar (CAT) is the world?s largest manufacturer of earth-moving equipment. Demand for Caterpillar is expected to increase as older machinery is replaced and used to rebuild areas hit by this year's natural disasters. This includes Japan and US in the wake of hurricane, tornadoes, and flooding.
Additionally, rapid growth of infrastructure in developing nations provides CAT with ample growth opportunities. The US and other developed countries are improving and rebuilding infrastructure as well. ?
Coach (COH), maker of designer high-quality leather goods, is Stock Advisor's second stock pick. The company is expanding retail space by 12% over the next year and opening 20 stores in China.
"We expect sales and EPS growth of 15% during the next 12 months and beyond. The current low stock price provides investors with a chance to buy Coach at a bargain price."
J.B. Hunt Transport Services (JBHT) provides logistic services for truck-load freight throughout the U.S and regions of Canada and Mexico. "JBHT also provides transportation, storage and planning to companies such as Wal-Mart, under long-term contracts."
Management is aggressively increasing long-term contract business and the more profitable intermodal operations. "We expect revenues to rise 12% and EPS to increase 29% during the next 12 months."
McKesson (MCK) "provides a wide range of services and products to independent pharmacies, retail chains and institutions in the U.S. and Canada. Their services and products reduce costs and improve ef?ciency. The company operates two segments. "
The company is adding a third operation to their existing Distribution Solutions and Technological Solutions segments:
"To diversify, McKesson acquired U.S. Oncology, which is dedicated to cancer treatment and research, in December 2010, for $2.2 billion. McKesson?s sales will likely increase 6%, and EPS 17% during the next 12 months. "
Ross Stores (ROST) operates 1,091 stores in 27 states and Guam featuring high quality apparel, shoes jewelry and home furnishings. The company is expanding into Arkansas and Illinois with 15 news stores.
Ross acquires merchandise at a steep discount by buying manufacturer cancellations and turnovers. Their discounted merchandise becomes increasingly attractive in economic downturns, including the current financial climate.
"These will jump-start Ross?s presence and provide noticeable growth in the near future. We forecast sales and earnings growth of 12% during the next 12 months."
Tupperware Brands (TUP) "is a leading direct seller of beauty and household products marketed by an independent sales force of 2.6 million representatives?Tupperware derives 86% of sales from foreign markets, including 56% from developing countries."
As sales in developing countries boom, The Stock Advisors expect sales to rise 10% or more, and "EPS will likely increase 21% during the next 12 months, boosted by strong sales in the U.S., Canada and emerging market countries."
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Want more information on these names? We gathered some basics below. Click on the stocks for more information and access to Kapitall's interactive tools.
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1. Caterpillar Inc. (CAT, Earnings, Analysts, Financials): Farm & Construction Machinery Industry. Market cap of $55.95B. Price as of 9/16 at $86.13. The stock has gained 22.52% over the last year.
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2. Coach Inc. (COH, Earnings, Analysts, Financials): Textile Footwear & Accessories Industry. Market cap of $17.19B. Price as of 9/16 at $59.27. The stock has had a couple of great days, gaining 8.64% over the last week.
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3. JB Hunt Transport Services Inc. (JBHT, Earnings, Analysts, Financials): Trucking Industry. Market cap of $4.81B. Price as of 9/16 at $40. The stock has gained 15.67% over the last year.
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4. McKesson Corporation (MCK, Earnings, Analysts, Financials): Drugs Wholesale Industry. Market cap of $18.58B. Price as of 9/16 at $76.01. Relatively low correlation to the market (beta = 0.77), which may be appealing to risk averse investors. The stock has gained 22.07% over the last year.
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5. Ross Stores Inc. (ROST, Earnings, Analysts, Financials): Apparel Stores Industry. Market cap of $9.13B. Price as of 9/16 at $80.33. Relatively low correlation to the market (beta = 0.73), which may be appealing to risk averse investors. The stock has had a couple of great days, gaining 5.38% over the last week.
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6. Tupperware Brands Corporation (TUP, Earnings, Analysts, Financials): Packaging & Containers Industry. Market cap of $3.72B. Price as of 9/16 at $61.42. It's been a rough couple of days for the stock, losing 6.18% over the last week.
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Use Kapitall's Compar-O-Matic to see the changes in average analyst recommendation for the names above.
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(List compiled by Becca Lipman.)
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Use Kapitall's Tools: Looking for ways to analyze this list?Use this article snapshot as a launch pad (click here for help): Simply click on the links, and use Kapitall's tab navigation to browse through the data...
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Analyze These Ideas: Getting Started
Read descriptions for all companies mentioned Access a performance overview for all stocks in the list Compare analyst ratings for the companies mentioned Compare analyst ratings to annual returns for stocks mentioned Real-Time Opinion: Scan the latest tweets about these companies (feed will open in a new window)Dig Deeper: Access Company Snapshots, Charts, Filings
Caterpillar Inc. (CAT, Chart, Download SEC Filings) Coach Inc. (COH, Chart, Download SEC Filings) JB Hunt Transport Services Inc. (JBHT, Chart, Download SEC Filings) McKesson Corporation (MCK, Chart, Download SEC Filings) Ross Stores Inc. (ROST, Chart, Download SEC Filings) Tupperware Brands Corporation (TUP, Chart, Download SEC Filings)New to Kapitall?1. New to the site? Click here to register for a free account, and gain access to more tools and data2. Looking for more investing ideas like this? Click here to sign up for your free copy of Kapitall Weekly3. Follow us on SeekingAlpha, Motley Fool, Nasdaq and Twitter
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Articles
The Stock Advisors released their top six stock picks based on the wisdom of Godfather of value investing Benjamin Graham and his prot?g?e Warren Buffett.
In fulfilling value investing criteria, these names "sell at sensible prices, offer reasonable appreciation potential and provide solid dividends." Other requirements include:
1) Free cash flow more than $20M2) Net profit margin more than 15%3) Return on equity more than 15%4) Discounted cash flow higher than current price5) Market capitalization more than $1 billion6) Standard & Poor?s rating of B+ or better7) Positive earnings growth during the past five years with no deficits8) Dividends currently paid The final six choices and reasoning are as follows: Caterpillar (CAT) is the world?s largest manufacturer of earth-moving equipment. Demand for Caterpillar is expected to increase as older machinery is replaced and used to rebuild areas hit by this year's natural disasters. This includes Japan and US in the wake of hurricane, tornadoes, and flooding.
Additionally, rapid growth of infrastructure in developing nations provides CAT with ample growth opportunities. The US and other developed countries are improving and rebuilding infrastructure as well. ?
Coach (COH), maker of designer high-quality leather goods, is Stock Advisor's second stock pick. The company is expanding retail space by 12% over the next year and opening 20 stores in China.
"We expect sales and EPS growth of 15% during the next 12 months and beyond. The current low stock price provides investors with a chance to buy Coach at a bargain price."
J.B. Hunt Transport Services (JBHT) provides logistic services for truck-load freight throughout the U.S and regions of Canada and Mexico. "JBHT also provides transportation, storage and planning to companies such as Wal-Mart, under long-term contracts."
Management is aggressively increasing long-term contract business and the more profitable intermodal operations. "We expect revenues to rise 12% and EPS to increase 29% during the next 12 months."
McKesson (MCK) "provides a wide range of services and products to independent pharmacies, retail chains and institutions in the U.S. and Canada. Their services and products reduce costs and improve ef?ciency. The company operates two segments. "
The company is adding a third operation to their existing Distribution Solutions and Technological Solutions segments:
"To diversify, McKesson acquired U.S. Oncology, which is dedicated to cancer treatment and research, in December 2010, for $2.2 billion. McKesson?s sales will likely increase 6%, and EPS 17% during the next 12 months. "
Ross Stores (ROST) operates 1,091 stores in 27 states and Guam featuring high quality apparel, shoes jewelry and home furnishings. The company is expanding into Arkansas and Illinois with 15 news stores.
Ross acquires merchandise at a steep discount by buying manufacturer cancellations and turnovers. Their discounted merchandise becomes increasingly attractive in economic downturns, including the current financial climate.
"These will jump-start Ross?s presence and provide noticeable growth in the near future. We forecast sales and earnings growth of 12% during the next 12 months."
Tupperware Brands (TUP) "is a leading direct seller of beauty and household products marketed by an independent sales force of 2.6 million representatives?Tupperware derives 86% of sales from foreign markets, including 56% from developing countries."
As sales in developing countries boom, The Stock Advisors expect sales to rise 10% or more, and "EPS will likely increase 21% during the next 12 months, boosted by strong sales in the U.S., Canada and emerging market countries."
?
Want more information on these names? We gathered some basics below. Click on the stocks for more information and access to Kapitall's interactive tools.
?
1. Caterpillar Inc. (CAT, Earnings, Analysts, Financials): Farm & Construction Machinery Industry. Market cap of $55.95B. Price as of 9/16 at $86.13. The stock has gained 22.52% over the last year.
?
2. Coach Inc. (COH, Earnings, Analysts, Financials): Textile Footwear & Accessories Industry. Market cap of $17.19B. Price as of 9/16 at $59.27. The stock has had a couple of great days, gaining 8.64% over the last week.
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3. JB Hunt Transport Services Inc. (JBHT, Earnings, Analysts, Financials): Trucking Industry. Market cap of $4.81B. Price as of 9/16 at $40. The stock has gained 15.67% over the last year.
?
4. McKesson Corporation (MCK, Earnings, Analysts, Financials): Drugs Wholesale Industry. Market cap of $18.58B. Price as of 9/16 at $76.01. Relatively low correlation to the market (beta = 0.77), which may be appealing to risk averse investors. The stock has gained 22.07% over the last year.
?
5. Ross Stores Inc. (ROST, Earnings, Analysts, Financials): Apparel Stores Industry. Market cap of $9.13B. Price as of 9/16 at $80.33. Relatively low correlation to the market (beta = 0.73), which may be appealing to risk averse investors. The stock has had a couple of great days, gaining 5.38% over the last week.
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6. Tupperware Brands Corporation (TUP, Earnings, Analysts, Financials): Packaging & Containers Industry. Market cap of $3.72B. Price as of 9/16 at $61.42. It's been a rough couple of days for the stock, losing 6.18% over the last week.
?
?
Use Kapitall's Compar-O-Matic to see the changes in average analyst recommendation for the names above.
?
Your browser does not support iframes.
?
(List compiled by Becca Lipman.)
?
Use Kapitall's Tools: Looking for ways to analyze this list?Use this article snapshot as a launch pad (click here for help): Simply click on the links, and use Kapitall's tab navigation to browse through the data...
?
Analyze These Ideas: Getting Started
Read descriptions for all companies mentioned Access a performance overview for all stocks in the list Compare analyst ratings for the companies mentioned Compare analyst ratings to annual returns for stocks mentioned Real-Time Opinion: Scan the latest tweets about these companies (feed will open in a new window)Dig Deeper: Access Company Snapshots, Charts, Filings
Caterpillar Inc. (CAT, Chart, Download SEC Filings) Coach Inc. (COH, Chart, Download SEC Filings) JB Hunt Transport Services Inc. (JBHT, Chart, Download SEC Filings) McKesson Corporation (MCK, Chart, Download SEC Filings) Ross Stores Inc. (ROST, Chart, Download SEC Filings) Tupperware Brands Corporation (TUP, Chart, Download SEC Filings)New to Kapitall?1. New to the site? Click here to register for a free account, and gain access to more tools and data2. Looking for more investing ideas like this? Click here to sign up for your free copy of Kapitall Weekly3. Follow us on SeekingAlpha, Motley Fool, Nasdaq and Twitter
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Articles
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