The still improving economic picture tells you why the bull run in 2021 is far from over. Meanwhile, we are recommending a new 7% allocation in Brunswick Corp. (BC), notes Steve Reitmeister, a trading expert with 40 years of investment experience and the editor of Reitmeister Total Return.
When you hear the name Brunswick, I bet you are thinking of bowling. But actually that is a completely different company. This is a fresh pick from my radar screen that I think has stronger future potential.
The publicly traded Brunswick is a leader in motor boats and boat engines, including the Mercury brand. Why boats?
Like RVs, this type of consumer discretionary item is seeing dramatic increases in demand as healthy outdoor living is much more desired in a world where you still have some fear of catching the coronavirus. But don't worry this company was going strong before the coronavirus, and will do so well into the future.
From a POWR Ratings point of view it also looks very attractive. Yes, it only appears to be a B rated stock. But with my additional level of information I can see it is in the 93.5% percentile of all stocks. Barely out of the A category (95 to 99.99 percentile).
As we dig into the component grades we see greatest strength in Quality and Industry with A grades. Not far behind is Sentiment and Momentum at B.
By the way, the component grade with the most alpha in the POWR Ratings comes from the Quality grade. And here we are in the top 2.5% of all stocks. Long story short, the POWR Ratings points decidedly in our favor.
Lastly, looking at value, I see the average target price only at $103. Yet the most recent are more like $115 to $122. I believe those are much more accurate readings given their current earnings outlook.
Yet if they keep banging out 30% earnings beats as they have the past two quarters, then earnings prospects and fair value will run much further north than where it stands today. Now I think you understand why I am saying "All Aboard!" this leading boat manufacturer.
