Today, I plan to share the investment insights Benjamin Graham, Warren Buffet’s mentor, gleane...
Quickel’s Picks: Four-Pack of Favorites
03/24/2017 2:50 am EST
As we head into the spring, our Recommended List has been pruned and refreshed with promising new growth stocks. Here are snapshots of our of the most promising investment selections on our recommended list, explains Stephen Quickel, editor of US Investment Report.
The stock market is now being driven by solid earnings growth and more moderate valuation ratios. This is especially so in technology sectors, but also in well-positioned competitive leaders in consumer, industrial, healthcare, financial and business services industries and product niches.
It’s still the apple of out eye, if you will, despite its huge size. AAPL has now reached $140 from below $90 two years ago, and with earnings growing almost half-again as fast as S&P 500 earnings, this stock seems headed for $160 or more.
It’s up 20% since the election, as investors await the successful introduction of its iPhone 8 in the fall. A P/E of 12.6 and PEG of 0.64 suggest the launch is not yet priced into the stock
Priceline Group (PCLN)
The dominant provider of travel and restaurant reservations and other services, with 850,000 properties in over 200 countries, reported a 17.4% jump in revenues for the fourth quarter, sending its share price up 19%.
Now at its all-time high of 1750, its return on shareholders equity is 23% and analysts expect 5-year earnings growth to average over 18 % — giving PCLN an “ideal” PEG ratio of 1.01. Our target price is 1900.
Nvidia Corp. (NVDA)
After a nonstop climb from $32 to $119 since last April, this graphic design provider for computers, worksta- tions, game consoles and mobile devices was overdue for correction.
Now breaking below its 10-week moving average at 98, where will it bottom out? That’s anyone’s guess. But NVDA’s earnings are expected to grow more than 30% a year.
At its reduced price, and trading at a P/E of 24.5 times forward earnings (which is mild for a super-growth stock), its PEG is a mere 0.66. As often happens, the hand-wringing about high-powered competition will probably be overdone.
Burlington Stores (BURL)
With 567 off-price department stores in 44 states, and revenues nearing $5 billion, this N.J. retailer has shot from 70 to 94 since the November market low. With 20% a year expected earnings growth, we see this estimate-beating stock moving to $110.
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