The wonderful world of stock screens
We like to use stock screens to look for investment ideas, not so much to find new investments but to remind us (after all these years) of good investments and, more specifically, the right investments for the right times. Today’s screen focused on defensive names of high-performance consumers and what we’ve found isn’t that surprising. Among these names are two of the top-tier technology stocks and a slew of energy stocks that are not only slightly valued, but are on the verge of increasing their return on capital and overcoming a wave of upgrades. analyst.
Verizon is the highest performing and good buy
Verizon (NYSE: VZ) tops our list of high-performing consumer defensive actions with a 5.05% payout with shares listed at $ 51. Payment is also growing, with an 18-year track record of distribution increases and a low payout ratio of 46%. In our opinion, the stock price may be stuck in a range and may even go down, but the dividend is safe. In terms of value, Verizon is trading at just 9.5 times its earnings compared to about 15 times for the average S&P 500 company and pays more than double its performance. Growth prospects are not robust, but they are present and sustain the stock price.
There are 15 analysts with current ratings on Verizon and they have the actions tied to a hold. In our opinion, this amounts to a purchase for those who do not have a stake in the company and there is also a potential for growth. The consensus price target has been falling over the last year, but is still 14% above price action. The latest shout comes from Alliance Bernstein, which ranked it sixth on its list of best sticky actions. Bonded shares are shares whose owners tend to buy and hold and have quieter reactions to the loss of gains.
The energy sector, again …
If you need another reason to be interested in the energy sector other than rising oil prices, the relentless wave of upgrades, or low valuation, you can add high performance to the list. The energy sector, included Exxon Mobil (NYSE: XOM), Shell (NYSE: SHEL)i Chevron (NYSE: CLC) they rank 2nd to 4th in the results on our screen and all yield around 4.0% at recent price levels. Exxon and Chevron are also on Stick’s best stock list and Exxon has also gotten another update. The upgrade comes from Piper Sandler and is a double upgrade from neutral to overweight with a target price of $ 109. This target is 15% above the current consensus, a consensus that has an upward trend, and involves about a 24% rise in addition to the 4% yield and the expected increase in distribution. and repurchase of shares. If you are not interested in individual Energy actions, there is always SPDR Energy Sector (NYSEARCA: XLE) likewise and produces 3.75%.
Intel, the highest performing technology stock we want to have
There may be higher performance stocks in the technology sector than Intel (NASDAQ: INTC) but they are not a name that interests us. Intel, on the other hand, is among the most established technology companies in the market and fundamental to the technology industry. Shares also yield around 3.6% and have a positive outlook for dividend growth. Although sentiment in chip stocks has been declining in recent weeks, the outlook for the industry is still bullish and at least a 24% rise is expected for stocks. However, regardless of second-quarter results, the stock is trading at an attractive 11X earnings, which, along with the dividend, makes it an attractive stock in a no-growth environment.