Monthly Archives: June 2018

Best Insurance Stocks To Own Right Now

In theory, investors shouldn’t care about the price of a company’s stock. What matters more than anything is the market cap. It’s an error to think a stock is cheap simply because its share price is in the low single digits. And investors should use extra caution when searching through low-priced stocks. Oftentimes, stocks that have fallen to trading for just a couple bucks end up going all the way to zero.

That said, some of the market’s biggest winners also come out of the sub-$5 stock category. Whether the company has a low share price due to falling from glory or just not being discovered yet, these low-priced players can sometimes rocket to crazy heights.

So, with the disclaimer that these sorts of companies tend to be of the high-risk, high-reward variety, let’s take a look at three cheap stocks under $3 that could fly in coming quarters.

Best Insurance Stocks To Own Right Now: Trina Solar Limited(TSL)

Energo (CURRENCY:TSL) traded up 5.3% against the U.S. dollar during the 24-hour period ending at 18:00 PM ET on June 29th. One Energo token can currently be bought for approximately $0.0146 or 0.00000235 BTC on popular cryptocurrency exchanges including Gate.io, Coinrail, Coinnest and CoinEgg. Energo has a market capitalization of $9.93 million and $823,323.00 worth of Energo was traded on exchanges in the last 24 hours. Over the last week, Energo has traded 11.7% lower against the U.S. dollar.

Energo can be bought or sold on the following cryptocurrency exchanges: Coinnest, CoinEgg, Gate.io and Coinrail. It is usually not possible to buy alternative cryptocurrencies such as Energo directly using U.S. dollars. Investors seeking to acquire Energo should first buy Bitcoin or Ethereum using an exchange that deals in U.S. dollars such as Gemini, Changelly or Coinbase. Investors can then use their newly-acquired Bitcoin or Ethereum to buy Energo using one of the exchanges listed above.

Best Insurance Stocks To Own Right Now: ENERGY TRANSFER PARTNERS(ETP)

 If high yields are indicators of high risk, then Energy Transfer Partners’ 12.4% yield ought to be an indicator of astronomical risk! But for this energy infrastructure MLP, the risk appears substantially lower than it did a few months ago, which may make this the time to buy in before the market catches on.

Energy Transfer Partners, which operates more than 71,000 miles of pipelines across the U.S. — including the controversial Dakota Access Pipeline — has a well-established yield and a history of increasing it regularly. In fact, the company has never cut its quarterly distribution, increasing it instead almost every quarter since the company went public in 2002. That’s one heck of a record of commitment to increasing value for unitholders.

Oil pipeline with refinery in the distance.

IMAGE SOURCE: GETTY IMAGES.

The market, though, has been concerned about the partnership’s balance sheet, which is is awash in debt, and its distribution coverage, which was very thin for much of last year. However, in its most recent Q4 2017 earnings report, the company posted a distribution coverage ratio of 1.3 times, which is a very comfortable margin.

The company also has taken some concrete steps to pay down more expensive debt through asset sales and take on less expensive debt in return, which has cleaned up its balance sheet somewhat — so the risks seem much more remote. Even if the worst happened and the company’s yield were, say, halved, Energy Transfer Partners would still yield more than many of its peers.

Investors should be aware that there are some additional tax reporting requirements for MLP unitholders, which can make them a poor choice for some portfolios. But if that doesn’t bother you, you’d be hard-pressed to find this high a yield for this moderate a risk.

Best Insurance Stocks To Own Right Now: DAQO New Energy Corp.(DQ)

People’s Republic of China-based Daqo New Energy Corp (NYSE:DQ) manufactures and sells polysilicon and wafers in the People’s Republic of China. This Zacks Rank #1 company has a 3-5 years EPS growth rate of 7% and a Value Score of A.

Best Undervalued Stocks To Own For 2019

It’s one of the toughest questions to answer this year: amid all the fears and uncertainties in the broader markets, why haven’t gold stocks jumped in valuation? The traditional safe haven asset hasn’t looked good since collapsing in 2013. And despite some promising developments, every move up is seemingly fiercely contested.

Although it’s a tired sentiment, investors should note that this time could really be different. For one thing, the bullion sector, and to a large degree, gold stocks, perform well during periods of market fear. Honestly, what better word describes the current mainstream emotion? Although the benchmark indices have recently put up strong numbers, the Dow Jones is still down 1.6% year-to-date.

Next, we have to consider the Trump factor. Our President doesn’t lack anything in the confidence department, but political competency is another matter. No, I’m not delivering a cheap shot at our Commander-in-Chief. Rather, I’m suggesting that his diplomatic skills will be tested in a baptism of fire. Maybe it will work out, or maybe it won’t. Either way, gold stocks to buy don’t seem like a bad idea!

Finally, gold prices may see a seasonality boost. Since 1999, the second quarter on a year-over-year basis produces the strongest gains. Granted, the margins are small: the second quarter averages 10.1% YOY returns, while the worst quarter (the first) produces 9.6% returns. Still, it is a statistical advantage.

With all that’s going on right now, precious metals are a smart play. Here are seven gold stocks that will find a momentum burst this spring!

Best Undervalued Stocks To Own For 2019: Las Vegas Sands Corp.(LVS)

Hotel Stocks to Buy: Las Vegas Sands (LVS)

Source: Robert Riley via Flickr

 

Although Las Vegas Sands Corp. (NYSE:LVS) has put its expansion in the U.S. on hold while it explores international opportunities, it still has a couple of nice hotels to welcome you — The Venetian and The Palazzo — should you be going to Vegas this summer.

However, Macao is where LVS generates the lion’s share of its adjusted property EBITDA — 53% of $1.5 billion in Q1 2018 — with Singapore adding another 26% and the U.S. the remaining 11%.

The company’s future developments in Macao, Singapore, Japan and South Korea, which include two of more than $10 billion, will be financed with up to 35% of the cost with LVS stock and the remainder with debt. The goal is to produce at least a 20% return on invested capital on these developments.

Now that Steve Wynn’s out of the game, it seems Sheldon Adelson’s Las Vegas Sands will have the last laugh.

Best Undervalued Stocks To Own For 2019: Arista Networks, Inc.(ANET)

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Based in San Jose, California, Arista Networks (NYSE:ANET) provides cloud networking solutions to 4,000 customers across five continents.

Arista specializes in high-speed network switches that enable cloud service providers, internet companies and data centers to run faster networks. Arista also provides technical support, hardware repair and parts replacement.

When it comes to the lucrative high-speed network switches market, Arista Networks goes toe-to-toe with Cisco Systems (NASDAQ:CSCO). But while its larger competitor is struggling to grow sales and earnings, Arista Networks is growing by leaps and bounds.

Part of ANET’s competitive advantage is that it isn’t tied down to legacy systems like CSCO is. Its equipment is next generation, built for the next iteration in networking and cloud services.

It has had a bumpy ride in 2018, but this is a long-term player with huge potential. It is a force in crucial megatrend sectors that will grow regardless of economic ups and downs.

Best Undervalued Stocks To Own For 2019: KB Home(KBH)

The smallest stock on our list with a $2.5 billion market cap, KB Home is set up to be a great buy at the current price level.

The company shows strong fundamentals, with revenues jumping 22%, deliveries up 11%, and increased net income in 2017.

Get long now in the $28.60 per share zone with a target price of $35.00 per share and initial stops set at $25.77 per share.

Best Undervalued Stocks To Own For 2019: DryShips Inc.(DRYS)

Shares of dry bulk shipping outfit DryShips Inc. (NASDAQ:DRYS) are surging nearly 13% higher on Thursday to break up and out of a long sideways pattern going back to October/November. The shipping industry has been plagued by fleet overcapacity resulting in pressure on charter rates.

But with a possible trade deal with China looking likely, the need to use dry bulk ships to transport American grain and soybeans across the Pacific Ocean will only grow.

The company reported a profitable quarter at the beginning of May, with adjusted operating earnings of $12.9 million versus a loss of $7.4 million the year before.