Tag Archives: CBWTF

Top 5 Medical Stocks To Watch Right Now

I happened to read a May 4 article discussing the reasons why Bed Bath & Beyond Inc. (NASDAQ:BBBY) lost 17% of its value in the month of April — BBBY hasn’t had a positive annual return since 2013 — and it got me thinking about other potential stocks to buy that lost ground last month.

Why?

Investors have a way of overreacting to bad news which sometimes leads to stocks being oversold. The problem is identifying when that is happening because there are situations in which a stock is ripe for collapse.

At the beginning of 2018, I suggested ten stocks I thought could surprise in 2018 — Bed Bath & Beyond was one of them. Unfortunately, it’s been nothing but pain for the housewares retailer so far this year.

While it’s still generating positive free cash flow, I’m not sure I want to double down on BBBY and recommend it.

However, here are seven stocks to buy that lost 10% or more in April that I do feel are worthy of your consideration.

Top 5 Medical Stocks To Watch Right Now: Pattern Energy Group Inc.(PEGI)

Pattern Energy is a yieldco focused on wind projects, with 2,700 MW currently in the portfolio. The company has grown aggressively through third-party acquisitions as well as its own project development, helped by the affiliate Pattern Development, which is a separate company that feeds projects into Pattern Energy. In total, the company has a pipeline of 10,000 MW of renewable energy projects, which could quintuple the company’s size and provide growth in cash flow for investors. 

Pattern Energy’s projects have over 14 years of average life left on power purchase agreements with utilities and corporate customers, and assets are young, with an average age of 4 years. You can see below that some projects are contracted for over 20 years.

Chart showing duration of power purchase agreements.

IMAGE SOURCE: PATTERN ENERGY.

Unlike Brookfield Renewable Partners, Pattern Energy uses newly issued shares to fund acquisitions, increasing its shares outstanding by 54% since going public in 2013. Management plans to use stock to grow the company’s cash flow, and executives say there’s visibility to a double-digit dividend, which would make the stock a steal trading at under $18 per share today. 

Even if the dividend doesn’t grow, the current 9.4% yield is a high payout for investors and makes this a low-risk stock given the contracted cash flows I highlighted above. 

Top 5 Medical Stocks To Watch Right Now: CVR Refining, LP(CVRR)

CVR Refining is an independent MLP that operates crude oil transportation and storage facilities, along with a vast network of pipelines. The stock was one of the top performing energy plays in April, gaining more than 34% in the month. On top of its strong momentum, CVRR is also sporting a Zacks Rank #1 (Strong Buy). This is also one of the few stocks on the list that income investors will love, with its status as an MLP meaning that investors witness a dividend yield about 10.4%.

Top 5 Medical Stocks To Watch Right Now: Cannabis Wheaton Income Corp.(CBWTF)

Many of you have undoubtedly heard of Wheaton Precious Metals Corp (NYSE:WPM), formerly known as Silver Wheaton. WPM specializes in precious metals streaming: an agreement with a miner to purchase metals production at a fixed price. If operated correctly, streaming can be a very profitable venture.

Cannabis Wheaton Income Corp. (OTCMKTS:CBWTF) takes that same business model and applies it to the marijuana industry. Indeed, Cannabis Wheaton is the first streaming company of its kind, creating enormous potential for CBWTF. Moreover, Canada is relatively a weed-friendly nation, having legalized medical marijuana back in 2001.

Political tailwinds comes in the form of recreational legality, which may arrive in August of this year. However, despite strong legislative support, many Canadians were expecting full-legality for adults to arrive sooner. As a young company, this delay may negatively impact CBWTF stock.

That being said, I believe that management have built-in contingency plans, since depending solely on favorable legislation is extremely risky. In addition, CBWTF is down 45% from its closing high of this year. The markets have likely accounted for the delay.

Of course, marijuana stocks aren’t exactly the most stable investments. However, if you have some speculative money to play with, CBWTF is worth a shot.

Top 5 Medical Stocks To Watch Right Now: Anheuser-Busch Inbev SA(BUD)

Shares of Anheuser-Busch InBev have sunk over 18% in the last year and 11.5% during the last four weeks alone as the company struggles to adjust to shifting consumer habits. But one strong quarter could help this international beer powerhouse turn things around. Unfortunately, BUD is expected to see its quarterly revenues sink 0.72% from the year-ago period to $12.83 billion, based on our current Zacks Consensus Estimate.

Meanwhile, investors should be happy to note that the company’s earnings are projected pop by 6.8% to reach $0.79 per share. Anheuser-Busch InBev’s Most Accurate Estimate—the representation of the most recent analyst sentiment—calls for quarterly earnings of $0.82 per share, which is 3 cents better than our current consensus estimate. The company is also currently a Zacks Rank #3 (Hold) and sports an Earnings ESP of 4.46%. This means BUD is a stock that could top quarterly estimates when it reports its Q1 earnings results before the market opens on Wednesday.

Top 5 Medical Stocks To Watch Right Now: DHT Holdings, Inc.(DHT)

DHT Holdings Inc. (NYSE: DHT) is an independent crude oil tanker company that currently maintains a fleet of 27 crude oil tankers, which move crude internationally.

The company’s stock price has experienced significant volatility in recent months, as the global geopolitical landscape has thrown the oil market into flux.

However, DHT’s large tanker fleet is well positioned to take advantage of any significant spike in demand or unexpected shortage in the near future.

And it’s increasingly likely that a shortage is imminent. According to the International Energy Agency, oil production growth could stall due to a lack of aggressive investment by 2020.

Right now is an excellent opportunity to buy into DHT, since the stock has a perfect VQScore of 4.75.

If the oil shortage occurs, analysts see the company’s stock heading to $6.00 – a gain of over 54% from the stock’s current price of $3.38.