Tag Archives: GM

Top Low Price Stocks To Buy Right Now

A lot can happen in 50 years’ time, and you likely won’t buy a stock and ignore it, so it seems almost disingenuous to talk about holding stocks for five decades. While there are no companies that you can simply forget, there are some that significantly increase the chances that they’ll still be beating the market come 2068.

With that in mind, we asked three Motley Fool investors to choose top companies that they believed were positioned to stand the test of time. They offered convincing arguments for the following stocks:

Top Low Price Stocks To Buy Right Now: BroadVision, Inc.(BVSN)

BroadVision, Inc. (NASDAQ:BVSN) is another company that got its start in the heady days of the late 1990s. Launched in 1993, its first ecommerce product went on sale in 1995 and it IPO’d in 1996.

After surviving the great bubble burst, BVSN expanded into China with new SaaS products in 2006 and was already upping its cloud game by 2010.

It continues to develop new products but the problem is, it never really found its niche over the years. Now it is just one more SaaS firm with one unique product. This is a tough sell now that SaaS solutions are common and the market is well populated.

Off 50% in the past year, it may not be the end for BVSN, but the road back is going to be tough.

Top Low Price Stocks To Buy Right Now: Fortinet, Inc.(FTNT)

Fortinet Inc (NASDAQ:FTNT) is another really big, really strong cybersecurity company that is a lot like Palo Alto Networks. Fortinet just has less juice in its growth story. The company isn’t as big, the growth rates aren’t as large, and the margin expansion narrative isn’t as strong. But FTNT stock is also less expensive, and that makes the stock an interesting option for more risk-adverse investors.

Revenue growth over the past five years at Fortinet has run in the 20%-plus range. That isn’t Palo Alto Networks levels. But it is still pretty good.

That growth rate isn’t slowing all that much. FTNT just reported quarterly earnings, and that report included 17% revenue growth. Therefore, it looks like double-digit revenue growth is here to stay for the next several years.

Word of caution: FTNT’s quarterly numbers were very good, and they were much better than expected. But FTNT stock failed to stage a meaningful rally as a result, and that is usually a sign that a near-term top is in.

Long term, though, FTNT stock is still a winner. Revenue growth remains robust, driven by secular tailwinds, while margins continue to head higher.

Top Low Price Stocks To Buy Right Now: General Motors Company(GM)

Concerns that the North American automobile industry is at the early stages of a downturn and threats of long-term disruption posed by emerging technologies are weighing on General Motors. Shares are down 10% year to date compared to a 1% dip for the S&P 500 index.

Electric vehicles, ride-sharing services, and self-driving cars all present variables for the business, but it seems like General Motors’ innovation initiatives and manufacturing advantages aren’t getting their due. While the market seems to be taking a more cautious outlook on Tesla, that reappraisal doesn’t appear to have resulted in increased confidence in GM’s future.

The auto giant has made a lot of smart moves to prepare for new trends in its industry and improve the business since the disastrous impact of the last recession. The company is currently the leader in electric car production and expects to launch 20 new electric vehicles through 2023. It’s also an early leader in the self-driving-technology space and has a significant stake in the ride-sharing market thanks to its roughly 9% ownership stake in Lyft and partnership with Uber.

The cyclical nature of the automotive industry means GM’s profits will see a significant declines if the broader auto market continues to move through a down cycle, but shares look attractively price even with that possibility in mind. The stock trades at less than six times forward earnings estimates and packs a roughly 4.1% dividend yield. With the cost of distributing its current payout representing just 24% of trailing earnings, GM looks to be in a good position to continue returning cash to shareholders. 

Top Low Price Stocks To Buy Right Now: Square, Inc.(SQ)

Square supplies point-of-sale (POS) terminals to merchants, offers mobile payment services, has a popular peer-to-peer payment app called Square Cash, provides small business loans through Square Capital, and has its own online food ordering business, called Caviar.

Square’s share price has seen astronomical gains over the past 12 months as the company has grown its sales and client base. Net revenue was up 36% year over year in the fourth quarter, and the company’s gross payment volume (the total amount processed through its payment systems) grew by 31% to $17.9 billion. Investors have also been impressed with the company’s ability to increase its EBITDA, which jumped 38% in Q4 to $41 million and 33% year over year to $36 million in Q1.

Square makes the vast majority of its revenue from payment transactions on its platform, but the company’s other businesses offer additional opportunities as well. For example, its mobile payment Cash app now has 7 million monthly active users. Square is also growing its subscription and services revenue, which was up 95% in 2017; the segment now accounts for 11% of Square’s total sales (up from just 8% in 2016).

So can Square keep the momentum going? The company has a few things working in its favor, including the fact that it’s adding larger customers on its platform. Companies selling $125,000 or less per year accounted for 53% of the company’s gross payment volume (GPV) in the fourth quarter of 2017. Customers spending $500,000 or more annually make up 20% of GPV, up from 13% two years ago. Square is also doing a good job building out a payment ecosystem by selling everything from the hardware (payment terminals) to point-of-sale software, its mobile Cash app, lending services, and even its food delivery business.

But Square isn’t without its risks, of course. Investors should keep a close eye on what some of the company’s competitors are doing with mobile payments and point-of-sale services. Both Intuitand PayPal offer similar services. Square is building a strong brand right now, but it doesn’t have an economic moat around its business yet. For many merchants, especially smaller ones, the switching costs are pretty low for them to jump to another payment processor. That’s not to say Square’s a bad investment, but investors should know that the company still faces lots of competition in this growing market.

Top Canadian Stocks For 2019

Despite recent volatility, you still hear a lot about the dominance of tech stocks. But what many don’t tell you is how uneven the run for stocks has been lately.

For instance, did you know that a handful of popular large-cap tech stocks like Apple Inc. (NASDAQ:AAPL) account for more than 10% of the S&P 500’s entire value? And did you know that, thanks to the recent underperformance of one-time darling Apple, most investors have suffered a drag on their portfolio even if they only own broad-based index funds?

If ever there is an argument against index investing, then 2018 is it. Because the broader stock market may be choppy, but a handful of high-flying stocks are simply knocking it out of the park — with or without Apple along for the ride!

In fact, simply by being overweight in these high-growth tech stocks, you could have doubled or even tripled your gains last year.

So don’t settle for tracking the market when you can ride high-quality tech stocks to triple-digit gains.

And don’t throw your money away on risky tech startups and IPOs that don’t deliver.

Instead, look for high-potential investments in the tech sector that offer a high likelihood of outperformance in the near-term, and a chance of DOUBLING or even TRIPLING your money in the next 12 months with strong performance expected across this year.

Some of these investments are admittedly quite aggressive, of course, so please do all your own research and make sure these trades are just a part of a well-balanced portfolio.

Top Canadian Stocks For 2019: MGM Growth Properties LLC(MGP)

The move over the last decade to see hotel and casino operators separate their real estate assets from their general operations happened to MGM Resorts International (NYSE:MGM) in late 2015.

Activist real estate investor Land & Buildings pushedfor MGM to both spin off its real estate assets as well as its business in China to lower its debt burden. It did that by creating MGM Growth Properties LLC (NYSE:MGP), which it took public in April 2016 at $21 a share.

Included in the REIT IPO were 10 MGM properties including the Mandalay Bay and The Mirage in Las Vegas.

If you’ve got any reluctance about investing in a casino company like MGM that’s heavily reliant on the U.S., the triple-net leases of MGP give you good income without the ups and downs of the casino business.

On May 9, 50,000 casino workers in Las Vegas said they would vote May 22 whether to go on strike anytime after June 1. A strike would cripple the casino industry in Las Vegas. The last job interruption was in 1984 and lasted more than two months.

Buying the REIT makes a lot of sense given the current situation.

Top Canadian Stocks For 2019: Occidental Petroleum Corporation(OXY)

How do you know that oil prices are rising? Oil and gas producers are handily beating earnings estimates and share prices are hitting 52-week highs. Occidental Petroleum Corporation (NYSE:OXY) reported earnings per share May 9 of 92 cents, 30% higher than analyst estimates. On the top line, Occidental had revenue of $3.83 billion, 3.5% higher than analyst expectations and 29% higher than a year earlier.

That’s what happens when a barrel of oil goes from $40 to over $70 in less than a year. Even better, if you’re an OXY shareholder, the company upped its production guidance for 2018 to as high as 665 million barrels of oil equivalent per day (Mboe/d).

Making money at less than $70 a barrel — much less if oil prices move even higher, which many expect to happen this summer — Occidental will be rolling in the dough.

“Once we achieve our remaining milestones we will be well-positioned in the future with the cash flow necessary for our $40 oil price business sustainability and $50 oil price business growth scenarios,” CFO Cedric Burgher said. “But we will continue to operate our business to reduce those breakevens even further.”

Bring on $80 oil.

Top Canadian Stocks For 2019: General Motors Company(GM)

A company that emerged from bankruptcy less than a decade ago may not sound like an ideal stock to hold in retirement, but there are other things retirees may want to consider about General Motors. The carmaker’s shares today pay a dividend yielding 4.1%, and they trade at a P/E of just 5.5, compared to the S&P 500’s P/E ratio of 24.2. In other words, your cost for a dollar of GM’s earnings is less than a quarter of what you’d pay for the those of the broader stock market.

Because it’s in a cyclical industry, the Chevy maker’s results may fluctuate more than those of a typical defensive stock in the consumer staples or healthcare sectors. However, even with the American auto market past its peak, GM still expects earnings growth to return in 2019 as it introduces a new line of full-size pickups, and its low valuation means share buybacks will go a long way to lifting earnings per share.

The car market is transitioning toward autonomous and electric vehicles, and in both of these arenas, GM appears to have a leading position. Bolstered by its acquisition of Cruise, the company plans to produce a line of self-driving vehicles for a ride-sharing service next year, and it recently released an image of a prototype Cruise AV without a steering wheel. Led by the Chevy Bolt, the company delivered 69,500 electric vehicles last year, and it plans to introduce 20 new all-electric models by 2023.

With a solid dividend yield, cheap valuation, and promising future ahead of it, General Motors looks like the kind of reliable income stock that is perfect for retirees.

Top Canadian Stocks For 2019: TotalFinaElf, S.A.(TOT)

It may seem ridiculous to include one of the world’s largest oil companies on a list of stocks helping the environment, but Total SA (NYSE: TOT) is doing just that. The company’s long-term strategy focuses on two areas: renewable technologies and natural gas. The former includes a budding portfolio of wind, solar, and energy storage companies acquired over the years that can provide small but growing contributions to the bottom line today. For instance, it owns 56% of solar panel manufacturer SunPower. It’s also made several Hail Mary investments in synthetic biology to produce next-generation renewable fuels for aviation.

But the French energy giant’s massive bets on natural gas, specifically liquefied natural gas (LNG), may end up providing the biggest environmental and economic benefits. By 2020 Total will be the world’s second largest LNG player and generate $3 billion in operating cash flow from the supercooled gas. Soaring imports from China and India almost guarantee that. The two countries, which consume the majority of the world’s coal, are turning to LNG to clean up their electricity mix. Since natural gas produces half as much CO2 emissions as coal, swapping one for the other would be one of the century’s biggest environmental success stories.

Top Canadian Stocks For 2019: Enova International, Inc.(ENVA)

Enova International Inc (NASDAQ:ENVA) is an online consumer lender and a great addition to your list of growth stocks. It is growing its slate of products both domestically and in the United Kingdom, as well as starting to build a portfolio in Brazil. Its underwriting continues to be exceptional, and loan losses have been stable at their historical levels. Enova remains, in my eyes, the premier online consumer lending operation, growing earnings at an exceptional rate.

There is some additional good news. The new head of the Consumer Financial Protection Bureau has indicated that he may curtail the onerous rules that were issued by his predecessor regarding payday lending.

In addition, the payday loan trade association has filed a lawsuit against the Bureau, in which it alleges that the Bureau’s rule have no evidentiary support, that research there fails to show any consumer harm, and that the rules put in place are a de facto control of interest rates, which is beyond the Bureau’s power.

If this payday loan rule goes away, Enova will expand back into this extremely lucrative business. It was making money hand over fist and growing at an astonishing clip until the CFPB got involved. If this payday loan rule is completely overturned, I believe Enova could become even more profitable.