Tag Archives: MGP

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.

Top Penny Stocks To Watch For 2019

Stocks opened higher on Monday ahead of what is sure to be another busy week for investors, as they assess some major economic indicators. Furthermore, with many more big-names set to report their quarterly earnings this week, it’s time to take a look at a few stocks investors might want to buy.

Investors have started to react to news that capital spending seems to be booming. Credit Suisse estimated that the amount of money companies spent on big-ticket items surge 20% in the first quarter, which would mark the biggest quarterly growth rate since 2011. Some of the biggest spenders so far include tech giants Google parent Alphabet (GOOGL) and Facebook (FB) .

Moving on, titans from Disney (DIS) to Nvidia (NVDA) are set to report their quarterly earnings results this week. With that said, investors need to hunt for companies that are set to report better-than-expected quarterly earnings results while market uncertainty remains.    

Luckily, Zacks Premium customers can utilize the Earnings ESP Screener in order to search for stocks that are expected to surprise, in one way or the other. This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.

A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.

Today, we are giving our readers a free look at three of these strong stocks ahead of their upcoming earnings reports. Check them out now:

Top Penny Stocks To Watch For 2019: MGM Growth Properties LLC(MGP)

One of the best stocks of the last decade has delivered eye-popping total returns of 1,311% with a relatively simple business model — and one that has mostly remained out of sight. MGP Ingredients operates as a contract distiller for premium brands large (Diageo) and small (various regional labels). In other words, it’s in the business of making whiskeys, gins, and vodkas.

After shares rose 54% in 2017, there’s still plenty to like about the company. I actually encouraged investors to sell the stock in late October, but it has gained 47% since then. Oops. After reading through the full-year 2017 earnings report, it’s clear that the business has earned its premium valuation. Can I change my wager, Mr. Dealer?

Last year MGP Ingredients grew year-over-year revenue 9.2%, boosted its gross margin to 21.9% from 20.5%, and converted a record 12% of sales into net income. Importantly, premium beverage alcohol sales — the highest margin product — jumped over 18% in the year-over-year comparison. While primarily a distiller, the company has worked to diversify its business over the years by vertically integrating operations, which means it sells agricultural byproducts leftover from the upstream distilling process for both animal feed and human food ingredients. 

Those provide important sources of value, but they’ll be taking a backseat to premium alcohols in 2018 and 2019 when more valuable aged whiskey products will be leaving the warehouse. The expected result: MGP Ingredients thinks operating income will grow 10% to 15% in 2018, and another 15% to 20% in 2019. 

Throw in projects that add value without showing up on financial statements, such as sourcing 100% renewable energy and ditching single-use plastic consumables at its operating assets, and investors can find a lot to like about this whiskey stock. It remains a buy for the foreseeable future.

Top Penny Stocks To Watch For 2019: Polo Ralph Lauren Corporation(RL)

Moving on, Ralph Lauren is another famous name in retail that has outperformed the S&P 500 by a wide margin. The stock has soared 59% over the last year and has also climbed 5.6% over the last 12 weeks. Ralph Lauren’s quarterly revenues are expected to dip by 4.7% to hit $1.49 billion. At the other end of the income statement, RL is also projected to experience a decline from the prior-year period.

Our current estimates are calling for Ralph Lauren’s quarterly earnings to slip by 3.4% to hit $0.86 per share. However, the company is currently a Zacks Rank #2 (Buy) and rocks an earnings ESP of 2.92%, mostly because its bottom line estimates have climbed recently. RL’s Most Accurate Estimate comes in at $0.88 per share, which is 2 cents above our current consensus estimate. This means that the upscale fashion giant could impress investors with a bottom line beat that might send its stock up, at least in the near-term. Ralph Lauren is set to report its quarterly results before the opening bell on Wednesday, May 23.

Top Penny Stocks To Watch For 2019: Boeing Company (BA)

Boeing Co (NYSE:BA) went from a frustratingly stubborn stock to one that couldn’t be stopped. Consider that BA stock was flat from January 2014 through October 2016, almost a three-year lull. However, shares then exploded 90% in 2017.

So what now?

It obviously wouldn’t be surprising to see Boeing stock settle down and consolidate a bit. Even bouncing between $300 and $360 for a few quarters would represent a relatively healthy consolidation period.

I like BA for its intense earnings growth, commitment to capital return and huge free-cash flow. It’s not the cheapest stock in the world anymore, but valuation and consolidation aren’t enough of a reason to sell the stock.

Shares still look great in the short-term, as our chart shows. Poking through resistance with plenty of support nearby, BA stock could retest its old highs if these patterns hold steady. It’s got bullish momentum and isn’t overbought yet either.

Top Penny Stocks To Watch For 2019: Best Buy Co., Inc.(BBY)

Things have gone remarkably well for Best Buy lately, especially considering how vulnerable investors thought the retailer was to "showrooming," or the shopper habit of examining products at brick-and-mortar stores before ordering them at lower prices from online rivals.

A couple looking at TVs in an electronic store

IMAGE SOURCE: GETTY IMAGES.

Best Buy made the appropriate changes to adjust to that trend, and its strategic initiatives are clearly working. Comps gains sped up to a 6% pace in fiscal 2018 from a flat result in the prior year even as profitability held steady. CEO Hubert Joly and his team are expecting comps gains to slow back down to about 2% in fiscal 2019, and earnings will also be hurt by more investments in its growth initiatives. However, Best Buy’s strong financial position should allow it to navigate this tricky retail environment better than most of its rivals, and that’s great news for its shareholders.

Top Penny Stocks To Watch For 2019: Repligen Corporation(RGEN)

Repligen lives in the biopharma sector, but it doesn’t bother with the usual regulatory headaches. That’s because the company supplies processing equipment and consumables required to test and manufacture biologic drugs, rather than develop therapeutics in risky clinical trials. That simple hack allows it to piggyback on the overall growth of biopharma without the commensurate risks.

It’s been a great business strategy so far. Shares are up 600% in the last 10 years, although a market cap of $1.6 billion hints that there’s plenty of room for expansion for the bioprocessing leader.

In 2017, Repligen reported total revenue of $141 million. That’s hardly a drop in the biopharma bucket, but it amounted to an impressive 35% jump from the prior year. Management sees much of the same in the year ahead, thanks largely to a recent acquisition. The bioprocess leader expects total sales of $180 million to $186 million at gross margin of up to 56.5% in 2018. That could deliver adjusted net income of up to $32 million this year, compared to just $27 million last year. 

Just as in prior years, acquisitions and organic growth should continue to power the business higher for the foreseeable future. Repligen is also perfectly positioned to exploit the shift toward single-use processing equipment, which allows biologic drug manufacturers to greatly reduce contamination risks and downtime while improving margins and production volumes.

Case in point: The company recently announced the first and only commercially available single-use purification column suited for commercial biologics production. Products like that may go largely unnoticed by investors, but they could very well end up being a game-changer for customers. 

A sand timer and columns of coins.