As we work to instill good values in our children, we generally try to discourage boasting. But as long-term investors with the world’s most powerful tool for wealth creation — the stock market — at our fingertips, we’ll readily admit we want to buy and hold stocks that our kids will at least be tempted to brag about someday.
To that end, three top Motley Fool investors think these stocks fit the bill. Here’s why.
Best Clean Energy Stocks To Buy Right Now: Newell Rubbermaid Inc.(NWL)
As we’ve seen from Q1 2018 earnings reports, companies that beat estimates are given very little love and those that barely miss are pummeled. That’s exactly what’s happened to Newell Brands Inc (NYSE:NWL) when it reported earnings May 4. Analysts were expecting earnings per share of 26 cents; Newell came in at 34 cents, 31% higher than the estimate. Yet NWL barely moved.
The likely culprit? Analysts were expecting revenue of $3.039 billion, Newell was short by $22 million. Factor in the company is in the middle of rightsizing its business in terms of the number of brands it owns and investors see a lukewarm growth story.
However, Newell’s accelerated transformation plan is far from finished. In its Q1 2018 press release, it announced that it would also potentially sell its Jostens and Pure Fishing businesses if the right offers came along.
“The divestiture process is well underway and the company expects to complete all transactions by the end of 2019,” stated Newell’s Q1 2018 press release. “In 2020, the Company expects net sales of approximately $9.5 billion and normalized operating margin greater than 15 percent.”
Trading at a P/S and P/B that’s lower than it’s been in recent years, I’d consider a small position with an eye to adding to it once it’s clear the fine-tuning of its portfolio is working.
Best Clean Energy Stocks To Buy Right Now: Spirit Airlines Inc.(SAVE)
Spirit Airlines Incorporated (NYSE:SAVE) provides low-fare airline services to approximately 60 destinations in the United States, the Caribbean, and Latin America.
The airline’s total revenue stands at $2,648 million as of fiscal year ending December 2017. This is 100.8% higher than the $1,318 million achieved in fiscal year December 2012. In addition, Spirit’s revenue growth has been fairly stable ranging from 8.4% to 25.5% over the last five years.
Going forward, Wall Street is forecasting that Spirit’s total revenue will reach $4,508 million by fiscal year 2022 representing a five-year CAGR of 11.2%.
Shares of Spirit Airlines are down -13.0% over the last year and finbox.io’s fair value estimate of $62.66 per share calculated from six cash flow models imply 41.1% upside.
Best Clean Energy Stocks To Buy Right Now: Micron Technology, Inc.(MU)
Micron is one of the leading worldwide providers of semiconductor memory solutions. The company’s memory solutions are marketed towards customers in a variety of industries, including computer manufacturing, consumer electronics, and telecommunications. Thanks to rising demand for digital memory—due to new applications like Internet of Things and artificial intelligence—Micron has emerged as a popular growth stock over the past year or so.
MU’s popularity comes with good reason, especially considering that its earnings and revenue are expected to surge by 121.6% and 43.5%, respectively, this fiscal year. It is also noteworthy that the company has witnessed nine positive revisions to this EPS estimate within the past 60 days, against zero to the downside.
Positive revisions have lifted MU to a Zacks Rank #1 (Strong Buy), but investors will also note that the company is growing its cash flow at a shocking rate of 186.1% while the stock trades at a miniscule 4.4x forward 12-month earnings.
Best Clean Energy Stocks To Buy Right Now: The Travelers Companies, Inc.(TRV)
Travelers Companies Inc (NYSE:TRV) provides a range of commercial and personal property, and casualty insurance products and services to businesses, government units, associations, and individuals.
Considering a more comprehensive earnings history, Travelers Companies has an average four-quarter positive earnings surprise of 43.1%. Companies with such positive earnings surprise are more likely to positively surprise in the near future.
The Zacks Consensus Estimate for its current-year earnings rose 4.5% in the last 60 days. If this wasn’t enough, the company has an Earnings ESP of +2.00%. A positive Earnings ESP with a Zacks Rank 2 has resulted in positive earnings surprises 70% of the times over the past decade.
The company is expected to report earnings results for the quarter ending March on Apr 24.