Tag Archives: SO

Top 5 Value Stocks To Watch Right Now

 Warren Buffett is so good at picking winning businesses that he grew Berkshire Hathaway’s book value by more than 19.1% annually between 1965 and 2017. That astounding track record easily qualifies him as the greatest investor of all time.

So which of Buffett’s stocks do we Fools think are great buys right now? We asked a team of Motley Fool investors to weigh in and they picked the following stocks:

Top 5 Value Stocks To Watch Right Now: Clarke(T)

AT&T Inc. (NYSE:T) delivered decent, if not outstanding, earnings the other day. Investors sold the stock off. AT&T stock is trading at $31.54. Along with a yield that now exceeds 6%, I think we are going to see income investors and bottom fishers step in here.

More to the point, the antitrust trial regarding AT&T’s merger with Time Warner Inc (NYSE:TWX) is over. By all accounts, including my own, AT&T probably crushed the DOJ in the trial. The judge will rule on the case by June 12, and I believe the merger will go through. With that, AT&T will transform into a completely different company and become a great member of the growth stocks community. As a result, this combined entity will be a media and advertising powerhouse.

Even if the merger is not approved, not only T but also TWX remain excellent media companies. You can buy either entity here for growth for your portfolio.

Top 5 Value Stocks To Watch Right Now: Southern Company (SO)

Southern Co (NYSE:SO) announced a 3% raise to its quarterly dividend, increasing it from 58 cents per share to 60 cents. Shareholders of record as of May 21 will receive their higher dividends from the regulated electric and gas utility on June 6  Therefore, SO shares will be ex-dividend on May 18.
SO Dividend Yield: 5.28%

Top 5 Value Stocks To Watch Right Now: Grupo Aeroportuario Del Pacifico, S.A. de C.V.(PAC)

In fact, foreshadowing again — spoiler alert — this is the one stock that has underperformed the market. It’s still up 9%, but Grupo Aeroportuario del Pacifico — or PAC is the ticker symbol — the company that is the leading operator of airports in Mexico was at $100 a share a year ago. It’s up to $109 today. So, simple math is a 9% gain.

And so, against the S&P 500 of +15%, that’s a -6%. So, this one’s in the loss column. I don’t have a lot to say about PAC other than this is a stock that we’ll continue to recommend. It’s a very hard business to compete with. They basically operate these airports with a contract with the government, and they get to run all the concessions and the mall within the airport. That’s all part of this business.

I like the stock a lot and it’s recovered pretty well since diving right after President Trump was elected and Mexico fell out of favor for a couple of months. If Mexico were a stock for the long term, I’m a buyer and one way you can participate in Mexico’s growth over the next couple of decades would be through a stock like Grupo Aeroportuario del Pacifico. Again, pronounced by somebody who took French in high school.

Top 5 Value Stocks To Watch Right Now: Concho Resources Inc.(CXO)

RBC Capital’s Scott Hanold wrote “Time to Flex Your Muscles” on our second energy stock pick. Concho Resources Inc (NYSE:CXO) is now poised to become the biggest player in the Permian Basin. Earlier in April, Concho announced a $9.5 billion deal to snap up fellow Permian fracker RSP Permian.

According to Concho, this deal “creates the largest crude oil and natural gas producer from unconventional shale in the Permian Basin.” Specifically, JPMorgan analyst Arun Jayaram is forecasting 23% annual production growth through 2021 and “significant” free cash flow generation. To top it all off: management is modelling for an impressive $2 billion in acquisition synergies. After the deal closes in Q3, these efficiencies should materialize quickly says management.

In his post-announcement report, Hanold tells clients he is impressed by the ‘complimentary’ deal. He notes that “our well data shows RSPP wells are among the most prolific, portending to improving returns.” As a result: “Core activity should generate industry-leading returns, margins, and growth. CXO has a well-established asset base and is one of the largest producers and the most active operator in the Permian Basin. We think this scale provides significant advantages over its peers.”

According to the Street there is still big upside potential of 25% from current prices. This is based on the stock’s average price target of $186. Plus, our data shows that in the last three months, 11 out of 12 analysts have rated the stock a ‘Buy’.

Top 5 Value Stocks To Watch Right Now: Texas Instruments Incorporated(TXN)

Although you might recognize the brand because of its calculators, Texas Instruments is actually one of the leading suppliers of advanced semiconductors in the world. It functions as one of the top players in the analog IC and embedded processor fields. The company has also developed into a major IoT pick, reporting year-over-year sales growth of 20% in the unit that handles this business during its most recent quarter.

Meanwhile, the semiconductor firm surpassed revenue estimates and released in-line guidance. This has led to more bullish analyst sentiment and propelled the stock to a Zacks Rank #1 (Strong Buy). The stock also has a Forward P/E of 20.5 and a PEG of 2.1, so investors are getting a decent price for its earnings and earnings growth outlook.

It is also worth noting that TXN offers investors a dividend yield of about 2.3% right now.

Top 5 Cheap Stocks To Invest In 2019

Investing in the stock market is the surest way to build long-term wealth. Diversification among companies, industries, and types of securities is the key to ensuring that investors can reach their goals. Technology stocks can provide a boost to returns, as these companies are often on the cutting edge, making groundbreaking discoveries that change our everyday lives.

With that in mind, we asked three Motley Fool investors to choose top companies they believe to be offering compelling opportunities in the tech sector. They provided convincing arguments for these stocks.

Top 5 Cheap Stocks To Invest In 2019: Southern Company (SO)

 No list of retirement stocks to mull would be complete without at least one utility stock. Even when times are tough, consumers find a way of keeping the lights on.

One of the best-of-breed choices among utility stocks is Southern Co (NYSE:SO), which serves nine million customers, mostly in the southern part of the United States.

Delivering electricity isn’t a simple or a cheap business, to be fair. In fact, cost overruns and delays at a couple of new facilities helped send SO shares to new 52-week lows last week. They’re just temporary headwinds though, which Southern has shrugged off before. In the meantime, the pullback has driven the well-protected dividend yield up to 5%, which is better than the industry’s current average.

Top 5 Cheap Stocks To Invest In 2019: RealNetworks, Inc.(RNWK)

RealNetworks Inc (NASDAQ:RNWK) is the company that launched RealPlayer, a digital music service, back in the bygone dotcom era.

And it had a quite a run back then.

But the music and media business has been challenging, with new players gaining attention of younger listeners, and new platforms leapfrogging over older ones as Gen Zs choose new options.

To its credit, RNWK has stayed in the game, adapting to new technologies and finding ways to remain relevant in the cloud, with messaging and mobile. But the stock continues to wither, off 22% in the past year, and that’s after a continued slide over the years.

It lost its traction years ago and can’t seem to get it back.

Top 5 Cheap Stocks To Invest In 2019: Control4 Corporation(CTRL)

Pretty much everything is getting smarter these days. Smartphones, smart cities, just about smart everything. It only makes sense that smart homes will likely become more and more a part of our lives in the coming decades. That’s great news for investors of Control4 Corp., a provider of smart-home products and solutions.

Control4 rocketed 191.8% higher in 2017 before taking a breather and giving up some of those gains in 2018. However, the stock popped 13% on May 4, after releasing first-quarter results that included 18% revenue growth and beat estimates on both the top and bottom lines. Control4 has plenty of room to grow considering management believes it has penetrated less than 2% of the 17.2 million U.S. households that generate over $150,000 annual income. Here’s the kicker: Its international opportunity is even larger, and largely untested by the company thus far. 

One intriguing path for Control4 to grow, in addition to its rapid organic growth, is by acquisitions. It’s already successfully acquired and integrated five companies. And with no debt on the balance sheet, it’s in a great position to strike if it finds a business that fits its business model and can accelerate growth. Management must capture more of the wealthy households in the U.S., expand its product lineup to increase sales from its customers, and expand internationally when the time is right. If those things are achieved, Control4’s growth is just getting started.

Top 5 Cheap Stocks To Invest In 2019: Tuesday Morning Corp.(TUES)

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Dallas-based Tuesday Morning Corporation(NASDAQ:TUES) has become one of many retailers which have struggled to stay profitable in a changing retail environment. Founded in 1974, the company expanded across the country, operating in 41 states by 2001. During the past few years, the company has been plagued by high turnover in its top management and struggled to remain profitable.

Still, the company operates 724 stores across the U.S., which by itself should make it one of the hot penny stocks. Moreover, revenue grew by 10% in its latest quarterly report. Comparable store sales rose by 9.1% in Q1 as well. Investors should also note that the company relocated 58 stores in the last 12 months. At those stores, sales grew by 65%. This latest report held many encouraging signs for the company.

However, given that analysts expect net losses for both the current year and the year after, investors should still treat this stock as speculative.

Still, a stock price in the $3.30 per share range and a market cap of about $140 million seems low for a company with 724 stores. Traders should also keep in mind that this stock traded at over $22 per share in late 2014. If management can maintain revenue increases and return TUES stock to profitability, those who buy now could enjoy outsized gains from a dramatic comeback.

Top 5 Cheap Stocks To Invest In 2019: Magellan Midstream Partners L.P.(MMP)

This company is among the most conservatively run midstream oil and natural gas players. Its debt-to-EBITDA ratio is well below industry bellwethers like Enterprise Products Partners L.P. and Kinder Morgan, Inc. And it avoids dilutive unit issuance, with its unit count effectively flat over the past five years compared to a roughly 17% rise at Enterprise.

With Magellan’s price down roughly 33% from 2014 highs, it’s a good time for investors to pick up an industry-leading name on the cheap. But why the sell-off?

The answer is that investor sentiment on the midstream space has turned negative, with the Alerian MLP ETF down 50% from its highs. The negative shift isn’t unreasonable, as some midstream players are highly leveraged and a number have been forced to trim distributions. But neither of those issues apply to Magellan, which has increased its distribution every quarter since its IPO in 2001.

MMP Average Diluted Shares Outstanding (Quarterly) Chart

MMP AVERAGE DILUTED SHARES OUTSTANDING (QUARTERLY) DATA BY YCHARTS.

More important for the future, Magellan plans to keep increasing distributions between 5% and 8% a year between now and 2020 while maintaining robust distribution coverage of 1.2 times. The key is its pipeline of capital investments. But Magellan doesn’t build on spec, it only risks its unitholders’ money when it has a good reason to do so.

For example, of the roughly $1.2 billion in spending planned for this year and next, virtually all of the projects have customers lined up, which clearly illustrates a need for expansion at existing assets. As an industry standout, Magellan is a solid option for any investor.