Tag Archives: TER

Top 5 Insurance Stocks To Watch For 2019

Tech stocks have been unpredictable over the past few weeks, but there is no question that the technology sector has been at the forefront of the market’s strong multiyear run. However, this might mean that income investors—those focused on finding companies with solid dividends—might be feeling left out, as tech stocks aren’t really known for their payouts.

Finding a strong dividend-yielding tech stock might feel like searching for a golden goose, but investors should not feel too intimidated. In fact, dividend-focused investors can search for the best tech stocks by using the Zacks Stock Screener, the perfect one-stop screening tool for investors of all kinds.

By limiting our search to companies in our “Computer and Technology” sector with Zacks Rank #2 (Buy) or better rankings, we can ensure that we are finding the highest quality stocks to buy right now. Throw in your preferred dividend yield and voila—the best tech stocks for dividend investors to target!

Check out these stocks to buy now:

Top 5 Insurance Stocks To Watch For 2019: American Tower Corporation (REIT)(AMT)

When I’m looking for an industry with decades and decades of staying power, wireless networks easily spring to mind. Not the network providers themselves, of course, since that industry is intensely competitive, and it’s difficult to pick out any long-term winners there. No, I’m talking about the infrastructure behind it all.

Say hello to American Tower, a global leader in the business of making wireless networks tick.

The company owns and leases more than 40,000 network sites in the U.S. alone, and that’s just 25% of American Tower’s worldwide footprint. Other hotspots of infrastructure investments include India, Brazil, and Mexico. American Tower pursues both the international and domestic markets mostly through acquisition.

The four big American networks have largely handed off their tower and small cell site management to American Tower and a handful of rivals, leasing back the tower properties they once constructed and owned. Similar deal structures are becoming popular all around the world, allowing the networks to focus on running their mobile data and voice services while American Tower and friends double down on the property management and infrastructure maintenance that they do best.

Being structured as a low-tax real-estate investment trust (REIT), American Tower must send out at least 90% of its taxable income in the form of dividend payments. That’s the shareholder-friendly catch that lets REITs qualify for extremely low corporate tax rates. So American Tower funnels essentially all of its pre-tax income straight into its dividend program, resulting in juicy payouts and generous yields.

All told, American Tower has raised its dividend payouts every year without fail, going back to the original policy in 2011. The dividend checks have more than tripled in size over the last six years, and annual yields are hovering around 2%.

And I dare say that this dividend will stick around for the very long haul, only growing larger and more wealth-building over time. That’s why I own some American Tower myself and would recommend this stock to any hunter of long-term dividends.

Top 5 Insurance Stocks To Watch For 2019: Teradyne, Inc.(TER)

Teradyne, Inc. (NYSE:TER)

Source: Shutterstock

 

If you’re an Apple Inc. (NASDAQ:AAPL) shareholder, you’ve probably heard the chatter about smartphone sales slowing including the iPhone X. For a company like Teradyne, Inc. (NYSE:TER), who manufactures automated test equipment for testing smartphones, data storage and other complex electronic systems, that’s not good news.

As a result, Teradyne seriously lowered its Q2 2018 guidance when announcing first-quarter results April 25.

“Despite the strong first quarter results, the demand outlook for 2018 mobile device test capacity declined sharply in the quarter and our second quarter guidance reflects that revised outlook,” CEO Mark Jagiela said in Teradyne’s press release.

So, instead of generating the Wall Street sales consensus of $691 million in the second quarter, Teradyne expects revenues to be as low as $490 million. This is also significantly less than the $697 million it generated a year ago.

Despite the setback in the second quarter, Teradyne is generating more free cash flow than it has in the past decade. It currently has an enterprise value of $7.2 billion, which is just 13 times free cash flow.

That’s close to value territory and worth a sniff.

Top 5 Insurance Stocks To Watch For 2019: Cohn & Steers Inc(CNS)

Some investors may know asset manager Cohen & Steers, Inc. (NYSE:CNS) for its exchange-traded and closed-end funds. But CNS itself is a worthy investment as well, particularly for income investors.

Cohen & Steers offers a strong balance sheet, as it closed Q1 with over $3 per share in cash – and no debt. Earnings continue to grind higher, with Q1 adjusted EPS climbing 32% year-over-year (thanks in part due to tax reform). CNS’s regular dividend is growing and yields 3.33%, but the company also adds a year-end payout each year, with a 3%-plus special dividend paid at the end of 2017.

There are risks here. Most notably, there’s pressure on the fee aspect of the business. Investors fear a “race to the bottom” in pricing, as index funds gain popularity. But Cohen & Steers funds generally outperform the market — 86% of assets under management in U.S. open-end funds are in 4- or 5-star funds — and growth internationally could offset any U.S.-based pressure.

Obviously, investors need to trust the market as well — including U.S. real estate, where C&S has substantial exposure. But it’s not as if CNS is all that expensive, trading at 14x forward earnings backing out cash.

And if investors are willing to put their money to work elsewhere in the market, they should consider CNS as both a fund sponsor and an investment.

Top 5 Insurance Stocks To Watch For 2019: Legacy Reserves LP(LGCY)

Little-Known Stocks to Buy: Legacy Resources (LGCY)

Source: Shutterstock

 

Legacy Resources LP (NASDAQ:LGCY) is an oil and gas limited partnership that focuses on exploration and production of properties in Texas, the Rocky Mountains and mid-continent fields.

The stock has risen from around $1 a share in the past year to about $8 today. And its market cap is almost $650 million at this point.

Just remember, LGCY is leveraged to the price of oil and natural gas. This is fundamentally a leveraged bet on energy prices. Also, the Donald Trump administration has talked about changing the rules related to limited partnerships, which may affect LGCY’s 7.2% dividend.

But at this point, with the summer driving season upon us, this one looks like it has some legs left, especially if tensions in the Middle East continue to run high.

Top 5 Insurance Stocks To Watch For 2019: Garmin Ltd.(GRMN)

The beauty of Garmin Ltd. (NASDAQ:GRMN) truly is in the eye of the beholder. The company has done a hugely impressive job adapting to a steady multi-year decline in sales of its GPS units.

Revenue in that business has dropped by over half in just the last seven years. But a pivot to the marine and outdoor categories, along with ‘smartwatch’ sales, have allowed Garmin to grow regardless. First- quarter revenue actually set a record despite continuing weakness in the automotive business.

Meanwhile, Garmin has a whopping $12 per share in cash, and no debt. It yields 3.55%. And backing out that cash, 2018 EPS guidance suggests a reasonable ~16x multiple.

But I’m still not quite sold on GRMN, as I wrote back in February. The hardware business is notoriously tough, as shareholders of Fitbit Inc (NYSE:FIT) and GoPro Inc (NASDAQ:GPRO) have learned. Top-line growth isn’t that impressive, and a reasonable multiple looks about right going forward considering the company’s growth prospects.

I’ll admit, however, that other investors might see it differently — and at the least investors buying GRMN stock should know they’re in good hands as far as management goes. James Brumley made the case for GRMN this month, and he makes some good points.

Even bears have to admit that the company has performed exceedingly well in a very difficult industry. On which part of that history — the performance or the industry — an investor chooses to focus likely will drive his or her sentiment toward Garmin stock going forward.

Top 10 Clean Energy Stocks To Buy Right Now

Uncertainties in the markets prompted by the recent developments would likely curb investors’ appetite for riskier assets and fuel demand for safe-haven assets like gold.

Over the last month, the Zacks Gold Mining industry has advanced 7% against the S&P 500’s decline of 2.2%.

Additionally, the industry has a trailing 12-month EV/EBITDA multiple of 7.1, lower than the S&P 500 EV/EBITDA multiple of 11.3. The industry’s lower-than-market positioning indicates room for some upside moving ahead.

In order to cash in on the solid growth potential of the industry, we have handpicked three gold stocks that will likely add sparkle to your portfolio.

Besides a favorable Zacks Rank #1 (Strong Buy) or 2 (Buy), these companies have a positive sales forecast for 2018 and 2019. Notably, on a month-to-date basis, these picks have performed better than the broader Zacks Basic Materials sector (including the mining industries). Since the beginning of April, the sector’s growth has outperformed the 0.6% gain recorded by the benchmark index.

Let’s dig a little deeper into these three choices to get a fair idea of their individual strength.

Top 10 Clean Energy Stocks To Buy Right Now: PDL BioPharma, Inc.(PDLI)

PDL BioPharma Inc (NASDAQ:PDLI) is a curious beast. It was initially established as a vehicle to acquire the rights to, or patents on, highly marketable drugs that would ultimately drive income for its investors.

It worked too… for a while. As time marched on, however, drug developers realized they could do for themselves what PDL was doing. Ergo, PDL BioPharma has been struggling for a while now to acquire drugs and marketing rights at prices that left room for healthy dividends. That’s a big part of the reason PDLI stock has fallen from a value of more than $30 in 2006 to a price of only $3 per share now.

The bears may have overshot with their pessimism though. As of the most recent quarterly report, PDL has more cash in the bank than the market cap it presently sports. The former is a whopping $532 million, versus the latter of $462 million.

PDL BioPharma could arguably overpay for a drug and still be money ahead.

Top 10 Clean Energy Stocks To Buy Right Now: Stag Industrial, Inc.(STAG)

Stag Industrial (NYSE:STAG) is a highly respected monthly dividend stock that plays in the single-tenant industrial real estate space. That includes warehouse, distribution and light manufacturing facilities.

At the moment, the portfolio includes 356 buildings in 37 states, spread across numerous industries, including automotive, air freight, containers & packaging, food & beverages and business services, among others. The tenant list is diverse, too, and spread out – the largest tenant (the U.S. General Services Administration) makes up just 2.6% of ABR. Other tenants include XPO Logistics Inc (NYSE:XPO), Deckers Outdoor Corp (NYSE:DECK) and Solo Cup.

While Stag’s dividend increases tend not to take effect until the dividend paid out in August, it tends to announce said increase sometime in the first week of May. The company typically hikes its payout twice a year, though it did keep it to “just”  one increase in 2016.

Top 10 Clean Energy Stocks To Buy Right Now: NextEra Energy, Inc.(NEE)

Few companies have done more to bolster wind power’s share of American energy production than NextEra Energy (NYSE: NEE), which has invested $23.6 billion in wind power in the last two decades. It’s the largest owner of installed wind capacity in the United States with 13,852 MW. The next closest power generator owns less than half of that total.

NextEra Energy is quietly attempting to replicate that success in solar energy, which accounted for roughly 1.5% of American electricity generation in 2017 — where wind power was about 10 years ago. In 2016 the low-carbon utility produced more power from solar than any other company on the planet. It owns about 11% of the country’s installed solar capacity, with plenty more capacity additions planned in the next several years.

The stock has easily outpaced the S&P 500 over the long run and currently rewards shareholders with a 2.8% dividend yield. If you’re looking to cash in on the rise of renewable energy in the United States, then NextEra Energy is an easy place to begin your research.

Top 10 Clean Energy Stocks To Buy Right Now: Teradyne, Inc.(TER)

Teradyne, Inc. (NYSE:TER) is a company that has been around since 1960, and as such, you may not think much of this tech player. Lately, it has mostly been a supplier of automation systems for testing semiconductors, wireless devices and storage systems.

But automation has really come into its own in the last several years, and TER has seized its moment. Its purchase of Universal Robots a few years ago catapulted Teradyne into the 21st century and made it a lead player in collaborative robotics technology.

In a nutshell, these are low-cost robots that are used in conjunction with production workers — helping with packing, assembly, gluing and polishing. You can understand how this is a fast-growing segment of the economy at large. But if you want to see what it means for Teradyne in particular, look at its robots segment, which is set to grow more than 50% in fiscal 2018 according to company guidance.

Industrial automation is undoubtedly the way of the future. And with Teradyne coming into its own lately, it is at the center of that trend. Organic growth is impressive, with double-digit revenue expansion across 2017 and an even better 25% jump in earnings-per-share.

However, the medium-term potential of robotics could be dwarfed by a big-ticket buyout from larger industrial players like Siemens AG (OTCMKTS:SIEGY) or Rockwell Automation (NYSE:ROK) that would send shares skyrocketing.

Top 10 Clean Energy Stocks To Buy Right Now: Visa Inc.(V)

In some ways, this company has the perfect business… a proverbial toll road that consumers use in good times and bad. People never really stop using their credit cards and debit cards, even if they might use them a little bit less in the midst of an economic slowdown.

Visa Inc (NYSE:V) shares themselves have reflected that same consistency, and in a big way. The average annual gain has been 28% for every year since 2009. V stock hasn’t had a losing year since 2010.

But the world of money is changing. What if you believe that technologies like blockchain are poised to supplant actual, government-issued currency?

Don’t sweat it.

Visa certainly isn’t. In fact, CFO Vasant Prabhu made a point of saying late last month he’s very excited about the advent of blockchain and the opportunities that will ensue.