STOCK SELECTIONS
January 20, 2025
Overview
USB (US Bancorp) is the largest major regional bank operating mainly in the MidWest and West. It provides a full range of financial services to retail, corporate and institutional clients. Its large size gives it scale advantages. USB has shown solid growth in recent years with strong income from diverse revenue streams. In addition to this organic growth, the acquisition of MUFG Bank and partnership with State Farm and Edward Jones provides additional revenue growth. Economic forecasts are good for 2025 and a strong economy is a prime driver of performance for regional banks.
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Earnings and Yield
USB earnings exceeded expectation in the last four quarters and guidance is good going forward. Dividend is 4.1%.
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Valuation
PE is 12 compared with an average of 11,5 and forward PE is 11. PEG is 2.5. Industry value is 11. PS is 2.7 compared to a median of 2.5 and industry value of 3.2.
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Technical
PSAR Buy since Jan 15, 2025
ADX (14) 20.5 and falling
DI + 23.0 and falling
DI – 31.3 and falling
MACD (12,26) negative 0.48
SMA (9) negative 1.11
OBV Flat
RSI 46 and rising
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Prices
Close 48.36 on January 17, 2025
52 wk hi 53.98
Ave target 57.00
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Summary
USB is an attractive stock to purchase with the goal of gaining ≥ 5% within the next 6 months.
February 19, 2025
Overview
EMN (Eastman Chemical) is an international producer of specialty chemicals and materials that are used in a wide variety of industries. Its strategic advantage is growth through innovation in producing high performance products and sustainability using its molecular recycling technologies. It has also expanded by strategic acquisition in key growth areas.
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Earnings and Yield
EMN earnings exceeded expectations in the last four quarters and guidance is good going forward. Dividend is 3.2%.
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Valuation
PE is 13 compared with an average of 15 and forward PE is 12. Industry value is 17. PEG is 1.2.​
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Technical
PSAR Buy since Jan 14, 2025
ADX (14) 27.6 and rising
DI + 28.7 and flat
DI – 13.6 and falling
MACD (12,26) 4.40
SMA (9) 4.01
OBV rising and above 20d MA
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The materials sector is down 2.5% over 3 months and up 1.3% the past month
The Greed and Fear Index is neutral at 48.
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Prices
Close 101.26 on Feb 19, 2025
52 wk hi 114.50
Ave target 115.00
Summary
EMN is an attractive stock to purchase with the goal of gaining ≥ 5% within the next 6 months.
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March 19, 2025
Overview
CVS (CVS Health) is a health services corporation operating in several segments. Health benefits provides a variety of insurance products. Health services operates as a pharmacy benefits manager and consumer wellness operates over 9000 retail stores Which include medical clinics. This integrated model allows CVS to provide comprehensive healthcare solutions under one umbrella and its extensive network positions it to provide personalized and accessible care. He dividend is much higher than the sector median and price/sales ratio is much lower. CVS price rose after a good fourth quarter report and it has been one of the strongest performing stocks in the S&P 500 this year.
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Earnings and Yield
CVS earnings exceeded expectation in the last three quarters and guidance is good going forward. Dividend is 3.9%.
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Valuation
PE is 12 compared with an average of 10 and forward PE is 11. Industry value is 15. PEG is 1.0.
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Technical
PSAR Buy since Feb 12, 2025
ADX (14) 39.6 and rising
DI + 26.3 and flat
DI – 8.5 and falling
MACD (12,26) 0.98
SMA (9) 2.06
OBV is rising and above 20d MA
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Prices
Close 67.91 on March 19,2025
52 wk hi 80.75
Ave target 72.00
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Summary
CVS is an attractive stock to purchase with the goal of gaining ≥ 5% within the next 6 months.
December 23, 2024
Overview
UBER (UBER) dominates the market in the rapidly growing ride hailing industry with a 75% market share in the United States and 25% global, and also is a strong second place in food delivery services. UBER provided 9.4 billion trips last year and is currently providing around 31 million a day. It is growing rapidly in both operating income and free cash flow and margins are growing. It has strong brand awareness and is already ranked in the top 100 of the most valuable global brands which consistently outperformed the SP500. UBER price dropped recently because of a scare that autonomous driving vehicles would eliminate the need for its drivers, but widespread deployment of this capital intensive industry is years away. The price reduction provides a buying opportunity with a reasonable valuation in view of its growth.
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Earnings and Yield
UBER’s earnings exceeded expectation in three of the last four quarters and guidance is good going forward. There is no dividend.
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Valuation
PE is 30 and forward PE is 32. PS is three which is also the five year median while the industry value is 5.9.
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Technical
PSAR Sell since Dec 5, 2024
ADX (14) 36.4 and flat
DI + 16.9 and rising
DI – 33.3 and falling
MACD (12,26) negative 4.77
SMA (9) negative 3.25
OBV rising
​RSI 36 and starting to rise​​​​​
Prices
Close 61.87 on December 23, 2024
52 wk hi 87.00
Ave target 92.00
Summary
UBER is an attractive stock to purchase with the goal of gaining ≥ 5% within the next 6 months.
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December 24, 2024
Overview
UNP(Union Pacific) is the largest railroad in North America linking all major gateways and ports. Railroads remain the most efficient way to transport large volumes of goods over long distances and UNP dominates the industry. It consistently generates cash and has increased its dividend for 18 years. Earnings are stockholder friendly through share repurchases. While railroads are susceptible to a struggling economy, signs currently point to good economic growth going forward.
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Earnings and Yield
UNP earnings exceeded expectations in three of the last four quarters and guidance is good going forward. Dividend is 2.3%.
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Valuation
PE is 21 compared with an average of 20 and forward PE is 21. Industry value is 20. PEG is 2.25. PS is 6 compared to a median of 5.8 and industry value of 7.9.
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Technical
PSAR Sell since December 4, 2024
ADX (14) 12.5 and flat
DI + 23.0 and flat
DI – 25.7 and falling
MACD (12,26) negative 4.64
SMA (9) negative 3.14
OBV Rising
RSI 43 and rising
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Prices
Close 229.75 on December 24, 2024
52 wk hi 258.66
Ave target 261.00
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Summary
UNP is an attractive stock to purchase with the goal of gaining ≥ 5% within the next 6 months.
December 27, 2024
Overview
UPS(United Parcel Service) is the world's largest package delivery company with an average daily volume of 22 million packages and documents in 2023. It has superior parcel density compared with its competitors and uses the same drivers to handle both express and ground shipments in a single network, resulting in industry-leading operating margins. The industry has faced challenges including a decline in volumes after the surge during the pandemic. However, the outlook for 2025 should be turning around in 2025 as overcapacity has been reduced, labor costs stabilized and e-commerce continuing to grow. Along with expected increases in revenue and earnings next year. UPS is expected to continue the strong dividend growth it has achieved over the past 15 years.
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Earnings and Yield
UPS earnings exceeded expectation in three of the last four quarters and guidance is good going forward. Dividend is 5.2%.
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Valuation
PE is 17 compared with an average of 16 and forward PE is 17. PEG is 2.1. PS is 1.1 compared to a median of 1.5 and industry value of 1.1.​
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Technical
PSAR Sell since Dec 18, 2024
ADX (14) 18.9 and flat
DI + 19.7 and flat
DI – 26.3 and falling
MACD (12,26) negative 2.85
SMA (9) negative 2.95
OBV flat
​RSI 42 and flat​​​​​
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Prices
Close 126.11 on Dec 27, 2024
52 wk hi 161.48
Ave target 48.00
Summary
UPS is an attractive stock to purchase with the goal of gaining ≥ 5% within the next 6 months.
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January 2, 2025
Overview
DELL (DELL Technologies) has leading positions in the PC, server and storage markets and is poised for strong growth in the rapidly expanding AI-optimized servers and related products area where demand is exceeding supply. It has a diverse customer base including higher education, health care and financial services as well as an expanding partner base with companies such as NVIDIA, Microsoft and Meta Platforms. Dell has proven to be very shareholder friendly with stock buybacks and consistent dividend growth.
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Earnings and Yield
DELL earnings exceeded expectation in the last four quarters and guidance is good going forward. Dividend is 1.5%.
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Valuation
PE is 17 compared with an average of 16 and forward PE is 17. Industry value is 28. PEG is 1.2. PS is 0.8 compared to a median of 0.5 and industry value of 7.6.
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Technical
PSAR Sell since November 27, 2024
ADX (14) 26.5 and rising
DI + 17.1 and flat
DI – 30.9 and flat
MACD (12,26) negative 4.95
SMA (9) negative 7.06
OBV Flat
RSI 42 and flat
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Prices
Close 116.53 on January 3, 2025
52 wk hi 179.70
Ave target 149.00
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Summary
DELL is an attractive stock to purchase with the goal of gaining ≥ 5% within the next 6 months.
January 20, 2025
Overview
ANF (Abercrombie & Fitch) is one of the leading retailers of apparel and accessories for children and young adults. It sales internationally through stores and e-commerce sites. ANF has a strong reputation based on decades of experience and is currently experiencing brand momentum and customer engagement. It has strong finances and no long term debt. Although ANF provided recently good results in the last quarter and positive guidance for the next year, the stock price fell on this news and now appears undervalued. The apparel market is expected to grow in 2025 with strong consumer spending and lower inflation and this appears to be a good opportunity to purchase ANF at a reasonable price.
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Earnings and Yield
ANF earnings exceeded expectation in the last four quarters and guidance is good going forward. There is no dividend.
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Valuation
PE is 13 compared with an average of 16 and forward PE is 12. PS is 1.4 compared to a median of 0.5 and industry value of 1.9.​
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Technical
PSAR Sell since Jan 13, 2025
ADX (14) 17.5 and falling
DI + 20.2 and falling
DI – 21.7 and flat
MACD (12,26) negative 1.89
SMA (9) negative 1.95
OBV is falling
​RSI 38 and flat​​​​​
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Prices
Close 130.35 on Jan 17, 2025
52 wk hi 196.99
Ave target 190.00
Summary
ANF is an attractive stock to purchase with the goal of gaining ≥ 5% within the next 6 months.
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October 18, 2024
Overview
ADBE (Adobe) is a leading global software company whose programs allow the creation, transfer and printing of electronic documents. Its main areas are Digital Media (creative and document services products), Digital Experience for marketing programs and Publishing products such as those based on Acrobat and Photoshop. Revenues come from licensing fees from customers. It has a large base of satisfied customers and is experiencing strong growth from its cloud based platforms.
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Earnings and Yield
ADBE exceeded expectations in three of the last four quarters and guidance is strong going forward. There is no dividend.
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Valuation
PE is 34 compared with an average of 36 and forward PE is 34. Industry average is 32. PEG is 2.6. PS is 9.5 compared with an average 8.2 and industry 7.6.
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Technical
Simple MA:
5 day 502.39
10 day 498.86
20 day 506.33
50 day 534.69
100day 528.91
200day 532.14
PSAR Buy since Oct 14, 2024
ADX (14) 31.5 and flat
DI + 14.8 and flat
DI – 27.7 and falling
MACD (12,26) negative 9.92
SMA (9) negative 17.59
OBV Below the 20 day MA and both are falling
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Prices
Close 494.90 on October 18, 2024
52 wk hi 638.25
Ave target 609.00
Summary
ADBE is an attractive stock to purchase with the goal of gaining ≥ 5% within the next 6 months.
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October 18, 2024
Overview
RF (Regions Financial) is a leading regional bank offering full commercial and residential banking services as well as wealth and asset management. It has an advanced deposit base resulting in lower costs and increased profits. It has had steady growth in loans and is expanding through strategic acquisitions and mobile platforms. RF is financially strong with a good balance sheet and liquidity.
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Earnings and Yield
RF exceeded expectations in three of the last four quarters and guidance is strong going forward . Dividend is 4.1%.
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Valuation
PE is 12 compared with an average of 10 and forward PE is 12. Industry average is 11. PEG is 2.9. PS is 2.9 compared with an average 2.6 and industry 4.4.
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Technical
Simple MA:
5 day 23.88
10 day 23.48
20 day 23.14
50 day 22.59
100day 21.39
200day 20.30
PSAR BUY since Oct 11, 2024
ADX (14) 21.0 and rising
DI + 26.0 and rising
DI – 10.4 and falling
MACD (12,26) 0.31
SMA (9) 0.22
OBV Above 20 day MA and both are flat
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Prices
Close 23.82 on October 18, 2024
52 wk hi 24.47
Ave target 25.00
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Summary
RF is an attractive stock to purchase with the goal of gaining ≥ 5% within the next 6 months.
November 28, 2024
Overview
CI (Cigna Group) is a leading provider of healthcare services to employers, individuals and the government. It has shown consistent growth in members over several years because of diversified products and superior service. It focuses on trying to reduce the growth in medical costs which makes it attractive to clients. Since its purchase of Exrpess Scripts it has become a leading pharmacy benefits manager and has a specific focus on the rapidly growing and profitable area of specialty pharmacy offerings, where it is in unique position of being able to both control and benefit from this market.
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Earnings and Yield
CI exceeded expectations in the last four quarters and guidance is strong going forward . Dividend is 1.6 %
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Valuation
PE is 12 compared with an average of 12 and forward PE is 12. Industry average is 13. PEG is 1.0. PS is 0.4 compared with industry of 0.4.
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Technical
PSAR Buy since Nov 11, 2024
ADX (14) 17.1 and flat
DI + 33.3 and rising
DI – 19.8 and falling
MACD (12,26) 6.10
SMA (9) 2.62
OBV Rising
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Prices
Close 336.5 on November 27, 2024
52 wk hi 370.83
Ave target 398.00
Summary
CI is an attractive stock to purchase with the goal of gaining ≥ 5% within the next 6 months.
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November 28, 2024
Overview
BBWI (Bath and Body Works) is a leading retailer in the fields of body and home fragrances. The beauty and personal care industry are predicted to have strong growth over the next five years and BBWI plans to expand an additional areas including skincare, hair, laundry and men’s grooming. It has a competitive advantage with it strong brand loyalty. It is estimated that 80% of women and 60% of men are aware of BBWI and it has an extremely large and growing customer loyalty membership that accounts for up to 80% of sales. After a disappointing second quarter, BBWI recently released strong third-quarter results and raise guidance for the year.
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Earnings and Yield
ALL exceeded expectations in the last four quarters and guidance is strong going forward . Dividend is 2.2 %.
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Valuation
PE is 11 compared with an average of 12 and forward PE is 11. PEG is 1.1.
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Technical
PSAR BUY since Nov 25, 2024
ADX (14) 17.7 and rising
DI + 42.1 and rising
DI – 13.9 and falling
MACD (12,26) 1.12
SMA (9) 0.65
OBV Rising
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Prices
Close 35.90 on November 27, 2024
52 wk hi 52.99
Ave target 41.00
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Summary
BBWI is an attractive stock to purchase with the goal of gaining ≥ 5% within the next 6 months.
October 11, 2024
Overview
NCLH (Norwegian Cruise Line) NCLH is leading cruise line company operating ships under three brands and aiming to provide enhance onboard service. NCLH has been focusing on fleet expansion and digital initiatives that have resulted in it being able to show increased booking volumes despite high pricing. The cruise industry in general has benefited from increased travel demand after the pandemic. NCLH is aiming to increase its presence in China, which should become the second largest market in the world by 2030. Despite these expansion efforts, NCLH has sufficient liquidity to see them to completion.
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Earnings and Yield
NCLH exceeded expectations in three of the last four quarters and guidance is strong going forward . There is no dividend.
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Valuation
PE is 24 compared with an average of 12 and forward PE is 17. Industry average is 31. PEG is 0.3. PS is 0.8 compared with an average 1.1 and industry 1.4.
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Technical
Simple MA:
5 day 22.07
10 day 21.05
20 day 20.76
50 day 18.39
100day 18.20
200day 18.14
PSAR BUY since Oct 8, 2024
ADX (14) 28.8 and rising
DI + 38.9 and rising
DI – 11.7 and falling
MACD (12,26) 0.87
SMA (9) 1.06
OBV At 20 day MA and both are rising
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Prices
Close 23.38 on October 11, 2024
52 wk hi 23.82
Ave target 24.00
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Summary
NCLH is an attractive stock to purchase with the goal of gaining ≥ 5% within the next 6 months.
September 17, 2024
Overview
PHM (Pultegroup) is a large homebuilder in the United States offering products in all major customer segments. It has used a variety of strategic initiatives to continue to attract customers in the volatile housing market. Its land acquisition approach has been profitable for many years. Demand for housing is likely to increase with upcoming interest rate cuts which should benefit companies such as PHM.
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Earnings and Yield
PHM exceeded expectations in the last four quarters and guidance is strong going forward. Dividend is 0.4%.
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Valuation
PE is 11 compared with an average of 9.5 and forward PE is 10. Industry average is 11.9. PEG is 0.55. PS is 1.6 compared with an average 0.95 and industry 1.5.
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Technical
Simple MA:
5 day 137.76
10 day 130.84
20 day 132.12
50 day 126.60
100day 120.03
200day 113.11
PSAR Buy since Sept 12, 2024
ADX (14) 26.5 and rising
DI + 34.1 and rising
DI – 13.5 and falling
MACD (12,26) 3.19
SMA (9) 3.35
OBV Below the 20 day MA and both are rising
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Prices
Close 140.46 on September 17, 2024
52 wk hi 141.43
Ave target 142.00
Summary
PHM is an attractive stock to purchase with the goal of gaining ≥ 5% within the next 6 months.
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October 4, 2024
Overview
F (Ford Motor Company) is one of the largest automobile manufacturing companies in the world. It is focusing on its popular and highly profitable light trucks and SUV models which account for the majority of sales in North America. It has some profitable electric vehicles such as Mustang and F-150 Lightning and has good growth in its commercial products such as Transit vans. Its strong financial position allows it to adjust its manufacturing to demand, for example by increasing production popular hybrids to offset a reduction in demand for pure electric cars.
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Earnings and Yield
F missed expectations in the last quarter but guidance is strong going forward . Dividend is 7.3%.
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Valuation
PE is 6 compared with an average of 9 and forward PE is 6. Industry average is 34. PEG is 0.8 PS is 0.3 compared with an average 0.3 and industry 1.7.
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Technical
Simple MA:
5 day 10.56
10 day 10.65
20 day 10.68
50 day 10.64
100day 11.61
200day 11.94
PSAR SELL since Sept 25, 2024
ADX (14) 12.0 and falling
DI + 27.4 and rising
DI – 30.0 and falling
MACD (12,26) negative 0.05
SMA (9) negative 0.06
OBV Around the 20 day MA and both are stable
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Prices
Close 10.57 on October 4, 2024
52 wk hi 14.85
Ave target 13.00
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Summary
F is an attractive stock to purchase with the goal of gaining ≥ 5% within the next 6 months.
October 11, 2024
Overview
QCOM (Qualcomm) is a fabless semiconductor company that designs and markets integrated circuits. It has traditionally served the wireless communications industry (holding a leading position in smartphones) but most growth will be coming from automobiles (including driver assistance) , the Internet of Things and Artificial Intelligence. It is developing chips that should capture a large share of AI-enabled smartphones and personal computers. Its EDGE networking will improve connectivity in homes, businesses and factories.
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Earnings and Yield
QCOM exceeded expectations in the last four quarters and guidance is strong going forward . Dividend is 1.9%.
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Valuation
PE is 22 compared with an average of 18 and forward PE is 19. Industry average is 19. PEG is 1.7. PS is 4.5 compared with an average 4.2 and industry 4.9.
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Technical
Simple MA:
5 day 168.40
10 day 168.40
20 day 168.72
50 day 167.53
100day 184.37
200day 172.89
PSAR Sell since Oct 1, 2024
ADX (14) 14.7 and falling
DI + 20.6 and flat
DI – 18.1 and flat
MACD (12,26) 1.42
SMA (9) 1.47
OBV Below the 20 day MA and both are falling
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Prices
Close 169.98 on October 11, 2024
52 wk hi 230.63
Ave target 216.00
Summary
QCOM is an attractive stock to purchase with the goal of gaining ≥ 5% within the next 6 months.
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August 19, 2024
Overview
AIZ (Assurant) is an international insurance provider focusing on housing and lifestyle markets. Lifestyle accounts for 80% of revenues from mobile device protection, extended service products for consumer electronics as well as auto insurance. Housing provides conventional homeowner insurance products. Revenues and earnings have grown consistently for the past number of years and this is likely to continue. AIZ has solid finances, is reducing debt and plans more share repurchases.
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Earnings and Yield
AIZ exceeded expectations in the last four quarters and guidance is strong going forward. Dividend is 1.5%.
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Valuation
PE is 10 compared with an average of 15 and forward PE is 11. The industry average is 8. PE to growth is 2.2. PS is 0.8 compared with an average of 0.9 and industry value of 1.6.
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Technical
Simple MA:
5 day 186.06
10 day 179.69
20 day 176.11
50 day 171.09
100day 173.33
200day 173.48
PSAR Buy since August 9, 2024
ADX (14) 25.6 and rising
DI + 33.1 and rising
DI – 13.5 and falling
MACD (12,26) 3.40
SMA (9) 2.77
OBV Below the 20 day MA and falling
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Prices
Close 188.75 on August 19, 2024
52 wk hi 189.77
Ave target 212.00
Summary
AIZ is an attractive stock to purchase with the goal of gaining ≥ 5% within the next 6 months.
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September 17, 2024
Overview
TSM (Taiwan Semiconductor ADR) is the largest manufacturer integrated circuits with a market share above 605. Its foundry produces chips for companies using their proprietary designs using its advance production processes. TSM focuses on high end logic products which require cutting edge technologies that allow higher gross margins. Demand for the chips required for AI and other high-performance computing operations seems likely to increase for years.
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Earnings and Yield
TSM exceeded expectations in the last four quarters and guidance is strong going forward. Dividend is 1%.
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Valuation
PE is 31 compared with an average of 18 and forward PE is 27. PEG is 1.0.
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Technical
Simple MA:
5 day 170.12
10 day 165.72
20 day 167.43
50 day 168.19
100day 163.63
200day 142.86
PSAR BUY since Sept 12, 2024
ADX (14) 21.2 and falling
DI + 19.9 and flat
DI – 27.1 and falling
MACD (12,26) negative 2.77
SMA (9) negative 0.92
OBV Around the 20 day MA and flat
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Prices
Close 167.35 on September 17, 2024
52 wk hi 193.47
Ave target 205.00
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Summary
TSM is an attractive stock to purchase with the goal of gaining ≥ 5% within the next 6 months.
August 16, 2024
Overview
MRK (Merck) is a global pharmaceutical company with a blockbuster cancer drug Keytruda that should continue to expand its indications and therefore revenues for the next several years. MRK also derives stable revenues from animal health and vaccines and has a promising pipeline for drugs treating pulmonary hypertension, RSV, and cancer drugs that could be combined with Keytruda. MRK price dropped sharply on July 30 along with the rest of the market and even though there was a 6% positive earnings surprise that day. The stock now appears undervalued in view of its good prospects.
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Earnings and Yield
MRK exceeded expectations in the last four quarters and provided strong guidance going forward. Dividend is 2.7%.
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Valuation
PE is 17 compared with an average of 13 and forward PE is 14. The industry average is 21. PE to growth is 1.7. PS is 4.9 compared with an average of 4.2 and industry value of 7.6.
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Technical
Simple MA:
5 day 113.69
10 day 113.29
20 day 117.6
50 day 123.98
100day 126.33
200day 120.62
PSAR SELL since July 30, 2024
ADX (14) 31.6 and rising
DI + 15.2 and flat
DI – 29.9 and falling
MACD (12,26) negative 5.83
SMA (9) negative 5.42
OBV Below the 20 day MA and both are falling
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Prices
Close 113.67 on August 16, 2024
52 wk hi 134.63
Ave target 140.00
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Summary
MRK is an attractive stock to purchase with the goal of gaining ≥ 5% within the next 6 months.
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Stock Wealth Safely does not provide investment advice. This site simply lists the stocks we have chosen for our investment portfolio and shows how they have performed over time. Past performance is not a predictor of future results. Individual investment results may vary. All investing involves risk of loss.
