STOCK SELECTIONS
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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August 12, 2024
Overview
EG (Everest Re Group) underwrites property/casualty (P/C)reinsurance and insurance in the United States and abroad. Reinsurance, which is essentially insurance for insurance companies accounts for 70% of revenues. Major events such as hurricanes and other natural disasters affect claims and therefore profitability of insurers. EG has demonstrated solid financial performance in meeting these challenges and has reported record underwriting profit and strong increases in operating, investment and net income. This is attributed through rate increases leading to market expansion and underwriting discipline.
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Earnings and Yield
EG exceeded expectations in three of the last four quarters. The 0.7% miss in the last quarter has not affected guidance going forward. Dividend is 2.0%.
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Valuation
PE is 5 compared with an average of 9.5 and forward PE is 6. The industry average is 8.3. PE to growth is 2.2. PS is 0.8 compared with an average of 0.9 and industry value of 1.3.
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Technical
Simple MA:
5 day 361.78
10 day 368.00
20 day 377.69
50 day 378.11
100day 378.60
200day 378.61
PSAR Sell since July 24, 2024
ADX (14) 19.2 and rising
DI + 19.0 and flat
DI – 30.0 and falling
MACD (12,26) negative 7.71
SMA (9) negative 1.59
OBV Below the 20 day MA and both are falling
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Prices
Close 360.91 on August 12, 2024
52 wk hi 417.92
Ave target 423.00
Summary
EG is an attractive stock to purchase with the goal of gaining ≥ 5% within the next 6 months.
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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.
July 1, 2024
Overview
PFE (Pfizer) is one of the major, multinational pharmaceutical company with a wide range of current and late pipeline products in a variety of high growth areas including oncology, immunology and vaccines. It has divested its consumer and generic product lines to focus on its research programs to drive growth. PFE stock has lagged behind its peers over the past year, primarily because of the loss of revenue from its COVID vaccines and treatments. This is likely an overreaction to its prospects which appear strong over the next few years.
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Earnings and Yield
PFE exceeded expectations in the last four quarters and maintained strong guidance going forward. EPS estimates have been stable over the past month. Dividend is very attractive at 5.9%.
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Valuation
PE is 20 compared with an average of 12 and forward PE is 12. Industry PE is 20. P/S for the company is 2.6 compared to an average of 3.4 The industry value is 7.5.
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Technical
Simple MA:
5 day 27.98
10 day 27.76
20 day 28.12
50 day 27.85
100day 27.50
200day 28.79
PSAR SELL since July 1, 2024
ADX (14) 14.0 and falling
DI + 28.1 and rising
DI – 24.4 and falling
MACD (12,26) negative 0.45
SMA (9) negative 0.45
OBV Above the 20 day MA and rising
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Prices
Close 28.22 on July 1, 2024
52 wk hi 37.80
Ave target 33
Summary
PFE is an attractive stock to purchase with the goal of gaining ≥ 5% within the next 6 months.
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July 21, 2024
Overview
GL (Globe Life) is an insurance holding company that primarily sells life and health insurance to lower and middle income households across the country. Its strengths include higher premium income, improved underwriting margins as a result of dealing in a relatively non-competitive market. GL has strong net investment income and good finance leading to high excess cash flow generation.
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Earnings and Yield
GL exceeded expectations in three of the last four quarters and maintained strong guidance going forward. EPS estimates have been rising over the past month. Dividend is 1.1%.
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Valuation
PE is 8 compared with an average of 10 and forward PE is 8. Industry PE is 13. P/S for the company is 1.3 compared to an average of 1.9 The industry value is 1.8.
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Technical
Simple MA:
5 day 88.14
10 day 85.79
20 day 84.29
50 day 83.66
100day 91.96
200day 105.84
PSAR BUY since July 11, 2024
ADX (14) 18.3 and rising
DI + 31.1 and rising
DI – 15.3 and falling
MACD (12,26) negative 1.80
SMA (9) negative 1.11
OBV Above the 20 day MA and rising
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Prices
Close 88.26 on July 19, 2024
52 wk hi 132.00
Ave target 105.00
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Summary
GL is an attractive stock to purchase with the goal of gaining ≥ 5% within the next 6 months.
July 22, 2024
Overview
PYPL (Paypal) is one of the largest online payment providers that offers secure transactions to both customers and merchants. Its strong peer-to-peer payment service has led to growth in total payment volume and it is also growing in mobile volumes and expanding into banking initiatives. PYPL continues to create strategic partnerships with companies such as Visa, MasterCard, Google, Facebook and banks including JP Morgan and Bank of America.
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Earnings and Yield
PYPL exceeded expectations in three of the last four quarters and maintained strong guidance going forward. EPS estimates have been rising over the past month. There is no dividend.
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Valuation
PE is 15 compared with an average of 25 and forward PE is 14. P/S for the company is 1.0 compared to an average of 5.5 The industry value is 2.6.
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Technical
Simple MA:
5 day 60.63
10 day 60.18
20 day 59.53
50 day 61.67
100day 62.77
200day 60.70
PSAR BUY since July 5, 2024
ADX (14) 14.3 and falling
DI + 25.5 and rising
DI – 24.3 and rising
MACD (12,26) 0.35
SMA (9) negative 0.98
OBV Above the 20 day MA and both are rising
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Prices
Close 60.77 on July 22, 2024
52 wk hi 76.54
Ave target 74.00
Summary
PYPL is an attractive stock to purchase with the goal of gaining ≥ 5% within the next 6 months.
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July 26, 2024
Overview
TSM (Taiwan Semiconductor Manufacturing) is the world’s largest semiconductor company. Its innovative strategy is based on the foundry model in which it makes semiconductors for the specific needs of a company rather than for general sale. Its quality makes it a supplier to major companies such as Apple, Tesla and Nvidia. TSM earns stable revenue from smartphones and growth from the GPU’s that power the data centres that are required to train AI applications. TSM stock price dropped along with other companies during the recent pullback in technology and its price is now more attractive than it has been in some time.
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Earnings and Yield
TSM exceeded expectations in the last four quarters and maintained strong guidance going forward. EPS estimates have been rising over the past month. Dividend is 1%.
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Valuation
PE is 29 compared with an average of 18 and forward PE is 25. PE to growth is 0.95
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Technical
Simple MA:
5 day 164.24
10 day 170.13
20 day 176.18
50 day 168.42
100day 154.20
200day 129.83
PSAR SELL since July 17, 2024
ADX (14) 31.5 and flat
DI + 15.0 and falling
DI – 32.9 and rising
MACD (12,26) negative 2.51
SMA (9) 2.65
OBV Below the 20 day MA and falling
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Prices
Close 161.94 on July 26, 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.
July 30, 2024
Overview
RCL (Royal Caribbean Cruises) is a leading international cruise line. RCL operates focuses on the middle segment of the cruise industry although is expanding to appeal to luxury and younger customers. It has performed strongly since recovery from the pandemic. RCL has benefited from strong cruising demand and loyal customers. Its strategy of filling its ships without discounting prices has led to increased profits per customer. RCL plans to growth through new ships, products and experiences including private destinations.
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Earnings and Yield
RCL exceeded expectations in the last four quarters and maintained strong guidance going forward. EPS estimates have been rising over the past month. There is no dividend.
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Valuation
PE is 15 compared with an average of 12 and forward PE is 13. PE to growth is 0.4. PS is 2.3 compared with and average of 2.0 and industry value of 1.4
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Technical
Simple MA:
5 day 156.43
10 day 161.84
20 day 162.16
50 day 156.30
100day 145.75
200day 128.92
PSAR Sell since July 25, 2024
ADX (14) 22.3 and falling
DI + 20.0 and rising
DI – 24.3 and rising
MACD (12,26) 1.80
SMA (9) 4.26
OBV Above the 20 day MA and both are rising
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Prices
Close 156.94 on July 30, 2024
52 wk hi 173.37
Ave target 175.00
Summary
RCL is an attractive stock to purchase with the goal of gaining ≥ 5% within the next 6 months.
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July 31, 2024
Overview
STZ (Constellation Brands) produces and markets beer, wine and spirits. It is the third largest beer company but holds the top position in the coveted premium and imported beer segment, led by Mexican brands Modelo and Corona. STZ is trying to grow in the high-end wine category with brands such as Robert Mondavi and also has small operations in spirits and cannabis. Growth has been strongest in the beer business where it is increasing volumes, revenues and profits compared to a decline in the beer industry as a whole. Growth is expected to continue through marketing and capital investments, funded by consistently strong cash flows.
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Earnings and Yield
STZ exceeded expectations in the last four quarters and maintained strong guidance going forward. EPS estimates have been rising over the past month. Dividend in 1.5%.
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Valuation
PE is 19 compared with an average of 25 and forward PE is 19. PE to growth is 1.7. PS is 4.1 compared with an average of 4.5 and industry value of 9.9.
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Technical
Simple MA:
5 day 247.50
10 day 246.73
20 day 250.04
50 day 252.30
100day 257.17
200day 249.86
PSAR SELL since July 31, 2024
ADX (14) 17.6 and flat
DI + 18.9 and flat
DI – 26.3 and flat
MACD (12,26) negative 5.03
SMA (9) negative 4.67
OBV Above the 20 day MA and flat while 20d MA is rising
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Prices
Close 245.16 on July 31, 2024
52 wk hi 274.87
Ave target 302.00
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Summary
STZ is an attractive stock to purchase with the goal of gaining ≥ 5% within the next 6 months.
May 31, 2024
Overview
CNC (Centene) offers health care services to around 28 million members. It is the largest Medicaid managed care organization in the United States and its individual exchange program, which catches people pushed off Medicaid rolls, is growing rapidly. Its Commercial segment is also expanding. Combining both organic and inorganic (acquisitions) growth, revenues have increased for the past 20 years including a CAGR of 30% from 2015-2022. The company expects growth to continue in upcoming years.
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Earnings and Yield
CNC exceeded expectations in the last four quarters and maintained strong guidance going forward. EPS revisions have been up over the past month. There is no dividend.
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Valuation
PE is 11 compared with an average of 13.5 and forward PE is 11. Industry PE is 16. PE/growth is 0.9. P/S for the company is 0.3 compared to an average of 0.3 The industry value is 0.8.
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Technical
Simple MA:
5 day 71.68
10 day 74.82
20 day 75.73
50 day 74.90
100day 76.05
200day 73.22
PSAR SELL since May 24, 2024
ADX (14) 21.1 and rising
DI + 18.0 and falling
DI – 44.4 and falling
MACD (12,26) 0.25
SMA (9) 1.24
OBV Below the 20 day MA and both are falling
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Prices
Close 71.59 on May 31, 2024
52 wk hi 81.42
Ave target 89
Summary
CNC is an attractive stock to purchase with the goal of gaining ≥ 5% within the next 6 months.
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June 17, 2024
Overview
ADSK (Autodesk) develops model-based software for customers in Architecture, Engineering, Construction, Manufacturing and Entertainment. Its products help create design, manufacturing and operations solutions. Revenue comes from sales, maintenance and service agreements for its products. Ongoing growth should come from increased demand for its cloud platform as well as a growing suite of software products. The stock price rose more than 6 % on June 17.
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Earnings and Yield
ADSK exceeded expectations in the last four quarters and maintained strong guidance going forward. EPS estimates have been stable over the past month. There is no dividend.
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Valuation
PE is 44 compared with an average of 50 and forward PE is 41. Industry PE is 16. PE/growth is 3.0. P/S for the company is 7.6 compared to an average of 9.1 The industry value is 9.0.
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Technical
Simple MA:
5 day 224.80
10 day 220.24
20 day 216.27
50 day 219.24
100day 238.03
200day 228.54
PSAR BUY since June 3, 2024
ADX (14) 18.9 and stable
DI + 34.6 and rising
DI – 24.0 and falling
MACD (12,26) negative 1.47
SMA (9) negative 2.55
OBV Above the 20 day MA and both are rising
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Prices
Close 240.51 on June 17, 2024
52 wk hi 279.53
Ave target 267.00
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Summary
ADSK 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.