STOCK SELECTIONS
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 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 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.
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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.