STOCK SELECTIONS
September 21, 2023
Stock Wealth Safely selects the telecom company TMUS.
TMUS (T-Mobile) is the leader in wireless communications. Its merger with Sprint in 2020 made it larger than AT&T and close to Verizon in size. It has an extremely strong spectrum position. Cash flow is increasing through cost reductions and profits are being passed to investors through stock buybacks. Growth should continue over the next few years and the three large providers are likely to give priority to profits.
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TMUS has exceeded earnings expectations in the last 3 quarters and estimates have been generally stable. PE is 28.4 compared with an average of 22 and forward PE is 19.5. There is no dividend.
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The 20 day simple moving average = 138.39, 50 day = 138.24, 100 day = 137.71 and 200 day = 141.38.
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PSAR turned to sell on September 21, the 4 day SMA is 141.34, 9 day is 141.36, ADX is 21.7, A(+) is 21.4 and A (-) is 19.1, MACD 12 is 2.20 and MACD 9 is 1.06. OBV has been around its 20 day SMA.
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TMUS is a leading company in a growing industry and is fairly valued. Some important technical indicators are positive. TMUS closed September 21 at 139.99 and should grow towards its consensus target of 178.
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September 18, 2023
Stock Wealth Safely selects the chemical company APD .
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APD (Air Products) is a major supplier of atmospheric (nitrogen, oxygen) and processed gases (hydrogen, helium) to a wide range of energy, industrial, technology and healthcare customers. It is the largest supplier of hydrogen which is a key component in decarbonizing the planet. APD is competing to increase its supply of blue and green hydrogen which will dominate these markets. It is also expanding internationally with coal gasification projects in China and India.
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APD has exceeded earnings expectations in 3 of the last 4 quarters and estimates have been stable for the past 90 days. Average analyst recommendation is moderate buy. PE is 27.2 compared with an average annual of 23.5 and forward PE is 26.7. Dividend is 2.2% and has been consistently growing.
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The 20 day simple moving average = 294.80, 50 day = 294.39, 100 day = 289.34 and 200 day = 292.78.
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PSAR has been buy since August 30, the 4 day SMA is 302.72, 9 day is 299.98, ADX is 21.7, A(+) is 27.3 and A (-) is 19, MACD 12 is 5.91 and MACD 9 is 4.51. OBV has been above its 20 day SMA since August 10.
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APD is an established company with good growth prospects, a fair valuation, and positive technical signs. It closed at 299.53 on September 18 and should increase towards the consensus target of 326.
September 5, 2023
Stock Wealth Safely selects the energy company DVN. DVN (Devon Energy Corp) is an energy company in the oil and natural gas industry.
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DVN has exceeded earnings expectations in the three of the last four quarters. PE is 8.17 compared with an average annual of 13 and forward PE is 9.44. Dividend is 8.52%.
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The 20 day simple moving average = 50.41, 50 day = 50.41, 100 day = 50.24 and 200 day = 54.62.
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PSAR has been buy since August 28, the 4 day SMA is 52.04, 9 day is 50.90, ADX is 16.8, A(+) is 36.4 and A (-) is 19.5, MACD 12 is – -0.03 and MACD 9 is – 0.89. OBV has climbed above its 20 day moving average.
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DVN is showing positive momentum, is undervalued and has good growth prospects. DVN closed September 5 at 53.50 and its price should increase towards its 52 week high of 78.82.
August 30, 2023
Stock Wealth Safely selects the chemical company KWR.
KWR (Quaker Chemical) produces specialty chemical products for a range of industrial and manufacturing companies and also gets revenue from management services. Prospects are good as it has been able to both increase prices and improve margins through cost reductions and thereby increase earnings. Recent acquisitions have also done well.
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KWR has exceeded earnings expectations for the last four quarters and estimates have been generally stable. PE is 24rally stable. PE is 24 compared to an average annual value of 27. Forward PE is 22. Dividend has increased to 1.1%.
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The 20 day simple moving average = 171.04, 50 day = 185.54, 100 day = 191.15 and 200 day = 189.41.
PSAR has been buy since August 25, the 4 day SMA is 168.87, 9 day is 166.72, ADX is 37.8, A(+) is 19.1 and A (-) is 26.8, MACD 12 is – 10.19 and MACD 9 is – -12.36. OBV has started to stabilize after falling. OBV is starting to rise above its 20 day SMA.
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KWR’s price dropped excessively after its earnings release in early August to a degree that does not seem justified by its fundamentals and prospects. It appears to have reached a bottom and technical indicators are starting to turn positive. KWR closed at 174.49 on August 30 and should increase towards its consensus target of 232.
August 28, 2023
Stock Wealth Safely selects the health company UHS.
UHS (Universal Health Services) provides a broad range of acute health services in hospital and outpatient settings. Patient volumes are increasing steadily as people are demanding the elective and discretionary care that was postponed during COVID. This growth trend should continue into 2024 along with reduced expenses from lower labor costs.
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UHS has exceeded earnings expectations in the last four quarters. Estimates have been largely stable for the past 90 days. PE is 12.5 compared with an average annual of 15 and forward PE is 12.7. Dividend is 0.6%.
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The 20 day simple moving average = 132.29, 50 day = 143.32, 100 day = 140.30 and 200 day = 137.79.
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PSAR has been buy since August 22, the 4 day SMA is 131.22, 9 day is 130.00, ADX is 34.4, A(+) is 19.7 and A (-) is 23.2, MACD 12 is – 4.29 and MACD 9 is – 6.39. OBV has started to stabilize after falling.
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UHS stock price dropped after its second quarter earnings release even though this beat expectations and the stock is now undervalued. UHS has a record of steady growth which should continue as the demand for its services will increase. Some technical factors are starting to turn positive.
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UHS closed August 28 at 133.01 and its price should increase towards its 52 wk high of 158.57.
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August 25, 2023
Stock Wealth Safely selects the health care company THC.
THC (Tenet Healthcare) is the largest provider of ambulatory surgical services in the United States over 550 facilities as well as about 60 full service hospitals. Demand for these services has expanded since COVID and is likely to continue to grow as more and more procedures previously requiring hospital admission can be done as out patients. THC has also made great strides in improving its operating efficiency and paying down debt.
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THC has exceeded earnings expectations in the large four quarters by comfortable margins. PE is 12, consistent with its annual average and forward PE is 13. There is no dividend as THC tries to reduce debt.
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The 20 day simple moving average = 73.58, 50 day = 77.09, 100 day = 73.38 and 200 day = 62.45.
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PSAR has been buy since August 23, the 4 day SMA is 73.97, 9 day is 72.70, ADX is 15.5, A(+) is 23.8 and A (-) is 19.7, MACD 12 is – 1.18 and MACD 9 is – 2.00. OBV is stable.
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THC is the leading company in a growing field with rising revenues and profits. We anticipate that this will continue over the next year. Technical factors are positive THC closed at 74.23 on August 25 and should climb towards its 52 week high of 85.40.
August 10, 2023
Stock Wealth Safely selects the payments company PYPL.
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PYPL (Paypal) has the largest platform for digital payments by consumers and merchants in the world. Its total payment volumes and active accounts are growing and being used more. This should accelerate with economic recovery and the move to even more electronic payments. PYPL is also reducing expenses and increasing profits, making the stock more attractive.
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PYPL has exceeded earnings expectations in three of the last four quarters but missed by 8% in the last quarter. PE is 18 compared to an annual average of 35. Forward PE is 17. There is no dividend.
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The 20 day simple moving average = 70.50, 50 day = 68.00, 100 day = 69.31 and 200 day = 73.55.
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PSAR has been sell since early August, the 4 day SMA is 63.10, 9 day is 67.10, ADX is 32.9, A(+) is 15.2 and A (-) is 34.8, MACD 12 is – 1.62 and MACD 9 is – 0.14. OBV is dropping.
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PYPL stock price dropped sharply after its earnings release last quarter and is now markedly undervalued. The price drop is not justified its performance or its prospects and appears to be an overreaction to this news. Although technical indicators are still mostly negative, this should be a good entry point. PYPL closed August 10 at 62.81 and should rise towards its consensus target of 78.
August 11, 2023
Stock Wealth Safely selects the oil company CVX .
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CVX (Chevron) is one of the largest integrated oil and natural gas companies in the world. In addition to conducing all phases of traditional oil and gas upstream and downstream operations, CVX is expanding in lower emissions areas such as vegetable oil production and carbon capture and storage projects. It should continue to increase its returns through development of its Permian Basin position as well as the acquisition of Nobel Energy. CVX also has implemented strong cost controls to further increase margins.
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CVX has exceeded earnings expectations in three of the last four quarters and estimates are stable. PE is 9.9 compared with an average annual value of 15. Forward PE is 12.1. Dividend is 3.7%
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The 20 day simple moving average = 159.51, 50 day = 157.39, 100 day = 159.64 and 200 day = 166.65.
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PSAR has been buy since July 24, the 4 day SMA is 161.12, 9 day is 160.60, ADX is 13.9, A(+) is 29.6 and A (-) is 13.9, MACD 12 is 1.84 and MACD 9 is 2.22. OBV is stable.
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Afer falling from mid-April through early June, CVX stock price is slowly climbing and technical indicators are positive. CVX has excellent growth prospects but remains undervalued and has an attractive dividend. CVX closed at on August 11 and should increase towards its 52 weak high of 189.68.
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August 3, 2023
Stock Wealth Safely selects the technology company CTSH.
CTSH (Cognizant Technologies) is a leading IT consulting company focusing on helping companies in their digital transition. It provides services to a wide spectrum of industries and is focusing on large and stable contracts. Its new cloud platform should lower costs for its client companies and it recently announced a new collaboration with Google to develop AI health care solutions. Demand for CTSH services should continue to grow as the technical landscape becomes more complicated for companies to navigate.
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CTSH has exceeded earnings expectations in 2 of the last 4 quarters, including impressive results on August 2.
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Estimates have been essentially stable for the past 60 days. PE is 15 compared to an average of 17. Forward PE is also 15. Dividend is respectable at 1.8%.
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The 20 day simple moving average = 67.28, 50 day = 64.92, 100 day = 62.62 and 200 day = 63.02.
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PSAR has been buy since August 3, the 4 day SMA is 66.92, 9 day SMA 66.98, ADX 21.9, ADX(+) 41.1 and ADX(-) 20.1. M12 is 0.40 and M9 1.38. OBV has been mostly above its 20d MA for the past month.
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CTSH reached a 52 week high on August 3 on the basis of its second quarter earnings released yesterday. It is a leading company in a growing field and should continue to prosper. CTSH closed at 70.47 and we believe the price should continue to increase be at least 5% in the near term.
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August 1, 2023
Stock Wealth Safely selects XOM.
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XOM (Exxon Mobil) is a leading integrated oil and natural gas company. It continues to both control costs and increase production, especially in high margin areas like the Permian basin and Guyana. It remains focused on its core operations which avoids short term risks inherent in diverting to renewable sources. XOM is using profits to pay down debt, repurchasing stocks, and increasing the dividend, all of which are attractive to investors.
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XOM has exceeded earnings expectations in 3 of the last 4 quarters, missing by $0.06 in the last quarter. Estimates have risen sharply over the last week. PE is 8.3 compared with an average of 15. Forward PE is 11.9. Dividend is 3.5%.
The 20 day simple moving average = 104.33, 50 day = 105.01, 100 day = 107.54 and 200 day = 108.91.
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PSAR has been buy since July 24, the 4 day SMA is 105.86, 9 day SMA 105.23, ADX 12.5, ADX(+) 29.9 and ADX(-) 23.9. M12 is – 0.45 and M9 – 0.68. OBV has been mostly above its 20d MA for the past month.
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XOM is a strong company with good prospects for revenue and earnings growth. It is significantly undervalued and the dividend is attractive. The price dropped sharply in early May and has largely been in a sideways pattern since then. However, some technical signs are suggesting a breakout to the upside.
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XOM closed a 106.62 on August 1 and should increase towards its consensus target of 123.
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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.