Best Long Term Stock Ideas

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>>> Medpace Holdings Inc (MEDP) Reports Robust Revenue Growth and Solid Earnings in Q4 and Full ...


GuruFocus Research

Feb 12, 2024


https://finance.yahoo.com/news/medpace-holdings-inc-medp-reports-213433201.html


Revenue Growth: Q4 revenue increased by 26.5% to $498.4 million, and full-year revenue jumped by 29.2% to $1.885.8 million.

Net Income: Q4 GAAP net income rose to $78.3 million, with a net income margin of 15.7%. Full-year net income reached $282.8 million.

Earnings Per Share: Diluted EPS for Q4 was $2.46, up from $2.12 in the prior-year period. Full-year diluted EPS increased to $8.88.

EBITDA: Q4 EBITDA grew by 19.2% to $95.8 million, representing an EBITDA margin of 19.2%. Full-year EBITDA was $362.5 million.

Backlog and Book-to-Bill Ratio: Backlog as of December 31, 2023, increased by 20.2% to $2.813.0 million, with a net book-to-bill ratio of 1.23x for Q4.

2024 Financial Guidance: Medpace forecasts 2024 revenue in the range of $2.150 billion to $2.200 billion, with GAAP net income expected between $326.0 million and $348.0 million.

Liquidity and Share Repurchase: Cash and cash equivalents stood at $245.4 million, and the company repurchased 781,068 shares for $144.0 million in 2023.

On February 12, 2024, Medpace Holdings Inc (NASDAQ:MEDP) released its 8-K filing, announcing its financial results for the fourth quarter and full year ended December 31, 2023. The late-stage contract research organization, known for its full-service drug development and clinical trial services, reported significant revenue growth and an increase in net income, reflecting a strong performance in a competitive industry.

Financial Performance Highlights

Medpace's revenue for Q4 2023 reached $498.4 million, a 26.5% increase from the $394.1 million reported in the same period last year. This growth was attributed to a backlog conversion rate of 18.5%. The full-year revenue also saw a substantial rise, with a 29.2% increase to $1.885.8 million compared to the previous year. The company's net new business awards for Q4 were $614.7 million, marking a 26.7% increase from the prior-year period and resulting in a net book-to-bill ratio of 1.23x.

GAAP net income for Q4 was $78.3 million, or $2.46 per diluted share, compared to $68.7 million, or $2.12 per diluted share, for the same quarter in the previous year. The net income margin slightly decreased to 15.7% from 17.4% in Q4 2022. For the full year, GAAP net income was $282.8 million, or $8.88 per diluted share, up from $245.4 million, or $7.28 per diluted share, in 2022.

EBITDA for Q4 2023 increased by 19.2% to $95.8 million, representing an EBITDA margin of 19.2%. The full-year EBITDA also grew by 17.7% to $362.5 million. These financial achievements underscore Medpace's ability to efficiently manage its operations and maintain profitability in the Medical Diagnostics & Research industry.

Operational and Strategic Developments

Medpace's operational efficiency is reflected in its direct costs and SG&A expenses. For Q4 2023, total direct costs were $361.6 million, and SG&A expenses were $42.5 million. The company's balance sheet remains strong, with cash and cash equivalents of $245.4 million as of December 31, 2023. Medpace generated $156.4 million in cash flow from operating activities during Q4 2023 and repurchased 781,068 shares for $144.0 million throughout the year.

Looking ahead, Medpace provided its 2024 financial guidance, forecasting revenue in the range of $2.150 billion to $2.200 billion, which would represent a growth of 14.0% to 16.7% over 2023 revenue. The company also anticipates GAAP net income for the full year 2024 to be between $326.0 million and $348.0 million, with EBITDA expected in the range of $400.0 million to $430.0 million.

Medpace's continued investment in its global infrastructure and its disciplined approach to clinical development have positioned the company for sustained growth. With a strong financial foundation and a clear strategic direction, Medpace is well-equipped to navigate the dynamic landscape of the biotechnology, pharmaceutical, and medical device industries.

For more detailed information on Medpace Holdings Inc's financial results, investors and interested parties are encouraged to review the full 8-K filing.

Explore the complete 8-K earnings release (here) from Medpace Holdings Inc for further details.

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[fung_derf]

When I was a younger trader, my strategy was always....
sell if I have a 30% profit....or a 15% loss. I only had to be right half as often this way.
However, as I got older and also, the changing of the stock market (I think things started changing when companies quit doing stock splits), my strategy changed with it, and I sell off my cost basis on the winners and let them ride...or sell them in thirds.
I did this with $SMCI until I really believed it was due for a pullback. The stock of the decade and I sold all of it too soon. I really have to take that stock off my screen. Driving me nuts.
Anyway, I've never been a bottom fisher and try not to ever buy at a top. I look to buy just as stocks break through a major resistance, and go for the meaty middle of the stock cycle. In my situation, I really don't need the home runs any more. More important to avoid any major mistakes. That's the problem with having a lot of money in the market. A correction gets magnified, which is why I keep leaking money over to annuities. Lock in those gains.
Although, if you read those prospectuses. They leave themselves a lot of outs in things go south.
There are insurance companies I see teetering on the edge of implosion, and only this ridiculous printing of money non stop from our government has saved them.
Not nearly enough people consider what inflation does to their nest egg.
I like to refer people back to the Milton Bradley game, The Game of Life. See what they considered to be wealthy in 1970.

[gfp927z]

Derf, >> all time highs <<

Yes, it seems like a lot of stocks are now at / near their all time highs. But for stocks like AAON, the long term trajectory has been well established over many years, so I see it as a long term buy / hold. It has reached the upper boundary of its long term channel, so one trading strategy might be to take profits and then try to re-enter later once it returns to the lower channel line area. But you would have to be right twice -- at the exit point, and again at the re-entry point, so getting both right would be a tall order. So with these I figure long term buy / hold makes the most sense.

For active trading strategies, I tried different approaches over the years, but never found one that worked consistently. I tried biotech stocks (big mistake), and also did a few 'pincher plays', which were fun to analyze on the charts, but are treacherous. A conservative trading approach would be to channel trade a stock during an extended uptrend or downtrend. This should be a high percentage strategy since the odds are that an established trend will continue / resume. Covered call options is another conservative idea, as a way to enhance the yield on a stock you already own, though I haven't tried it,

Lots of ways to make or lose money in the market. I figure buying quality and holding long term has its advantages :o)



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[fung_derf]

Not knocking your picks, but you're finding them at all time highs.
AAON up 15% last week. Their earning projections are very high, if it misses the next few quarters that's gonna hurt. They've also cut the dividend recently.
Same industry as LEN and WIRE.
$WIRE probably the most steady.
Had totally forgotten about that stock. Owned it many years ago. I think I sold it at $24. Now $245. Although that was probably 20 years ago.

[gfp927z]

>>> What Makes AAON (AAON) a Lucrative Investment?


Insider Monkey

by Soumya Eswaran

February 7, 2024


https://finance.yahoo.com/news/makes-aaon-aaon-lucrative-investment-112143112.html


Baron Funds, an investment management company, released its “Baron Discovery Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. In 2023, the fund (Institutional Shares) returned 22.58% outperforming the 18.66% return for the Russell 2000 Growth Index. In Q4, the fund returned 12.44% compared to a 12.75% return for the index. Since its inception, investors in the fund have earned an annualized return of 12.42%, resulting in a more than tripled investment. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Baron Discovery Fund featured stocks such as AAAON, Inc. (NASDAQ:AAON) in the fourth quarter 2023 investor letter. Headquartered in Tulsa, Oklahoma, AAON, Inc. (NASDAQ:AAON) is an air conditioning and heating equipment manufacturer. On February 6, 2024, AAON, Inc. (NASDAQ:AAON) stock closed at $72.07 per share. One-month return of AAON, Inc. (NASDAQ:AAON) was 0.31%, and its shares gained 40.29% of their value over the last 52 weeks. AAON, Inc. (NASDAQ:AAON) has a market capitalization of $5.855 billion.

Baron Discovery Fund stated the following regarding AAON, Inc. (NASDAQ:AAON) in its fourth quarter 2023 investor letter:

"AAON, Inc. (NASDAQ:AAON) is a high-quality manufacturer of HVAC equipment based in Tulsa, OK. It is a leader in providing premium, semi-custom HVAC equipment to the non-residential market with products that are more energy efficient, have longer life spans, and overall are better customized than peers to fit customers’ needs. This has driven significant outperformance over the past decade with organic growth in the high single-digit to low double-digit range compared to a low to mid-single-digit range for its peers.

Strong secular growth driven by decarbonization and broader ESG trends/ regulations is leading to greater demand for the types of products AAON specializes in such as energy efficient HVAC equipment that provides better air quality. To satisfy incoming regulations, peers have been forced to update their offerings and raise prices, while AAON today has ready-to-ship products satisfying all regulations. This dynamic is reducing the price premium between AAON’s products and the industry standards from 15% to 20% historically to a high single-digit level today. This price gap reduction is accelerating volume growth and enabling the company to take share. With the acquisition of BasX Solutions, a leader in data center, cleanroom systems, and custom HVAC units in December 2021, AAON expanded its addressable market by around 50% to over $30 billion in segments of the market where its focus on energy efficient units is extremely valuable. BasX’s adjusted cash flow (EBITDA) has roughly doubled over the past two years under AAON’s ownership. Lastly, CEO Gary Fields has undertaken a multi-year reorganization of the company’s management team and invigoration of company culture with a greater focus on selling and pushing the AAON solution from niche to mainstream. A simple illustration of the change brought by Gary is the opening of the exploration center this past April. This is a 28,000 square foot facility with over 10,000 square feet of exhibits and AAON products. We toured this facility at the company’s Analyst Day this past May where AAON units were placed next to competitor solutions. By purchasing and deconstructing competitors solutions, the team clearly highlighted the value of AAON’s superior products. They are more durable and have higher levels of efficiency. The team hoped that they would bring one to two potential customers a week to the center, but the demand has been so strong that one to two customers a day are visiting with a strong conversion from visits to eventual orders.

Going forward, with run-rate revenue at a little over $1 billion in a $30 billion market, there is ample opportunity ahead for AAON to grow and take market share. We expect mid-single-digit price increases across its product set along with mid-single-digit volume growth. The business is about 65% replacement/35% new construction with a mix of end-markets and limited exposure to new office construction. Given the growth opportunity ahead, the company is continuing to invest aggressively but at the same time has taken steps to maximize its physical footprint and, over time, will achieve greater levels of operating leverage. We believe the company will drive gross margins from the low 30% to the mid-high 30% levels with EBITDA margins expanding from the low to high 20% levels over our five year investment horizon. We calculate this combination of above market growth combined with significant margin expansion will allow us to double our investment over the next five years."

AAON, Inc. (NASDAQ:AAON) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held AAON, Inc. (NASDAQ:AAON) at the end of third quarter which was 19 in the previous quarter.

We discussed AAON, Inc. (NASDAQ:AAON) in another article and shared the list of best growth stocks to buy according to billionaire Ray Dalio’s Bridgewater Associates. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.

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[fung_derf]

I thought the same thing........

[gfp927z]

I think Latoria might be an 'Ai Bot', based on the content and writing style. No real person writes like that, with the possible exception of a professional financial writer. Anyway, nice to have another poster on the board, even if she's a computerized 'bot' :o)



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[wow_happens28]

Welcome to the board Latoria, nice posts.

[Latoria]

Winmark's impressive performance, both in terms of stock price and dividend payouts, underscores its resilience and potential for growth in the retail sector. The company's focus on franchise-based retail businesses specializing in secondhand goods has proven to be a lucrative model, attracting investors with its consistent returns.

The surge in Winmark's stock price, particularly over the past year, highlights the market's recognition of its value and growth prospects. While its current valuation may seem expensive compared to historical averages, the company's strong financial performance and expansion opportunities justify investor confidence.

The prospect of another special dividend announcement, typically made in October, further adds to Winmark's appeal for income-oriented investors. Additionally, CEO Brett Heffes' optimistic outlook on the company's growth potential, with thousands of open territories for franchises, signals a promising future for Winmark.

[Latoria]

The rise of fractional shares trading is certainly an intriguing development, especially in the current market climate where accessibility and flexibility are key. The ability to invest in fractions of shares opens up opportunities for a wider range of investors to participate in the stock market, even with limited funds.

What's particularly fascinating is how this trend has gained momentum alongside the recent market rally. With major players like Fidelity and Schwab joining the fray, fractional shares are becoming increasingly mainstream, reflecting a growing demand for more inclusive investment options.

It's noteworthy to see the significant uptake in fractional trading, with platforms like SoFi reporting that a substantial portion of trades are now conducted in fractional shares. This shift indicates a shift in investor behavior towards smaller, more accessible investments, which could have broader implications for the investment landscape.

Furthermore, the surge in fractional trading during the pandemic, particularly with the arrival of stimulus checks, highlights the role of technology in democratizing investing. Platforms like CashApp have witnessed record-high brokerage volumes, underscoring the appetite among retail investors to engage with the market, even during times of economic uncertainty.

[Latoria]

Great! It's encouraging to see that the Institute for Supply Management's data indicates a gradual uptick in manufacturing activity following a period of significant decline.

The correlation between consumer demand for durable goods and housing and the subsequent benefits to manufacturers is a key insight. As consumers gradually resume spending and take advantage of low interest rates, manufacturers stand to benefit from increased demand for their products.

The selection of seven American manufacturing stocks to buy reflects this optimistic outlook on the sector's recovery. Companies like Builders FirstSource, AAON Inc, and Generac Holdings are positioned to capitalize on growing consumer demand and economic recovery efforts. It's notable that these stocks have demonstrated resilience throughout the pandemic-induced market volatility, and they continue to offer compelling growth potential.

Moreover, the mention of the Portfolio Grader tool's "Buy" ratings for these stocks adds credibility to their investment attractiveness. Investors seeking opportunities in the manufacturing sector may find value in considering these stocks as part of a diversified portfolio.

[Latoria]

I think the information presented highlights the significant challenges faced by the economy and the stock market due to the global lockdowns. It's concerning to see the extent of losses experienced by individual investors as a result of extreme selling.

However, the mention of monetary and fiscal assistance from the Federal Reserve and the Trump administration offers some hope for companies and the broader economy. This assistance could potentially provide much-needed relief during these difficult times.

The emphasis on evaluating a company's credit health before making investment decisions resonates with me. It's crucial to consider factors like cash coverage of liabilities and debt obligations, especially given the current economic uncertainty. This approach underscores the importance of financial stability in navigating market volatility.

The selection of stocks highlighted in the post, particularly those with positive returns despite the market downturn, indicates potential opportunities for investors. These companies have demonstrated resilience and could be well-positioned for future growth.

[Latoria]

While the agreement may provide some relief for the two Ohio counties involved, it's important to note that this settlement doesn't absolve J&J from facing numerous other opioid-related lawsuits across the country.

The opioid epidemic has had devastating effects on communities, and it's encouraging to see efforts to allocate funds towards programs aimed at supporting those affected, such as treatment for babies born to opioid-addicted mothers. However, it's clear that there's still much work to be done in holding all parties accountable for their role in fueling the crisis.

[Latoria]

These insights into the animal health sector are truly eye-opening! It's fascinating to see how demographic shifts and changing consumer behaviors are reshaping investment opportunities in such a unique niche. The emphasis on preventive pet care and the increasing importance of pets within families are trends that certainly resonate with many of us.

The strategic focus on companies like Idexx Labs, Zoetis, and Dechra Pharmaceuticals makes a lot of sense given their strong market positions and the favorable landscape in which they operate. It's clear that you've identified a promising area for growth within the healthcare sector, and your analysis underscores the importance of staying ahead of the curve when it comes to investment opportunities.

Thanks for sharing your insights – it's inspiring to see how thoughtful analysis can uncover exciting prospects for investors. Looking forward to hearing more about your perspectives in the future!

[fung_derf]

Right. It's the K-1 I was thinking of. Cost me more than the dividend every year to file the extra tax page.

[gfp927z]

Derf, >> extra tax forms? <<

In my experience, nothing extra has been required for individual foreign stocks that are traded on US exchanges. I've only had smaller positions though, so it might be different for very large positions.

With taxes, an area to watch out for are the energy Ltd partnership investments, which can require a K-1 form. Also, some of the commodity ETNs can be a hassle at tax time. Also the bitcoin / crypto stuff, so just one more reason to avoid those :o)

With zero commissions, it's now possible to put together your own quasi 'ETF' using relatively small positions. Here's the full stock list I came up with, broken down by sector (link below). Most of the stock allocation is in the S+P 500, but these individual stocks / sectors can be interesting and fun to follow -


https://investorshub.advfn.com/5G-Telecom-Sector-37555




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[fung_derf]

$NVO looks very strong. Would have been more impressed had you recommended it a year ago though. Their earnings projections look very strong.
Looks like they pay a dividend twice a year with one coming soon. Not great for taxable accounts. Also, as a foreign company, do you have to do with the extra tax forms?

[gfp927z]

>>> Novo Nordisk A/S (NVO), a healthcare company, engages in the research, development, manufacture, and marketing of pharmaceutical products worldwide. It operates in two segments, Diabetes and Obesity care, and Rare Disease.

The Diabetes and Obesity care segment provides products in the areas of insulins, GLP-1 and related delivery systems, oral antidiabetic products, obesity, glucagon, needles, and other chronic diseases.

The Rare Disease segment offers products in the areas of haemophilia, blood disorders, endocrine disorders, growth disorders, and hormone replacement therapy.

The company has a collaboration agreement with Gilead Sciences, Inc.; and research collaboration with Novo Nordisk to discover cell-specific carriers of nucleic acid therapeutics. The company was founded in 1923 and is headquartered in Bagsvaerd, Denmark.

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https://finance.yahoo.com/quote/NVO/profile?p=NVO


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[gfp927z]

>>> WASTE CONNECTIONS ANNOUNCES AGREEMENT TO ACQUIRE SECURE ENERGY'S WASTE DISPOSAL-CENTRIC ASSET DIVESTITURES IN WESTERN CANADA


PR Newswire

December 11, 2023


https://finance.yahoo.com/news/waste-connections-announces-agreement-acquire-120000117.html


TORONTO, Dec. 11, 2023 /PRNewswire/ -- Waste Connections, Inc. (TSX/NYSE: WCN) ("Waste Connections" or the "Company") today announced that its subsidiary, Waste Connections of Canada Inc., has entered into an agreement with Secure Energy Services Inc. (TSX: SES) ("Secure") to acquire a portfolio of 30 energy waste treatment and disposal facilities in Western Canada for an aggregate purchase price of CAD$1.075 billion plus certain adjustments as provided in the definitive purchase agreement.

The assets to be acquired by the Company include 18 treatment, recovery and disposal facilities; six landfills; four saltwater disposal injection wells; and two disposal caverns and represent all of the required divestitures as mandated by the Canadian Competition Tribunal following Secure's 2021 merger with Tervita Corporation. The oil and gas exploration and production ("E&P") waste treatment and disposal facilities are strategically located in key geographic Canadian oil and gas basins and serve a diverse customer base largely oriented to production. The combined annual revenue being acquired by the Company is currently estimated at approximately CAD$300 million.

The transaction remains subject to customary closing conditions, including receipt of Canadian Competition Bureau approval, and it is expected to close during the first quarter of 2024.

"This acquisition represents a unique opportunity for outsized value creation from the expansion of our presence in Canada through a network of E&P waste treatment and disposal assets located in the most attractive and growing basins," said Ronald J. Mittelstaedt, President and Chief Executive Officer. "The divestitures are a rare combination of high-quality, well-situated disposal and treatment assets with significant internal capacity for growth. With a heavy orientation towards serving customers engaged in energy production activity, these assets will be complementary to our U.S. R360 Environmental Solutions operations."

Mr. Mittelstaedt added, "Once closed, this acquisition is expected to add over 50 basis points to our consolidated EBITDA margin, given the high margin, disposal-oriented profile of the facilities. Moreover, we also expect this transaction to be accretive to earnings per share and free cash flow margins."

Waste Connections

Waste Connections (wasteconnections.com) is an integrated solid waste services company that provides non-hazardous waste collection, transfer and disposal services, including by rail, along with resource recovery primarily through recycling and renewable fuels generation. The Company serves approximately nine million residential, commercial and industrial customers in mostly exclusive and secondary markets across 44 states in the U.S. and six provinces in Canada. Waste Connections also provides non-hazardous oilfield waste treatment, recovery and disposal services in several basins across the U.S., as well as intermodal services for the movement of cargo and solid waste containers in the Pacific Northwest. Waste Connections views its Environmental, Social and Governance ("ESG") efforts as integral to its business, with initiatives consistent with its objective of long-term value creation and focused on reducing emissions, increasing resource recovery of both recyclable commodities and clean energy fuels, reducing reliance on off-site disposal for landfill leachate, further improving safety and enhancing employee engagement. Visit wasteconnections.com/sustainability for more information and updates on our progress towards targeted achievement.

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[gfp927z]

>>> Mondelez International, Inc. (MDLZ)


https://www.insidermonkey.com/blog/5-best-mario-gabelli-stocks-other-billionaires-are-also-piling-into-1235826/


Number of Billionaire Investors In Q3 2023: 14

Mondelez International, Inc. (NASDAQ:MDLZ) is an American confectionery company known for its well known snacks such as Oreo, Cadbury Dairy Milk, and Toblerone. The firm has beaten analyst EPS estimates in all four of its latest quarters and the shares are rated Strong Buy on average with an average share price target of $80.45.

For their Q3 2023 shareholdings, 51 out of the 910 hedge funds surveyed by Insider Monkey had bought and owned Mondelez International, Inc. (NASDAQ:MDLZ)’s shares. Brandon Haley’s Holocene Advisors was the largest shareholder due to its $278 million investment.

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[gfp927z]

>>> Republic Services Polymer Center Opens, Promoting Bottle-to-Bottle Plastics Circularity


PR Newswire

Dec 5, 20233


https://finance.yahoo.com/news/republic-services-polymer-center-opens-130200842.html


First-of-its-kind facility in North America will help meet growing demand for recycled plastics for use in sustainable packaging

PHOENIX, Dec. 5, 2023 /PRNewswire/ -- Republic Services, Inc. (NYSE: RSG) today marked the opening of its Polymer Center in Las Vegas, the first-of-its-kind facility in North America, enabling greater circularity for plastics and helping meet growing demand for recycled material. The Polymer Center expects to produce more than 100 million pounds of recycled plastics each year for use in sustainable packaging and other applications.

"The Republic Services Polymer Center will supply high-quality, domestically sourced recycled plastic to advance a critical need for more sustainable packaging," said Jon Vander Ark, president and chief executive officer. "As a leader in the environmental services industry, it's our responsibility to challenge every truckload of material we collect. The Polymer Center is another example of our commitment to developing solutions that promote greater circularity and help customers achieve their sustainability goals."

The Polymer Center will process plastic bottles, jugs and containers collected from homes and businesses to produce recycled PET (rPET) flake and color-sorted HDPE and polypropylene ready for use in new sustainable packaging. Until now, the fate of a recycled plastic bottle in the U.S. wasn't a new plastic bottle; instead, it was generally downcycled into fiber for use in carpet or clothing – material that has few options for further recycling. The Polymer Center expects to significantly extend the lifecycle of plastic packaging and help turn plastic bottles into new bottles six to seven times, enabling true circularity.

As brands commit to using more recycled content in their packaging and more states mandate the use of recycled plastic, supply is struggling to meet the growing demand. By 2030, demand for rPET in the U.S. is expected to total 5 billion pounds, while the supply – based on current processes – will only reach about 2.5 billion pounds.1 The Polymer Center can help companies fill this urgent gap now.

The Coca-Cola Company, one of the first customers of the Las Vegas Polymer Center, has committed to use at least 50% recycled material in its packaging by 2030. The Polymer Center is scheduled to supply rPET to Coca-Cola, beginning in January 2024.

Plans for a nationwide network of Polymer Centers are underway, with the second facility expected to open in Indianapolis in late 2024.

About Republic Services

Republic Services, Inc. is a leader in the environmental services industry. Through its subsidiaries, the Company provides customers with the most complete set of products and services, including recycling, solid waste, special waste, hazardous waste and field services. Republic's industry-leading commitments to advance circularity and support decarbonization are helping deliver on its vision to partner with customers to create a more sustainable world.

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[gfp927z]

>>> Winmark Corporation (WINA), a resale company operates as a franchisor for small business in the United States and Canada. The company's Franchising segment franchises retail stores concepts that buy, sell and trade merchandise. Its Leasing segment operates middle-market equipment leasing business. The company buys and sells used clothing and accessories geared toward the teenage and young adult market under Plato's Closet brand; and operates stores which buys and sells used and new children's clothing, toys, furniture, equipment, and accessories primarily to parents of children ages infant to 12 years under the Once Upon A Child brand. In addition, it buys, sells, trades in, and used and new sporting goods, equipment, and accessories for various athletic activities including team sports, such as baseball/softball, hockey, football, lacrosse, and soccer, as well as fitness, ski/snowboard, golf, and others under the Play It Again Sports brand; and buys and sells used women's apparel, shoes, and accessories under the Style Encore brand. Further, the company buys, sells, trades in, and used and new musical instruments, speakers, amplifiers, music-related electronics, and related accessories under the Music Go Round brand. Winmark Corporation was incorporated in 1988 and is headquartered in Minneapolis, Minnesota.

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[gfp927z]

>>> CACI International (CACI) offers specialized technology services and consulting to the defense and intelligence industry. It is a beneficiary of the modernization efforts in the U.S. military and intelligence. Moreover, it will profit from the increased cyber warfare as we go ahead.


https://finance.yahoo.com/news/3-best-defense-stocks-buy-210423930.html


The company provides digital solutions that modernize federal agencies and their IT. The Engineering Services segment enhances and hardens national technology systems to defend against malicious actors. Its C4ISR, Cyber & Space solutions provide electromagnetic spectrum advantage and deliver precision effects to protect federal agencies against national security threats.

CACI generates a significant portion of revenues from the federal government. In fiscal 2023, federal government contracts made up 94.8% of total revenues. Over the same period, contracts with agencies of the Department of Defense represented 71.9% of total revenues.

Over the past decade, revenues have been steadily increasing, given the growth in defense spending. This growth will likely continue due to the critical nature of CACI’s services to the U.S. government.

The company has secured key defense contracts from the U.S. government. For instance, it won a $5.7 billion Air Force Enterprise IT contract in June to modernize and transform Airforce IT services. And in August, it bagged another $2.7 billion contract from the National Security Agency. These awards highlight why CACI is one of the best defense stocks to buy.

In terms of valuations, the stock is reasonably valued. For the full year ending June 30, 2023, it earned an adjusted diluted EPS of $18.83. Thus, as of this writing, it trades at 17 times trailing earnings. Given the stability of its defense business and expected secular defense spending, CACI stock is a bargain.

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[gfp927z]

>>> Costco Wholesale (COST) -- a membership-only discount retailer with a market capitalization of nearly $250 billion, pays a quarterly dividend of $1.02 per share. The annual yield of 0.73% isn't impressive on the surface, but the company has raised its dividend annually since 2004.


https://www.fool.com/investing/2023/09/17/3-top-dividend-stocks-to-buy-now/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


It also pays a special cash dividend roughly every three years. Given that pattern, shareholders can reasonably anticipate another special dividend in the near future since the last one was paid in December 2020 at $10 per share.

With Costco's business model, monitoring membership growth is an essential measure of health and future growth with membership price increases. In its last 12 reported months, the company grew its number of cardholders from 116.6 million to 124.7 million, resulting in a roughly 7% increase.

Costco's annual membership fees generate approximately $4 billion in high-margin revenue. The company's historical pattern indicates it raises these fees about every five or so years, and the most recent change occurred in June 2017, so it stands to reason that an increase in fees is likely on the horizon, which would boost membership revenue even more.

If there is a downside to investing in Costco, it begins and ends with its valuation. Using the standard valuation metric for mature companies of price-to-earnings (P/E) ratio, the stock trades at a P/E of 41.4, significantly higher than competitors Target and Walmart at a P/E of 16.8 and 31.6, respectively. Costco's five-year average P/E is 37.4, meaning the stock is currently trading at an even higher valuation than usual.

Despite maintaining a consistently high valuation, Costco's stock has demonstrated its status as a long-term winner, delivering a total return of 146% over the last five years. When combined with an impressive balance sheet with $7.2 billion more in cash than debt, Costco emerges as an essential holding for long-term dividend-focused investors.

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[gfp927z]

>>> Winmark -- While many consumers might be unaware of small-cap stock Winmark (WINA), they are probably aware of its franchise-based retail companies that specialize in buying and selling secondhand goods: Music Go Round, Once Upon a Child, Plato's Closet, Play It Again Sports, and Style Encore.


https://www.fool.com/investing/2023/09/17/3-top-dividend-stocks-to-buy-now/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


Winmark's stock has demonstrated remarkable performance, surging 53% year to date, and even more impressively, delivering a total return of 145% over the past five years.

Like Costco, Winmark has a relatively low annual dividend yield and frequently pays a special dividend. Its yield is 0.9%, and it has paid a special dividend each of the last three years at an average of $4.97 per share. With the announcement of its special cash dividend typically in October, it is possible another one could be soon.

As a franchise business, Winmark is incentivized to expand its network because its revenue is primarily derived from franchise fees and royalties. Prospective franchisees must make an initial franchise payment of approximately $25,000 in the United States and contribute 4% to 5% of their weekly gross sales. CEO Brett Heffes believes there are 2,800 open territories for franchises, with only 1,303 locations as of July 1, 2023.

If there is a negative for Winmark, the recent stock run-up has made its valuation expensive, with a current P/E of 32.7. For comparison, Winmark averaged a P/E of 23.2 over the past five years. Nonetheless, with record revenue of $83.2 million and near-record net income of $39.9 million over the trailing 12 months, the market might finally be taking notice of the resale company valued at a market capitalization of $1.3 billion.

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>>> CBIZ ACQUIRES AMERICAN PENSION ADVISORS

PR Newswire

July 5, 2023


https://finance.yahoo.com/news/cbiz-acquires-american-pension-advisors-200100069.html


CLEVELAND, July 5, 2023 /PRNewswire/ -- CBIZ, Inc. (NYSE: CBZ) ("the Company"), a leading provider of financial, insurance and advisory services, announced today that it has acquired American Pension Advisors, Ltd. ("APA") of Indianapolis, IN, effective July 1, 2023.

Founded in 1997, APA provides full-service retirement plan consulting and administration assisting more than 1,200 clients in the design, implementation, and administration of all types of retirement plans including 401(k), 403(b), 457(b), defined benefit and cash balance. APA has 14 employees and approximately $2.9 million in revenue.

Jerry Grisko, President and CEO of CBIZ, said, "The acquisition of American Pension Advisors brings valuable talent, expertise, and capacity to bolster our growing Retirement Investment Services business. At the same time, this acquisition also strengthens our presence and visibility in the Indianapolis metro market and complements another acquisition in the same market we completed earlier this year. Working together, we will be able to offer our collective clients a broader array of services. I am pleased to welcome the APA team to CBIZ."

David Behrmann, of APA, stated, "We are so excited to join forces with a nationally recognized company like CBIZ. We look forward to offering the additional services and expertise of CBIZ to help our clients grow and succeed. I'm pleased that our team members will now have access to additional technical support, resources and tools that will make them more successful and better serve our clients."

About CBIZ

CBIZ, Inc. is a leading provider of financial, insurance, and advisory services to businesses throughout the United States. Financial services include accounting, tax, government health care consulting, transaction advisory, risk advisory, and valuation services. Insurance services include employee benefits consulting, retirement plan consulting, property and casualty insurance, payroll, and human capital consulting. With more than 120 Company offices in 33 states, CBIZ is one of the largest accounting and insurance brokerage providers in the U.S. For more information, visit www.cbiz.com.

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>>> Why trash hauler Republic Services thinks the U.S. is going green despite the politics: ‘To be environmentally sustainable, it’s got to be economically sustainable’


Fortune

by Phil Wahba

September 8, 2023


https://finance.yahoo.com/news/why-trash-hauler-republic-services-120000584.html


Jon Vander Ark doesn't mind anyone calling the company he leads, Republic Services, a garbage company. After all, founded in 1996, the company made its name hauling trash and still makes 5 million collections a day. But Vander Ark, CEO since 2021 and a 13-year veteran of Republic Services, has been working to modernize its business model to go after the higher-growth, higher-profit recycling market.

"I've seen us go from a garbage company to a waste company to a waste and recycling company to now an environmental services and sustainability company," says Vander Ark.

Last year, Republic managed 8 million tons of recyclable items, and extracted 2.4 million tons of materials that can have a second life. This strategy has boosted its stock in the last two years and given the company a market cap of $45 billion. What's more, under Vander Ark, Republic has gone after the fast-growing environmental services and consulting business, making a number of acquisitions. Vander Ark's moves raised revenue 20% last year to almost $14 billion.

The CEO says the way for Republic to thrive in this hyper-politicized environment around climate change is to simply be pragmatic about the focus on cost savings and revenue potential as Americans recycle more. For instance, Republic now has a fast-growing business recovering plastic consumer packaging for circularity, a term that refers to components being constantly re-used. It takes thrown away plastics and recycles them to produce high-quality plastic used by consumer packaged goods companies. "We think about circularity and de-carbonization as two fundamental mega-trends," says Vander Ark.

This interview was edited and condensed for clarity.

Fortune: How do we in the U.S. become a less wasteful society? And if we manage to do that, is that bad for business?

It would not hurt business. In fact it helps. We're already seeing that in terms of shrinking solid waste on a per capita basis. Typically a market grows with population, but solid waste is shrinking because we're diverting more and recycling is growing faster to make up the difference. Our aspiration is to accelerate that trend. So we look at every ton that goes into a landfill and challenge ourselves and ask, "How could we take that out and create value with it?" I pay for something to go to a landfill. But if I can recycle it, I get value for it on the other end.

When you look at how far along many European countries are in recycling in contrast to how much Americans throw out as trash, it's tempting to see Americans as lazy. Can recycling really become part of our culture?

We're certainly behind the Europeans. They're a very source-separated environment and things are very clearly separated for plastic, aluminum, glass and paper. That's how the U.S. was originally and recycling rates didn't really move for a period of time. When it did take off is when we moved to single stream, which is to put everything in one big container, which made it easier for people to recycle. But that has complications. You have some people who don't care and they're still putting garbage in and contaminating that load. And then you have at the other end, the wishful recycler who wants that greasy pizza box to be recycled so badly, but it can't be.

It seems like a lot of packaging is wasteful and impedes recycling. What can be done?

Take plastic packaging. Not all plastics are recyclable. So take a clamshell that is used for your take-out chicken rotisserie. It was made with post-consumer recycled content (material made from the items that consumers recycle every day such as aluminum, cardboard boxes, paper, and plastic bottles). But that shell itself is not going to be recycled, it's going to the landfill. So part of the opportunity is to design for recyclability upfront.

What do you make of the current pushback against ESG (environmental, social, and governance) standards for publicly traded companies? Could this hurt your business, or does this ESG emphasis march forward?

"ESG" needs to be unpacked. It's like a pig, a chicken and duck that get lumped together. All different, but all worthy topics. The "E" part of this is here to stay. We think about circularity and de-carbonization as two fundamental mega-trends that whatever the political sentiment, companies are investing billions of dollars in. There's a global consensus there and we see those as tailwinds for our business.

Another CEO recently told me that you can get consumers on board with green initiatives more easily if one doesn't mention climate change, and by emphasizing reducing waste and saving money. Do you agree?

We're not running away from climate change. We get that the world is heating up and humans are a factor in that and we don't hide from that. I would say this: if something's going to be environmentally sustainable, it's got to be economically sustainable. So we don't do things as science projects or for charity. It's our business and we're going to make money and grow.

You have a goal that by 2030, half of your new garbage and recycling trucks will be electric vehicles. That's ambitious but what stops you from going even faster?

Just like a passenger car, if you retrofit a diesel truck, you add too much weight with the batteries and so it becomes economically inefficient. But when you design it from scratch, you take enough weight out so it can run a full 10.5-hour day and 125 miles without having to stop, so you don't lose productivity.

Do you ever get offended by someone calling Republic Services a garbage company despite all the push you've made into recycling and environmental services?

We're not offended by that because people get too easily offended. That's what we called ourselves a decade ago and I've seen us go from a garbage company to a waste company to a waste and recycling company to now an environmental services and sustainability company. And as that's evolved, so has our mindset. We still have landfills and they are going to be with us for a long time, so we don't run from that. But we're way bigger and way more than that now.

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>>> IDEXX Announces Novel Diagnostic Test for Kidney Injury, Expanding the Veterinary Industry's Most Comprehensive Renal Testing Portfolio


Yahoo Finance

June 15, 2023


https://finance.yahoo.com/news/idexx-announces-novel-diagnostic-test-110000814.html


The IDEXX Cystatin B Test can help veterinarians detect kidney injury before changes in kidney function, promoting better patient outcomes

WESTBROOK, Maine, June 15, 2023 /PRNewswire/ -- IDEXX Laboratories, Inc. (NASDAQ: IDXX), a global leader in pet healthcare innovation, today announced the launch of the first veterinary diagnostic test for detecting kidney injury in cats and dogs. According to a recent IDEXX survey, as many as one-third of kidney cases seen by veterinarians are related to kidney injury, and a diagnosis can be challenging due to subtle or nonspecific signs.1 The IDEXX Cystatin B Test will be included in test panels assessing renal health, uncovering new clinical insights for an estimated two million patient visits annually. These tests will be run at IDEXX Reference Laboratories starting later this year in the U.S. and Canada, with plans to introduce the test in Europe in 2024.

The kidneys are vital to the overall health of a patient, regulating blood pressure, electrolyte balance, and red blood cell production, and removing toxins. IDEXX SDMA testing provides veterinarians with unmatched insights into kidney function, and the IDEXX Cystatin B Test will enhance their view into kidney health by detecting injury and providing additional clarity when a change in kidney function may not be apparent. Together, the IDEXX Cystatin B and IDEXX SDMA® tests offer a comprehensive view of the kidneys by uncovering structural injury and impaired kidney function.

"With the addition of the IDEXX Cystatin B Test, we are pleased to offer the industry's first biomarker for kidney injury," said Jay Mazelsky, IDEXX President and Chief Executive Officer. "The IDEXX portfolio of tests and technologies enables veterinarians to intervene earlier, advance treatment, and now detect kidney injury, resulting in better outcomes throughout the lives of their patients."

The IDEXX expanded renal testing portfolio now includes:

IDEXX Cystatin B Test, detecting kidney injury with or without changes in kidney function, providing valuable insights in cases such as early toxin exposure.

IDEXX SDMA® Test and creatinine, helping to establish a baseline for kidney function for monitoring and early kidney disease detection.

IDEXX FGF-23 Test, allowing for more confident recommendations of targeted therapy for cats diagnosed with chronic kidney disease (CKD) by monitoring phosphorous overload.

Urine testing, providing a deeper understanding of total kidney health by examining the physical and chemical properties of urine.

For more information on the IDEXX Cystatin B Test and IDEXX kidney health solutions, please visit IDEXX Cystatin B.

A joint statement from three founding members of the American College of Veterinary Nephrology and Urology accentuates the value this novel biomarker holds in the industry and aligns with a recent statement from the International Renal Interest Society (IRIS):

"The advent of diagnostic biomarkers capable to detect the presence of acute kidney injury as well as active and ongoing kidney injury in advance of or in the absence of changes in conventional markers of kidney function forecast an important advance in the evaluation of acute and chronic kidney disease in dogs. The development and validation of Cystatin-B as an active kidney injury biomarker in dogs that will be readily available to veterinarians has the potential to reshape the future diagnostic and therapeutic directions of kidney disease. As nephrologists, we anxiously await this new era of early disease discovery and management."

Dr, Gilad Segev, DVM, Dip. ECVIM-CA (Internal Medicine)
American College of Veterinary Nephrology and Urology, Founding Member
Associate Professor of Veterinary Medicine
Head, Small Animal Internal Medicine
Koret School of Veterinary Medicine
The Hebrew University of Jerusalem

Dr. Shelly Vaden, DVM, PhD, DACVIM (SAIM)
American College of Veterinary Nephrology and Urology, Founding Member
Professor Internal Medicine (Nephrology and Urology)
Medical Director, Extracorporeal Therapies
Chief of Staff, Small Animal
North Carolina State University, College of Veterinary Medicine

Larry D. Cowgill, DVM, PhD, Dipl. ACVIM (SAIM)
American College of Veterinary Nephrology and Urology, Founding Member
Professor, Department of Medicine & Epidemiology
2108 Tupper Hall
School of Veterinary Medicine
University of California-Davis

About IDEXX

IDEXX is a global leader in pet healthcare innovation. Our diagnostic and software products and services create clarity in the complex, constantly evolving world of veterinary medicine. We support longer, fuller lives for pets by delivering insights and solutions that help the veterinary community around the world make confident decisions—to advance medical care, improve efficiency, and build thriving practices. Our innovations also help ensure the safety of milk and water across the world and maintain the health and well-being of people and livestock. IDEXX Laboratories, Inc. is a member of the S&P 500® Index. Headquartered in Maine, IDEXX employs nearly 11,000 people and offers solutions and products to customers in more than 175 countries. For more information about IDEXX, visit: idexx.com. For media inquiries, please get in touch at [e-mail].

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Old Dominion - >>> 3 Top Trucking Stocks Under Heavy Accumulation


FX Empire

by Lucas Downey

February 6, 2023


https://finance.yahoo.com/news/3-top-trucking-stocks-under-130904222.html


Here are three companies under heavy accumulation.


Old Dominion Freight Line Inc. (ODFL) Analysis

First is the less-than-truckload hauler Old Dominion Freight Line (ODFL). The trucking stock is up 30% in 2023.

Healthy institutional accumulation has likely helped lift the shares higher, which you can see via the MAPsignals chart below. Since November there’ve been 6 unusually large volume inflows (green bars):

With a 12-month forward P/E of 30.8, shares could be attractive after a pullback. According to FactSet, the company is estimated to earn $13.30 per share in fiscal year 2024.

One thing is for sure, the shares have been in demand lately.


Knight-Swift Transportation Holdings Inc. (KNX) Analysis

Next up is Knight-Swift Transportation (KNX) which is another trucking company that operates in 3 segments: trucking, logistics, and intermodal. At MAPsignals, we believe in following large institutional flows. With the stock gaining 18% in 2023, we believe healthy accumulation is part of the story.

Since late November there’ve been 8 days where the stock jumped in price alongside outsized volumes. That can mean there’s institutional interest:

The 12-month forward P/E is pegged at 15.2X according to FactSet. Also, the company is expected to earn $4.64 per share in fiscal year 2024.

This unusual trading action suggests investors are expecting upside for the company in 2023.


Schneider National Inc. (SNDR) Analysis

The number 3 trucking firm racing higher this year is Schneider National (SNDR). This company provides transportation and logistics services. The market cap is just over $5.2 billion.

The stock has been an outperformer recently, jumping 26% in 2023. Notably, the shares have seen 4 large accumulation signals since November:

There’s no question the stock could be extended at these levels. However, this is one of the most in-demand trucking stocks according to MAPsignals research.

Strong sector leadership could mean there’s more upside for the group in 2023.

Bottom Line

ODFL, KNX, & SNDR represent 3 of the top trucking stocks so far in 2023. Healthy institutional accumulation signals make these stocks worthy of extra attention.

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ZTS, ODFL, TSCO, ASML - >>> 4 Top Stocks With High Dividend Growth to Buy in 2023 and Hold Forever


Motley Fool

By Josh Kohn-Lindquist

Jan 28, 2023


https://www.fool.com/investing/2023/01/28/4-stocks-with-high-dividend-growth-to-buy-in-2023/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


KEY POINTS

Undeniable trends in semiconductor chips and veterinary care should buoy ASML and Zoetis.

Old Dominion's earnings per share have spiked eightfold over the last decade.

Tractor Supply's surprisingly strong rewards program highlights its customer loyalty.


While high-yield dividend stocks generate more excitement than the lower yielders, dividend growth stocks may be better for buy-and-hold-forever investors. That's because many high yields are unsustainable. And the remaining group that is well-funded can often only afford tiny payout raises -- just enough to keep their annual dividend increase streak intact.

With this in mind, let's focus on four fast-growing dividends that may offer more long-term passive income potential than their high-yield counterparts. Posting annual dividend growth rates between 25% and 46% since 2018, ASML (ASML -2.41%), Old Dominion Freight Line (ODFL 4.55%), Tractor Supply Company (TSCO -0.46%), and Zoetis (ZTS -1.82%) could make sense for investors looking to maximize their future passive income.

1. ASML

While ASML's lithography technology -- using light to make patterns on the silicon wafers used in semiconductor chips -- is undeniably complex, its investment thesis is far more straightforward. Do you believe the need for semiconductor chips will grow over the next few decades?

If you answered yes, ASML's dominant leadership position in its niche might make it a classic buy-and-hold-forever investment. Holding a monopoly with its bleeding-edge extreme ultraviolet (EUV) lithography system and a roughly 80% share of the more mature deep ultraviolet (DUV) market, ASML is of paramount importance to the semiconductor industry.

Thanks to this dominant positioning, the company has averaged a 26% free cash flow (FCF) margin across the last decade. With this incredible cash generation, ASML handsomely rewards its shareholders, as evidenced by its annual dividends skyrocketing 1,600% from its first payment in 2008.

In fact, using the last 12 months' figures, ASML could triple its 0.8% dividend and still have excess free cash flow. Going forward, ASML plans to make quarterly dividend payments, as opposed to their semi-annual payments in the last few years. This is great news for dividend reinvestment plans as they will now receive ASML shares at various price points throughout the year via its quarterly payouts.

As countries weigh becoming more technologically independent, the company's lithography systems should continue to see healthy demand. Trading at 27 times FCF, ASML brings incredible dividend growth potential at a reasonable price.

2. Old Dominion Freight Line

Boasting a total return north of 1,200% over the last decade, less-than-truckload (LTL) hauling specialist Old Dominion Freight Line has smashed the market.

Almost exactly as it sounds, LTL hauling consists of picking up partial loads from multiple locations and delivering them to one or many drop-offs. While far more complicated than traditional truckload hauling, this complexity acts like a moat for Old Dominion. With nearly 11,000 tractors, 43,000 trailers, 24,000 employees, 255 service centers, and linehaul dispatchers and software needed to coordinate everything, successful new entrants to the industry are rare.

Equally as important for investors, Old Dominion's operations are best in class. Consider its profit margin and return on invested capital (ROIC) -- a measure of a company's profitability from its debt and equity -- compared to its LTL peers.

Thanks to this outsized profitability, Old Dominion decided to initiate a dividend in 2017 and has raised it by 284% in the years since. Though the company's dividend yield of 0.4% may seem diminutive, it only amounts to 9% of its net income -- leaving an incredible runway for future increases.

To top everything off, Old Dominion's price-to-earnings (P/E) ratio of 27 is well below the 40 level it often saw in 2022. Posting 43% earnings per share (EPS) growth through the first three quarters of 2022, Old Dominion looks more enticing than ever.

3. Tractor Supply Company

With 27 million members in its Neighbor's Club rewards program, Tractor Supply and its 2,100 stores are a dividend growth success story in the footsteps of Home Depot and Lowe's. Since 2010, Tractor Supply has boosted its quarterly dividend payments from $0.035 per share to $0.92 today, an increase of over 2,200%. Buoyed partly by these dividends, the company has outpaced the market over the last five years.

So how exactly does Tractor Supply do it with behemoths like Home Depot and Lowe's in its backyard? In the simplest terms, it's by being the rural version of its giant peers. Consider that almost half of the company's sales come from its livestock and pet category. Through this niche offering, Tractor Supply draws millions of farmers, ranchers, and even suburban gardeners to its stores with its adjacent, yet quite distinct, product offering and hometown feel.

Once in the company's ecosystem, these customers often sign up for its rewards program and become loyal members. For example, since the pandemic's start, Tractor Supply saw 19 million new customers -- 55% of which became repeat purchasers.

The shares trade at just 23 times earnings, and the company's 1.8% dividend only uses 35% of its total net income. Raising its last dividend by 77%, Tractor Supply makes for a fascinating dividend-growth selection to hold forever.

4. Zoetis

In a recent survey by The Human Animal Bond Research Institute and Zoetis, 86% of pet owners and veterinarians said they would pay whatever was necessary for extensive vet care. While it is sad to consider any adverse outcomes concerning our beloved pets, the fact remains that Zoetis and its array of pet and livestock vaccines and medicines should only continue growing in importance.

In fact, since going public via a spinoff from Pfizer in 2013, Zoetis posted a total return of nearly 500%. Over the last five years, the company has almost tripled the returns of the S&P 500 Index despite falling by 19% in the previous year.

In the $45 billion animal health industry, Zoetis generates 61% of its sales from companion animals (cats and dogs) and 39% from livestock. Boasting a leadership position in pets, cattle, and swine (not to mention North America, Latin America, and Asia -- geographically speaking), the company maintains a portfolio of over 300 products.

Riding this success, Zoetis has grown sales and EPS by 9% and 13%, respectively, over the last three years. Over this same time, the company raised its dividend by 25% annually and now yields 0.9% with a small payout ratio of 26%. Thanks to the megatrends working in its favor and its steady growth, Zoetis trades at a rich 37 times earnings but makes for an outstanding dividend growth stock.

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>>> The Hershey Company (HSY), together with its subsidiaries, engages in the manufacture and sale of confectionery products and pantry items in the United States and internationally. The company operates through three segments: North America Confectionery, North America Salty Snacks, and International. It offers chocolate and non-chocolate confectionery products; gum and mint refreshment products, including mints, chewing gums, and bubble gums; pantry items, such as baking ingredients, toppings, beverages, and sundae syrups; and snack items comprising spreads, meat snacks, bars and snack bites, mixes, popcorn, and protein bars. The company provides its products primarily under the Hershey's, Reese's, Kisses, Jolly Rancher, Almond Joy, Brookside, barkTHINS, Cadbury, Good & Plenty, Heath, Kit Kat, Payday, Rolo, Twizzlers, Whoppers, York, Ice Breakers, Breath Savers, Bubble Yum, Lily's, SkinnyPop, Pirates Booty, Paqui, Dot's Homestyle Pretzels, and ONE Bar brands, as well as under the Pelon Pelo Rico, IO-IO, and Sofit brands. It markets and sells its products to wholesale distributors, chain grocery stores, mass merchandisers, chain drug stores, vending companies, wholesale clubs, convenience stores, dollar stores, concessionaires, and department stores. The company was founded in 1894 and is headquartered in Hershey, Pennsylvania.

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NextEra Energy - >>> 3 Dividend Stocks That Will Thrive in a Low-Carbon Future


Motley Fool

By Daniel Foelber, Scott Levine, and Lee Samaha

Nov 3, 2022


https://www.fool.com/investing/2022/11/03/3-dividend-stocks-thrive-low-carbon-energy-future/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


KEY POINTS

NextEra Energy is finally hitting its stride.

Johnson Controls can help reduce carbon emissions for building owners and operators.

Brookfield Renewable operates a massive portfolio of renewable energy assets.


The energy transition offers immense opportunity for long-term investors.

The energy transition presents economic and environmental opportunities for the public and private sectors. Whether it's lowering emissions for legacy industries and existing processes or implementing new technologies that can support a lower carbon future, there is a heightened focus on sustainable growth and environmental, social, and governance investing.


NextEra Energy

NextEra Energy (NEE 1.17%), Johnson Controls International (JCI 5.74%), and Brookfield Renewable (BEP -0.20%) (BEPC 0.59%) are three quality dividend-paying companies with prospects that are aligned with the energy transition.

Improved profitability is the key for NextEra Energy
Daniel Foelber (NextEra Energy): Last Friday, NextEra Energy reported another excellent quarter. The regulated electric utility posted 13% growth in adjusted earnings per share (EPS) in the third quarter versus a year ago.

The company has two main business units. Florida Power & Light (FPL) is the legacy business that supports more than 12 million folks across Florida. That unit alone made over $1.07 billion in net income for the quarter. Meanwhile, NextEra Energy Resources (NEER) is the company's (mostly) renewable energy arm. It finances and operates utility-scale projects across North America. NEER's profitability has improved over the years. It made $722 million in adjusted earnings for the quarter.

NextEra Energy has grown to become the largest renewable energy operator in North America, mainly by using excess free cash flows from FPL to fund NEER's development. It's worth noting that FPL is also investing in solar to shift its energy mix away from natural gas. But NEER's improved profitability is an excellent sign that the business unit is becoming self-sufficient.

Over time, NEER's profitability should help NextEra Energy pay down debt and fund future dividend raises. Having paid and raised its dividend for 28 consecutive years, NextEra Energy is a Dividend Aristocrat with a proven track record of returning value to shareholders.

NextEra Energy is also a reliable business that is able to accurately forecast performance multiples years into the future. For the full year 2022, it is guiding for adjusted EPS of $2.80 to $2.90. For 2023, it expects adjusted EPS of $2.98 to $3.13 followed by $3.23 to $3.43 in 2024 and $3.45 to $3.70 in adjusted EPS in 2025. It also expects to grow its dividend by 10% per year through at least 2023 and 2024. NextEra Energy remains a well-rounded utility stock with a nice blend of growth and reliable passive income from its 2.3% dividend yield.


Johnson Controls International

Long-term growth prospects are excellent for Johnson Controls

Lee Samaha (Johnson Controls): Around 50% of carbon emissions come from the built environment, including 27% from building operations. Building owners and operators must invest in their properties to meet their net-zero emissions goals. That's the driving force behind the case for buying Johnson Controls stock.

The company has a multiyear opportunity to benefit from a cycle of retrofit investment by building owners. And the global pandemic has created an increased awareness of the need for adequately ventilated, healthy, clean buildings. Throw in the dramatically increased gains in building efficiency from using digital technology to manage structures' operations better, and it's not hard to see why building owners are likely to invest.

This speaks to an opportunity for Johnson Controls to grow sales of its heating, ventilation, air-conditioning, building controls, and fire & security products. Indeed, a quick look at revenue and order trends across its industry in 2022 confirms how vital the industry is now.

That said, Johnson Controls did disappoint investors earlier in the year. It's not that orders and backlog growth aren't firm; it's more the case that management was too optimistic over its ability to overcome supply chain pressures. For example, the company found it challenging to execute on its backlog of higher-margin building controls, given an undersupply of semiconductors.

Still, those supply chain pressures will likely ease, and the company's long-term prospects look good. Throw in a 2.8% dividend yield, and the stock is attractive for income-seeking investors.


Brookfield Renewable Corporation Inc.

A powerful path to pocketing some passive income
Scott Levine (Brookfield Renewable): While some companies dip their toes in low-carbon initiatives, Brookfield Renewable is fully immersed. The business includes more than 6,000 power-generating facilities in its portfolio of assets that represent a variety of renewable energy sources: solar, wind, hydropower, and energy storage.

Located around the globe, these assets account for about 24 gigawatts (GW) of generating capacity. For income investors interested in exposure to companies that will prosper from the growing push toward low-carbon power sources, Brookfield Renewable (with a forward dividend yield of 4.2%) is a worthy consideration.

Management's commitment to rewarding investors is undeniable. Since its start in 2000, Brookfield Renewable has increased its distribution to unitholders at a 6% compound annual rate, from $0.38 per unit in 2000 to $1.28 per unit in 2022.

And it's likely that the distribution will continue powering higher for the foreseeable future. Brookfield Renewable consistently articulates a target of annual distribution growth of 5% to 9%. Skeptics might question whether management's dedication to shareholders is jeopardizing the company's financial well being, but the fact that the company has an investment-grade credit rating of BBB+ from Fitch Ratings should allay those concerns.

Brookfield Renewable has a robust pipeline of projects -- about 62 GW of generating capacity -- to support future growth. From 2021 to 2026 alone, management expects to increase its portfolio by 3% to 5% from those projects in its pipeline, additions that will help the company to grow its funds from operations by about 10% per unit.

But growth isn't solely coming from organic sources. Brookfield recently demonstrated its interest in acquisitions with the announcement that it plans on partnering with Cameco to acquire Westinghouse Electric, a global leader in nuclear services.

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[NWriter]

$RGC - A Small Cap Bioscience Company - Treatment Findings and Company Mission and Goals

Regencell Bioscience Holdings ($RGC: Nasdaq) is a an early-staged bioscience healthcare company focusing on R&D and commercilisation of Traditional Chinese Medicine (”TCM”) for the treatment of neurocognitive disorders and degenerations.

Regencell Bioscience’s formulation for the treatment of ASD and ADHD disorders was developed by Mr. Sik-Kee Au, a TCM practitioner of over 30 years and Company Founder, who has used the formula to treat patients with ASD and ADHD.

Currently, the Company is working towards standardization and commercialization of its formula.

The formula is based on “Sik-Kee Au TCM Brain Theory” hypothesis ) that ASD and ADHD stem from inadequate blood flow and creation of neurotransmitters in the developing brain.

For over a year (Mar 2020 - Aug 2021), RGC has established protocols and procedures for conducting Evaluation and Assessment of RGC-COV19 TCM through a Holistic approach **(EARTH)** efficacy trial in Malaysia and the United States.

The first EARTH effacacy trial (EARTH-A TRIAL) showned promising results which showned mild-moderate symtomps eliminated (except for Sensory Dysfunctional or occasional cough) on 97.3% of patients tested of the 37 patients gathered. EARTH-A TRIAL was conducted with the DELTA Variant.

Additional effecacy trial (EARTH-B TRIAL) was also conducted later, followed the same procedures as its predecessor effecacy trial but on a larger scale patient scale. In this trial, 80% of the COVID-19 caeses were of Omicron variant for patients gathered in Malaysia.

Readers who are interested in listening to the interview done by SSN Network, where RGC’s CEO Jay Lee and Independant Director, Paul Niewiadomski shares their story of the Company, TCM and also the results of TCM Treatments and Recent Efficacy Trial Results.

[https://finance.yahoo.com/news/rgc-second-investigational-study-rgc-094600752.html](https://finance.yahoo.com/news/rgc-second-investigational-study-rgc-094600752.html)

RGC’s company goal is “to be the global leader in the research, development and commercialization of Traditional Chinese Medicine (“TCM”) for the treatment of the coronavirus disease particularly COVID-19, for which there are unmet holistic medical needs in the global market.”

The company mission is short, simple yet powerful; "Our primary goal is to save lives” and they are planning on achieve the company mission through their deployment of TCM treatments to improve the betterment and also save lives of all people.

More information about the companys Goal, Mission, Management and Services can be found on their official website

[https://regencellasia.com/](https://regencellasia.com/)

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>>> Service Corporation International (SCI) provides deathcare products and services in the United States and Canada. The company operates through Funeral and Cemetery segments. Its funeral service and cemetery operations comprise funeral service locations, cemeteries, funeral service/cemetery combination locations, crematoria, and other businesses. The company also provides professional services related to funerals and cremations, including the use of funeral facilities and motor vehicles; arranging and directing services; and removal, preparation, embalming, cremation, memorialization, and travel protection, as well as catering services. In addition, it offers funeral merchandise, including burial caskets and related accessories, urns and other cremation receptacles, outer burial containers, flowers, online and video tributes, stationery products, casket and cremation memorialization products, and other ancillary merchandise. Further, the company's cemeteries provide cemetery property interment rights, such as developed lots, lawn crypts, mausoleum spaces, niches, and other cremation memorialization and interment options; and sells cemetery merchandise and services, including memorial markers and bases, outer burial containers, flowers and floral placements, graveside services, merchandise installations, and interments, as well as offers preneed cemetery merchandise and services. Service Corporation International offers its products and services under the Dignity Memorial, Dignity Planning, National Cremation Society, Advantage Funeral and Cremation Services, Funeraria del Angel, Making Everlasting Memories, Neptune Society, and Trident Society brands. As of December 31, 2021, it owned and operated 1,471 funeral service locations; and 488 cemeteries, including 299 funeral service/cemetery combination locations covering 44 states, eight Canadian provinces, the District of Columbia, and Puerto Rico. The company was incorporated in 1962 and is headquartered in Houston, Texas.

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>>> Kinsale Capital Group, Inc. (KNSL), a specialty insurance company, provides property and casualty insurance products in the United States. The company's commercial lines offerings include construction, small business, excess and general casualty, commercial property, allied health, life sciences, energy, environmental, health care, inland marine, public entity, and commercial insurance, as well as product, professional, and management liability insurance. It markets and sells its insurance products in all 50 states, the District of Columbia, the Commonwealth of Puerto Rico, and the U.S. Virgin Islands primarily through a network of independent insurance brokers. The company was founded in 2009 and is headquartered in Richmond, Virginia.

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>>> Abbott Labs


By Justin Pope

Mar 17, 2022


https://www.fool.com/investing/2022/03/17/want-1-million-in-retirement-invest-150000-in-thes/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


The healthcare conglomerate has gone through some changes since spinning its pharmaceutical business out as AbbVie almost a decade ago. Today, Abbott Labs ( ABT 0.77% ) is positioned primarily in consumer products, medical devices, analytics, testing, and making generic drugs for emerging markets.

Abbott is positioned to cater especially to the cardiology and diabetes fields, which are both fast-growing; heart disease and diabetes are among the most prevalent health conditions in the population. Abbott sells devices for them, including pacemakers, catheters, stents for cardiovascular applications, and a glucose monitoring system for diabetes patients. The company's revenue growth has picked up, growing more than 15% annually over the past five years.

This renewed growth could set the company to perform well over the next decade. Analysts believe Abbott will grow EPS an average of 10% annually over the next three to five years. Abbott also has a storied dividend history that goes back decades before its split with AbbVie. Investors can get a dividend yield of 1.6% on today's share price, which results in low-double-digit total investment returns if the stock's valuation remains constant.

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>>> American Tower (AMT) Announces Deal to Buy CoreSite for $10.1B


Zacks Equity Research

November 16, 2021


https://finance.yahoo.com/news/american-tower-amt-announces-deal-135801583.html


American Tower Corporation AMT has entered into a definitive agreement to acquire CoreSite Realty Corporation COR for roughly $10.1 billion. The combined company will cater to the growing need for convergence between mobile network providers, cloud service providers, and other digital platforms amid accelerating global 5G deployments.

The data center management company, CoreSite, consists of 25 data centers, 21 cloud on-ramps and more than 32,000 interconnections in eight major U.S. markets. As of Sep 30, 2021, CoreSite generated annualized revenues and adjusted EBITDA of $655 million and $343 million, respectively. Hence, the property buyout is likely to increase American Tower’s scale.

Moreover, with the addition of CoreSite’s data and cloud management capabilities to its mobile edge compute business American Tower will be able to offer a huge variety of 5G and cloud solutions.

Per management, “We expect the combination of our leading global distributed real estate portfolio and CoreSite’s high quality, interconnection-focused data center business to help position American Tower to lead in the 5G world.”

The transaction, expected to close by the end of this year, will likely be accretive to American Tower’s adjusted funds from operations (AFFO) per share and be increasingly accretive over time.

This marks American Tower’s second acquisition deal this year. Previously, AMT agreed to acquire Telxius Towers for $9.4 billion in cash in January. In June, it closed the first tranche of this previously announced acquisition, which comprised roughly 20,000 communications sites in Germany and Spain.

Shares of this Zacks Rank #3 (Hold) company have appreciated 5.9% compared with its industry's 10.9% growth, in the past six months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

However, tenant concentration is very high for American Tower. In fact, of its top three customers, Verizon VZ and AT&T T accounted for majority of the company’s total revenues.

Hence, loss of either Verizon or AT&T, consolidation among them, or reduction in network spending will significantly hamper American Tower’s top line.

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Johnson & Johnson - >>> Reactions to J&J's plans to split into two companies


Reuters

November 12, 2021


https://finance.yahoo.com/news/reactions-j-js-plans-split-184232951.html


(Reuters) - Healthcare conglomerate Johnson & Johnson is spinning off its consumer health division that sells Listerine and Baby Powder, to focus on the more-profitable pharmaceutical and medical device market.

Following are a few comments from analysts and investors:

JEFF JONAS, ASSET MANAGER, GAMCO INVESTORS

"It (spin off) makes sense in that it's a lower growth, lower margin business. Frankly, it's a struggle, ever since those manufacturing issues ... It's been a long, difficult recovery from that. And then COVID didn't really help and the lack of a cough cold season last year didn't really help."

"They've always done a lot of smaller deals and occasionally done a big deal like Actelion. They certainly have a balance sheet that could afford to do anything. Ultimately, when they do finish the consumer spin off, they'll probably raise a little bit of cash and put a little bit of debt on the consumer business, which would give them more money to do deals."

JOANNE WUENSCH, ANALYST, CITI

"Combined, each will likely deliver a dividend at least at the same of JNJ today and seeking to maintain its AAA rating."

"We believe this decision was likely accelerated by the pandemic and the increasing move towards personal healthcare, telehealth, and technology-driven products."

DAMIEN CONOVER, ANALYST, MORNINGSTAR

"The firm's timing is surprising, as we don't see any major catalyst for the move. However, if the consumer division no longer holds the deep pockets of the combined company, the risk of future consumer product litigation--such as the large talc settlement--may decrease."

"While we agree with management's assessment that the breakup will allow both new companies to operate with more focus and agility, we don't believe the current structure has impeded much operational execution in the past."

ASHTYN EVANS, ANALYST, EDWARDS JONES

"For pharma companies, this has been something pretty common over the last 12+ years. We see more and more companies focusing on innovative drugs."

"But this does come as a surprise, because J&J has been this huge healthcare conglomerate for so long, and the most diversified healthcare company in the world. So it does come as a surprise that they are choosing to end that, at least on the consumer side."

S&P GLOBAL RATINGS

"We view this as incrementally weakening the business strength, given the reduction in diversity and scale, even as this enhances the company's growth rate and profitability."

JOSHUA JENNINGS, ANALYST, COWEN AND CO

"We do not believe JNJ's ongoing talc litigation spurred the decision, and we expect investors to look favorably on the transaction."

SHANNON SACCOCIA, CHIEF INVESTMENT OFFICER, BOSTON PRIVATE

"I think this is just an example of delivering value to shareholders by specializing the businesses. I don't think (talc liabilities) were a prevailing factor in this decision."

"The J&J management has realized that fact that the value that's been afforded to them by the market is probably not as much as one should expect given the strength and the leadership in those three businesses."

MOODY'S INVESTORS SERVICE

Views announcement as credit negative, which reflects "the reduction in scale, diversity and earnings that will ensue from the transaction."

"Moody's will continue to evaluate the credit implications of the separation as more details become available and as the transaction date gets closer"

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>>> Is Danaher a Buy in a Post-Pandemic World?

Analyzing the investment case for buying stock in the high-flying life sciences and diagnostics company.


Motley Fool

by Lee Samaha

Aug 4, 2021


https://www.fool.com/investing/2021/08/04/is-danaher-a-buy-in-a-post-pandemic-world/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


Key Points

The pandemic has enhanced the company's long-term growth potential.

Current trading continues to exceed expectations.

Non-COVID-19 related revenue is back in growth mode.


Life science and diagnostics company Danaher (NYSE:DHR) is one of the big winners from the COVID-19 pandemic. Its diagnostic tests help detect the coronavirus, and its life sciences tools help medical bodies research and develop vaccines and therapies for it.

That said, what happens to the company's growth rate after the pandemic is over? Are investors in the stock about to be left holding a stock trading on a high valuation that's just about to see earnings growth prospects deteriorate?

Three reasons Danaher can keep on delivering

I think there's reason to believe that Danaher can keep growing at a very healthy clip, even in a post-pandemic environment.

Current earnings momentum is robust across all its businesses, COVID-19 related and non-COVID-19 alike.

Management's guidance for non-COVID-19 related revenue growth in 2021 has been upgraded and demonstrates underlying strength in the business.
The pandemic has strengthened the company's core business and growth prospects.

Strong earnings momentum

The company recently delivered its second-quarter earnings, and it managed to sail past management's previous guidance. For example, management had previously forecast second-quarter core revenue growth would come in within the mid-20% range, but it came in at 31.5%. As such, management upgraded its expectation for full-year core revenue growth from "high teens" to "approximately 20%."

As you can see below, the life sciences and diagnostics segments continue a powerful run, boosted by the pandemic (more on that in a moment), and the environmental and applied solutions (EAS) business is also back in growth mode. For reference, life sciences contributed $2.3 billion of operating profit in the first half compared to $1.3 billion from diagnostics and $565 million from EAS.

EAS is a collection of water quality and product ID businesses. During the earnings call, CEO Rainer Blair noted that both business platforms grew strongly in the quarter as the reopening of the economy increased sales and order rates as customers were investing in "larger projects" again.

Non-COVID-19 growth is strong too

The burning question on everybody's lips is, what kind of growth rate can investors expect after the pandemic? To help answer it, Danaher's management breaks out its guidance into COVID-19 related revenue and its "base business." As noted earlier, the full-year core revenue growth guidance was raised to "approximately 20%."

Going into more detail on the matter, Blair said "We anticipate that COVID related revenue tailwinds will be an approximately 10% contribution to the core revenue growth rate, and in our base business, we now expect that core revenue will be up 10% for the full year, an increase from our prior expectation of high single-digit."

In other words, the ramp up in the guidance primarily comes down to an increase in the guidance from the base business. That bodes well for Danaher's post-pandemic growth prospects.

The pandemic has structurally enhanced Danaher's growth

This is a subtle and critical point to understand. It's not just that the pandemic provided a temporary boost to Danaher's prospects. In life sciences, the investment made worldwide in vaccine and therapeutic science to combat the coronavirus is likely to spill out into broader-based research that can benefit Danaher for years to come.

Meanwhile, Blair outlined that monoclonal antibody-based therapies in development have increased 50% "from just five years ago." Turning back to COVID-19, there's always the possibility that a third booster shot and wide-scale vaccination of children will provide a near-term boost to Danaher's sales.

Danaher has increased its installed base of diagnostic platforms by over 40% since the pandemic started. That's important because the diagnostics business works based on the "razor/razor blade" business model. In other words, more platform sales lead to more opportunities for Danaher to sell new tests into the installed base. For example, Blair pointed out that assays (tests) for sexual health and hospital-acquired infections were up 30% in the second quarter. Also, Danaher is continually working on new assays.

Danaher is ramping up capital spending from $790 million in 2020 to around $1.5 billion in 2021, partly to build on the growth in assay development and fuel growth in the Cytiva biopharma business bought from General Electric in 2020.

Is Danaher a buy?

The exciting thing about Danaher's valuation is that it trades on roughly the same enterprise value (market cap plus net debt)-to-earnings before interest, taxation, depreciation, and amortization (EBITDA) valuation as it did before the pandemic started.

Therefore, if you believe in relative valuations, then Danaher is an attractive stock because the pandemic has enhanced its long-term growth potential. On the other hand, it's still a pretty hefty valuation to trade on, and cautious investors might want to wait for a dip to buy into a very attractive company.

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McCormick - >>> 3 Beaten-Down Growth Stocks to Buy in September

It's a great time to dip into these unloved investments.


Motley Fool

by Demitri Kalogeropoulos

8-28-21


https://www.fool.com/investing/2021/08/28/3-beaten-down-growth-stocks-to-buy-in-september/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


McCormick

Several consumer packaged-food stocks have been ignored by Wall Street recently, but McCormick stands out as particularly attractive. Sure, the spice and flavorings specialist isn't putting up huge growth numbers. But its latest 8% sales spike constitutes market share gains in the valuable condiments and flavorings niche. The company is likely to grow faster than peers like PepsiCo and General Mills in 2021, partly thanks to that focus.

McCormick brings other great investment factors to the table, including a rising annual cash flow level that just crossed $1 billion. Margins are improving, too, thanks to increased prices and a flood of innovative product releases. And management has demonstrated a willingness to keep cash payouts rising for this Dividend Aristocrat.

These characteristics lay the groundwork for better overall returns for shareholders, especially those buying at a time when many investors are looking elsewhere for growth.

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Scotts Miracle-Gro - >>> 3 Beaten-Down Dividend Stocks to Buy Right Now


These dividend stocks appear to be poised to bounce back.


Motley Fool

by Keith Speights

8-23-21


https://www.fool.com/investing/2021/08/23/3-beaten-down-dividend-stocks-to-buy-right-now/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article



A cannabis supplier facing temporary headwinds

Scotts Miracle-Gro (NYSE:SMG) has been a household name for decades thanks to its consumer lawn and garden products. In recent years, though, the company has also positioned itself as the leading supplier of hydroponics products to the cannabis industry. It offers a reliable dividend that currently yields 1.7%.

The stock is nearly 40% below its high from a few months ago. CEO Jim Hagedorn explained why in Scotts' second-quarter conference call earlier this month, stating that the company was "finally at the inflection point everyone knew was coming."

Hagedorn acknowledged that Scotts faces more challenging year-over-year comparisons. The company's consumer and cannabis businesses soared in 2020 due to the COVID-19 pandemic. However, consumers are now returning to their normal routines.

In addition, Scotts has encountered other headwinds. Hagedorn blamed adverse weather conditions for constraining the company's growth. He noted that snow in some key markets on Mother's Day weekend, which is typically the biggest weekend of the gardening season, hurt sales. Much of the Midwest and the northeast U.S. experienced record cold on Memorial Day. Heat and drought out west negatively affected Scotts' business as well.

The company's margins have also been pressured due to rising commodity prices. Scotts has been affected by higher prices for urea, diesel, and resin. Grass seed prices have also soared.

There's good news, though: These should be temporary issues. Scotts will move past the difficult year-over-year comparisons. The weather won't always be bad. Scotts will be able to pass on higher commodity prices by increasing its own pricing.

Even better, Scotts' growth prospects remain very good. The U.S. cannabis market continues to expand. It's possible that federal cannabis reform could provide an even greater boost to the cannabis industry. Like Brookfield Renewable, Scotts is a beaten-down dividend stock that isn't likely to remain beaten down for too much longer.

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Pepsico - >>> Questor: it may not be Tesla or Amazon but Pepsi is quietly delivering for shareholders


Telegraph

by Richard Evans

August 24, 2021


https://finance.yahoo.com/news/questor-may-not-tesla-amazon-140613993.html


The recent history of corporate America has been dominated by a small group of charismatic, noisy “big men”: Jeff Bezos of Amazon, Tesla’s Elon Musk, Mark Zuckerberg of Facebook. But some of its stock market champions take a quieter approach to generating profits for their shareholders.

Questor doubts, for example, that many readers are familiar with the name of Pepsi’s chief executive, Ramon Laguarta. This is because Pepsi lacks a “big man culture – it is not the creation of one man, a Musk or a Bezos”, says Rob Burgeman of Brewin Dolphin, the wealth manager, which holds the stock of behalf of some of its clients.

“Laguarta is not someone who comes in and shakes everything up,” Burgeman adds. “Pepsi hasn’t suddenly got a new team at the top. For us, this illustrates good governance, good corporate culture, which has always been important at Pepsi.”

The company’s great rival is of course Coca-Cola, which is perhaps more firmly anchored in the public’s mind and can count Warren Buffett’s Berkshire Hathaway as a major shareholder. Buffett has said he will never sell a single share in Coca-Cola. But Burgeman says Pepsi offers investors the better opportunity.

“Right now the business case for Pepsi is stronger because it sells a greater variety of products,” he says. “Coca-Cola is pretty much beverages, whereas Pepsi offers a range of soft drinks, bottled waters and foods.” Its products include Gatorade, SodaStream and Quaker Oats and it can boast 23 brands that generate annual sales of more than $1bn (£700m).

“It’s a company you think you know but there is more to it,” Burgeman says. “And it is investing in growth. While its range of brands has not changed much in the past few years, it is always tweaking them so that they move along with the times. It is switching to low-sugar versions of its drinks, for example. Continuously investing money in your brands like this creates value. If you don’t do it you will start to go backwards.”

Pepsi’s efforts to grow also involve seeking new markets for its products. “Pepsi is more US-focused than Coca-Cola, so there is an opportunity to sell more beyond its home market,” he adds. “The company has proved itself to be a good allocator of capital, which allows it to make high returns on capital and generate lots of cash. In other words, it’s a good compounder.”

He acknowledges the threat from greater regulation as governments attempt to tackle obesity but says Pepsi has “dials it can twiddle” in response. “It could move towards baked versions of crisps, for example. Given enough time it could probably change its entire range to healthy products. But I can’t see snacks and drinks coming under the same kind of pressure as smoking,” he says.

“We like core blue-chip stocks and Pepsi is one of the first to go into the discretionary funds we run for our clients. There’s a lot to like about it.”

Questor says: buy

Ticker: Nasdaq: PEP

Share price at close: $155.89

Update: Axon

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>>> A Look Inside Bill Gates' Stock Portfolio Reveals His Big Winners


Investor's Business Daily

MATT KRANTZ

05/06/2021


https://www.investors.com/etfs-and-funds/sectors/sp500-a-look-inside-bill-gates-stock-portfolio-reveals-his-big-winners/?src=A00220


Bill Gates' recent divorce filing is drawing attention to his financial assets. And now investors get a glimpse at his stock picks that are blowing away the S&P 500 and which ones he's willing to part with.

Seven out of the 13 U.S.-listed positions disclosed in Gates' secretive Cascade Investment LLC investment fund, including AutoNation (AN), IBD 50 member Deere (DE) and Waste Management (WM), are beating the S&P 500 this year so far, based on an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith. And four of his big holdings are topping the S&P 500 in the past year.

Gates, who is worth more than $130 billion, remains a large Microsoft shareholder. He's the eighth-largest shareholder in the software giant. His 103.4 million shares, valued at $26 billion, account for 1.3% of Microsoft's shares outstanding. But a majority of his wealth shifted to Cascade Investment over time as he sold Microsoft stock.

All Eyes Are On Cascade

Cascade, owned by Bill Gates but managed by Michael Larson, is already making adjustments.

The firm transferred stock valued at more than $1.8 billion to Melinda Gates this week, says The Wall Street Journal. That included a shift of more than 14 million shares of Canadian National Railway (CNI) and more than 2.9 million shares of AutoNation.

Canadian National is among the largest positions in the Cascade portfolio. And they're not among the top performers lately, rising just 0.1% this year and 37% in the past 12 months. AutoNation, on the other hand, continues to be one of Bill's very best stocks.

The couple filed divorce paperwork in King County Superior Court in Washington State. This is just the start of the division of a massive estate.

Bill Gates' Top S&P 500 Stock: AutoNation

Giving away AutoNation stock was likely a bit painful. It's the top-performing stock in Gates' Cascade Investment fund, by far.

Shares of auto retailer AutoNation are up 49.6% just this year alone. It's Cascade's top-performing stock this year. That tops the S&P 500's 11% gain this year. And over the past 12 months, AutoNation stock is up 184%, absolutely demolishing the 45.3% rise in the S&P 500 during that time. The company is expected to make $9.99 a share this year, up more than 40% from 2020.

It's a big position for Cascade. As of February, AutoNation owned more than 18 million shares or nearly a quarter of the company's shares outstanding.

Gates And Cathie Wood Agree On This S&P 500 Stock: Deere

Here's an interesting coincidence: Gates and star money-manager Cathie Wood of ARK Invest are betting big on Deere. Why do people known for high-tech prowess agree on an agricultural play?

As of the end of last year, Cascade owned owned more than 31 million shares of the farm equipment maker. That's more than 10% of the company's shares outstanding. And it's been a lucrative position, too. Shares of Deere are up 40.8% this year and 180.3% in the past 12 months. IBD Stock Checkup assigns Deere stock a 93 Composite Rating. That puts it among the leaders in the seven-stock farm machinery industry group.

That's helped Deere land a spot in two of Wood's ARK ETFs: ARK Autonomous Technology & Robotics (ARKQ) and ARK Space Exploration & Innovation (ARKX). Deere is the No. 7 holding in ARK Autonomous Technology & Robotics. The fund owns more than 295,000 shares of Deere valued at roughly $112 million.

So while the Gates divorce goes on, at least the couple has some top S&P 500 winners to split.

Gates' Hot Hand With Stocks

Top U.S.-listed stocks held by Cascade Investments

Company Symbol Stock 1-year % ch. YTD % ch. Sector Position Date Composite Rating


AutoNation (AN) 184.2% 49.6% Consumer Discretionary Feb-16-2021 97

Deere (DE) 180.3% 40.8% Industrials Dec-31-2020 93

Waste Management (WM) 43.0% 20.1% Industrials Dec-31-2020 77

Republic Services (RSG) 41.1% 13.6% Industrials Mar-31-2021 71

Diageo (DEO) 33.3% 13.2% Consumer Staples Mar-01-2021 54

Arch Capital Group (ACGL) 69.3% 11.4% Financials Feb-16-2021 78

Otter Tail (OTTR) 10.1% 11.5% Utilities Feb-20-2020 70

Vroom (VRM) n/a 8.4% Consumer Discretionary Dec-31-2020 31

Ecolab (ECL) 17.9% 5.4% Materials Mar-09-2021 36

Fomento Economico Mexicano (FMX) 21.4% 2.5% Consumer Staples Mar-24-2021 37

Western Asset Inflation-Linked Opportunities & Income Fund (WIW) 22.7% 1.5% Financials May-08-2020

Canadian National Railway (CNI) 37.0% 0.1% Industrials Mar-23-2021 54

Western Asset Inflation-Linked Income Fund (WIA) 21.6% -2.3% Financials Dec-30-2020


Sources: IBD, S&P Global Market Intelligence

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>>> NEOGEN Analytics Helps Food Processors Accelerate Data-driven Safety and Quality During Pandemic


April 6, 2021


https://finance.yahoo.com/news/neogen-analytics-helps-food-processors-140000997.html


Intelligent analytics platform available at no financial risk to help food and beverage brands automate environmental monitoring and improve food safety compliance

NEOGEN Corporation (NASDAQ: NEOG) has made its NEOGEN Analytics environmental monitoring program (EMP) available to qualified food and beverage manufacturers for a full year, at no cost.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210406005089/en/


NEOGEN Analytics enables remote, automated EMP management across all production facilities, providing centralized data gathering and 'always on' reporting and analytics.? For a limited time, we are offering this groundbreaking technology to qualified food suppliers at no cost for the first full year of service. ?(Graphic: Business Wire)

NEOGEN, a leading provider of environmental monitoring solutions for the food and beverage industry, is helping companies reduce risk by increasing access and visibility to food safety testing results. The NEOGEN Analytics EMP, powered by Corvium, enables remote monitoring of multiple processing plant sites, centralizes environmental testing data, automates reporting for compliance and conformance and improves food safety and quality for food companies and consumers.

Customer needs during the COVID-19 pandemic, as well as demands for greater transparency in food safety and initiatives such as the FDA’s Blueprint for a New Era of Smarter Food Safety, point toward increasing expectations, rules, and eventual mandates requiring food and beverage companies to implement data-driven environmental monitoring programs.

"COVID-19 has accelerated the food industry’s movement toward its goal of automating and centralizing data collection for immediate visibility and response," said John Adent, president and CEO of NEOGEN. "Disruption of the industry over the last 12 months has made it even more imperative to move away from manual safety and quality monitoring and adopt intelligent platforms that offer visibility into all of a company’s facilities, whether around the block or around the globe."

Intelligent Tools Drive Fast Return on Investment

Food processors using NEOGEN Analytics EMP can eliminate time-consuming and error-prone manual data entry, reducing risks associated with delays or mishandled lab communications. Through the digital cloud-based platform, food safety and quality assurance (FSQA) teams gain transparency into company-wide food safety testing metrics in order to immediately address any safety or quality issues. The solution automates testing and response workflows, assuring the right corrective actions are assigned and completed. The platform also analyzes diagnostic lab data and generates real-time alerts and management reports.

For Colorado Premium, a large manufacturer of premium protein products, NEOGEN Analytics will lead to better visibility and control over the safety and quality programs: "By providing new visibility and control of our food safety programs, it allows us to improve resource allocation and empower our food safety professionals to maintain our high food safety standards and continue to reduce risk," said John Ruby, vice president of Food Safety and Quality at Colorado Premium. "Having complete control of our sanitation and pathogen testing programs gives us more confidence in the entire process."

Reports needed for audits and inspections are accessible and accurate in real-time. This fundamentally changes the way brands work with auditors and regulatory inspectors, providing, for the first time, access to fully transparent processes and documentation at a moment’s notice.

Return on investment for the platform is significant, as customers find immediate value with reduced food risk, improved production efficiencies, better consistency of product quality, and increased employee and customer satisfaction.

No-Cost 12-Month Licenses Available to Qualified Food and Beverage Brands

NEOGEN will waive the NEOGEN Analytics EMP workflow automation module licensing fee for a period of one year, removing the up-front financial uncertainty associated with adopting new technology, such as automating EMP functions. During this time, NEOGEN will provide full-service support of the platform to help FSQA teams maximize the value of the platform for their businesses. There is no commitment required. Visit https://www.NEOGEN.com/NEOGEN-analytics/ to learn more.

About NEOGEN and NEOGEN Analytics

NEOGEN Corporation develops and markets products dedicated to food and animal safety. The NEOGEN Analytics platform is used by leading food and beverage suppliers to streamline and optimize key functions within food safety programs including environmental monitoring, product testing, sanitation management, compliance and conformance, and reporting and analytics. NEOGEN Corporation has an exclusive development and licensing agreement with Corvium, Inc. to market software under the NEOGEN Analytics brand.

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Ray Dalio - >>> 10 Best Growth Stocks To Buy Now According To Ray Dalio


Yahoo Finance

Sorina Solonaru

November 26, 2020


https://finance.yahoo.com/news/10-best-growth-stocks-buy-220447261.html


In this article, we present the list of 10 best growth stocks to buy now according to billionaire Ray Dalio. Click to skip ahead and see the top 5 best growth stocks to buy now according to Ray Dalio.

Ray Dalio is the Founder, Co-Chairman, and Co-Chief Investment Officer of Bridgewater Associates, the largest hedge fund in the world with over $140 billion in assets under management. Under his leadership of nearly four decades, the firm has grown into the fifth most important private company in the US, according to Fortune Magazine.

Bridgewater Associates has been one of the most successful hedge funds in the world, delivering average annualized gains of 10.4% since 1991. However, the fund had not evaded the negative impact of COVID-19 as its flagship Pure Alpha II fund had lost 18.6% through August.

Dalio is known for his grounded long-term perspectives. Although the fund suffered losses during the dot-com crash in 2000 (22%) and the financial crisis in 2008 (20%), it managed to bounce back with 20%+ gains between 2002 and 2004 and 45% and 25% gains in 2010 and 2011 respectively. Regarding the pandemic, Dalio commented previously that “We’re now in a wonderful revolution in terms of the capacity to think and use that in a way. I would say that is absolutely the most treasured thing in the future.” Undoubtedly, this year has provided plenty of opportunities for growth investments, not only in the usual tech space. Progress in medicine, conditioned in part by COVID-19, makes the health-care sector increasingly attractive. E-commerce is another industry that takes advantage from the pandemic, becoming the preferred buyer market worldwide. Dalio is giving special attention to Chinese stocks, given the relative attractiveness of China’s capital markets. In this vein, Bridgewater has arguably the most diversified portfolio in a decade, with massive investments made during Q3 in consumer staples, healthcare, e-commerce, and education stocks.

Hedge funds’ reputation as a whole has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. That does not mean their consensus stock picks can’t provide great value. Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 66 percentage points since March 2017 (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our website to receive our stories in your inbox.

For the list of the best growth stocks to buy right now, we looked into Ray Dalio’s top positions in his fresh 13F filing and identified the 10 growth stocks with a P/E ratio of 30 or higher among these biggest positions. Here are the best growth stocks to buy right now according to billionaire Dalio:

10. New Oriental Education & Technology Group Inc. (NYSE:EDU)

We begin with New Oriental Education & Technology Group Inc. (NYSE::EDU), the most recognized brand in Chinese private education, currently valued at $3.7 billion. Having previously said that “not investing in China is risky”, Bridgewater expects great performance from the stock. Dalio's EDU position was worth $42 million at the end of September after boosting his EDU holdings by 46.3% in Q3.

The most recent news is New Oriental’s secondary listing on the Hong Kong stock exchange, closing on its first day of trading at HK$1,365, a 14.7% increase from its offer price. The company plans to invest the net proceeds in its business growth and geographic expansion. According to Yahoo Finance, EDU is trading at a trailing P/E of 72. The Chinese education company had total revenues of $2.45 billion in FY2018 and managed to increase this to $3.6 billion in FY2020.

9. Starbucks Corporation (NASDAQ: SBUX)

Next is Starbucks (NASDAQ: SBUX), the giant chain of coffeehouses and roastery reserves, valued at $115.3 billion. Dalio’s SBUX position was worth $47 million at the end of September after an incredible increase in holdings of 4524% in Q3. Clearly, Dalio has a tiny position in SBUX in Q2 and decided to build this into a full position.

Pershing Square Capital Management, which repurchased its stake in Starbucks in March, underlines the stock’s swift adaptation to the pandemic given its dominant position in the Chinese market. Here is what they had to say in their Q2 2020 Investor Letter:

"Despite short-term sales headwinds from Covid-19, Starbucks remains one of the world’s best businesses, which we believe will emerge even stronger from the current crisis. Starbucks results reported since we re-established our position have demonstrated that the company’s recovery plan is working. The company’s stock price has begun to reflect its business progress generating a total shareholder return of 39% from our average cost to repurchase our stake in the company.

Given the company’s leading presence in China, Starbucks was well-prepared for the arrival of Covid-19 in the U.S. After an outstanding start to the calendar year with same-store sales growth between 6% and 7% through mid-March, the company rapidly shifted to a drive-thru and delivery-only model. With 44% of the store base open, April same-store sales declined and bottomed at negative 65%. As management steadily reopened both locations and in-store ordering, same-store sales improved to negative 14% in July, with 96% of stores open. The sales recovery has been driven by store re-openings and underlying sales momentum, with same-store sales of stores open throughout the year improving from a low of negative 25% in April, to positive 2% in July. The recovery path in the U.S. closely parallels what Starbucks has achieved in China, albeit with a lag of about one quarter given the later arrival of the virus in U.S."

8. Abbott Laboratories (NYSE: ABT)

Bridgewater added 433,463 shares of Abbott Laboratories (NYSE:ABT) to its 13F portfolio during Q3, establishing a position worth $47.17 million. Hedge funds have been bullish regarding the health-care stock throughout Q2 and Q3, with all-time high ownership of 67 hedge funds tracked by Insider Monkey.

Polen Capital Management added ABT to its portfolio in Q2, and highlighted the company’s successful response to COVID-19 in its Q3 investor letter:

“Abbott Laboratories has also shown resilience. Abbott’s consumer-facing businesses collectively grew almost 10% in the first half of the year. Its Medical Devices business has also recovered swiftly with procedure volumes returning to 90% of pre-COVID levels in the quarter, and the company has been a leader in the development of various COVID-19 diagnostic tests.”

7. TAL Education Group (NYSE:TAL)

TAL Education Group (NYSE: TAL) is another Chinese company in the education sector that investors have been enthusiastic about in Q3. Bridgewater raised its stake in the company by 53%, valued at $52 million at the end of September. A total of 40 hedge funds tracked by Insider Monkey had holdings in the stock at the end of June, an increase of 5% from 2020 Q1 and the highest figure for this statistic.

According to Yahoo Finance, TAL is trading at a trailing P/E ratio of 1801 and is currently valued at $44 billion. Total revenues in FY2018 amounted to $1.72 billion and increased to $3 billion in FY2020. Nevertheless, the stock’s recent performance is a bit disappointing for its investors, as the stock returned only 8% since the end of June and underperformed the market's 18% gain.

6. McDonald’s Corporation (NYSE:MCD)

Next in the list of the best growth stocks held by Dalio’s Bridgewater Associates is McDonald’s Corporation (NYSE:MCD). It is a new addition to Bridgewater’s 13F portfolio, worth $77.02 million and consisting of 350,908 MCD shares.

Other hedge funds that see growth potential in MCD, currently trading at a trailing P/E ratio of 33, are Citadel Investment Group and D E Shaw with stock worth $205.7 million and $205.5 million, respectively at the end of September 2020. This is in contrast with the overall bearish sentiment towards MCD, as 14% less hedge funds tracked by Insider Monkey hold positions in the stock in Q3 compared to the previous quarter.

5. Costco Wholesale Corporation (NASDAQ: COST)

Fifth in the list of the best growth stocks bought by Ray Dalio’s Bridgewater Associates is the American multinational Costco Wholesale Corporation (NASDAQ: COST). The fund purchased 218,662 COST shares worth $77.63 million at the end of September. 61 hedge funds were long in the stock at the end of Q2, down by 10% compared to the first quarter.

Costco is trading at a trailing P/E ratio of 43, according to Yahoo Finance, and the company’s latest e-commerce revenues figure is $26.05 billion. The biggest positions in the stock belong to Berkshire Hathaway and Fisher Asset Management, worth $1313.9 million and $995.4 million, respectively at the end of Q3. Saturna Capital Corporation, the investment management company of Sextant Mutual Funds, stated the following about COST in its Q1 2020 Investor Letter:

“For those not signed up for Amazon Prime, there’s still Costco, another firm in an enviable position when consumers are stocking for hard times.”

4. Pinduoduo (NASDAQ:PDD)

1,094,888 shares of Pinduoduo (NASDAQ:PDD), the Chinese Internet giant, is the amount held by Bridgewater in its 13F portfolio on September 30, giving the firm a stake worth $81.2 million at the end of September. Not only Dalio has great expectations from PDD’s performance, as hedge fund sentiment towards the stock has been bullish since Q2, when the number of hedge fund positions increased by around 7% from the previous quarter.

Pinduoduo’s fast growth is indisputable, as the e-commerce channel registers a year-over-year revenue growth of about 89% for Q3, amassing 14.2 billion Chinese Yuan ($2.2 billion). Continuing its customer-centric approach, PDD launched in August a new service called Duo Duo Maicai, hoping to expand market share against its rivals. Nevertheless, Tao Value, an investment management firm that has held bullish positions in PDD for a long time, signals the challenges that the company might face. Here is that Tao Value had to say in its Q3 2020 investor letter:

“Pinduoduo (ticker: PDD) dragged 93 bps this quarter. Investors had high expectation on Pinduoduo coming into this quarter, yet the reported Q2 GMV & revenue fell short of such hype. The stock dropped 14% on the earnings day alone. On business side, management indicated its strategic shift to develop technology solutions for the vast, yet under-digitalized agriculture value chain in China. I think it is a difficult but meaningful problem to tackle.”

3. JD.Com, Inc. (NASDAQ:JD)

Dalio slightly increased the position in JD.Com, Inc. (NASDAQ:JD), the technology-driven Chinese retailer. Bridgewater’s stake in the JDD is currently worth $129.5 million at the end of September, up by 21% from a quarter earlier. 87 hedge funds held positions in the stock at the end of June against the all time high of 90 at the end of the first quarter.

JD.com announced a positive earnings surprise of 30% in Q3, and its stock returned 35.5% since the end of June (through 10/16), outperforming the market by an even larger margin. According to our calculations, JD.Com, Inc. ranked #27 in our 30 most popular stocks among hedge funds, 2020 Q1 rankings. Here is Dan Loeb’s optimistic review of the two e-commerce giants, JD and Alibaba:

“During the quarter, we took advantage of jitters about China’s relationships with Hong Kong and the U.S. that created an air pocket in trading of Chinese-related shares to establish new positions in e-commerce leaders Alibaba and JD.com. As we have articulated in prior letters3, our outlook for Alibaba and the broader Chinese e-commerce market is bright. We believe online gross merchandise value (“GMV”) will grow at a mid-teens CAGR over the next five years, propelled by both (1) rising consumption per capita, as the Chinese retail market is equal in size to the U.S. despite four times as many consumers, and (2)increased penetration of retail by online, a trend which we believe has been structurally accelerated by the COVID- 19 pandemic.

As the e-commerce market matures, we believe Alibaba & JD will leverage scale and growing repositories of transaction data to increase monetization of their platforms through targeted advertising to improve revenue yields (revenues as a percentage of GMV) from a starting point of less than 4% today. As a point of comparison, brick-and-mortar retail store rent expenses in China are greater than 10% of sales on average, which provides a significant umbrella for online marketplaces to take a greater share of GMV through a combination of commission and advertising spending as online retailer cost structures converge with brick- and-mortar retail.”

2. Alibaba Group (NYSE: BABA)

Bridgewater fortified its stake in Alibaba Group (NYSE:BABA) during Q3 by 40%, valued at $392.2 million, a much larger position relative to the one in Alibaba’s rival, JD.Com. The stock was in the portfolios of 166 hedge funds tracked by Insider Monkey at the end of September. Our calculations also showed that BABA ranks #4 among the 30 most popular stocks among hedge funds.

BABA gained around 30% from the end of Q2 (through November 24). In its Q3 2020 Investor Letter, Rowan Street Capital highlighted Alibaba’s control over the entire value chain:

“Alibaba’s integrated ecosystem connects and controls the whole value chain of branding, broadcasting, sales conversion and sharing. That’s very different from how it works in the U.S., where internet giants such as Amazon, Facebook and Alphabet are individually dominant in certain parts of the value chain, but not in the complete manner that Alibaba has achieved. None has an ecosystem that connects the entire marketing and commerce value chain from branding, broadcasting and sales conversion. Alibaba connects the entire value chain.

[…] We believe the odds are still in our favor to earn long-term double-digit compounded returns from our Alibaba investment even from current market levels.”

You can read more about their analysis of Alibaba here.

1. SPDR Gold Trust (NYSE:GLD)

This isn’t really a growth stock you might think. However, it really is. Investors buy gold because they think its price in terms of US dollars will or could go up. It may go up a lot if printing trillions of dollars out of thin air to cover the budget deficits becomes the standard operating procedure of the Federal Reserve and the U.S. Treasury. Investors usually invest in gold as a hedge.

There were a total of 65 hedge funds with long GLD positions at the end of the third quarter. There are also other hedge fund managers who invest directly in physical gold, so the actual number of hedge funds that invest in gold is much higher. The total value of hedge funds’ GLD positions was nearly $3.5 billion. Ray Dalio has the largest position in GLD among all hedge funds tracked by Insider Monkey. Dalio’s GLD bet was worth $967 million.

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>>> Want a 'slice' of a stock? Demand booms for fractional shares as markets soar


by Ethan Wolff-Mann

Yahoo Finance

June 12, 2020


https://finance.yahoo.com/news/fractional-shares-trading-demand-as-stock-market-rally-180837763.html


If you wanted to throw $200 into Amazon stock (AMZN) a few years ago because you saw a UPS guy with nothing but brown boxes with blue tape, you’d have been annoyed.

The stock— which cost $1,700 per share two years ago and is now over $2,600 — had a sticker price similar to a carbon-fiber bicycle, or a month or two (or three) of rent, depending on where you live.

But last year, popular stock-trading apps Robinhood and SoFi started giving investors the chance to buy less than a single share of stock, something called “fractional” or “partial” shares. Though these products can have a few limitations, they allowed anybody to buy a stock based on a dollar amount. (Well, not anybody; Robinhood has a waitlist with over 1 million people.)

This spring, fractional shares have been extremely popular as new investors have jumped to own shares — or shares of shares — of companies they couldn’t before. Big players like Fidelity and Schwab (SCHW) have joined, bringing the phenomenon to the investing mainstream.

The boom in fractional shares has coincided with a stock market boom, as the S&P 500 bounced up by around 40% from its low in late March.

It led many to wonder whether a new class of investor is a factor in the gains, enabled by stimulus money, no sports or betting, and perhaps the ability to buy small chunks of big stocks. (Barclays research analysts, for what it’s worth, says no, though this is hotly debated.)

Huge demand for tiny pieces of big stocks

Fractional shares have existed for many years, usually as a part of dividend reinvestment plans. A dividend for a stock position might not kick off enough to buy a whole new share, so a person reinvesting was allowed to end up owning a number of shares with a decimal point.

But in the past few years, people thought: What about just buying stocks that way? M1 Finance was one of the first companies to offer fractional shares in 2017. SoFi added the feature a year ago, and Square’s CashApp and Robinhood followed — giving the trend enough gas to convince Fidelity to launch in January.

Since the coronavirus crisis, fractional shares have taken off to a startling degree, and just last month Schwab joined in on the fractional share bandwagon. Everybody seems to be “democratizing” investing by letting people buy small, and a lot of people are doing just that.

According to SoFi, a broker that offers both free trades and fractional shares, 40% of all trades are fractional versus whole shares and 52% of customers' first trades are fractional.

M1 Finance CEO Brian Barnes told Yahoo Finance that roughly half of its 200,000 trades per day on its platform come in sizes of less than one share.

For CashApp, fractional investing saw the fastest adoption of any product on the platform, with the average customer buying around $20 worth of stock per purchase. And in April, when stimulus checks hit many accounts, CashApp's stock brokerage volumes saw their highest monthly totals ever.

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>>> 7 American Manufacturing Stocks to Buy Before Recovery


InvestorPlace

Louis Navellier

July 2, 2020


https://finance.yahoo.com/news/7-american-manufacturing-stocks-buy-185641230.html


The Institute for Supply Management supplies a monthly look at the U.S. manufacturing market. In April, that index hit an 11-year low.

But since then, the numbers have been rising. They’re not going wild, but they’re rising.

You have seen this in the housing market where new home purchases are growing — mortgage demand is increasing — and in other spots that show the consumer moving back into the economy and taking advantage of low interest rates.

This is why the consumer is so fundamental to the economy. When they are buying durable goods and housing, manufacturers benefit from the increased demand.

7 Utilities Stocks to Buy With Reassuring Dividends

These 7 American manufacturing stocks to buy now are benefiting from the expanding consumer demand for goods. And they should benefit further as the U.S. economy rights itself and starts to grow again.


Builders FirstSource (NASDAQ:BLDR)

AAON Inc (NASDAQ:AAON)

Generac Holdings (NASDAQ:GNRC)

Applied Materials (NASDAQ:AMAT)

YETI Holdings (NYSE:YETI)

Illinois Tool Works (NYSE:ITW)

Lumentum Holdings (NASDAQ:LITE)


Remember many of these stocks were hammered over the spring when investors were still expecting the worst from the COVID-19 lockdowns. And right now, all of them are a “Buy” in the Portfolio Grader tool I use to find Growth Investor plays.


Builders FirstSource (BLDR)

This likely isn’t a name consumers know offhand, since it’s fundamentally a supplier to the homebuilding market, supplying goods such as roof and floor trusses, vinyl windows, drywall and lumber.

But it is a Fortune 500 company and does about $7 billion worth of business across more than 400 locations around the US.

Again, you’re not going to see a lot of advertising on television for BLDR, but it is a major homebuilding supplier in the U.S. That means when housing is growing, so is BLDR.

The stock has been on a ride in the past year, growing well through the second half of 2019, only to erase much of those gains in March this year. But BLDR is up 80% in the past 3 months and still up 22% in the past 12 months.


AAON Inc (AAON)

This firm specializes in commercial, industrial and residential HVAC. This is another sector that goes hand in hand with an expanding economy. New facilities need new equipment.

Also, with low-cost loans available, upgrading old, inefficient equipment for more efficient HVAC can actually be cost-reducing in the long term. That also goes along with businesses that are expanding or downsizing their plants and offices.

Remember, the locksdowns have sent many people home to work, which is also an ideal time to do the necessary upgrades to HVAC units. Work-from-home, to a much greater extent than it was pre-pandemic, is here to stay, and that’s been a source of great buys for Growth Investor.

7 Utilities Stocks to Buy With Reassuring Dividends
AAON stock has stayed positive throughout the COVID-19 troubles and currently is up 10% year to date. It also offers a small 0.7% dividend, which is still better than a lot of CDs out there.


Generac Holdings (GNRC)

As our world becomes more gadget-centered — TVs, computers, smartphones, etcetera — it also needs reliable sources of power to supply these devices and the equipment and devices that run them.

Given that our power grid hasn’t changed much from the grid that Thomas Edison helped develop, demand is beginning to outstrip supply increasingly often. And as we recently saw in California, harsh weather combined with stresses on this antiquated system can turn catastrophic.

Many people are coming to realize that having back-up power when their utility goes down is a smart play. And that bodes well for leaders in the field such as Generac.

The stock has taken off in the past few years as consumers and industrial clients see the need and value in being able to manage ‘off the grid’. And it’s also easier and more convenient than ever before to integrate backup power into your business set-up.

GNRC is up 70% over the past year, 21% year to date. This is a long-term trend beyond the traditional business cycle.


Applied Materials (AMAT)

Usually when you think manufacturing, you think big machines, sparks and hard hats.

Well at AMAT, it’s more about lab coats and sterile rooms.

Since 1967, AMAT has been a leading manufacturer of semiconductor equipment. They build the machines that etch, measure, inspect and conduct all other aspects of wafer production.

Most tech investors think of chipmakers as the superstars of the industry, but it’s behind the scenes players like AMAT that keep their stars burning. And being a key supplier for more than half a century in such a dynamic industry shows you that they’re every bit as cutting edge as they used to be. That’s a recipe for strong fundamentals and popularity with the “smart money” on Wall Street, which is where I find compelling opportunities for Growth Investor.

Tech remains a cyclical industry. And right now, tech is hot. The S&P 500 has even adjusted its weighting to favor tech stocks. That’s great news for AMAT.


YETI Holdings (YETI)

If the pandemic lockdown did one thing beyond flattening the curve, it was to drive cabin fever to a pitch like nothing has in recent memory.

People were itching to get out of the house. And many, respecting the need for social distancing, didn’t head to the cities, but instead to mountains and lakes and beaches.

And the fact that they may have given up summer holidays or had fewer options to spend money, saw YETI as a great place to pick up on some premium outdoor recreation products.

YETI is known for its top of the line coolers, drinkware and just about anything else outdoor gear oriented. It has also become somewhat of a status symbol brand among those in the know, which is a big deal for consumers with disposable income.

The stock has been on a tear, up 136% in the past 3 months and 41% in the past year. This is the most directly consumer-driven stock of the bunch.


Illinois Tool Works (ITW)

This firm has been around since 1912 — that’s the year Woodrow Wilson beat William Taft for the presidency.

That’s a long time to be making tools. At this point, the company carries a $55 billion market cap and is diversified across a number of industries, including electronics, automotive, food, polymers and welding.

That kind of diversification is what has helped keep this giant so successful for so long. ITW isn’t a sexy company by any means, but what it lacks in sizzle it makes up for in steak.

The stock delivers a solid 2.4% dividend and has a proven record of weathering even the most catastrophic storms. Currently, it’s up 17% for the past 12 months and 27% in the past 3 months.


Lumentum Holdings (LITE)


One of the most fundamental advances in our digital world was discovering how to use light to transfer data. Photo optics had a huge beginning in the 1990s when it was still fairly theoretical and didn’t have enough demand to support the expense.

The sector had its reckoning when the dotcom bubble burst. But since then, it has continued to grow and mature.

Now fiber optics are at the core of most high-power commercial and consumer telecom systems.

LITE is a core provider of optical and photonics products. That means it provides the components and subsystems that move data around the country (and world) as well as building commercial grade lasers that are helping industries as diverse as sheet metal processing, precision machining, biotech and drilling circuit boards.

The company started just 5 years ago and already has a $6 billion market cap — that’s some serious growth. In the past 12 months, LITE is up 50%, 18% in the past 3 months. This growth stock will keep its momentum through our current events.

Speaking of momentum, you’ll notice that many of these buy-rated manufacturers are serving the tech industry. That’s because there are some huge megatrends gearing up now for high demand around the world. Which brings me to the next big opportunity I have for you today:

The 5G Buildout Is an Incredible Opportunity

If you’re like me, then COVID-19 really underscored the importance of good, fast internet at home. Plenty of Americans, especially essential workers, still have to venture out to keep the country going. But many of us can conduct daily life at home, around the clock.

So, while the press releases from Big Telecom will emphasize the “cool factor” of 5G, and how it’s up to 100 times faster than 4G, I want you to think about it more practically.

5G is what’s going to keep us all connected in the modern economy. If you live somewhere without reliable (or any!) broadband access, you might have trouble keeping up with shopping or even finances in the “new normal.” That is, until ultrafast 5G wireless changes all that for you.

Mobile providers like AT&T and Verizon need 5G to maintain their edge – and get people into new smartphone contracts. But the big profits will come from the companies that help create 5G.

One such company I like now is much lesser known than the Big Telecom companies but has excellent growth prospects.

This company is already one of the biggest semiconductor equipment manufacturers in the world. These days, its products for machine learning, optics, sensors and analytics are getting deployed for all sorts of next-generation technologies: the self-driving cars, robotics, cloud computing and the larger Internet of Things (IoT).

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>>> When Stocks Are Down, Grab Your Wish List


Kiplinger

by James K. Glassman

June 4, 2020


https://finance.yahoo.com/news/stocks-down-grab-wish-list-221300756.html


Like every other investor, I felt sick watching the Dow Jones industrial average lose three-eighths of its value in just 40 days in February and March. But I felt a little thrill as well. I had a list. I could buy stocks I loved at a discount. Or, to put it a little differently, I could now become a partner in some of the best businesses in the world at bargain prices.

Incredibly enough, many investors are resistant to bargains. They think of stocks as different from, say, sweaters. Imagine you have had your eye on a sweater in a store window, but it's just too expensive. A few weeks later, it goes on sale at 10% off, but you wait--not enough of a deal. The next week, it's marked down by another 20%, and you buy a gorgeous sweater to enjoy for life.

Waiting to buy at a sale price is a natural human endeavor, but stock investors often do the opposite. They buy when prices are rising--as though a store were beckoning you to buy a sweater by shouting, "Now Priced at 20% Extra!" Investors often see higher prices as a validation of a stock's worth: It must be a good company if it keeps costing more to buy a share. Conversely, they think it must be a dog if the price keeps dropping.

Pretzel logic. That reasoning, however, is twisted. The very same company's shares are offered, from day to day, at very different prices. Often the decisive factor, according to the late Benjamin Graham, the Columbia University polymath who was Warren Buffett's mentor, is the mood of "Mister Market," a guy who is sometimes full of optimism and sometimes horribly gloomy. Unfortunately, purchasing stocks when Mister Market is pessimistic requires discipline. A good trick is to make a wish list, whether on your computer, on paper or just in your head. What are the great companies you really want to own that are just too expensive now? Almost certainly, at some point, they will get cheaper. If they just keep going up, you may feel frustrated, but don't worry. Dozens of great companies are out there. Wait for your price.

A good example is Starbucks (symbol SBUX, $74), which fell from $93 a share to $56 during the first two months of the global COVID-19 scare. When I bought Starbucks during this period, I did not, of course, pick the precise bottom. Nor do I know if Starbucks might again be back in the $50s (or lower) sometime soon. What I do know is that for years I have wanted to own part of this company, with its dominant global franchise, attractive locations and smart management. In addition, it's a company with 4,200 stores in mainland China that have already undergone the cycle of coronavirus suffering and recovery and can educate their U.S. counterparts. (Prices are as of May 15, unless otherwise noted.)

Frame of mind is critical in wish-list investing. In 1987, Buffett wrote that when he and partner Charles Munger consider a stock purchase, "we approach the transaction as if we were buying into a private business." Buffett and Munger see themselves as "business analysts" rather than stock analysts. Buffett explained that they "look at the economic prospects of the business, the people in charge of running it, and the price we must pay. We do not have in mind any time or price for sale.

Indeed, we are willing to hold a stock indefinitely." I determine what I call a partnership price, one based not on strict calculations of return on investment or price-earnings ratio but simply linked to rough market capitalization (number of shares times price), a figure that I adjust to take into account balance sheets that are heavy with debt or cash. In other words, I make a loose estimate of what the company is worth, mainly by com­paring it with other companies. In the case of Starbucks, its market cap was about $100 billion when the stock was riding high early this year; debt and cash were not too significant. With the stock near its low, Starbucks' market cap was $60 billion, or less than half the current market cap of McDonald's (MCD), about one-third that of Netflix (NFLX) and one-fifth that of Procter & Gamble (PG). Rough comparisons like those persuaded me that Starbucks could come off my wish list and into my portfolio.

Wish-list investing is a variation of buying on dips. With that strategy, you typically own shares of a company already and purchase more when the price goes down. And you're guessing it won't fall more. With a wish list, you are not timing the market but making a long-term commitment to a company you love--ready, as Buffett says, "to hold a stock indefinitely."

A wish-list company is one you are proud to own. One of those is Salesforce.com (CRM, $171), a leader in relationship management software, which helps companies acquire customers and service them via the cloud. Revenues at Salesforce are doubling every three years. Profits are minuscule, but it's the business that counts--and the price of partnership, which fell from $193 a share on February 20 to $124 by March 16. I made my commitment. At the same time, I took the opportunity to buy another business I have wanted to own for a long time: Bank of America (BAC, $21), which lost half its value in little more than a month. I also decided it was time to buy companies in Europe, using the vehicle iShares MSCI EAFE (EFA, $55), an exchange-traded fund that owns such stocks as Nestlé, Novartis and SAP.

My fifth purchase during the COVID crash was also European: Paris-based Hermès International (HESAY, $72), the luxury maker and seller of leather goods, dresses, scarves, jewelry and furniture in 310 stores around the world. Hermès has extensive sales in China, and so the stock started its coronavirus decline in mid January, sliding from $80 to $55 in two months. At 31%, that loss looked modest compared with the decline of Starbucks or Bank of America. But family-controlled Hermès is a steady stock, and opportunities to pounce don't come along often. I wrote about Hermès in the February issue of Kiplinger's: "Can there possibly be a better business than one in which demand so exceeds supply?" At the time, the stock was trading at $75. I liked it then, but it didn't come off my personal wish list until March.

Similarly, I bought Oneok (OKE, $32), the venerable natural gas pipeline and processing company that I wrote about in the April issue. Since then, the stock fell from $75 to $15, with the double-whammy of COVID and the petroleum-price collapse.

What's still on the wish list? Wynn Resorts (WYNN, $78), the best of the casino companies, also began to fall in mid January because of its holdings in Macau, dependent on gamblers from China. Shares fell by two-thirds in just two months; I just didn't pull the trigger. (You can't buy all the sweaters that are on sale.) Nor did I take the occasion to buy Johnson & Johnson (JNJ, $148), one of the best-run health care companies in the world, or Chevron (CVX, $88), which hit a 10-year low.

Also, I regret that I have not (yet) bought Buffett's Berkshire Hathaway (BRK-B, $169), a stock which, except during 2008-09, has gone nearly straight up. Berkshire fell about 30% but, unlike Hermès, hasn't gained much of the loss back. The company is sitting on $128 billion in cash. Buffett certainly has his own wish list. Time to take Berkshire off mine and buy shares at last?

James K. Glassman chairs Glassman Advisory, a public-affairs consulting firm. He does not write about his clients. Of the stocks mentioned in this column, he owns Bank of America, Hermès, Oneok, Salesforce.com and Starbucks. His most recent book is Safety Net: The Strategy for De-Risking Your Investments in a Time of Turbulence.

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>>> 12 Stocks to Buy That Are Already Positive


by Neil George

InvestorPlace

Mar. 25, 2020


https://markets.businessinsider.com/news/stocks/12-stocks-to-buy-that-are-already-positive-1029032553#


Global lockdowns are bringing carnage to the economy and the stock market. Extreme selling over the past few weeks has resulted in plenty of losses for individual investors. Some are looking for stocks to buy, but many more are acting out of fear.

Now we’re starting to get massive monetary assistance from the Federal Reserve and fiscal assistance from President Donald Trump’s administration. Both should begin to provide some relief to companies, the markets and the broader economy.

But status is critical right now. What is each company doing right now to survive? How do they stand with creditors and their debt?

In my Profitable Investing, I continue to do what I did before the current mess. I evaluate a company’s credit before making a recommendation. This includes looking at cash and cash coverage of current liabilities going out up to one year. And it also includes looking at bank loans, credit lines, bonds and preferreds outstanding.

What I’m presenting to you today is that there are many companies with stocks in my model portfolios that retain positive trailing 12-month returns. These companies are performing well despite the unprecedented fall in the stock market.

They are from differing industries and market sectors, but all have common attributes of focusing on delivering in-demand goods and services to eager customers and working well with their suppliers and employees to get their jobs done. And, they are all successfully managing their credit.

These stocks to buy have all delivered positive returns over the last year, and as we move past this current mess, they are all poised to do better in 2020. They also pay you to own them with attractive dividends.

Positive Stocks to Buy: Technology

Digital Realty Trust (NYSE:DLR) is a great real estate investment trust (REIT) focused on data centers returning 5.3%. Cloud computing is mission critical for companies and individuals — made even more crucial during the current mess as more workers are off-site or at home. And DLR is keeping the data and communications flowing. It yields a tax-advantaged 3.6%.

Microsoft (NASDAQ:MSFT) is my favorite recurring-revenue technology company returning 25.5%. While other big tech companies have faltered in getting past relying on unit sales, Microsoft succeeded in moving toward a subscription model. And the Azure cloud business is now mission critical with more folks working remotely. It yields 1.4%.

Zoetis (NYSE:ZTS) is a technology company focused on animal health, including critical vaccines addressing past, present and future epidemics. ZTS stock returns 8.4%. The coronavirus from China likely originated from animals at markets. Zoetis continues to identify risks to both livestock and our pets at home, and develops the vaccines and medications needed to keep animals healthier. It yields 0.8%.

Samsung Electronics (OTCMKTS:SSNLF) is the globe’s leader in developing and making electronic components. It returns 10.1% in its local market and 1.4% in U.S. dollar terms. Point a finger at nearly any electronic item — including every modern vehicle — and you will find Samsung components inside. It yields 2.8%.

Utilities

NextEra Energy (NYSE:NEE) is one of many utility and essential services companies that I recommend, and it has returned 5.3%. NEE has a dependable base of regulated power for cash flows that can get it through thick and thin. And the company also has one of the world’s largest wind and solar power operations. It yields 2.7%.

Xcel Energy (NASDAQ:XEL) is another impressive essential services company returning 3.8%. The company provides power and natural gas to both regulated local markets and wholesale markets throughout the U.S. And like NextEra, it is ramping up wind power facilities. Its dividend yields 3.2%.

Consumer Goods Stocks to Buy

Nestle (OTCMKTS:NSRGY) is a prime example of a consumer products companies that fixed costs and has a great focus on the right products, returning 4.6%. Nestle is one of my few global stocks to buy that even now is working through the challenges. And it pays a dividend yielding 2.8%.

Procter & Gamble (NYSE:PG) is another of my consumer goods companies. It finally revamped its product lines and has a 12-month return of 2.6%. Consumer tastes and needs changed, and many consumer goods companies missed this shift. But Procter & Gamble is working to ramp up its performance — and it’s only aided by the rising needs of households during the lockdowns. And yes, the Charmin Bears and their toilet paper aren’t hurting the bottom line. It is paying a yield of 3%.

Specialty Companies

Franco-Nevada (NYSE:FNV) is my gold and mineral royalty stock to buy, returning 49.3%. Way back last year I made my call for gold to fare better. And even with the recent pullback, gold is up. This means that revenues for FNV should remain positive. And unlike traditional gold, FNV pays a dividend yielding 0.9%.

Easterly Government Properties (NYSE:DEA) is another REIT with a perfect tenant — the U.S. government. Over the trailing 12 months DEA has returned 31.4%. While many companies are curtailing their on-site operations and may jeopardize their lease payments, the U.S. government will continue to pay their leases now and for years to come. It yields 4.6%.

B. Riley Financial (NASDAQ:RILY) is a specialized collection of business units, and those units have some unique focuses, like shutting down distressed retailers. RILY stock has returned 4.9%. This company also has brokerage, business lending and asset management units. But it is really cashing in on closing stores. It yields 10.7% on an annual basis through its regular and ongoing special dividend distributions.

Amazon (AMZN)

Amazon (NASDAQ:AMZN) is a company that I have followed for years — like nearly everyone else — and it has returned 7.4%. But it has always been a company focused on growth at nearly any cost, prioritizing growth over profitability and shareholder dividend distributions.

However, like for Microsoft with its Azure cloud services and Digital Realty with its data centers for cloud services, Amazon has its mission critical Web Services that are empowering remote work. And its sales and product platform as well as its delivery services should only become more ubiquitous.

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>>> Leggett & Platt (LEG), Incorporated designs and produces various engineered components and products worldwide. It operates through four segments: Residential Products, Furniture Products, Industrial Products, and Specialized Products. The Residential Products segment offers innersprings, wire forms, and machines to shape wire into various types of springs; industrial sewing/finishing machines, conveyor lines, mattress packaging, and glue-drying equipment, as well as quilting machines; and structural fabrics, carpet cushions, and geo components. It serves manufacturers of finished bedding, upholstered furniture, packaging, filtration, and draperies; retailers and distributors of carpet cushions; and contractors, landscapers, road construction companies, and government agencies using geo components. The Furniture Products segment offers molded plywood components; bases, columns, back rests, control devices, and casters and frames; private-label finished furniture; beds and bed frames; adjustable beds; and steel mechanisms and hardware, and springs and seat suspensions. It serves upholstered and office furniture manufacturers; department stores and big box retailers; e-commerce retailers; and mattress and furniture retailers. The Industrial Products segment offers drawn wires, bedding and furniture components, automotive seat suspension systems, and steel rods. It serves packaging and baling companies, mechanical spring manufacturers, and wire distributors. The Specialized Products segment offers mechanical and pneumatic lumbar support and massage systems, seat suspension systems, motors and actuators, and cables; titanium, nickel, and stainless steel tubing, formed tube, and tube assemblies; and engineered hydraulic cylinders. It serves automobile and mobile equipment OEMs, and aerospace suppliers. The company sells its products through sales representatives and distributors. Leggett & Platt, Incorporated was founded in 1883 and is headquartered in Carthage, Missouri. <<<