Stock Watch Board – August 2016
Since there hasn’t been a stock pick release since July 1st, I felt the need to release what’s on my stock watch board. Some call it a watch list; I call it the stock board. Just because there hasn’t been a release, while more articles are being produced, it doesn’t mean the search for gems isn’t happening. There isn’t a day that goes by where a company’s financials aren’t being viewed. I prefer to hit singles, doubles, and then pop a home run instead of swinging at every pitch and potentially lose more money than gain.
There are specific criteria that I look for in a company before I purchase its stock and I will not budge to make a quick trade. Price is very important, but a company’s core financial health is far more crucial. Throughout the market there are numerous companies with excellent financials, but their stock price may be too expensive. This is largely due to the record highs currently amassing in the major indices. The S&P 500, Dow Jones Industrial Average, and NASDAQ has all seen record high prices over the past month.
Here is a glimpse at what’s currently on The Wealth Junkie’s stock board:
Apple Inc. (AAPL)
Apple Inc. is the worldwide leader in smart mobile devices and personal computers. Their line consisting of the iPhone, iPad, and iMac are industry staples. The company’s recent addition to the Apple Watch is centered around healthy lifestyles.
Market Cap – $586.5B
Earnings Per Share (EPS) – 8.56
Return on Equity (ROE) – 37.90%
5 Year Sales Growth – 29.08%
Return on Assets (ROA) – 16.52%
Dividend Yield – 2.10%
Johnson & Johnson (JNJ)
Johnson & Johnson isn’t just a beauty products manufacturer, but also a research and healthcare corporation. Notable brands under its umbrella are Aveno, Band-Aid, Benadryl, Clean & Clear, Listerine, Motrin, Neosporin, Neutrogena, Sudafed, and Tylenol.
Market Cap – $326.8B
Earnings Per Share (EPS) – 5.37
Profit Margin – 21.20%
Long Term Debt/Equity – 0.3
Book Value per Share – 26.47
Dividend Yield – 2.69%
The Coca-Cola Company (KO)
Coca Cola, the most recognizable brand in its industry worldwide, is a beverage conglomerate. Notable brands under the company’s seal are Dasani, Fanta, FUZE, Glacéau Smartwater & Vitaminwater, Gold Peak, Minute Maid, Powerade, Schweppes, Simply, and Sprite.
Market Cap – $189.3B
Earnings Per Share (EPS) – 1.74
Profit Margin – 17.67%
Return on Equity (ROE) – 27.67%
Return on Investments (ROI) – 11.87%
Dividend Yield – 3.20%
McDonald’s Corp. (MCD)
McDonald’s is the global burger place that is nearly visited by all walks of life in many different countries. As of December 31, 2015, it operated 36,525 restaurants. Home of the Big Mac and the original dollar menu restaurant, the company continues to reinvent its brand.
Market Cap – $98.3B
Earnings Per Share (EPS) – 5.25
Return on Equity (ROE) – 84.51%
Return on Investments (ROI) – 15.11%
EPS Growth Year over Year – 21.71%
Dividend Yield – 3.08%
Microsoft Corporation (MSFT)
Microsoft reigns as the worldwide leader in software products for office and personal use. Known for the prominent Office catalog of applications, it also operates with Skype, SharePoint, and Client Access Licenses (CALs). Let’s not forget the Windows operating system, Bing, and XBOX.
Market Cap – $451.1B
Earnings Per Share (EPS) – 2.10
Long Term Debt/Equity – 0.6
EPS Growth Year over Year – 44.06%
5 Year Dividend Growth – 17.61%
Dividend Yield – 2.50%
The Procter & Gamble Company (PG)
Procter & Gamble is the everyday personal products company that distributes its range of well-known brands worldwide. Some of the personal everyday brands are Bounty, Braun, Cascade, Charmin, Crest, Dawn, Downy, Febreze, Gain, Gillette, Head & Shoulders, Mach3, Mr. Clean, Olay, Old Spice, Oral-B, Pampers, Pantene, Pepto Bismol, Swiffer, Tampax, Tide, Venus, and Vicks. Just to name a few.
Market Cap – $233.2B
Earnings Per Share (EPS) – 3.49
Long Term Debt/Equity – 0.3
EPS Growth Year over Year – 23.02%
Book Value per Share – 21.49
Dividend Yield – 3.08%
Starbucks Corporation (SBUX)
Starbucks controls the coffee business, and might even simply control the mornings of many customers. The company also operates as a retailer of branded coffee for personal brewing and machinery. As of March 27, 2016, it operated 23,921 café locations.
Market Cap – $82.7B
Earnings Per Share (EPS) – 1.79
Return on Equity (ROE) – 46.11%
Return on Investments (ROI) – 29.01%
5 Year Dividend Growth – 30.45%
Dividend Yield – 1.43%
Visa Inc. (V)
Visa is one of the major payment transactional companies worldwide. VisaNet is a service that allows for authorization, clearing, and settlement of payments. It also offers assured payments for merchants and fraud protection for account holders.
Market Cap – $190.8B
Earnings Per Share (EPS) – 2.02
Profit Margin – 38.72%
Long Term Debt/Equity – 0.5
5 Year Dividend Growth – 30.88%
Dividend Yield – 0.69%
Verizon Communications Inc. (VZ)
Verizon is looking to become a multimedia juggernaut with the agreed deal to acquire Yahoo Inc. Its wireless segment is established as the superior telecommunication service available. While its FiOS brand is competing with Comcast as the top cable and internet provider.
Market Cap – $214.5B
Earnings Per Share (EPS) – 3.54
Profit Margin – 11.49%
Return on Equity (ROE) – 94.20%
EPS Growth Year over Year – 46.63%
Dividend Yield – 4.30%
The above nine (9) companies are household names that will continue to see growth over the long haul. It is important for them to maintain a strong financial health. So, if the companies remain consistent as leaders in their industry and above their peers financially, they will continue to appear on the watch board. Once a favorable price target is seen, a purchase can be made. The more successful hits, the more runs batted in. The more runs coming in, the more wins accumulated.