Stock Watch Board – February 2017
Since there has not been a stock pick released since November, I felt the need to release what is currently on my stock watch board. Even though my stock watch is a spreadsheet database I created, calling it a stock watch board just sounds more simplistic. I am always researching data, reading financial statements, and waiting for the right opportunity. 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 have all seen record high prices over the past month.
Here is a look into 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 – $ 678.7B
Earnings Per Share (EPS) – 8.35
5 Year EPS Growth – 16.01%
Return on Equity (ROE) – 34.69%
Profit Margin – 20.73%
Dividend Yield – 1.77%
Comcast Corporation (CMCSA)
The media giant is not just your local cable and internet provider, but also the parent company of NBC Universal, which is the home for NFL Sunday Night Football. Cable companies had a brief competitor with Redbox, but with the wide selection and few clicks to watch a new movie release, customers have stuck around.
Market Cap – 180.1B
Earnings Per Share (EPS) – 3.57
5 Year EPS Growth – 18.91%
Return on Equity (ROE) – 16.37%
5 Year Dividend Growth – 19.57%
Dividend Yield – 1.46%
The Walt Disney Company (DIS)
Disney is already one of the most recognizable, multimedia, and innovative companies in our history. The history of this media giant runs so far that your parent’s parents grew up watching animation from the same creative lineage as you. The company is the parent holder of ABC television and ESPN.
Market Cap – 174.7B
Earnings Per Share (EPS) – 5.72
5 Year EPS Growth – 17.87%
Long Term Debt/Equity – 0.4
Return on Equity (ROE) – 21.39%
Dividend Yield – 1.41%
Facebook Inc. (FB)
With all the revolving and new social media platforms created over the years since Facebook started in 2004, none of them have dethroned the company as number one in daily usage. The company continues to growth at a powerful pace with new innovation and creative acquisitions.
Market Cap – 377.5B
Earnings Per Share (EPS) – 3.26
5 Year EPS Growth – 61.97%
Profit Margin – 34.42%
5 Year Sales Growth – 49.42%
Return on Investments (ROI) – 17.36%
MasterCard Inc. (MA)
Although MasterCard may not have the history of AmEx or the reach as Visa, but within just the United States approximately 200 million cards are used daily. The company’s growth rate is atop the industry despite its position as the most popular.
Market Cap – 116.1B
Earnings Per Share (EPS) – 3.69
5 Year EPS Growth – 19.95%
Profit Margin – 37.67%
Return on Equity (ROE) – 69.48%
5 Year Dividend Growth – 66.16%
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 – 492.1B
Earnings Per Share (EPS) – 2.12
Long Term Debt/Equity – 0.9
Return on Equity (ROE) – 23.03%
Profit Margin – 19.57%
Dividend Yield – 2.47%
Nike Inc. (NKE)
The global leader in sportswear apparel and footwear, Nike continues to hold a large gap between themselves and the second-best company, despite the hype. Amongst all the athletic brands, it holds 2/3 of the market share. The brand sells over 900 million items of apparel, equipment, and footwear annually.
Market Cap – 86.6B
Earnings Per Share (EPS) – 2.27
Long Term Debt/Equity – 0.3
Return on Equity (ROE) – 30.22%
Return on Investments (ROI) – 22.53%
Dividend Yield – 1.36%
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 – 80.2B
Earnings Per Share (EPS) – 1.95
Return on Equity (ROE) – 48.94%
Return on Investments (ROI) – 31.79%
5 Year Dividend Growth – 24.87%
Dividend Yield – 1.86%
The TJX Companies, Inc. (TJX)
With the popular discount department stores TJ Maxx, Marshalls, and HomeGoods, the company sees millions of consumers on a regular basis. With the American economy wavering in and out of recessions, affordable shopping is always the selection for savvy consumers.
Market Cap – 49.2B
Earnings Per Share (EPS) – 3.42
Long Term Debt/Equity – 0.5
Return on Equity (ROE) – 52.69%
5 Year Dividend Growth – 22.87%
Dividend Yield – 1.39%
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.