lundi 24 décembre 2018

20 great stocks for less than 20 times next year's earnings

It's christmas time and there's no need to be afraid. At christmas time, we let in light and banish shade. And this time, christmas time offers us a good boxing day before time.

I'm essentially writing this for the future. Because I find it very interesting to look at current valuations, given the crisis we're going through. Most growth stocks are almost a bargain while there's some stocks that were growth stocks less than a year ago and which are now value stocks (see Mohawk and Bank of the Ozarks).

It'll be fun to take a look at all these valuations in one year...

So, here's the forward PE of 20 stocks which are among the best stocks you can find in North America:

Bank ank of the Ozarks: 6 (price to book value: 75% which is incredibly low, but maybe there's some issues here)
Mohawk: 9 (Book Value = 110%, which is very low for that kind of stock)
Apple: 10
Carmax: 12
Alimentation Couche-Tard: 14
Lassonde: 14
Facebook: 15 (adjusted for cash in hand)
Canadien National: 15
Dollarama: 16
TJX: 16
Richelieu Hardware: 16
Booking Holdings: 16
Sherwin Williams: 17
MTY Food Group: 18
Ulta Beauty: 18
Berkshire Hathaway: 18 (price to book value: 120%, which is the point of buyback by Buffett)
Google: 19 (adjusted for cash in hand)
Microsoft: 19
Visa: 20 (just slightly less than 20, actually)
Constellation Software: 20 (just slightly less than 20, actually)

2 commentaires:

  1. There's some great value situations out there. A significant percentage of stocks are at their 52 week low TODAY. Here are some things that could go RIGHT for the stock market. A list of positive WHAT IFS...

    -What if there is a Tariff resolution which stimulates global economies?

    -What if U.S. dollar falls, which would increase S+P earnings?

    -What if the Fed stops raising rates?

    -What if a recession is priced in and no recession appears?

    -What if oil prices recover from crash levels bringing global markets higher? - OR counterintuitively,

    what if new lower gasoline prices stimulate global economies?

    -What if bank stocks rebound?

    -What if China rebounds from the gutter?

    -What if the slew of globally depressed markets rebound? -

    What if small caps rebound? -

    What if there’s no government shutdown?

    -What if there’s a favorable Brexit solution?

    -What if tax loss selling ends?

    -What if Trump starts behaving rationally? (Christmas joke:))

    -What if hedge funds stop liquidating?

    -What if valuations are so low that people simply start buying?

    -What if Mom and Pop take Prozac, sentiment improves, and put money back into market?

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  2. Some good news for DIVIDEND investors. Look at what you can get today:

    Brookfield Property Partners L.P. (BPY-UN.TO) (dividend is 8%)
    Wajax (WJX.to) dividend of 6%

    You are also buying at the 52 week low and might get capital appreciation.

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