WELLS FARGO: Warren Buffett might like these 9 stocks right now (MO, FL, MU, EQM, BEN, KORS, REGN, URBN, BBBY) – Finance
Warren Buffett is the most famous investment investor.
His approachinvites investors to watch past news and instead focus on the fundamental principles of the company when they decided where to put their money. Simply put, investing in values is the practice of investing in a company that bargains with less than its intrinsic value, and then holds back shares until the price catches them, convinced that all companies will eventually be valued.
In his 2014 letter to shareholders, Buffett laid out six criteria He used to assess the fundamental indicators of the company. He said that he is usually interested in large companies that have at least $ 75 million in pre-tax income; companies that could demonstrate consistent returns and did not need a transition; companies that received a good return on equity with minimal or no debt; companies with strong governance already established; companies with simple business models, not technologies that are difficult to understand; and companies offer a clear asking price.
While most people do not have the wealth to acquire an entire company, they can still consider Buffett's offers when investing in stock markets, buying stocks that are undervalued by the market.
Inspired by Buffett, Well Fargo analyst Collin Hansen listed seven indicators and filtered out nine stocks. basics can look attractive to buffett.
Here are seven indicators:
- The five-year average return on equity (ROE) exceeds 15%;
- Five-year average return on invested capital (ROIC) more than 15%;
- Debt obligations (D / E) are less than or equal to 80% of the industry average;
- Five-year average profit margin before tax (PM) 20% higher than the industry average;
- Current P / E ratios below decadal historical and industry average P / E ratios (based on consensus);
- WITH(P / B) below historical and industry multipliers;
- Current Cash Flow Price (P / CF) Ratios below industry average
And here are nine companies that Hansen thinks Buffett can aim:
Altria
Ticker: (MO)
Sector: tobacco
5-year average ROE: 139.8%
5-year ROIC average: 37.6%
D / e against D / E Industry: 82.5% against 184.4%
5-year average pre-current PM vs 5-year average PM index: 57.8% vs. 30%
Current P / E vs. Industry P / E: 15 vs 18.5
Current P / B vs. Industry P / B: 7.2 vs 9.6
Current P / CF compared to industry P / CF: 16.7 vs. 21.7
Market capitalization: 113.22 billion dollars. USA
Source: Wells Fargo
Foot cabinet
Ticker: (Florida)
Sector: Retail
5-year average ROE: 19.2%
5-year ROIC average: 18.2%
D / E vs. Industry D / E: 5% against 19.5%
The 5-year average PM premaximum compared with the 5-year industry average: 10.6% vs. 6.1%
Current P / E vs. Industry P / E: 11 against 18.6
Current P / B vs. Industry P / B: 2.3 vs 3.2
Current P / CF compared to industry P / CF: 6.0 vs 8.7
Market capitalization: 5.71 billion dollars
Source: Wells Fargo
Micron technology
Ticker: (MU)
Sector: Technology
5-year average ROE: 28.4%
5-year ROIC average: nineteen%
D / E vs. Industry D / E: 11.7% against 43.9%
The 5-year average PM premaximum compared with the 5-year industry average: 15.1% vs. 9.6%
Current P / E vs. Industry P / E: 4.0 against 22.2
Current P / B vs. Industry P / B: 1.5 vs 4.6
Current P / CF compared to industry P / CF: 2.8 against 18.2
Market capitalization: $ 49.26 billion
Source: Wells Fargo
EQT Midstream Partners
Ticker: (EQM)
Sector: energy
5-year average ROE: 29.4%
5-year ROIC average: 18.5%
D / E vs. Industry D / E: 139.4% against 216.6%
The 5-year average PM premaximum compared with the 5-year industry average: 66.4% vs. 23.8%
Current P / E vs. Industry P / E: 10.4 against 18.1
Current P / B vs. Industry P / B: 1.8 against 3.1
Current P / CF compared to industry P / CF: 5.4 against 7.9
Market capitalization: 6.2 billion dollars
Source: Wells Fargo
Franklin Resources
Ticker: (BEN)
Sector: Financials
5-year average ROE: 18%
5-year ROIC average: 15%
D / E vs. Industry D / E: 7.4% against 164.2%
The 5-year average PM premaximum compared with the 5-year industry average: 38.8% against 31.1%
Current P / E vs. Industry P / E: 9.1 vs 12.2
Current P / B vs. Industry P / B: 1.5 vs 3.4
Current P / CF compared to industry P / CF: 9.2 vs 12.1
Market capitalization: $ 15.04 billion
Source: Wells Fargo
Michael Kors Holdings
5-year average ROE: 38.6%
5-year ROIC average: 37%
D / E vs. Industry D / E: 27.2% against 61.2%
The 5-year average PM premaximum compared with the 5-year industry average: 23% against 10.2%
Current P / E vs. Industry P / E: 12.6 against 18.6
Current P / B vs. Industry P / B: 4.7 against 4.3
Current P / CF compared to industry P / CF: 8.9 against 14.7
Market capitalization: 9.50 billion dollars
Source: Wells Fargo
Regeneron Pharmaceuticals
Ticker: (REGN)
Sector: Pharmaceuticals
5-year average ROE: 21.5%
5-year ROIC average: 18.3%
D / E vs. Industry D / E: 9.8% vs. 57.1%
The 5-year average PM premaximum compared with the 5-year industry average: 30.8% vs. 19.7%
Current P / E vs. Industry P / E: 18.9 vs 25.3
Current P / B vs. Industry P / B: 5.8 against 6.2
Current P / CF compared to industry P / CF: 20.7 vs 26.8
Market capitalization: 40.78 billion dollars. USA
Source: Wells Fargo
City gear
5-year average ROE: 15.6%
5-year ROIC average: 15.2%
D / E vs. Industry D / E:0% vs. 19.5%
The 5-year average PM premaximum compared with the 5-year industry average: 10.3% vs. 6.1%
Current P / E vs. Industry P / E: 14.5 against 18.6
Current P / B vs. Industry P / B: 2.9 against 3.2
Current P / CF compared to industry P / CF: 10.5 against 8.7
Market capitalization: 4.21 billion dollars. USA
Source: Wells Fargo
Bed and bath
5-year average ROE: 25.4%
5-year ROIC average: 18.6%
D / E vs. Industry D / E: 51.4% vs. 112.7%
The 5-year average PM premaximum compared with the 5-year industry average: 10.4% against 6.6%
Current P / E vs. Industry P / E: 6.7 against 15.1
Current P / B vs. Industry P / B: 0.6 vs 5
Current P / CF compared to industry P / CF: 1.6 against 9.6
Market capitalization: 1.87 billion dollars USA
Source: Wells Fargo
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