The analysts’ darlings as of January 2019 posted a 15% loss from Jan. 14, 2019, through Jan. 10, 2020. This happened even as the Standard & Poor’s 500 Index, widely used as a gauge of the U.S. stock market, rose 26%.
The Robot Portfolio is a 20-year experiment in extreme value investing. Start with all U.S. stocks that are profitable, have debt less than corporate net worth and have $500 million or more in market value. From that universe, simply select the 10 cheapest.
If you're doing a portfolio refresh for the new year, here are 10 stocks that I think deserve strong consideration.
The Pietroski F Score rates stocks on a nine-point scale, based on nine questions, such as: Does the company have a positive return on assets? Is the return on assets higher than it was a year ago? Is the company’s debt ratio (long-term debt as a percentage of assets) lower than it was a year ago?
Because people are very imperfect forecasters of the future, I figure that a good percentage of the Bunny stocks will continue their winning ways, defying investors' diminished expectations.
Investors loathe energy stocks, which are down more than 40% since their peak in June 2014. A 2018 rebound proved to be a sucker rally. Two CEOs of small energy companies are defying the trend, buying their companies' shares recently.
Generally, I consider a stock to be in the value category if it sells for 15 times earnings or less. Growth stocks usually sell for 20 times earnings or more. From 15 to 20 is GARP land. GARP stands for Growth at a Reasonable Price. It’s an attempt to get some of the benefits of each of the two major stock-picking camps, growth and value.
Come the new year, I expect stocks such as Concho Resources Inc., Green Dot Corp. and Cooper-Standard Holdings Inc. to benefit from the "January bounce" that often buoys up the previous year's losers.
Buying stocks below book value is a classic bargain hunters' strategy. Here are five below-book stocks that I like.
Each year I bring you my “Billion-Dollar Portfolio,” a collection of 10 stocks, each with a market value of roughly $1 billion.