Many Stocks dropped rapidly from high values, making me ambitious to buy! I compiled a growing list of 215 Stocks that I monitor closely. It is that list where most of my Investment ideas are derived. I developed an algorithm to make suggestions based upon Points. Today I am sharing my most recent Investment actions and suggestions from my list.
I believe allocating portions of Investment Capital to Companies with superior Income growth is ideal and likely gainful. Therefore, yesterday I focused on Income Growth. Out of fourteen, "Strong Buy," suggestions, these five reported the highest Net Income Growth. Further Analysis based on other favorable metrics was done, before deciding to Invest. Investments can lose money and the general Market is declining. Those factors rightfully make me more cautious. In addition, my algorithm isn't foolproof and simply alerts me to Stocks to place greater consideration. Quick Capital Gains have historically proven to be an unfavorable approach to Investing. So, I seek long-term Investments' with gradual Capital Gains and to augment my income from Dividends.
Five of my, "Strong Buy," Stocks to Consider
Nucor
NUE: First on the List is Nucor. At the current price and float, through my own Analysis, they're allotted 24 points earning a, "Strong Buy," Status. I calculated their one year Net Income Growth to be 847.7%, based on Annual Reports.
"Nucor Corporation is focused on manufacturing steel and steel products that produces direct reduced iron for use in its steel mills. The Company’s segments include Steel Mills, Steel Products and Raw Materials." (E-Trade), Company Overview.
Recent Realizations of NUE
I believe NUE is trading very cheap. The Price to Earnings Multiple is VERY low because of Trailing Twelve Month (TTM) Earnings Growth. Historical ten, five, and three year P/E growth is negative. But I calculate an annual increase of less than 10%. I calculated a Twelve Year Average P/E of $13.19 vs the current $4.01.
Steel Dynamics
STLD: Next on my personal list of, "Strong Buy," Stocks with the greatest Earnings growth is Steel Dynamics. Although STLD scores more points from my algorithm, their reports show less growth from the previous year. Something to ponder, for myself!
"Steel Dynamics, Inc. is a diversified domestic steel producer and metals recycler. The Company's segments include Steel Operations, Metals Recycling Operations, and Steel Fabrication Operations."
(E-Trade), Company Overview.
(E-Trade), Company Overview.
Recent Realizations of STLD
STLD Investors' have realized a 52 Week Capital Gain of 11%. Showing greater Price Appreciation than the overall Market. STLD current Dividend Yield is 1.93%, paid quarterly. I calculate a Dividend increase of 4% and a reduction of shares (Buybacks) of 2.33%. I calculated their profit Margin growth at 17.4%, also illustrating a sharp increase from the previous year.
STLD is also trading very cheap, in my opinion. Again focusing on the P/E, the rapid increase in earnings leads me to believe the Market has not yet adjusted. I calculate their 12 Year P/E average to be $8.60 vs the current P/E of $3.60. Like Nucor, I calculate their ten, five, and three year P/E multiple to be declining while the recent year showing slight growth. This leads me to believe Investor Sentiment is shifting towards buying.
Reliance Steel and Aluminum
RS: Third on my personal list of, "Strong Buy," considerations. I calculated Reliance Steel and Aluminum earnings growth at 282.93%. I find it quite telling, three companies tethered to Steel top my list of, "Strong Buy," recommendations with the most Earnings Growth. Each I feel are reporting impressive numbers illustrating impressive management, demand, and pricing power. RS currently has a 1.97% Dividend that is paid quarterly. I calculate they've increased their Dividend by 12.09%, reduced float by 1.54% and had a Profit Margin of 10.03%.
"Reliance Steel & Aluminum Co. (Reliance) is a metals service center company that operates as a metal solutions provider metals service center. The Company provides value-added metals processing services and distributes metal products, including alloy, aluminum, brass, copper, carbon steel, stainless steel, titanium and specialty steel products."
(E-Trade), Company Overview.
Recent Realizations of RS
RS is trading relatively cheap, despite trading above their 52 Week Median Price and rising sharply from their 52 Week Low of $135.46. I calculate their 12 Year average P/E to be $11.84 vs the current $6.89. They currently are paying a 1.96% Dividend on a quarterly basis.
I opted not to purchase RS at the current price. I would prefer buying below their 52Week Median. RS demonstrates reasonable stability with low debt and stable Current Liability to Asset ratio's. Some may consider their ratio's to be too high, but it favorable in my opinion.
American Express
AXP: Migrating away from the Steel Business, my fourth, "Strong Buy," with the most Earnings Growth is American Express. I calculate AXP one year Earnings Growth to be 160.77%. I've seen News Broadcasts from CBS stating Credit Card usage has increased Post Pandemic (Covid 19). AXP Investors' have realized a 52 Week Capital Value decline of 11%. Stock is currently trading below the 52 Week Median
"American Express Company is an integrated payments company. The Company provides its customers with access to products, insights and experiences that builds business. It also provides credit and charge cards to consumers, small businesses, mid-sized companies, and corporations around the globe."
(E-Trade), Company Overview.
(E-Trade), Company Overview.
Recent Thoughts on AXP
I've yet to purchase shares but anticipate making a Purchase soon. AXP Net Income has grown faster than Liabilities in recent ten, five, three, and one year charting. Their EPS is growing slightly faster than the P/E is climbing. Despite declines in Current Assets, the Current Ratio is favorable. Analysis of Companies in the Financial Segments require different values than other businesses.
Pfizer
PFE: Wrapping-up my list of, "Strong Buys," with the greatest one year earnings growth takes me to the Pharmaceutical Industry with Pfizer. I calculate PFE one year Earnings Growth at 139.97%. It seems to me, one of the saviors from the Pandemic should rightfully realize a lot of Earnings. I find it quite shocking they're not number one on my list, considering. This too is telling, as they do not seek to benefit marginally from their contribution to society. Something I see as favorable as a qualitative metric.
"Pfizer Inc. (Pfizer) is a research-based global biopharmaceutical company. The Company is engaged in the discovery, development, manufacture, marketing, sales and distribution of biopharmaceutical products. Its global portfolio includes medicines and vaccines."
(E-Trade), Company Overview.
I been purchasing PFE for quite a while (Pre-Pandemic). Their Net Income growth surpasses Debt growth in recent ten, five, three, and one year calculations. In addition, segmenting their quarterly data shows positive growth in ten, five, three, and one quarter's. PFE is trading inline with their average P/E (90% to 110%). They increased their float recently but I calculate a decline in Float in the recent ten, five, and three year calculations. Shares are trading slightly below their 52 Week Median Price of $50.21 amplifying the time to buy signal for me. I calculated their Profit Margin at 27%.
Hope this post offers some insights on Stocks I'm buying and considering. Please note, although I've been conducting my own analysis for roughly 28 years, I am not an advisor. I manage a Trust for Family and myself. I encourage people to do the same. I do not recommend buying Stock's I've purchased or assume they're the best Stock's to buy. Conduct you're own analysis or seek professional advise on Stocks.