Top pick Linamar Corp. is trading cheaply despite delivering higher sales and profits.
Gen Digital Inc. is trading quite cheaply for a firm that just grew revenue nearly 26% while providing plenty of cash flow for innovation, dividends and buybacks.
AT&T Inc. offers a 4.2% yield at an attractive valuation as it’s tapped to generate over $18 billion in free cash flow while continuing to build ultrafast wireless and fibre-optic networks.
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BRIGGS & STRATTON CORP. $22 (New York symbol BGG; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 43.3 million; Market cap: $952.6 million; Price-to-sales ratio: 0.5; Dividend yield: 2.5%; TSINetwork Rating: Above Average; www.briggsandstratton.com) makes lawn mower engines, portable power generators, pressure washers and snow blowers. Briggs recently lost a lawsuit accusing it of violating the patent of a rival lawn mower manufacturer. A judge has ordered it to pay $50 million in damages. To put that in context, Briggs earned $34.9 million, or $0.79 a share, in the nine months ended March 31, 2016. The company plans to appeal the ruling....
NCR CORP. $30 (New York symbol NCR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 123.9 million; Market cap: $3.7 billion; Price-to-sales ratio: 0.6; No dividends paid; TSINetwork Rating: Average; www.ncr.com) makes automated teller machines, cash registers, self-serve checkouts and kiosks for theatres and arenas. In the quarter ended March 31, 2016, NCR’s revenue fell 2.2%, to $1.4 billion from $1.5 billion a year earlier. Lower sales of ATMs offset higher revenue from its software and services operations. If you factor out currency rates, revenue was flat. Earnings in the quarter fell 16.4%, to $61 million from $73 million. Due to fewer shares outstanding, earnings per share declined at a slower rate of 11.6%, to $0.38 from $0.43....
AGILENT TECHNOLOGIES INC. $45 (New York symbol A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 328.0 million; Market cap: $14.8 billion; Price-to-sales ratio: 3.6; Dividend yield: 1.0%; TSINetwork Rating: Average; www.agilent.com) makes specialized testing equipment, such as mass spectrometers, for medical research labs. In its fiscal 2016 second quarter, which ended April 30, 2016, the company earned $145 million. That’s up 12.4% from $129 million a year earlier. Per-share earnings gained 15.8%, to $0.44 from $0.38, on fewer shares outstanding. Revenue rose 5.8%, to $1.0 billion from $963 million. These gains reflect strong demand for Agilent’s products from food companies and pharmaceutical firms. The company is also benefiting from last year’s $235 million purchase of Seahorse Bioscience. This firm makes equipment that researchers use to measure the response of cells to new drugs....
GENUINE PARTS CO. $96 (New York symbol GPC; Conservative Growth and Income Portfolios, Manufacturing & Industry sector; Shares outstanding: 149.6 million; Market cap: $14.4 billion; Price-to-sales ratio: 0.9; Dividend yield: 2.7%; TSINetwork Rating: Average; www.genpt.com) distributes replacement auto parts, industrial parts, office products and electrical equipment. The company is paying an undisclosed sum for The Safety Zone. This private firm makes and distributes a variety of safety products for the janitorial, food service and other industries. These include latex gloves, lab coats and gowns, ear plugs and safety glasses. The purchase will add $180 million to Genuine’s annual sales of $15.3 billion....