stocks to buy
Pat McKeough responds to many requests from members of his Inner Circle. Every week, his comments on the most intriguing questions of the past week go out to all Inner Circle members. Each week, we offer you a highlight from these Q&A sessions. This week, why the world’s largest farm equipment maker isn’t among our U.S. stocks to buy.
Q: How do you see things shaping up for Deere & Co.? Is it a buy? Thanks.
A: Deere & Co. (symbol DE on New York; www.deere.com) started up in 1837 when its founder, John Deere, began making polished-steel plows at his blacksmith shop in Grand Detour, Illinois.
Today, the company is the world’s largest maker of agricultural equipment, with plants in the U.S., Canada, France, Germany, Spain, South Africa, Mexico and Argentina. In addition to John Deere, its top brands include Frontier, Kemper, Green Systems and SABO.
Deere mainly sells these products through independent dealers and home-improvement chains like Home Depot and Lowe’s. It has three divisions:
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Q: How do you see things shaping up for Deere & Co.? Is it a buy? Thanks.
A: Deere & Co. (symbol DE on New York; www.deere.com) started up in 1837 when its founder, John Deere, began making polished-steel plows at his blacksmith shop in Grand Detour, Illinois.
Today, the company is the world’s largest maker of agricultural equipment, with plants in the U.S., Canada, France, Germany, Spain, South Africa, Mexico and Argentina. In addition to John Deere, its top brands include Frontier, Kemper, Green Systems and SABO.
Deere mainly sells these products through independent dealers and home-improvement chains like Home Depot and Lowe’s. It has three divisions:
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Home renovations spurred by an improved real estate market help keep Stanley Black and Decker one on our best stocks to buy in the U.S.
When investors get in the habit of using one investment measure to buy stocks, they often find that it can be dangerously misleading.
Dun & Bradstreet’s has kept its credit report business thriving with its ability to harness new technologies like cloud computing.
Transcontinental’s ability to keep the right assets in the fast-changing publishing industry makes it one of our top stocks to buy.
Every Tuesday we bring you “Best Canadian Stocks.” You get our specific recommendations on the stocks we profile, with a full explanation of how we arrived at our opinion. You’ll read about stocks making moves you should know about, from coverage in one of our three newsletters featuring Canadian stocks—The Successful Investor, Stock Pickers Digest and Canadian Wealth Advisor.
ANDREW PELLER LTD. (Toronto symbol ADW.A; www.andrewpeller.com) is Canada’s second-largest producer of wines, after Vincor International. Its wineries in Nova Scotia, Ontario and British Columbia account for 13.4% of the Canadian wine market.
In the second quarter of its 2015 fiscal year, which ended September 30, 2014, Peller’s sales rose 7.2%, to $82.8 million from $77.2 million a year earlier. That’s mainly because the company started selling its Wayne Gretzky wines in Western Canada. The company also launched several new products, including its skinnygrape spritzers and Panama Jack cocktails.
Earnings jumped 45.5%, to $5.1 million, or $0.37 a share, from $3.5 million, or $0.25.
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ANDREW PELLER LTD. (Toronto symbol ADW.A; www.andrewpeller.com) is Canada’s second-largest producer of wines, after Vincor International. Its wineries in Nova Scotia, Ontario and British Columbia account for 13.4% of the Canadian wine market.
In the second quarter of its 2015 fiscal year, which ended September 30, 2014, Peller’s sales rose 7.2%, to $82.8 million from $77.2 million a year earlier. That’s mainly because the company started selling its Wayne Gretzky wines in Western Canada. The company also launched several new products, including its skinnygrape spritzers and Panama Jack cocktails.
Earnings jumped 45.5%, to $5.1 million, or $0.37 a share, from $3.5 million, or $0.25.
Every Tuesday we bring you “Best Canadian Stocks.” You get our specific recommendations on the stocks we profile, with a full explanation of how we arrived at our opinion. You’ll read about stocks making moves you should know about, from coverage in one of our three newsletters featuring Canadian stocks—The Successful Investor, Stock Pickers Digest and Canadian Wealth Advisor.
Loblaw is doing a good job of competing with U.S. retail giants like Wal-Mart, which are aggressively expanding in the grocery market. In addition to improving its efficiency and profiting from its Joe Fresh clothing line, it has bought Shoppers DrugMart, which nicely complements its main business. And now it has seen its competition diminish with Target’s decision to close its Canadian stores.
LOBLAW COMPANIES LTD. (Toronto symbol L; www.loblaw.ca) is Canada’s largest food retailer, with about 1,050 stores.
The company is benefiting from sales of other products beyond food. For example, in 2006 it launched its popular Joe Fresh line of clothing, shoes and accessories.
Loblaw sells these goods in over 330 of its supermarkets and through 17 stand-alone stores in the U.S. and Canada. It plans to open 140 more Joe Fresh stores outside of North America in the next four years.
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Loblaw is doing a good job of competing with U.S. retail giants like Wal-Mart, which are aggressively expanding in the grocery market. In addition to improving its efficiency and profiting from its Joe Fresh clothing line, it has bought Shoppers DrugMart, which nicely complements its main business. And now it has seen its competition diminish with Target’s decision to close its Canadian stores.
LOBLAW COMPANIES LTD. (Toronto symbol L; www.loblaw.ca) is Canada’s largest food retailer, with about 1,050 stores.
The company is benefiting from sales of other products beyond food. For example, in 2006 it launched its popular Joe Fresh line of clothing, shoes and accessories.
Loblaw sells these goods in over 330 of its supermarkets and through 17 stand-alone stores in the U.S. and Canada. It plans to open 140 more Joe Fresh stores outside of North America in the next four years.
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Every Thursday we bring you one of our best U.S. stock picks. You get our specific recommendation on the stocks we profile, with a full explanation of how we arrived at our opinion. You will read about stocks making moves you should know about, most often from coverage in our newsletter on U.S. investing, Wall Street Stock Forecaster.
Newell uses oil to make its products, so it stands to gain from the almost 60% drop in crude prices since June 2014. And even when oil rebounds, it will continue to benefit from recent acquisitions and its high market share.
NEWELL RUBBERMAID INC. (New York symbol NWL; www.newellrubbermaid.com) makes plastic storage bins, tools, window blinds, pens and many other household goods.
The company makes most of its products from oil-based resins, so it stands to gain from the recent drop in oil prices.
Newell continues to streamline its manufacturing and distribution operations, which should cut $270 million from its annual costs by mid-2015. The company now feels it can save an additional $200 million a year by the end of 2017.
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Newell uses oil to make its products, so it stands to gain from the almost 60% drop in crude prices since June 2014. And even when oil rebounds, it will continue to benefit from recent acquisitions and its high market share.
NEWELL RUBBERMAID INC. (New York symbol NWL; www.newellrubbermaid.com) makes plastic storage bins, tools, window blinds, pens and many other household goods.
The company makes most of its products from oil-based resins, so it stands to gain from the recent drop in oil prices.
Newell continues to streamline its manufacturing and distribution operations, which should cut $270 million from its annual costs by mid-2015. The company now feels it can save an additional $200 million a year by the end of 2017.
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When they look for stocks to buy, investors sometimes fall into a habit of focusing on those with a particularly attractive reading on a single investment measure. These readings include a low per-share ratio of price-to-earnings, a low price-to-book-value ratio, or a high dividend yield. This seems like a quick, easy way of spotting an investment bargain. However, most investment measures fall on a spectrum that ranges from suspiciously cheap to extraordinarily expensive. For example, suppose you decide you will only consider buying stocks with a per-share price-to-earnings ratio of 10.0 or less. That way, you hope to get more earnings for each dollar you invest. But the “e” or earnings in the p/e only covers earnings, or an earnings estimate, for a single year. The year your low p/e covers may coincide with a peak in the company’s earnings, for any number of reasons....
The ALPS Sector Dividend Dogs ETF, $38.79, symbol SDOG on New York (Units outstanding: 24.3 million; Market cap: $942.6 million; www.alpssectordividenddogs.com), is an ETF that applies the “Dogs of the Dow” theory on a sector-by-sector basis using the stocks in the S&P 500. The fund’s MER is 0.40%. The Dogs of the Dow approach involves buying the lowest-priced, highest-yielding stocks in the Dow Jones Industrial Average. At the end of each year, you pick the 10 stocks from the 30-stock Dow with the highest dividend yields. You then invest an equal dollar amount in each, hold them for one year and repeat these steps annually. The ALPS Sector Dividend Dogs ETF picks five stocks from each of the 10 sectors as defined by the S&P 500 index—consumer discretionary, consumer staples, energy, financials, health care, industrials, information technology, materials, telecommunication services and utilities. The ETF picks the stocks with the highest dividend yields. Each holding is then equally weighted so that every company has a similar influence on the ETF’s total return. The end result is a portfolio of 50 large cap stocks....