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Growth Stocks

Steris plays into powerful long-term trends

The pandemic presented this firm with unique challenges. However, it remained profitable and is now well positioned to keep prospering as the economy rebounds. Trends underway—as well as its strong position in key markets—will power its gains. The stock is a Power Buy.

STERIS PLC, $227.27, is a buy. The firm (New York symbol STE; TSINetwork Rating: Extra Risk) (www.steris.com; Shares outstanding: 98.8 million; Market cap: $22.7 billion; Dividend yield: 0.9%) sells sterilization equipment, surgical tables, and other products and services used in hospitals and laboratories.

Steris operates in four segments: Healthcare (65% of revenues), Applied Sterilization Technologies (17%), Life Sciences (11%), and Dental (7%)....

2 min read

Pat McKeough

Growth Stocks

Goodyear adds board members after activist pressure

Goodyear’s shares took a big jump in mid-May 2023 after activist investor Elliott Management pushed for changes at the underperforming tiremaker. As well, Elliott, which owns about 10% of Goodyear, was pushing for a sale or other action on the company’s 1,000 plus retail stores....

1 min read

Pat McKeough

Growth Stocks

Sale lets ADT focus

ADT INC., $6.43, is a buy. The company (New York symbol ADT; TSINetwork Rating: Extra Risk) (adt.com; Shares outstanding: 866.5 million; Market cap: $5.9 billion; Dividend yield: 2.2%) is a leading provider of monitored security products and services to customers in the U.S.

ADT is now selling its commercial security, fire and life safety business unit to private equity firm GTCR for $1.6 billion.

Proceeds from the sale, which is expected to close in the fourth quarter of 2023, will be used to cut debt by $1.5 billion; the cash interest savings should offset the impact of losing the commercial business revenue....

1 min read

Pat McKeough

Growth Stocks

AI just adds to Twilio’s appeal

Twilio focuses on a rapidly expanding area: it provides the building blocks that businesses and their software developers need to integrate voice calling, text messaging, video, web, mobile chat and, more recently, email.

The company’s array of communications offerings continues to see increased demand....

2 min read

Pat McKeough

How To Invest

Here’s our Spinoff Stock Portfolio for September 2023

You Can See Our Spinoff Stock Portfolio For September 2023 Here.

Why we like spinoffs so much
We think that spinoffs are the closest thing you can find to a sure thing for two main reasons:

1) The management of a parent company will only hand out shares in a subsidiary to its own investors if it’s all but certain that business, and the parent, will be better off after the spinoff.

2) Spinoffs involve a lot of work and legal fees....

1 min read

Pat McKeough

Spinoffs

Beware: This new IPO looks pricey

ODDITY TECH LTD. $44 is a hold. Based in Israel, this company (Nasdaq symbol ODD; Consumer sector; Shares outstanding: 56.5 million; Market cap: $2.5 billion; No dividend paid; Takeover Target Rating: Lowest; www.oddity.com) makes cosmetics (under the IL Makiage brand) and skin and hair products (under the SpoiledChild brand)....

1 min read

Pat McKeough

Spinoffs

Keep on top of stock updates

NCR CORP. $29 is a buy for aggressive investors. The company (New York symbol NCR; Manufacturing & Industry sector; Shares outstanding: 140.9 million; Market cap: $4.1 billion; No dividend paid; Takeover Target Rating: Medium; www.ncr.com) plans to split into two separate firms by the end of 2023....

2 min read

Pat McKeough

Spinoffs

Tap the upcoming housing boom

Fortune Brands Home & Security (now called Fortune Brands Innovation) became an independent company following its spin-off from the former Fortune Brands holding company in 2011.

In December 2022, the company completed its own spinoff of its home cabinet business (MasterBrand)....

2 min read

Pat McKeough

Spinoffs

embecta looks like a bargain

EMBECTA CORP. $19 is a spinoff buy. The company (Nasdaq symbol EMBC; Manufacturing & Industry sector; Shares outstanding: 57.3 million; Market cap: $1.1 billion; Dividend yield: 3.2%; Takeover Target Rating: Medium; www.embecta.com) took its current form in April 2022 when Becton Dickinson & Co....

1 min read

Pat McKeough

Spinoffs

Medical spinoffs with strong potential

These three medical-related stocks are down or flat since they either announced a spinoff (Baxter) or became separate firms (Bausch + Lomb, and embecta—see box). We like all of them, but see only two as buys right now.

BAXTER INTERNATIONAL INC....

2 min read

Pat McKeough

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Spinoffs

One of the ways a company can try to unlock its own hidden value is by creating a separate company out of a corporate subsidiary. The parent company can either sell stock in the new company to the public, or spin it off—hand the stock out to its own investors.

Dividend Stocks

Dividend stocks make cash payouts that serve as a way for companies to share the wealth they’ve accumulated. These payouts are drawn from earnings and cash flow and paid to the shareholders of the company. Typically, these dividends are paid quarterly, although they may be paid annually or even monthly as well.

ETFs

What are ETFs?

ETF is an acronym for exchange traded fund. These exchange traded funds are used to track indexes as closely as possible, since investors cannot actually buy an index outright.

Value Stocks

What are value stocks?

One of the sweetest and most profitable pleasures of successful investing is to buy high-quality “value stocks” (or stocks that are reasonably priced, if not cheap, in relation to its sales, earnings or assets), then hold on to them as mainstream investors recognize the value and push up the share price.

Blue Chip Stocks

Blue chip stocks are big, well-established, dividend-paying corporations with strong business prospects. These are companies that also have sound management that should be able to make the right moves to keep competing successfully in a changing marketplace.

Penny Stocks

A penny stock in general trades for under five dollars a share, and as the name implies, sometimes for pennies. Most of the time they’re young companies, or start-ups in speculative markets like mining or technology.

Growth Stocks

Growth stocks are companies that are likely to have sales and earnings growth well above market average. Frequently they pay few, if any, dividends. Instead they typically reinvest any extra cash flow to promote further growth. Chosen wisely—according to Pat McKeough’s advice—high-quality growth-oriented stocks can be worthwhile additions to most well-diversified portfolios.

Wealth Management

Wealth management is the practice of putting your savings to work so that it continues to grow over your lifetime and will also benefit your heirs. Wealth management encompasses many different areas of investing like long term investment planning and retirement planning.

Mining Stocks

Mining stocks are investments in companies that produce or explore for minerals. Some of these minerals include uranium, coal, molybdenum (which is used in steelmaking), copper, silver and gold. They are affected by fluctuating commodity prices in addition to their own business and operating risks.

How To Invest

Pat McKeough has been making investing for beginners simple—and profitable—by helping investors make big gains for more than 25 years. His advice to beginning investors is the same as it is for all investors: buy high-quality, mostly dividend paying stocks (or ETFs that hold these stocks) and evenly spread your investments over the five main economic sectors (Resources, Manufacturing, Finance, Utilities and Consumer). Pat also believes investors should avoid stocks in the broker/media limelight and focus on those with hidden or little-noticed assets.

Energy Stocks

What are energy stocks?

Businesses that work in the extraction, refining and delivery of energy sources such as natural gas, oil, uranium and coal, are considered energy stocks.