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Value Stocks

Booster shots just add to McKesson’s appeal

Shares of drug wholesaler McKesson hit an all-time high of $375 in August 2022. That’s largely due to its role in distributing COVID-19 vaccines. The U.S. government just extended this deal through July 2023, which will help the company profit from the rollout of booster shots....

2 min read

Pat McKeough

Growth Stocks

State Street rewards investors

STATE STREET CORP. $63 is a buy. The company (New York symbol STT; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 367.6 million; Market cap: $23.2 billion; Price-to-sales ratio: 2.1; Dividend yield: 4.0%; TSINetwork Rating: Average; www.statestreet.com) sells accounting and administrative services to operators of mutual funds and pension plans.

State Street recently agreed to pay $3.5 billion for the investor services division of Brown Brothers Harriman & Co....

1 min read

Pat McKeough

Growth Stocks

Here are three key updates on your portfolio

NORTONLIFELOCK INC. $21 is a buy. The security software maker (Nasdaq symbol NLOK; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 665.6 million; Market cap: $14.0 billion; Price-to-sales ratio: 4.3; Dividend yield: 2.4%; TSINetwork Rating: Average; www.nortonlifelock.com) has two main businesses: Norton computer antivirus software for individuals; and LifeLock identity-theft protection.

NortonLifeLock has just received key regulatory approval to complete its acquisition of European cybersecurity firm Avast plc for $8 billion.

Meantime, NortonLifeLock continues to attract new customers as people working from home spurs a jump in cyberattacks....

2 min read

Pat McKeough

Value Stocks

Higher rates will lift loan income

WELLS FARGO & CO. $41 remains a buy. The bank (New York symbol WFC; Income Portfolio, Finance sector; Shares outstanding: 3.8 billion; Market cap: $155.8 billion; Price-to-sales ratio: 2.1; Dividend yield: 2.9%; TSINetwork Rating: Average; www.wellsfargo.com) is third-largest banking firm in the U.S., with total assets of $1.90 trillion.

Wells Fargo expects rising interest rates will slow demand for new mortgages and other loans.

However, it will earn higher income on credit cards and other loans....

1 min read

Pat McKeough

Growth Stocks

Go beyond the big banks with these leaders

We continue to recommend investors diversify their Finance sector holdings with non-banking stocks. You can further cut your risk with high-quality firms that dominate their niche markets, such as eBay and Broadridge.

EBAY INC. $39 is a buy. The company (Nasdaq symbol EBAY; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 549.4 million; Market cap: $21.4 billion; Price to-sales ratio: 2.3; Dividend yield: 2.3%; TSINetwork Rating: Above Average; www.ebay.com) operates e-commerce websites, in over 190 countries, where sellers pay fees to auction items or offer them at fixed prices.

eBay’s revenue in the second quarter of 2022 fell 5.9%, to $2.42 billion from $2.67 billion a year earlier.

The decline is mainly because stores are re-opening as COVID-19 lockdowns end....

2 min read

Pat McKeough

Mining Stocks

Sale helps fund new exploration

NEWMONT CORP. $42 is a buy for long-term growth and a hedge against inflation. The company (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 793.7 million; Market cap: $33.3 billion; Price-to-sales ratio: 2.6; Dividend yield: 5.2%; TSINetwork Rating: Average; www.newmont.com) is the world’s largest gold producer....

1 min read

Pat McKeough

Growth Stocks

More gains ahead for these two spinoffs

These recent spinoffs have thrived since becoming independent firms. While rising costs and unfavourable currency rates are squeezing their margins, we expect these market leaders to rebound quickly as the economy recovers.

CARRIER GLOBAL CORP....

2 min read

Pat McKeough

Growth Stocks

Mondelez can handle higher costs

MONDELEZ INTERNATIONAL INC. $58 is a buy. The company (Nasdaq symbol MDLZ; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.4 billion; Market cap: $81.2 billion; Price-to-sales ratio: 2.7; Dividend yield: 2.7%; TSINetwork Rating: Above Average; www.mondelezinternational.com) mainly makes snack foods, such as cookies and chocolate bars, and gum.

In the three months ended June 30, 2022, sales rose 9.5%, to $7.27 billion from $6.64 billion a year earlier....

1 min read

Pat McKeough

Energy Stocks

APA doubles its dividend

APA CORP. $35 is a hold. The company (New York symbol APA; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 338.2 million; Market cap: $11.8 billion; Price-to-sales ratio: 1.1; Dividend yield: 2.9%; TSINetwork Rating: Average; www.apacorp.com) produces oil and natural gas in the U.S., Egypt and the U.K.

Thanks to the rise in crude oil prices over the past few months, APA is now doubling your quarterly dividend....

1 min read

Pat McKeough

Growth Stocks

Three buys for post-pandemic returns

These three medical device makers continue to enjoy strong demand for their products as hospitals and clinics resume regular procedures on easing of COVID-19 lockdowns and other restrictions. While ongoing supply-chain problems add risk, we like their long-term prospects.

BAXTER INTERNATIONAL INC....

4 min read

Pat McKeough

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Cannabis

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.