Friday, August 22, 2014

5 Best Undervalued Stocks To Own For 2014

Between games of pick-up basketball, one of my favorite players — killer jump shot — sidled over and asked me what he should do with an “extra” $10,000 he’d come into courtesy of a nice bonus.

These are always difficult questions to answer. I’m never quite sure what kind of time horizon is involved, nor what the risk profile or tolerance is — and I sure don’t want to be the guy who causes people to lose money.

After a few minutes of discussion we agreed that the investment should go to income stocks that would provide him with a steady stream of quarterly dividend cash for at least the next 5-10 years, with a strong dividend yield north of 3%, and at a P/E ratio that sits at a 25% discount to that of the S&P 500, which stands at just under 19x earnings. After all, why not seek out what might be an undervalued play? For good measure, I’ve made it so at least one of the picks pays out its dividend in different months than the other two.

Top 5 Freight Companies To Buy For 2015: Dollar Tree Inc.(DLTR)

Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.

Advisors' Opinion:
  • [By Paul Ausick]

    Dollar General�� share price is up less than 6% in the past 12 months, but since the beginning of the year shares have risen more than 22%. And even then, Dollar General�trails Dollar Tree Inc. (NASDAQ: DLTR) in share price growth since January 1. Dollar Tree stock is up 30%.

  • [By Lawrence Meyers]

    The finance sector, as mentioned, can make money in many ways. The second-highest growth sector is expected to be consumer discretionary, with a 6.2% increase. When you look at earnings from luxury brands like Tiffany & Co. (TIF), and that the hotel sector continues to do very well, it suggests that those people who are in good financial shape are spending their money. Meanwhile, dollar players like Dollar Tree (DLTR) continue to perform very well, suggesting that folks with less money are spending it on cheaper items.

  • [By Ben Eisen]

    Perpetually struggling department store J.C. Penney Co. (JCP) �said it expects a sales boost this holiday season as it returns to a promotional strategy. But for the most part, retailers including Dollar Tree Inc. (DLTR) �, GameStop Corp. (GME) � and Abercrombie & Fitch Co. (ANF) � gave dour outlooks in their earnings reports.

5 Best Undervalued Stocks To Own For 2014: Tupperware Corporation(TUP)

Tupperware Brands Corporation operates as a direct seller of various products across a range of brands and categories through an independent sales force. The company engages in the manufacture and sale of kitchen and home products, and beauty and personal care products. It offers preparation, storage, and serving solutions for the kitchen and home, as well as kitchen cookware and tools, children?s educational toys, microwave products, and gifts under the Tupperware brand name primarily in Europe, Africa, the Middle East, the Asia Pacific, and North America. The company provides beauty and personal care products, which include skin care products, cosmetics, bath and body care, toiletries, fragrances, nutritional products, apparel, and related products principally in Mexico, South Africa, the Philippines, Australia, and Uruguay. It offers beauty and personal care products under the Armand Dupree, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo, and Swissgar de brand names. The company sells its Tupperware products directly to distributors, directors, managers, and dealers; and beauty products primarily through consultants and directors. As of December 26, 2009, the Tupperware distribution system had approximately 1,800 distributors, 61,300 managers, and 1.3 million dealers; and the sales force representing the Beauty businesses approximately 1.1 million. The company was formerly known as Tupperware Corporation and changed its name to Tupperware Brands Corporation in December 2005. The company was founded in 1996 and is headquartered in Orlando, Florida.

Advisors' Opinion:
  • [By Johanna Bennett]

    Corporate earnings took a back seat today to the Fed�� latest policy decision. Still, quarterly financial results, and other news sent shares of McCormick & Co. (MKC) and Tupperware (TUP), falling during regular market hours�Here�� a rundown of several of today�� moves:

  • [By Ben Levisohn]

    Shares of Herbalife have gained 0.9% to $79.51 this morning in pre-open trading. Its shares have gained 139% this year, a nice gain, but lagging Nu Skin Enterprises 271% rise. Avon Products�(AVP), another multi-level marketer, has gained 21% so far this year, while Tupperware Brands�(TUP) has risen 49%.

5 Best Undervalued Stocks To Own For 2014: Schlumberger N.V.(SLB)

Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The company?s Oilfield Services segment provides exploration and production services; wireline technology that offers open-hole and cased-hole services; supplies engineering support, directional-drilling, measurement-while-drilling, and logging-while-drilling services; and testing services. This segment also offers well services; supplies well completion services and equipment; artificial lift; data and consulting services; geo services; and information solutions, such as consulting, software, information management system, and IT infrastructure services that support oil and gas industry. Its WesternGeco segment provides reservoir imaging, monitoring, and development services; and operates data processing centers and multiclient seismic library. This segment also offers variou s services include 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. The company?s M-I SWACO segment supplies drilling fluid systems to improve drilling performance; fluid systems and specialty tools to optimize wellbore productivity; production technology solutions to maximize production rates; and environmental solutions that manages waste volumes generated in drilling and production operations. Its Smith Oilfield segment designs, manufactures, and markets drill bits and borehole enlargement tools; and supplies drilling tools and services, tubular, completion services, and other related downhole solutions. The company?s Distribution segment markets pipes, valves, and fittings, as well as mill, safety, and other maintenance products. This segment also provides warehouse management, vendor integration, and inventory management services. Schlumberger Limited was founded in 1927 and is based in Houston, Texas.

Advisors' Opinion:
  • [By Dr. Kent Moors]

    That's why some of the biggest OFS providers - like Schlumberger (NYSE: SLB), Halliburton (NYSE: HAL) and Weatherford International (NYSE: WFT) - have been buying up oil and gas equipment companies.

  • [By Ben Levisohn]

    Schlumberger�(SLB) has become the latest company to say that it will get hit by Russian sanctions on U.S. companies today.

    Sterne Agee’s Stephen Gengaro and Ivan Suleiman assess the potential impact:

    Schlumberger�expects that the economic sanctions in Russia will have a small financial impact on Schlumberger’s Russian operations. The company estimates that it could be up to $0.03 per share due to a short-term impact in operational efficiencies and costs in Russia.

    Schlumberger�remains confident that it can support its Russian clients without material disruption and will continue to work closely with its Russian customers.

    Although other large-cap service companies have exposure to Russia, we believe the effect is also minimal. Specifically, Weatherford (WFT) has noted that the Russian sanctions are not a concern as this is a very small portion of its business. In addition, this business is not impacted by the sanctions which are against Arctic and shale-related technologies. We estimate that Weatherford’s revenue in Russia is less than 3% of our estimated 2014 revenue.

    Other companies with large exposure to Russia include Nabors Industries (NBR), Halliburton (HAL) and Baker Hughes (BHI).

    RBC’s Kurt Hallead and Robert Pinkard use the occasion to assess the potential impact on�Schlumberger from Iraq instability:

    We estimate roughly $600mn in annual Iraq revenue ($0.06-$0.08 in EPS) for�Schlumberger with operating margins of ~20%. The situation due to political unrest is still very fluid in the country and EPS impact at this point is unknown.

    We are risk adjusting the next 6 quarters which we believe could be characterized by activity disruptions, higher security expenses and unabsorbed fixed costs.

    Hallead and Pinkard lowered their 2014 earnings-per share forecast to $5.56 from $5.64, and cut their 2015 prediction to $6.63 from $6.70. They did, however, leave their pric

5 Best Undervalued Stocks To Own For 2014: Caterpillar Inc.(CAT)

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The Machinery business offers construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. It also manufactures diesel-electric locomotives; and manufactures and services rail-related products and logistics services for other companies. The Engines business provides diesel, heavy fuel, and natural gas reciprocating engines for Caterpillar machinery, electric power generation systems, marine, petrol eum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbine-related services for oil and gas, and power generation applications. This business also remanufactures Caterpillar engines, machines, and engine components; and offers remanufacturing services for other companies. The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels, as well as offers loans and various forms of insurance to customers and dealers. It also offers financing for vehicles, power generation facilities, and marine vessels. The company markets its products directly, as well as through its distribution centers, dealers, and distributors. It was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquartered in Peoria, Illinois.

Advisors' Opinion:
  • [By Travis Hoium]

    Caterpillar (NYSE: CAT  ) is up 2.3% a day after announcing a 15% boost to its quarterly dividend. Investors will now be paid a dividend of $0.60 per quarter, with the first installment going to shareholders of record on July 22. Dividends are one of the best ways for companies to provide a return for investors, and an increase like this is an indication that management is confident about the future of the company.

  • [By Arjun Sreekumar]

    For mining operations, one of the most commonly used trucks is Caterpillar's (NYSE: CAT  ) Caterpillar 797, or Cat 797 for short ��an enormous dump truck with a 400-ton capacity that's capable of hauling a million pounds of bituminous sand at a single time.

  • [By Matt Thalman]

    The big losers
    Earth-moving company Caterpillar (NYSE: CAT  ) lost 0.42% of its value over the past few trading days, as precious metals and other natural resources had a terrible Friday. On the last day of the week alone, gold lost 3.13%, sliver declined by 4.89%, and platinum and copper slid 1.51% and 3.45% respectively. Caterpillar is a big player in mining equipment sales, and when the commodity prices of the resources which are mined fall, demand for heavy machinery usually will follow suit. �

  • [By Matt Thalman]

    The big losers
    Caterpillar (NYSE: CAT  ) was the worst Dow component of the week, down 4.19% after the company reported earnings on Wednesday and missed expectations. Earnings per share came in at $1.45, down 43% from $2.54 from the second quarter last year and much worse than the $1.69 Wall Street wanted to see. Revenue came in at $14.6 billion, which was also lower than the $15.1 billion analysts wanted to see. Furthermore, the company cut its full-year forecast and told investors it will begin cutting costs as a way to deal with lower sales. �

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