A few compelling buys have presented themselves after the latest market downswing. Here is my analysis of potential buys where there is blood in the water:
The Mosaic Company (MOS) markets and produces concentrated phosphate, potash crop nutrients and animal feed ingredients for the global agriculture industry. The 52-week low and high are recorded at $55.70 and $89.24, respectively. The stock has an EPS of $5.63 and a P/E of 12.44. The company’s debt/asset ratio is comparatively higher than its competitors. A higher debt/asset ratio indicates that the company relies heavily on debt financing as a means of managing and financing its operations. A company that relies on debt financing is considered more volatile due to the high costs associated with acquiring debt. A higher debt/asset ratio could also result in a “no dividend policy” or a lower dividend payout. I would consider the stock of Mosaic to be a relatively safe investment, however. At this stage in the company's life cycle, I would recommend the stock as a buy.
Netflix, Inc. (NFLX) is an Internet subscription service that streams television shows and movies and provided DVD rental through the mail. Subscribers tot he streaming service are able to watch shows and movies on their televisions, computers and mobile devices. The 52-week low and high are recorded at $140.02 and $304.79, respectively. The stock has an EPS and P/E of $3.94 and $52.96, respectively. On August 2, the stock closed at $261.74, and eight weeks later on September 22, it closed at near $130. Statistics reveal that Netflix is expected to appreciate in the future since it had the capacity to reach $300 again this year. Dividends have not been declared yet, though as a tech company, Netflix has other concerns, namely, how it can continue expected subscriber growth. I would recommend it as a buy.
F5 Networks, Inc (FFIV) provides technology to optimize delivery of network-based applications. It also works to improve the security and performance of network resources such as servers and data storage devices. It produces hardware and software to improve networking for applications such as secure remote access and wide area network (WAN) optimization, among other things. The 52-week low and high is recorded as $69.01 - $145.76. Currently the stock has a P/E ratio of $30.61 and an EPS of $2.72. Since August 2, the stock price has been gradually decreasing. F5's competitors have also experienced a similar decrease in their stock prices. This implies that the telecommunication industry is very volatile at the moment. The P/E of 30 indicates that investors have high expectations for the stock. I would recommend it as a buy.
Eaton Corporation (ETN) is a power management company primarily engaged in manufacturing electrical components and systems with the intention of improving power distribution and control. The 52-week low and high are recorded as $31.48 - $56.49. The EPS and P/E are $3.41 and $11.78. Between the August rout and today, the stock has fluctuated dramatically from $48.86 to around $35. The stock is expected to perform well in the future and the price is expected to appreciate to a higher level. Over the past year, the company paid total dividends of $1.36 to shareholders. I would recommend this stock as a buy, and I recommend that traders sell it as soon as its price comes near its 52-week high.