Here are the last eight stocks from CNBC’s “14 Stocks For a Boomer's Retirement Portfolio” list, along with my opinions about them. The O-Metrix Grading System is applied where possible, as well.
Data obtained from Finviz/Morningstar, and is current as of October 28 close. You can download the O-Metrix calculator here.
It seems that Peruvian workers of Freeport-McMoRan (FCX) may have to return to work in mid-November. The copper company was trading at a P/E ratio of 7.3, and a forward P/E ratio of 8.3, as of October 28. Analysts estimate a 7.0% annual EPS growth for the next five years. With a profit margin of 25.1%, it pays a 2.34% dividend.
The stock is currently trading 29.08% lower than its 52-week high, while it returned -11.1% in a year. O-Metrix score is 5.98, and its target price implies a 26.1% upside potential. While SMA50 is 10.58%, SMA20 is 22.10%. The debt-to-assets ratio is falling since 2008, whereas operating margin is 50.7%. ROA, ROE, and ROI are 19.78%, 44.68% and 31.45%, respectively. Freeport is an advantageous buy at this level.
Petrobras (PBR) is trying to increase fuel prices in Brazil. It shows a remarkable trailing P/E ratio of 4.0, and a forward P/E ratio of 7.3, as of the Friday close. Five-year annual EPS growth forecast is 8.50%. It offers a symbolic dividend of 0.59%, while the profit margin (17.8%) crushes the industry average of 7.4%.
Petrobras returned -19.4% in the last twelve months, and has an O-Metrix score of 8.04. Target price is $43.68, indicating a 58.0% increase potential. The company is trading 35.08% lower than its 52-week high, whereas sales increased by 28.98% this quarter. SMA20 and SMA50 are 16.88% and 8.49%, respectively. There are no red flags in Betrobras’ key statistics. ROE is 22.06%. Moreover, the company has a four-star rating from Morningstar. Petrobras is a dividend pick for the next five years, so consider adding this stock to your portfolio.
Caterpillar (CAT) is “tied to all the emerging market economies," Jay Tyner of Semmax Financial Group commented. The Illinois-based Caterpillar has a P/E ratio of 16.0, and a forward P/E ratio of 11.0, as of October 28. Estimated annualized EPS growth for the next five years is 10.3%. With a profit margin of 7.8%, shareholders enjoyed a 1.90% dividend last year.
Caterpillar is currently trading 16.09% lower than its 52-week high, whereas it returned 22.1% in a year. Target price implies an about 11.5% upside movement potential, and O-Metrix score is 4.51. Earnings increased by 190.36% this year, and 39.22% this quarter. Sales rose by 36.71% this quarter. Institutions hold 66.10% of the shares, while yields are awesome. SMA20 and SMA50 are 18.42% and 17.61%, respectively. Debts are going down since 2008. ROE is 35.44%, whereas PEG value is 1.1. Caterpillar is a tremendous long-term play.
Comcast (CMCSA) will report its Q3 results on November 2. The company was trading at a P/E ratio of 17.4, and a forward P/E ratio of 12.4, as of Friday’s close. Analysts expect the Comcast to have a 12.7% annual EPS growth in the next five years. With a profit margin of 8.4%, it offers a 1.89% dividend.
Target price is $29.42, which indicates a 23.3% upside potential. The stock is trading 11.30% lower than its 52-week high, whereas it returned 16.3% in the last twelve months. O-Metrix score is 4.89, and yields are consistent. Cash flow is doing all right, while earnings increased by 16.98% this quarter. Institutions hold 82.34% of the shares, and sales rose by 50.48% this quarter. SMA50 and SMA200 are 8.45% and 1.41%, respectively. Debt-to-equity ratio is 0.8, which crushes the industry average of 7.6. Moreover, it has a four-star rating from Morningstar. Comcast is trading well below its fair-value range, so you may want to consider this stock.
TJX (TJX) keeps reporting brilliant sales and profit growths, and Zacks ranked the stock as a Buy. It shows a trailing P/E ratio of 18.1, and a forward P/E ratio of 13.6, as of October 28. Analysts estimate an annualized EPS growth of 13.9% for the next five years. Shareholders enjoyed a 1.26% dividend last year, while the profit margin was 5.9%.
Target price is $61.89, implying an about 2.5% upside movement potential. The stock is trading only 1.48% lower than its 52-week high, and it returned 31.6% in a year. O-Metrix score is 4.78, whereas yields are totally stable. Debts are far from being a threat. Beta value is 0.58, while institutions hold 93.66% of the shares. Debt-to-equity ratio is 0.3, way below the industry average of 0.6. ROA, ROE, and ROI are 16.74%, 43.46% and 34.50%, respectively. TJX is relatively less volatile, and it seems to be an excellent long-term play.
El Paso (EPB) will announce its Q3 2011 results on November 2. The Texas-based El Paso has a P/E ratio of 13.4, and a forward P/E ratio of 13.9, as of the October 28 close. Five-year annualized EPS growth forecast is 5.5%. With a profit margin of 28.9%, and a dividend of 5.81%, El Paso is a brilliant pick for dividend lovers.
El Paso returned 0.6% in the last twelve months, whereas it is trading 11.99% lower than its 52-week high. Target price implies an 18.7% upside potential, and it has an O-Metrix score of 4.14. Yields seem all right, while Beta value is 0.23. Insiders hold 50.04% of the shares. Debt-to equity ratio is 2.0, well below the industry average of 3.6. Operating margin is 54.9%. Average analyst recommendation is 1.5 for El Paso (1=Buy, 3=Sell). Current price offers a profitable entry point.
Patrick Giroir has been appointed as the president of Boardwalk Pipeline’s (BWP) field services branch. It shows a trailing P/E ratio of 23.1, and a forward P/E ratio of 20.2, as of Friday’s close. Estimated annual EPS growth is 2.7% for the next five years. With a profit margin of 21.5%, Boardwalk offers a tremendous dividend of 7.21%.
The stock is currently trading 9.61% lower than its 52-week high, while it has an O-Metrix score of 2.28. Target price indicates an about 8.3% increase potential, and the company returned -10.8% in a year. Yields are awesome. Debts are far from being a threat, whereas cash flow is doing brilliant. Beta value is 0.18, and earnings increased by 74.92% this year. SMA50 and SMA200 are 13.45% and 2.03%, respectively. Insiders hold 53.42% of the shares, whereas institutions hold 76.82% of it. Debt-to equity ratio is 0.9, which crushes the industry average of 3.6. While gross margin is 76.1%, operating margin is 35.8%. Boardwalk will be an outperformer in the long-term, so consider adding this stock to your portfolio.
The only REIT in the list is Brandywine (BDN), which has just released its latest quarterly results. With a current share price of $9.25, Brandywine has a 52-week range of between $9.06 and $9.29. The REIT is offering a $0.15 yield in a three-month period, which equates to $0.60 per year, or 6.49% in percentage. Institutions hold 99.20% of the shares, and analysts give a 2.60 rating for it (1=Buy, 5=Sell). Annaly Capital (NLY) is a better buy for me. It offers a much higher yield of 14%, and has a very low trailing P/E ratio of 5.94. While Operation Twist might squeeze the long-term profits of mREITs, it might take years to show its full effect on the balance sheet. Investors might consider high-dividend stocks, such as Annaly Capital, as a perfect substitute for bonds.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
