Steve Cohen is the founder of SAC Capital Advisors, a hedge fund. He started SAC in 1992, with $20 million of his own money. Nowadays, the firm manages $14 billion in equity. For 20 years, he managed an average return of 30% annually, better than Warren Buffett.
Cohen used to focus on short-term trading, but over time, as his fund grew larger, He holds equities over much longer periods of time.
Combined with dividend yields and Cohen's stock picking capability, both income and stock price appreciation are possible. The following stocks are surely good places of start your stock research.
Carpenter Technology Corp. (CRS) is a metal fabrication company. It has a market cap of $2.5 billion. The company pays a dividend of 1.60%. Carpenter Technology engages in the manufacturing, fabrication, and distribution of specialty metals. Its P/E ratio of 20.63 is on the expensive side. However, based on its PEG ratio of 0.71, the stock appears undervalued. Carpenter Technology has an enterprise value / EBITDA ratio of 9.99. This is a reasonable valuation. The company had a net income of $104.80 million and EBITDA of $264.50 million on revenue of $1.87 billion. Both its revenue and earnings grew in double digits over the latest quarter, by 16.30% and 15.40%, respectively. The company has $175.90 million cash on its balance sheet. Its debt burden is $407.20 million, or approximately 33.26 in debt/equity ratio. This company looks very healthy financially.
J. C. Penney Company, Inc. (JCP) is a department store. It has a market cap of $5.1 billion. The company pays a nice dividend of 3.70%. J. C. Penney sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products, and home furnishings. Its price shows near-term weakness, close to 52-week low (only 9.23% higher). While the stock appears as if it might have bottomed, investors should proceed with caution. The PEG ratio is much lower than one. J. C. Penney Company Inc. has an enterprise value / EBITDA ratio of 10.46. This is a reasonable valuation. J. C. Penney has a very low operating margin of 1.04%. The company had a net income of $-379.00 million and EBITDA of $686.00 million revenue of $16.47 billion. This month, 44.38 million shares are being shorted. Comparing with 41.39 million shares shorted over the previous month, the share short has increased by 7%. The short ratio of J. C. Penney Company Inc. is 4.40, accounting for 31.90% of floating shares.
Murphy Oil Corporation (MUR) is an oil & gas refining & marketing company. It has a market cap of $9.76 billion. The company pays a dividend of 2.40%. Murphy Oil Corporation engages in the exploration and production of oil and gas properties worldwide. It has a reasonable P/E ratio of 10.93. A low PEG ratio of 0.56 usually indicates undervaluation. Its price/book ratio is 1.03. Murphy Oil has an enterprise value / EBITDA ratio of 2.58. Its operating margin of 5.68% is relatively low for its industry (Exxon Mobil's is above 10%). The company had a net income of $792.56 million and EBITDA of $3.31 billion on revenue of $28.41 billion. Its revenue grew by 11.60%, and its net income improved by 7.90% during the most recent quarter. This company appears cheap.
Ryder System, Inc. (R) is a rental & leasing services company. It has a market cap of $1.85 billion. The company pays a dividend of 3.30%. Ryder System provides transportation and supply chain management solutions. It operates in three segments: Fleet Management Solutions, Supply Chain Solutions, and Dedicated Contract Carriage. Its price is near the bottom, at around 6.07% above its 52-week low. It has a reasonable P/E ratio of 10.40. The PEG ratio is slightly above one, not much a concern of valuation. Ryder System has an enterprise value / EBITDA ratio of 4.01. The EV/EBITDA ratio indicates this company is cheap. The company had a net income of $177.58 million and EBITDA of $1.31 billion on revenue of $6.16 billion. Its revenue grew by 7.80%, and its net income improved by 36.60% during the most recent quarter. The valuation of this company looks appealing.
Sunoco, Inc. (SUN) is an oil & gas refining & marketing company. It has a market cap of $5.03 billion. The company pays a dividend of 1.70%. Sunoco refines and markets petroleum products in the United States. Its stock price is about 6.66% below its 52-week high, usually a positive technical indicator on the company. The PEG ratio is way above one, something to be cautious about. Sunoco has an enterprise value / EBITDA ratio of 4.68. Since EV/EBITDA ratio already considers the debt burden, the valuation is quite cheap. Sunoco's operating margin of 1.79% is a bit concerning. The company has $1.98 billion cash on its balance sheet. Its debt burden is $2.57 billion. Its cash flow appears very healthy. Its operating cash flow is $764.00 million, and its free cash flow is $266.25 million. This a great pick to consider for your portfolio.
The following table summarizes the basics of these companies.
|Ticker||Company||Market Cap||Revenue||EBITDA||Net Income||P/E||Yield||Revenue Growth|
|CRS||Carpenter Technology Corp.||$2.5 billion||$1.87 billion||$264.50 million||$104.80 million||20.63||1.60%||16.30%|
|JCP||J. C. Penney Company, Inc.||$5.1 billion||$16.47 billion||$686.00 million||$-379.00 million||3.70%||-20.10%|
|MUR||Murphy Oil Corporation||$9.76 billion||$28.41 billion||$3.31 billion||$792.56 million||10.93||2.40%||11.60%|
|R||Ryder System, Inc.||$1.85 billion||$6.16 billion||$1.31 billion||$177.58 million||10.40||3.30%||7.80%|
|SUN||Sunoco, Inc.||$5.03 billion||$46.8 billion||$1.2 billion||$-1180.00 million||1.70%||23.30%|