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Top 10 Industrials WallStars Aim For 35%-80% Gains Per Broker October Targets

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Includes: ADES, AVH, CMRE, CPLP, CYD, DLNG, GE, GMLP, HMLP, LKSD, PBI, QUAD, RRD, SFL, TNP, USDP
by: Fredrik Arnold
Summary

WallStars are distinguished by positive broker target price upsides. Atento led top yielding Industrial target gains with 90.92% calculated 10/9/18, by 8 analysts, while Golar LNG showed top WallStar yield.

The industrials sector has 23 component industries. Top 50 October Industrials WallStars sorted by yield represented 16 of those industries.

50 Top Industrial WallStars ranged in estimated yield from 2.75% to 15.6%. Top ten, SFL, GE, LKSD, PBI, CPLP, DLNG, AVH, USDP, CYD, & GMLP averaged 12.3% yield.

Top ten WallStar Industrials by broker-target upsides, MGRC, HAYN, ADES, QUAD, LKSD, PBI, ATTO, RRD, CYD, & GSH averaged 69.59% estimated gains.

$5k invested in the lowest-priced five top-yield ten Industrials WallStars showed 50.22% more net gain than from $5k invested in all ten. These little low-price stocks again paced October's Industrial WallStars.

Actionable Conclusions (1-10): Dividends Plus Analysts Targets Produced 35.26% To 80.93% Net Gains For Ten Top Industrial WallStars

Four of ten top dividend-yielding Industrials WallStars were among the top ten gainers for the coming year based on analyst 1-year target prices. (They are tinted gray in the chart above). So, this yield-based forecast for Industrials, as graded by Wall St. Wizards, was 40% accurate.

The following probable profit-generating trades were selected by estimated dividends from $1000 invested in each highest yielding stock. That dividend and the aggregate one year analyst median target price, as reported by YCharts, created the 2018-19 metrics. Ten probable profit-generating trades projected to October 9, 2019 were:

Atento ATTO) was projected to net $809.20 based on target price estimates from eight analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to volatility 86% under the market as a whole.

Pitney Bowes Inc (PBI) was projected to net $808.19, based on target price estimates from six analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to volatility 4% less than the market as a whole.

R.R.Donnelley & Sons Co (RRD) was projected to net $797.39 based on dividends plus a median target estimate from two brokers, less broker fees. The Beta number showed this estimate subject to volatility 27% over the market as a whole.

LSC Communications Inc (LKSD) netted $777.71 based on target price estimates from five analysts, plus dividends, less broker fees. A Beta number was not available for LKSD.

Advanced Emissions Solutions (ADES) was projected to net $637.94 based on dividends, plus target estimates from two analysts, less broker fees. The Beta number showed this estimate subject to volatility 61% over the market as a whole.

Quad/Graphics (QUAD) was projected to net $627.00, based on a median target price estimate from two analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to volatility 18% more than the overall market.

Capital Product Partners (CPLP) was projected to net $514.72, based on dividends, plus median target price estimates from nine analysts, less broker fees. The Beta number showed this estimate subject to volatility 24% more than the market as a whole.

Costamare Inc (CMRE) was projected to net $406.15, based on dividends, plus target estimates from seven analysts showed this estimate subject to volatility 99% more than the market as a whole.

Tsakos Energy Navigation (TNP) was projected to net $399.94, based on dividends, plus a median target price estimate from nine analysts, less broker fees. The Beta number showed this estimate subject to volatility 2% over the market as a whole.

Avianca Holdings (AVH) was projected to net $352.61, based on target price estimates from six analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to volatility 42% less than the market as a whole.

The average net gain in dividend and price was estimated at 61.31% on $10k invested as $1k in each of these ten Industrials WallStars. This gain estimate was subject to average volatility 25% more than the market as a whole.

The Dividend Dogs Rule

Stocks earned the "dog" moniker by exhibiting three traits: (1) paying reliable, repeating dividends, (2) their prices fell to where (3) yield (dividend/price) grew higher than their peers. Thus, the highest yielding stocks in any collection became known as "dogs." More precisely, these could be, best called, "underdogs".

Top Yield 50 October Industrials WallStars Represented 16 of 23 Component Industries

Yield (dividend / price) results from YCharts October 7, verified by YahooFinance for fifty stocks from sixteen of twenty-three Industrials sector industries, revealed the actionable conclusions highlighted in this article.

50 Top Yield Industrials Dividend WallStar Dogs By Target Gains

Actionable Conclusion (11-20) Yield Metrics Revealed 10 Top Dividend Industrials WallStars

Top ten Industrials Sector stocks ranked as of 10/9/18 by yield represented 6 of 23 constituent industries. Top yielding Industrials stock, Golar LNG Partners (GMLP [1] was one of four Shipping and Ports representatives in the top ten.

The other three shipping and ports WallStars placed fifth, sixth and tenth: Dynagas LNG Partners (DLNG) [5]; Capital Product Partners (CPLP) [6]; Ship Finance International (SFL) [10].

Second place was secured by the best of a two diversified industrials representatives, China Yuchai International Ltd (CYD) [2], while the other diversified representative placed ninth, General Electric Co (GE) [9].

Third place went to the lone railroad represented in the top ten,

USD Partners (USDP) [3], while one business equipment WallStar placed seventh, Pitney Bowes Inc (PBI) [7].

Finally, the remaining eighth place industrial WallStar by yield represented business services, LSC Communications Inc (LKSD) [8], which completed the top ten October Industrials WallStar list by yield.

Actionable Conclusion (21-30): Ten Industrial WallStars Showed 23.91% To 73.91% Upsides To October, 2019

To quantify top upside rankings, analyst median price target estimates provided "market sentiment" measures of up/downside potential. Added to the simple high-yield metrics, analyst median price target estimates became another tool to dig out bargains.

Analysts Reveal A 50.22% Advantage For 5 Highest Yield, Lowest Priced, Industrials Sector October WallStars

Ten top Industrial WallStars were culled by yield for their monthly update. Yield (dividend/price) results verified by yCharts did the ranking.

As noted above, top ten Industrials stocks selected 10/9/18 showing the best dividend yields represented four of twenty-three industries in the sector.

Actionable Conclusions: Analysts Predicted 5 Lowest-Priced of the Top Ten Highest-Yield Industrials Delivering (31) 53.87% Vs. (32) 35.86% Net Gains by All Ten by October, 2019

$5000 invested as $1k in each of the five lowest-priced stocks in the top ten dividend Industrials WallStars by yield was predicted by analyst 1-year targets to deliver 50.22% more gain than $5,000 invested as $.5k in all ten. The third lowest priced Industrials top yield stock, Pitney Bowes Inc (PBI), was projected to deliver the best net gain of 80.82%.

The five lowest-priced WallStar Industrials top yield dogs for October 9 were: Capital Product Partners (CPLP); Avianca Holdings SA (AVH); Pitney Bowes Inc (PBI); Dynagas LNG Partners (DLNG); LSC Communications Inc, with prices ranging from $2.88 to $9.59.

Five higher-priced Industrials for October 9 were: USD Partners (USDP); General Electric Co (GE); Ship Finance International (SFL); Golar LNG Partners (GMLP); Hoegh LNG Partners (HMLP); China Yuchai International Ltd (CYD), whose prices ranged from $10.15 to $15.10.

The distinction between five low-priced dividend dogs and the general field of ten reflected Michael B. O'Higgins' "basic method" for beating the Dow. The scale of projected gains based on analyst targets added a unique element of "market sentiment" gauging upside potential. It provided a here-and-now equivalent of waiting a year to find out what might happen in the market. Caution is advised, since analysts are historically only 20% to 80% accurate on the direction of change and just 0% to 20% accurate on the degree of change.

See my instablog for specific instructions about how to best apply the dividend dog data featured in this article, this glossary instablog to interpret my abbreviated headings, and this instablog to aid your safe investing. --Fredrik Arnold

The net gain/loss estimates above did not factor in any foreign or domestic tax problems resulting from distributions. Consult your tax advisor regarding the source and consequences of "dividends" from any investment.

Stocks listed above were suggested only as possible reference points for your Healthcare dog stock purchase or sale research process. These were not recommendations.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, recommendation or endorsement to buy or sell any security. Prices and returns on equities in this article except as noted are listed without consideration of fees, commissions, taxes, penalties, or interest payable due to purchasing, holding, or selling same.

Graphs and charts were compiled by Rydlun & Co., LLC from data derived from www.indexarb.com; YCharts.com; finance.yahoo.com; analyst mean target price by Thomson/First Call in YahooFinance. Dog photo from: 81metalart.com

Disclosure: I am/we are long ADES, BGSF, GE. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.