Top 10 Industrials WallStars Aim For 38%-144.77% Gains On Broker November Targets

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Includes: ADES, CMRE, CODI, CYD, FTAI, GMLP, GSH, HEES, HMLP, IRM, KNOP, NNBR, OMAB, PAC, R, SFL, TGP
by: Fredrik Arnold
Summary

WallStars are distinguished by positive broker target price upsides. NN led top-yielding Industrial target gains with 144.77%, while Golar LNG had the top WallStar yield at 12.5%.

The industrials sector has 23 component industries. The Top 50 November Industrials WallStars sorted by yield represented 18 of those industries.

50 Top Industrial WallStars ranged in estimated yields from 2.45% to 12.5%. The top ten averaged a yield of 10.03%.

Top ten WallStar Industrials by broker-target upsides averaged 61.22% estimated gains.

$5k invested in the lowest-priced five top-yield ten Industrials WallStars showed 12.245% more net gains than from $5k invested in all ten.

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

Three 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 30% 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 November 20, 2019 were:

NN Inc (NNBR) was projected to net $1,447.66.20 based on target price estimates from seven analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to volatility 38% over the market as a whole.

China Yuchai International (CYD) was projected to net $1,174.65, based on target price estimates from three analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to volatility 42% more than the market as a whole.

H&E Equipment Services Inc (HEES) was projected to net $671.49 based on dividends plus a median target estimate from seven brokers, less broker fees. The Beta number showed this estimate subject to volatility 190% over the market as a whole.

Grupo Aeroportuario del Pacifico SAB de CV (PAC) netted $516.83 based on target price estimates from nine analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to volatility 30% under the market as a whole.

Ryder System Inc (R) was projected to net $513.38 based on dividends, plus target estimates from thirteen analysts, less broker fees. The Beta number showed this estimate subject to volatility 63% over the market as a whole.

Costamare Inc (CMRE) was projected to net $470.16, based on a median target price estimate from six analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to volatility 18% more than the overall market.

Grupo Aeroportuario del Centro Norte SAB de CV (OMAB) was projected to net $444.87, based on dividends, plus median target price estimates from eleven analysts, less broker fees. The Beta number showed this estimate subject to volatility 9% more than the market as a whole.

Fortress Transportation and Infrastructure Investors LLC (FTAI) was projected to net $434.31, based on dividends, plus target estimates from seven analysts showed this estimate subject to volatility 46% more than the market as a whole.

Teekay LNG Partners LP (TGP) was projected to net $415.50, based on dividends, plus a median target price estimate from eight analysts, less broker fees. The Beta number showed this estimate subject to volatility 33% over the market as a whole.

Golar LNG Partners LP (GMLP) was projected to net $383.78, based on target price estimates from thirteen analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to volatility 9% less than the market as a whole.

The average net gain in dividend and price was estimated at 64.73% on $10k invested as $1k in each of these ten Industrials WallStars. This gain estimate was subject to average volatility 85% 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 November Industrials WallStars Represented 18 of 23 Component Industries

Yield (dividend / price) results from YCharts November 20, verified by YahooFinance for fifty stocks from eighteen 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 11/20/18 by yield represented 7 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 second, fourth and fifth: Ship Finance International (SFL) [2]; Hoegh LNG Partners LP (HMLP) [4]; KNOT Offshore Partners LP (KNOP) [5].

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

Guangshen Railway Co Ltd (GSH) [3]. One Pollution & Treatment Controls WallStar placed sixth, Advanced Emissions Solutions Inc (ADES) [6].

Finally, single representatives took the remaining seventh to tenth places: conglomerates places seventh, represented by Compass Diversified Holdings (CODI) [7]; in eighth place was the rental and leasing representative, Fortress Transportation and Infrastructure Investors LLC (FTAI) [8], while the number nine slot was covered by the integrated shipping & logistics rep, Costamare Inc (CMRE) [9]. Finally the tail of this ten dog trail was occupied by a business services concern, Iron Mountain Inc (IRM) which completed the top ten November Industrials WallStar list by yield.

Actionable Conclusion (21-30): Ten Industrial WallStars Showed 34.46% To 142.65% Upsides To November 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 Revealed A 12.45% Advantage For 5 Highest Yield, Lowest Priced, Industrials Sector November 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 11/20/18 showing the best dividend yields represented six of twenty-three industries in the sector.

Actionable Conclusions: Analysts Predicted 5 Lowest-Priced of the Top Ten Highest-Yield Industrials Delivering (31) 32.21% Vs. (32) 28.64% Net Gains by All Ten by November 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 12.45% more gain than $5,000 invested as $.5k in all ten. The very lowest priced Industrials top yield stock, Costamare Inc (CMRE), was projected to deliver the best net gain of 47.02%.

The five lowest-priced WallStar Industrials top yield dogs for November 20 were: Costamare Inc (CMRE); Advanced Emissions Solutions Inc (ADES); Ship Finance International Ltd (SFL); Golar LNG Partners LP (GMLP); Compass Diversified Holdings (CODI), with prices ranging from $5.08 to $14.96.

Five higher-priced Industrials for November 20 were: Fortress Transportation and Infrastructure Investors LLC (FTAI); Hoegh LNG Partners (HMLP); Guangshen Railway Co Ltd (GSH); KNOT Offshore Partners LP (KNOP); Iron Mountain Inc (IRM), whose prices ranged from $15.76 to $33.11.

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 Industrials 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 Indexarb, YCharts, Yahoo Finance; analyst mean target price by Thomson/First Call from Yahoo Finance. Dog photo from arusticgarden.com.

Disclosure: I am/we are long ADES, BGSF. 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.