We’re going Brexit shopping. In the wake of the polling results, some European disruptions are inevitable but a 500-point drop in U.S. stock market indices is likely unwarranted. Our weekly shopping list was restricted to the best long-term prospects this weekend — hoping for some outsized opportunities thanks to Mr. Market and pundit/media hand wringing.
Fave Five (6/24/2016)
Our Fave Five essentially represents a listing of stocks with favorable short term total return forecasts (1 year, according to Analyst Consensus Estimates, or ACE) combined with strong long-term return forecasts and good/excellent quality rankings.
The Fave Five This Week
- Aaron’s (AAN)
- Celgene (CELG)
- Polaris (PII)
- Proto Labs (PRLB)
- Synaptics (SYNA)
Context: The median 1-year total return forecast (via ACE) for the Value Line 1700 is 10.8%. The median 5-year return forecast for $VLE is 5.6% (annualized).
The Long and Short of This Week’s Fave Five
The Long & Short.(June 24, 2016)Projected Annual Return (PAR): Long term return forecast based on fundamental analysis and five year time horizon. Quality Ranking: Percentile ranking of composite that includes financial strength, earnings stability and relative growth & profitability. VL Low Total Return (VLLTR): Low total return forecast based on 3-5 year price targets via Value Line Investment Survey.Morningstar P/FV: Ratio of current price to fundamentally-based fair value via www.morningstar.comS&P P/FV: Current price-to-fair value ratio via Standard & Poor’s. 1-Year ACE Outlook: Total return forecast based on analyst consensus estimates for 1-year target price combined with current yield. The data is ranked (descending order) based on this criterion. 1-Year S&P Outlook: 1-year total return forecast based on S&P 1-year price target. 1-Yr GS: 1-year total return forecast based on most recent price target issued by Goldman Sachs.
The relative return for the Weekend Warrior tracking portfolio is +2.7% since inception. 55.6% of selections have outperformed the Wilshire 5000 since original selection.
Tracking Dashboard: https://www.manifestinvesting.com/dashboards/public/weekend-warriors