Fave Five (8/5/2016)

We took a different tack this week, focusing on companies with HUGE financial strength and combining those leaders with the best 1-year “sentiment” known as target prices. This week’s companies are: Alphabet (GOOG), Cognizant Technology (CTSH), Disney (DIS), Novartis (NVS) and Starbucks (SBUX).

Fave Five (8/5/2016)

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

  • Alphabet (GOOG)
  • Cognizant Technology (CTSH)
  • Disney, Walt (DIS)
  • Novartis (NVS)
  • Starbucks (SBUX)

Context: The average 1-year total return forecast (via ACE) for the Value Line 1700 is 15.7%. The average 5-year return forecast for $VLE is 5.9% (annualized).

The Long and Short of This Week’s Fave Five

The Long & Short. (August 5, 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.com S&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.

Weekend Warriors

The relative return for the Weekend Warrior tracking portfolio is +4.3% since inception. 47.2% of selections have outperformed the Wilshire 5000 since original selection.

Tracking Dashboard: https://www.manifestinvesting.com/dashboards/public/weekend-warriors