Fave Five (1/22/2016)

Fave Five (1/22/2016)

This week’s Fave Five includes (4) repeat selections and one recent favorite, the #1 ranked company in this year’s Best Small Companies listing a couple of months ago.

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. This week’s Top One Percenters are Apple (AAPL), Cognizant Technology (CTSH), Forward Air (FWRD), F5 Networks (FFIV), and Under Armour (UA).

Context: The median 1-year total return forecast (via ACE) for the Value Line 1700 is 32.0%. The median 5-year return forecast (MIPAR) is 9.9% (annualized).

The Long and Short of This Week’s Fave Five

Weekend Warriors

The relative return for the Weekend Warrior tracking portfolio is +2.6% since inception. 60.0% of selections have outperformed the Wilshire 5000 since original selection.

Here are some links to fairly recent monthly stock features, Round Table discussions and/or analysis updates for companies in the tracking portfolio:

  • Apple (AAPL)
  • Forward Air (FWRD)
  • Stericycle (SRCL) Feb-2014 Round Table nomination by Nick Stratigos (starts at 18:33 of session)

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

Gone Shopping With Eddy (2016)

If you’re not familiar with Eddy Elfenbein and http://www.crossingwallstreet.com, you should be. Eddy thinks like us and it looks like his “Buy List” of stock selections is well on track to beat the market for the 8th time in the last nine years!

This excerpt is from his Thursday update (blog … go ahead, subscribe for FREE) and we’ll rake these around the holiday coals … same thing we do every year, Pinky. See: CWS Market Review for 12/4/2015

Ten Possible Additions for Next Year’s Buy List

For next year’s Buy List, I’m going to add five new stocks. Here are ten stocks I’m strongly considering for next year’s Buy List:

  • Alliance Data Systems (ADS)
  • Cerner (CERN)
  • Church & Dwight (CHD)
  • FactSet Research Systems (FDS)
  • F5 Networks (FFIV)
  • Footlocker (FL)
  • HEICO (HEI)
  • Sherwin-Williams (SHW)
  • VF Corp. (VFC)
  • Zimmer Biomet (ZBH)

I still haven’t finalized my decision, but I wanted you to know some names that are under serious consideration.

 

Manifest Investing Analysis

We start with a snapshot of the dashboard for the ten nominees and the value of $100 invested five years ago — so we can see which stocks have been “naughty” and which ones have been “nice” for the last few years.

Eddy Elfenbein’s short list for 2016 Buy List additions as of 12/4/2015.

This dashboard is public and is available to view at:
https://www.manifestinvesting.com/dashboards/public/cws-buy-candidates-2016

Collectively, these ten candidates have been smokin’ hot with an annualized total return of 22.3% (vs. 13.5% for the S&P 500, VFINX). The only exception has been F5 Networks (FFIV) — checking in at a loss for the trailing five years.

Buy list shopping 20151204

The Long and Short of the CWS Shopping List

Note: The price targets from Goldman Sachs (GS) are from public releases and represent a partial sample. The price target is logged as of the most recent public analyst report. Although every effort is made to keep this information as current as possible, some of the ratings may not reflect more recent research and updates. Some of the older Goldman Sachs estimates (>6-9 months) have been adjusted using more recent price targets from Merrill Lynch, JP Morgan, Morgan Stanley etc.

If you were Eddy, which stocks would you select for your 2016 Buy List?

Do you have another stock or candidates that you feel are more worthy?

Bring it.