While women are under-represented in the financial newsletter community, those who have chosen to participate in this field offer some of the industry’s most respected and successful financial publications. Here are six advisory services from women investment experts who participated in the annual MoneyShow.com Top Picks 2019 report.
With so much political and global uncertainty, it doesn’t look like this market volatility is going to cease anytime soon. And since the stock market is the best place to build a retirement portfolio overtime, it’s important to keep safety — as well as growth — in mind.
With that in mind, I ran a list of low-volatility stocks, then put them through my analytic process to see which ones also exhibited the other important characteristics of a good long-term stock: growing earnings, good cash flow, reasonable debt as well as investor and analyst interest.
One of my favorite results of that study is
Some of its products include sports medicine joint repair products, arthroscopic enabling technologies such as high definition cameras, digital image capture, scopes, light sources and monitors to assist with surgery, radio frequency, electromechanical and mechanical tissue resection devices and hand instruments for removing damaged tissue.
Additionally, the company offers internal and external devices used in the stabilization of severe fractures and deformity correction procedures; robotics-assisted surgery, knee implant products and hip implant products for the reconstruction of hip joints. Smith & Nephew also provides advanced wound care products for the treatment and prevention of acute and chronic wounds.
The company has paid dividends since 1937 and has a current annual yield of 1.50%. Technically and fundamentally, the shares look excellent, with bullish rankings from the company’s 15 analysts. Buy now for appreciation and steady dividend cash flow.
Given its 300 sunny days per year, India is ideally situated for solar power and the largest solar utility company operating there is our top speculative pick for 2019. Setting up in business in India itself is sufficiently daunting that my corporate choice, Azure Power is incorporated in Mauritius. It did its initial public offering in 2016, raising $161 million.
The founder and CEO since 2008 is a Silicon Valley professional of Indian heritage, Inderpreet Singh Wadhwa. His father Harkanwal is a director and chief operating officer. Most of the other brass are outsiders.
Azure Power is an integrated project developer that offers guaranteed long-term electricity prices — whatever happens to oil. It bids for government-supported sites like railway station rooftops with a very sharp pencil thanks to a decade of experience.
It also tapped the “green bond” market with success in 2017 and again in 2018 with many of the same lenders. It builds solar parks. Its solar tariffs are close to grid parity in many areas. It aims to generate 5 gigawatts by the end of 2020.
Azure Power uses an Indian fiscal year (to March 31) and in its Q2 this year sales rose 22% to INR 2,225.7 billion rupees and operating income rose 20% to INR 1,210.2 billion rupees. Adjusted EBITDA hit INR 1,807.7 billion ($25 million), up 21% from Q2 2017-8.
Azure makes solar power generating facilities but it doesn’t yet make money. Moreover, India charges income tax at about 20%, which adds to losses.
By the end of this FY, Azure expects to put an additional 1300-1400 megawatts (mw) of power generation in service and get revenues of $143 million-151 million from new projects, about INR 1,023 billion to 1,032 billion rupees—assuming the currency doesn’t fall further. It is close to break-even and may cross over into profit later next year.
Tap here to read MoneyShow’s Top 100 Stock Picks to Buy for 2019.
Apollo Global Management, LLC — with a yield of 8% — is my top investment idea of 2019 for income-oriented investors. Apollo Global is an alternative investment company. Apollo’s assets under management (AUM) total $270 billion, broken down as follows: credit (68%), private equity (27%) and real estate (5%).
Apollo is a mid-cap stock with a market cap of $4.9 billion. The most recent four quarterly dividend payouts totaled $1.93. What’s more, the stock traded as high as $35.50 in October, so there’s 48% capital gain potential for new investors if the stock rebounds to 2018 highs.
As the share price suffered during the recent market downturn, the current dividend yield rose, making the prospect of owning these shares more compelling for both individual and institutional investors.
In late December, Tiger Global Management reported a purchase of 1.1 million APO shares at an approximate cost of $26 million. Apollo Global is a great choice for income investors and growth stock investors.
Sleep Number — my top growth pick for 2019 — is the leader in sleep innovation, and a designer, manufacturer, marketer, retailer and servicer of a line of Sleep Number beds, bases and bedding accessories.
Revenue has increased consistently from $960 million in 2013 to an expectation of $1.6 billion in 2019. Wall Street projects EPS to increase 23.5% and 30.4% in 2018 and 2019. The 2019 P/E is 13.2.
Sleep Number is aggressively reducing its basic outstanding share count, which has fallen 37.7% since year-end 2013. The company is targeting continued earnings growth, 8%-10% revenue growth, and additional share repurchases in 2019.
Children’s Place — a conservative, value-oriented idea for 2019 — is extremely attractive at a 43% discount from its 52-week high. The negative growth story is overdone: the clothing retailing chain isn’t faltering so much as shifting the merchandise mix down-market to capture share from bankrupt rival Gymboree.
Exploiting that opportunity requires sacrificing 1% of margin in the immediate term but I still see revenue ramping 4%-5% a year to balance the trend. I expect year-over-year earnings growth to recover before 2Q19. After that, consensus looks a little low once those shoppers are lured away.
We’re looking at 12X forward earnings as it is, so it doesn’t take a lot of added sales or margin reflation to make that proposition a classic Buy. I’m looking at the online operation to feed that growth.
The company can definitely do great things once management proves the new business model. When a competitor fumbles, smart players invest resources to score points. That’s what’s happening now and it’s why I see Children’s Place continuing its track record for delivering strong returns on assets.
Ultimate Software — our top pick for aggressive growth — this is a pure play on the outsourcing of traditional corporate culture as redundant functions converge in the computing cloud. We’re looking at human resources as a service here. The company manages the entire employee relationship from recruiting through orientation all the way to retirement.
The company starts with the basic accounting-driven package, giving customers a state-of-the-art payroll and benefits program. From there, the truly extraordinary analytics tools ultimately add up to staffing-oriented artificial intelligence. An enterprise running the full suite can track all human resources to plan ahead, reduce waste and even make long-range hiring decisions on the go.
The basic program competes with existing payroll solutions in terms of price. The advanced features are sold on a monthly per-employee subscription basis, so when you’re looking at truly large organizations the recurring revenue adds up fast.
Sum up all the parts and the firm is growing extremely fast. Revenue doubled between 2013 and 2017 and is still ramping up around 20% a year for the foreseeable future.
Ulta Beauty — my top growth-oriented idea for 2019 — is the largest beauty retailer in America with 1,124 convenient locations in 48 states offering salon services for hair, nails, skin and eyebrows plus more than 20,000 products from over 500 beauty brands.
During the past five years, Ulta Beauty has generated stunning, profitable growth with sales compounding 22% annually and EPS growing at a 30% annual clip.
The firm maintains an alluring balance sheet with no long-term debt thanks to its strong cash flow generation with free cash flow having grown more than six-fold over the last five years to $339 million last year. Management has been using the cash to buy back shares at attractive valuations. Ulta Beauty issued comparable sales and earnings per share targets for fiscal 2019, 2020 and 2021.
Ulta’s U.S. store target is 1,500 to 1,700 stores with the company planning to open 80 stores in 2019, 75 stores in 2020 and 70 stores in 2021. Investors shopping for attractive long-term returns should consider Ulta Beauty as a high-quality market leader, with profitable growth, a strong balance sheet and lovely cash flows.
Headquartered in Atlanta, the firm serves more than 220 countries and territories worldwide. It has a flexible capital allocation strategy which allows the company to reinvest in its business, make dividends a priority and take a balanced approach to share repurchases.
Long-term investors should package up United Parcel for their portfolio. Since going public in 1999, United Parcel has parceled out brown boxes of free cash flow to shareholders via dividends and share buybacks, which have totaled more than $73 billion.
The firm increased its dividend 10% in 2018 to an annual rate of $3.64 per share with the dividend currently yielding an attractive 3.7%. United Parcel has either increased or maintained its dividend every year for nearly 50 years.
United Parcel — my top pick for conservative investors in 2019 — is a high-quality, highly profitable market leader with strong cash flows, an attractive dividend and a solid outlook for growth.
Investors are shell-shocked, and with reason; the stock market plunged in its worst December since the Great Depression! This fueled uncertainty, concern and outright panic. Most stocks were caught up in this massive decline, which is not unusual once a bear market is underway.
The “Dow Theory” has been around for about 100 years and it’s been very reliable in identifying bull and bear markets. It triggered a bear market confirmation on December 10. And despite recent volatility, the bear remains in the driver’s seat.
Why? We know the global economy, the trade war and rising interest rates have been spooking the stock market. But problems out of Washington also helped fuel the bear. This was not the case before and it marks a turning point.
In our view, investors should go for the gold. At times like this, investors turn to gold and it’s been on the rise. If the bear market in stocks continues, and it looks like it will, gold will keep rising as well. And it may prove to be the best investment in 2019.
An easy way to take advantage of this gold upmove is to buy a gold exchange-traded fund — SPDR Gold Trust. It’s also interesting to note that when gold rises, gold shares historically tend to outperform gold. So, buying a small position in the VanEck Vectors Gold Miners ETF is a higher risk buy.