UnitedHealth’s Momentum Continues
UnitedHealth’s (UNH) momentum continued to roll last qtr as the nation’s largest health insurer delivered 23% profit growth. Here’s my outlook for 2018.
Conservative Stocks
Johnson & Johnson Just Took Growth to Another Level
Johnson & Johnson (JNJ) just took sales growth and profit growth to another level — the double digit level. And with a P/E of 18 the stock is quite reasonable.
Illinois Tool is Executing on a Very High Level
Illinois Tool Works (ITW) is executing at a very high level right now, with profits are growing around 15% a qtr, and with the economy strong I see continued success ahead.
McCormick Smells Pretty Good Right Now
Shares of McCormick (MKC) have been basing for a year-and-a-half now, and I think it might be ready to make a move higher as it expands on its new Frank’s Red Hot line.
Walgreen’s is a Value Down Here
Drugstore stocks like Walgreen’s (WBA) have had a hard time winning with fears Amazon will someday ship drugs to people directly. But with a P/E of 13, WBA is a value.
Pepsico Moves Towards Non Carbonated Beverages
Pepsico (PEP) is down a bit due to the consumers’ shift away from carbonated beverages. But snack sales are strong, and Pepsico has more non-carb beverages to offer.
Fantastic Stock Market is Good for Factset
Factset (FDS) provides tools and data for money managers and analysts to do their work. And with the stock market up big in 2017, the outlook for FDS is good.
Nike’s Profit Estimates Have Fallen 7 Straight Qtrs
Nike (NKE) has had fiscal year 2018 profit estimates decline for seven straight qtrs, from $2.86 to $2.32. I feel this stock could continue to be in the $50s for the next two years.
Costco is Fine, But It’s Multiple is Down
There’s a lot of hoopla over Amazon taking business from Costco (COST, but the latter still grew profits 18% last qtr — Nice! What has been hurt is COST’s multiple.
Lots of Good Things Going on at TD Bank
TD Bank (TD) has lots of good things going for it right now, including strength in both its Canadian and U.S. banks and an influx of fresh blood from Scottrade.
Dollar General Shoots Up While Profits Still Sag
Shares of Dollar General (DG) shot up last qtr, even though profit growth continues to be around 1%. With a P/E of 9, I think a lot of good news is already priced in.
Ross Stores Continues to Pump Out the Goods
Last qtr Ross Stores (ROST) was down-and-out with the Retail sector. This qtr ROST is up in a big way. And really, nothing’s changed. Ross continues to pump out the goods.