Is it possible to find perfect stocks?
Probably not. Unfortunately there are too many unknowns in the investing world that can turn a stock from treasure to trash in an instant. However, the pursuit of perfection is always an admirable goal.
My perfection game plan today is to not be satisfied with just one attractive element of a stock. Instead I want to stack as many positive attributes in my favor to greatly increase the odds of their future outperformance.
For example, there is no reason to go growth stocks alone when you can also buy some growth plays trading at a substantial discounts to their fair value. But why stop there? How about those shares enjoying tremendous momentum. And a healthy serving of dividend income never hurt anyone.
It is the combination of all those elements that we have on tap today. Let’s take Citigroup (C) for example. For a $154 billion behemoth it surprisingly is set to grow profits by 12.5% a year at a time when most US corporations are backsliding to the single digit growth range.
On top of that it is also riding a wave of momentum that has it well ahead of the market average this year at +34%.
As for income, Citigroup is paying out a 3% dividend yield when the average S&P 500 company is much less at 1.8%. Plus it has a history of increasing the dividend payout at a robust clip.
Lastly, Citi scores well on value as well with an average target price of $85.75. That is more than 25% above current levels. (And some analysts believe that Citigroup is actually more fairly valued over $100 including a street high target of $107).
OK. That’s the story with Citigroup. But as you will see below we have 9 more stocks that combine all these ingredients of attractive growth + value + income + momentum. No doubt you will find at least one that meets your unique needs.
The growth folks will find Tecnoglass and Westlake Chemical more to their liking. Shockingly they also have the highest dividend yields of the group at over 7%.
The value players amongst you will have a hard time looking past Townsquare Media and the 85% upside to the average Wall Street target price. Yet with all of them having more than 20%+ to reach their fair value targets, then it will be hard to narrow down to just one stock to add to your portfolio at this time.
As always, click on the ticker for each stock to research further. There you will find more details on the 4 components of the POWR Ratings to appreciate its full potential.
Company | Ticker | Market Cap ($mil) | Exp. Growth % | Div Yield % | Price | Target | Upside |
Townsquare Media | TSQ | $118 | 12.00 | 4.82 | $6.22 | $11.50 | 84.89% |
Tecnoglass Inc | TGLS | $341 | 21.50 | 7.36 | $7.61 | $10.83 | 42.31% |
Vodafone | VOD | $52,064 | 14.51 | 4.66 | $19.48 | $26.20 | 34.50% |
Mcgrath Rentcor | MGRC | $1,626 | 10.00 | 2.24 | $67.03 | $86.00 | 28.30% |
Orange-Adr | ORAN | $41,470 | 12.39 | 4.59 | $15.59 | $20.00 | 28.29% |
Citigroup | C | $154,022 | 12.20 | 2.99 | $68.18 | $85.75 | 25.77% |
Standard Motor | SMP | $1,017 | 11.00 | 2.02 | $45.55 | $57.00 | 25.14% |
Westlake Chemical | WLKP | $742 | 16.03 | 7.96 | $23.00 | $28.50 | 23.91% |
Goldman Sachs | GS | $72,200 | 12.00 | 2.49 | $200.80 | $248.80 | 23.90% |
Blackrock | BLK | $66,071 | 10.29 | 3.09 | $427.44 | $528.70 | 23.69% |
Want more great stock picks? Then check out these additional resources:
Reitmeister Total Return portfolio
C shares were trading at $68.19 per share on Monday afternoon, up $0.01 (+0.01%). Year-to-date, C has gained 33.75%, versus a 19.32% rise in the benchmark S&P 500 index during the same period.
About the Author: Steve Reitmeister
Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks. More...
More Resources for the Stocks in this Article
Ticker | POWR Rating | Industry Rank | Rank in Industry |
C | Get Rating | Get Rating | Get Rating |
Get Rating | Get Rating | Get Rating | |
GS | Get Rating | Get Rating | Get Rating |
ORAN | Get Rating | Get Rating | Get Rating |
VOD | Get Rating | Get Rating | Get Rating |