Over the past month, just about every stock is going up as the market makes new highs. That party is about to stop for a while as stocks find ample resistance at 3,100.
The next phase will probably include ample profit taking on the biggest winners and swirling sector rotation. The stocks likely to do the best need to be nearly perfect.
But what is perfect in the world of investing???
That is to have as many strengths as possible to attract new investors to bid up shares. Not just growth, but value, momentum and income too. A great example of that is Vodafone (VOD). For as large as the company is, they still have 14% growth potential these days (nearly 3X the average company).
If that weren’t good enough, Wall Street analysts still see 29% upside to fair value. And just for good measure they bring a 4.4% dividend yield to the party.
Now let’s turn our attention to General Motors (GM). Now that the worker strike is fading away in the rear view mirror, more investors can focus on their impressive string of 5 earnings beats. Or that fair value is considered to be 25% above current levels (with other top analysts seeing reason for shares to actually be over $50). And, oh yeah, how GM serving up a 3.9% dividend yield when your bank account pays as close to 0% as possible.
Before seeing all 10 stocks on this quality list it first makes sense to appreciate the research process I went through to make sure that each stock checked the right boxes for growth, momentum, income and value.
Growth
Earnings growth is in short supply this year as we just went through another earnings season where the average company had -2% earnings. So I wanted these stocks to pack at least a 10% growth rate.
Momentum
This one is easy. We are going to rely upon the POWR Ratings system which is focused on stocks displaying the best momentum. In this case I widened our lens one notch to include both A & B rated shares. Meaning just the Buy rated stocks…no Holds or Sells.
Income
The average S&P 500 stock is providing a 1.8% dividend yield. So I want all of these stocks to be above that mark. TGLS tops the list with a healthy 6.6% yield.
Value
When the market is making new all time highs, then there is going to be a shortage of value stocks. So you have to dig a bit deeper to find them.
In this case it was the final part of the screening process to see those stocks that had the most upside potential. Gladly our stocks range from 20% to 47% upside to the fair value targets given them by Wall Street analysts.
But remember that is the “average” target prices. In all cases, there are analysts pounding the table that there is even more upside potential.
Putting It Altogether
The point of this strategy was not to settle for just one attractive element. We wanted to load up on as many positive attributes as we could. But gladly each type of investor should find at least one that floats their boat.
All the stocks have momentum given the inclusion of the POWR Rating. But remember there are 4 sub components of the rating that help you lock down on the best shares (Buy & Hold Grade, Trade Grade, Industry Rank, Peer Grade).
Just click on the tickers below to continue your research and discover the component POWR Ratings on each stock.
Company | Ticker | Market Cap ($Mil) | Price | Exp. Growth % | Div Yield % | Target | Upside |
Townsquare Media | TSQ | $148 | $7.82 | 12.0 | 3.8 | $11.50 | 47.06% |
Melco Resorts | MLCO | $10,969 | $22.19 | 21.3 | 2.9 | $30.04 | 35.38% |
KAR Auction Services | KAR | $2,769 | $21.50 | 14.5 | 3.5 | $28.00 | 30.23% |
Vodafone | VOD | $55,357 | $20.68 | 14.3 | 4.4 | $26.70 | 29.11% |
Tecnoglass | TGLS | $383 | $8.53 | 21.5 | 6.6 | $11.00 | 28.96% |
Orange-Adr | ORAN | $42,082 | $15.82 | 11.9 | 4.5 | $19.90 | 25.79% |
Credicorp Ltd | BAP | $16,491 | $206.75 | 12.0 | 2.9 | $260.0 | 25.76% |
General Motors | GM | $55,251 | $38.67 | 10.9 | 3.9 | $48.42 | 25.21% |
Mobile Mini | MINI | $1,681 | $38.10 | 14.0 | 2.9 | $47.50 | 24.67% |
Nexa Resources | NEXA | $1,255 | $9.41 | 12.5 | 5.6 | $11.31 | 20.19% |
Want more great stock picks? Then check out these additional resources:
POWR Ratings Full Strong Buys List
Reitmeister Total Return portfolio
VOD shares fell $0.08 (-0.39%) in premarket trading Monday. Year-to-date, VOD has gained 10.24%, versus a 25.34% 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 |
VOD | Get Rating | Get Rating | Get Rating |
Get Rating | Get Rating | Get Rating | |
GM | Get Rating | Get Rating | Get Rating |
MLCO | Get Rating | Get Rating | Get Rating |
ORAN | Get Rating | Get Rating | Get Rating |