Some people like growth stocks…others prefer value…or momentum…or income.
But why settle for just one attractive attribute when you can have them all?
This stock search started with over 8,000 and ended with only 10 stocks that combine the best of all these worlds: Growth + Value + Momentum + Income.
You will find some well-known firms represented on the list including Exxon Mobil (XOM), Citigroup (C) and Vodafone (VOD). However, there are also many hidden gems in here that have equal or even greater appeal than these top rail brands.
Let’s dig into each parameter so you appreciate what is inside all 10 of these extraordinary stocks.
Growth
I am sure this is not the first time you heard that the earnings growth rate is slowing down. In fact, Q2 earnings was barely above the breakeven level.
When there is such a shortage of growth, then investors should put a premium on companies excelling above the norm. That is why I made sure that all of these stocks were expected to enjoy at least 10% earnings growth on average for the next few years.
On top of that I want to make sure that they came through the most recent earnings season in good shape. Most companies beat earnings. So the real measure of success is if earnings estimates are going higher of late. That is proof positive that analysts give their earnings outlook the seal of approval. So all of these stocks have seen earnings estimates on the rise over the past 4 weeks.
Value
There are may ways to measure value. But most of those metrics lead to low growth stocks that are in a word… “BORING”. When you are seeking growth stocks, then you need something better than just low PE.
The PEG ratio is a notch better, but it also misses some important concepts that are unique about different industries. Some are more about earnings…some more about cash flow…some more cyclical…some more (fill in the blank).
The solution for value is to use the average target price from Wall Street analysts. These industry experts appreciate the nuance of each group and what is the best way to measure value. So in this case all of our stocks have at least 15% upside to reach their fair value targets. Most of them on the list have 20%+ upside.
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
As bond rates go lower, stock income becomes that much more attractive. So I wanted all the stocks to at least produce income above the level of the 10 year Treasury.
The lowest yield in the group is still a solid 2.1% ranging up to 5.6%. Long story short, there is plenty of income here to help pad the final return.
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 | Price | Target | Upside % | Growth Rate % | Div Yield % | EPS Est Change % |
Vodafone Gp Plc | VOD | $18.01 | $26.20 | 45.47% | 12.03 | 5.04 | 10.00 |
Citigroup Inc | C | $66.05 | $86.00 | 30.20% | 12.20 | 3.09 | 13.00 |
Manulife Finl | MFC | $16.77 | $21.49 | 28.15% | 10.00 | 4.45 | 1.19 |
Mueller Water | MWA | $10.00 | $12.60 | 26.00% | 15.00 | 2.10 | 2.88 |
Apollo Global-A | APO | $32.84 | $40.56 | 23.51% | 15.76 | 5.60 | 13.00 |
Graphic Pkg Hld | GPK | $13.45 | $16.49 | 22.60% | 13.00 | 2.23 | 0.59 |
Exxon Mobil Crp | XOM | $70.84 | $84.20 | 18.86% | 10.71 | 4.91 | 12.00 |
Polaris Indus | PII | $91.42 | $108.09 | 18.23% | 12.00 | 2.67 | 1.66 |
Delta Air Lines | DAL | $59.53 | $69.69 | 17.07% | 17.95 | 2.70 | 15.00 |
Mcgrath Rentcor | MGRC | $65.42 | $76.50 | 16.94% | 10.00 | 2.29 | 3.24 |
To see the full list of top rated high yield stocks, regardless of POWR Rating, then click here.
Also here are links to 3 other popular destinations to make the best use of the POWR Ratings:
Full List of “A ”Rated Strong Buy Stocks– See all the top rated stocks.
About the POWR Ratings– Learn what’s build inside the POWR Ratings that helps find stocks ready to outperform.
Reitmeister Total Return portfolio. This is where Steve Reitmeister employs his 40 years of investment experience to hand select the best POWR Ratings stocks.
XOM shares closed at $70.84 on Friday, down $-1.54 (-2.13%). Year-to-date, XOM has gained 6.24%, versus a 17.77% 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 |
XOM | Get Rating | Get Rating | Get Rating |
Get Rating | Get Rating | Get Rating | |
DAL | Get Rating | Get Rating | Get Rating |
MFC | Get Rating | Get Rating | Get Rating |
VOD | Get Rating | Get Rating | Get Rating |