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Best Stocks: EPD Ready for the Second Quarter

The following is an excerpt from Best Stocks 2018: Enterprise Products Partners L.P. Is Still Strong, originally published on InvestorPlace.

I can’t say I’m happy to be finishing the first quarter in last place in InvestorPlace’s Best Stocks for 2018 contest.

But I’ve been here before.

In the 2016 contest, I was dead last by the end of the first quarter, and at one point in time I was down by more than 70%.

Yes, you read that right. My pick that year — midstream pipeline operator Energy Transfer Equity (ETE) — was sitting on a 70% loss. But by year end, it had made back all of those losses and finished the year with a 53% gain — handing me the Best Stocks crown in the process.

Then, as now, the entire pipeline sector had just come off of a brutal bloodletting. As I write this, many of the blue chips in the space are down 20%-30% from their 52-week highs.

But by the second quarter, the fear started to dissipate, and buyers began to return to the market. 2016 ended up being a good year for the sector, and I expect that 2018 will be as well.
Now let’s take a look at my entry for 2018, blue chip MLP Enterprise Products Partners (EPD). Enterprise, like the rest of the MLP sector, has taken its lumps and is down about 9% year-to-date. But news for the company has generally been positive. The company beat analyst expectations for both revenues and earnings last quarter and raised its distribution nearly 4%.

To read the full article, see Best Stocks 2018: Enterprise Products Partners L.P. Is Still Strong.

Disclosures: Long ETE, EPD

Disclaimer: This material is provided for informational purposes only, as of the date hereof, and is subject to change without notice. This material may not be suitable for all investors and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities nor is it intended to be investment advice. You should speak to a financial advisor before attempting to implement any of the strategies discussed in this material. There is risk in any investment in traded securities, and all investment strategies discussed in this material have the possibility of loss. Past performance is no guarantee of future results. The author of the material or a related party will often have an interest in the securities discussed. Please see Full Disclaimer for a full disclaimer.

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Emerging Markets Set to Take the Lead?

The following is an excerpt from Best ETFs for 2018: iShares Emerging Markets Dividend ETF Is Still in the Race.

If there is a dominant theme in the Best ETFs for 2018 contest, it would seem to be “Go America!” and specifically “Go American tech!”

The Market Vectors Semiconductor ETF (SMH) is leading the pack, up 7%, and four of the top five places are all held by ETFs specializing in tech or biotech.

But we still have a long way to go in 2018, and tech is starting to show signs of breaking down as we finish out the quarter. I expect my pick – the iShares Emerging Markets Dividend ETF (DVYE) to ultimately take the crown.

The U.S. market has been the undisputed winner of the post-2008 bull market. Since March 2009, the SPDR S&P 500 ETF (SPY) is up about 240%. The iShares MSCI EAFE ETF (EFA) and the iShares MSCI Emerging Markets ETF (EEM) — popular proxies for developed foreign markets and emerging markets, respectively — are up 111% and 142% over the same period.

But with that outperformance has come major overvaluation. The U.S. market is the most expensive major market in world based on the cyclically adjusted price/earnings ratio, or “CAPE” (only tiny Denmark and Ireland are more expensive). The U.S. market trades at a CAPE of 31 … which is the level it reached in late 1997, in the midst of the dot com bubble.

Meanwhile, emerging markets are downright cheap. As a sector, emerging markets trade at a CAPE of less than 18, and many individual countries are even cheaper. Brazil trades at a CAPE of 14, and Russia 7.

To continue reading, please see Best ETFs for 2018: iShares Emerging Markets Dividend ETF Is Still in the Race.

Disclaimer: This material is provided for informational purposes only, as of the date hereof, and is subject to change without notice. This material may not be suitable for all investors and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities nor is it intended to be investment advice. You should speak to a financial advisor before attempting to implement any of the strategies discussed in this material. There is risk in any investment in traded securities, and all investment strategies discussed in this material have the possibility of loss. Past performance is no guarantee of future results. The author of the material or a related party will often have an interest in the securities discussed. Please see Full Disclaimer for a full disclaimer.

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Best Stocks for 2018: Enterprise Products Off to a Slow Start

Source: InvestorPlace. Data as of 3/21/2018. Past performance no guarantee of future results

Alas, Enterprise Products Partners (EPD) is off to a rough start. I’m squarely in LAST place with a loss of 5%.

Between rising bond yields and a rough year for energy stocks in general, EPD has gotten dragged down along with the rest of the MLP sector.

But we still have a long way to go in 2018, and I epect a strong finish. Barring a tech stumble, it’s going to be hard for me to catch up. But win or lose, I expect EPD to generate a decent return. And if I were going to buy and hold any of the stocks on this list for the next five years, it would be EPD.

Disclosures: Long EPD

Disclaimer: This material is provided for informational purposes only, as of the date hereof, and is subject to change without notice. This material may not be suitable for all investors and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities nor is it intended to be investment advice. You should speak to a financial advisor before attempting to implement any of the strategies discussed in this material. There is risk in any investment in traded securities, and all investment strategies discussed in this material have the possibility of loss. Past performance is no guarantee of future results. The author of the material or a related party will often have an interest in the securities discussed. Please see Full Disclaimer for a full disclaimer.

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Best Stocks for 2018: Emerging Markets in the Race

Source: InvestorPlace. Data as of 3/21/2018. Past performance no guarantee of future results.

As we wind down the first quarter, my pick in InvestorPlace’s Best ETFs for 2018 — the iShares Emerging Markets Dividend ETF (DVYE) — is up a respectable, though not spectacular, 5%.

At this stager of the game, Dana Blankenhorn is off to a strong start, up 13% in the Market Vectors Semiconductor ETF (SMH).

But it’s still early, and we have a lot of time left in 2018. Tech stocks have lead the U.S. market higher for years, and that trade is looking long in the tooth. Meanwhile, emerging markets have been in the doldrums for years and have only recently started moving higher again. I’m betting that emerging markets prove to be the best trade for 2018… and likely the next five years.

Disclosures: Long DVYE.

 

Disclaimer: This material is provided for informational purposes only, as of the date hereof, and is subject to change without notice. This material may not be suitable for all investors and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities nor is it intended to be investment advice. You should speak to a financial advisor before attempting to implement any of the strategies discussed in this material. There is risk in any investment in traded securities, and all investment strategies discussed in this material have the possibility of loss. Past performance is no guarantee of future results. The author of the material or a related party will often have an interest in the securities discussed. Please see Full Disclaimer for a full disclaimer.

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Best Stocks for 2018: Enterprise Products Off to a Slow Start

Returns data as of 2/12/2018. Past performance is no guarantee of future results.

My pick for 2018 — Enterprise Products Partners (EPD) — is off to a slow start. But we still have 10 and a half months left in 2018, and it’s anyone’s game.

Here’s my rationale for choosing EPD: Best Stocks for 2018: Enterprise Products Partners L.P. Will Grow in 2018

May the best stock win!

Disclaimer: This material is provided for informational purposes only, as of the date hereof, and is subject to change without notice. This material may not be suitable for all investors and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities nor is it intended to be investment advice. You should speak to a financial advisor before attempting to implement any of the strategies discussed in this material. There is risk in any investment in traded securities, and all investment strategies discussed in this material have the possibility of loss. Past performance is no guarantee of future results. The author of the material or a related party will often have an interest in the securities discussed. Please see Full Disclaimer for a full disclaimer.

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