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

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.

 

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!

General Motors Just Warming Up

The following is an excerpt from Best Stocks for 2017: General Motors Company (GM) Is Just Warming Up

As we near the end of the third quarter, General Motors Company (GM) — my pick in InvestorPlace’s Best Stocks for 2017 contest — is putting up a respectable fight.

As I write this, the shares are up 12% year to date, 13% with dividends, which puts me in fifth place. That’s nothing to get excited about, but it does put me at even with the S&P 500.

I don’t like matching the market. I prefer to kick the market’s tail. And I expect that GM will do exactly that as we close out 2017.

To start, valuations are ridiculously low. GM and its peers are being priced as if the entire industry is at risk of imminently going out of business. GM is priced at 6.8 times expected 2017 earnings and 0.33 times annual sales.

Yes, auto sales are notoriously cyclical, and automakers often appear to be cheap when actually expensive (and vice versa) due to the wild variability in earnings. So, let’s smooth out some of that variability by doing a modification of the Shiller P/E, or the cyclically-adjusted price/earnings ratio (“CAPE”).

Doing a true Shiller P/E requires 10 years of data, and GM was reorganized only in 2010. Though Benjamin Graham, who invented the CAPE methodology decades before Robert Shiller looked at it, recommended using between five and 10 years’ worth of earnings data, so we’re fine here.

Using earnings data from 2010 to 2016, General Motors would have a modified CAPE of just over 10. The same figure for the S&P 500 is over 25.

Again, I would agree that GM deserves to trade at a discount to the broader market. But doesn’t a 60% discount seem a bit extreme?

To read the remainder of the article, see Best Stocks for 2017: General Motors Company (GM) Is Just Warming Up

 

 

Best Stocks for 2017: GM Closing the Lead

Source: InvestorPlace Data as of 9/1/2017; Past performance is no guarantee of future results.

With four months left to go in 2017, my pick — General Motors (GM) — is at least putting up a respectable fight. When I last did an update two months ago, I was in 7th place with a measely 6% year-to-date return. I’ve now moved into 5th place with a slighly more respectable 10% year-to-date return.

Unfortunately, my competition hasn’t been standing still. Louis Navellier’s Nvidia (NVDA) has jumped another 7% and is not up 61% year to date. And Brett Owens’ CoreSite Realty (COR) rallied an additional 14% and is now up 53% for the year.

Winning this will be tough. I’d need for GM to enjoy a monster rally (which I do expect) and for Nvidia and CoreSite to both roll over and die (which I consider less likely).

We shall see. May the best stock win!