Highlights: 2nd Quarter Produces Portfolio Gains on Broadening Economy
Corporate Earning Should Show Solid Growth in 2
Download 1.85 Mb.
|
- Navigate this page:
- Comments on Top Holdings
- Environmental, Social Governance Investing: From Niche to Mainstream
- June 21, 2017: Ecolab Recognized Among the 2017 Civic 50 List
| Corporate Earning Should Show Solid Growth in 2nd Quarter
Overall corporate operating earnings per share (EPS) is expected to report a 6.2% growth in the second quarter & 10.5% for 2017. Technology companies are expected to be the fastest growers with 13.2% expected increase. Next, financials are expected to chip in 12.2% growth for the year, although their growth is expected largely for expense reduction. The weakest growth is projected from utilities, telecom services and consumer discretionary companies. Comments on Top Holdings Assured Guarantee (AGO) – AGO is the dominant insurer of municipal bond payments of interest and principal. Its stock has been creeping higher but remains significantly undervalued. AGO is a very difficult company to understand, hence limited Wall Street coverage. AGO’s competitors have limited capacity to insure additional business thus leaving AGO with limited competitors. Our valuation analysis suggests the company is undervalued by 30% to 50%. 
CVS Health (CVS) 
While Assured Guaranty is an unknown company to most investors, CVS is a prominent business on many street corners. CVS is a classic value stock opportunity. Their stock has dropped about 25% last year and moving sideways recently. Pharmacy sales have been mixed after losing a large contract last year. CVS shares are trading at a price to earnings multiple of 12x or about a 1/3 discount from the S&P500. With the risks of Amazon competition and health care, concerns already reflected in the stock price, CVS just needs a good earnings report to get the stock trending higher. Amazon (AMZN) 
Amazon is our largest growth stock holding that is rumored to be taking over “everything retail” it seems. Amazon’s growth from an on-line book seller to a technology machine is a true innovation story that has not been completed. Next business segment could be wholesale distributions, possibly in the health care supply segment. Johnson & Johnson (JNJ) 
Johnson & Johnson represents the “safety valve” in most client portfolios. With a well-diversified portfolio of businesses across consumer and drug businesses. JNJ is a very stable business, hence a AAA credit rating. Positive results from recent clinical trials has helped the stock over the last month.  Apple (AAPL)
Apple is finally receiving investor confidence as evidenced by its rising stock price on the eve of its next iPhone this fall. Investors have been pre-occupied with hardware sales, but are finally taking notice of growing service revenue. Service revenues are sourced from App sales and Apple music. The new iPhone is expected to come out this fall. Speculation is that it will be a major up-grade from the iPhone7 with numerous new high-tech capabilities. Next Era Energy (NEE) 
4081 Tamiami Trail North, Suite C-105, Naples, FL 34103 . Andy Hill (239) 777 – 3188 . Jennifer Figurelli (239) 777 – 3129 . www.ResponsibleAdvisors.com Next Era Energy isn’t a boring old utility stock. The base business FPL, has benefited from population growth to Florida and efficient operations, but the driver of increasing profits has been its renewable energy divisions. NEE’s solar and wind projects are now selling power and lighting up earnings growth. A local example of the trend of community solar projects owned by NEE is at Babcock Ranch. NEE’s stock has outperformed the utility and the S&P500 for the past several years.
The growth of ESG investing is due to a number of possible personal and financial factors. First, younger investors especially mothers are very concerned what their children eat, breathe & experience, thus their investing preferences reflect these values. Conversely large institutional investor is mindful of the economic damage that can result from weak corporate governance, harmful products or regulatory violations. AHIA is the only RIA in southwest Florida who incorporate ESG criteria into their investment research process. As illustrated in the table below, the growth of assets managed under the integration of Environmental, Social & Governance (ESG) analyses continue to rise. This is no surprise to our firm given the recent headlines and investor reports within the past week. 
June 21, 2017: Ecolab Recognized Among the 2017 Civic 50 List 
Directory: wp-content -> uploads -> 2017 2017 -> Leadership ohio 2017 -> Ascension Lutheran Church Counter’s Schedule January to December 2017 2017 -> Board of directors juanita Gibbons-Delaney, mha, rn president 390 Stone Castle Pass Atlanta, ga 30331 2017 -> Military History Anniversaries 16 thru 31 January Events in History over the next 15 day period that had U. S. military involvement or impacted in some way on U. S military operations or American interests 2017 -> The Or Shalom Cemetery Community Teaching on related issues of Integral 2017 -> Ford onthult samenwerking met Amazon Alexa en introduceert nieuwe navigatiemogelijkheden van Ford sync® 3 met Applink 2017 -> Start Learn and Increase gk. Question (1) Name the term used for talking on internet with the help of text messege? 2017 -> Press release from 24. 03. 2017 From a Charleston Car to a Mafia Sedan 2017 -> Tage Participants 2017 -> Citi Chicago Debate Championship Varsity and jv previews Download 1.85 Mb. Share with your friends:
|