Best Undervalued Stocks To Own For 2018

Our Long Idea reports aim to identify those firms that the market has overlooked and that, when analyzed beyond standard metrics, are significantly undervalued. These hidden gems provide excellent upside potential to any portfolio, with little downside risk.

In addition to individual Long Ideas, we provide Model Portfolios that provide well-screened lists of companies based on specific criteria such as return on invested capital (ROIC) or dividend yield. In 2016, we added two new Model Portfolios, Exec Comp Aligned With ROIC and Safest Dividend Yields, to go along with our longstanding Most Attractive & Most Dangerous Stocks Model Portfolio, which has a long history of outperformance.

Below presents the Long Idea highlights of 2016 and the performance of our new Model Portfolios.

Long Idea Highlights

It pays to read our Long Idea reports. In 2016, 10 out of our 15 Long Idea stock and mutual fund picks saw positive returns and 13 stocks outperformed the market (S&P 500). All told, the Long Idea stocks averaged a 9.9% return in 2016, which was slightly more than the S&P 500’s return of nearly 9.5%, thereby outperforming as a long portfolio. Some of the top picks can be seen in Figure 1 below.

Best Undervalued Stocks To Own For 2018: Popular, Inc.(BPOP)

Advisors’ Opinion:

  • [By Peter Graham]

    Founded in 1893, mid cap Popular Inc (NASDAQ: BPOP) is the leading banking institution by both assets and deposits in Puerto Rico and ranks among the top 50 U.S. banks by assets. Popular provides retail, mortgage and commercial banking services through its principal banking subsidiary, Banco Popular de Puerto Rico, as well as auto and equipment leasing and financing, investment banking, broker-dealer and insurance services through specialized subsidiaries. In the United States, Popular has established a community-banking franchise providing a broad range of financial services and products with branches in New York, New Jersey and Florida under the name of Popular Community Bank.

  • [By Ben Levisohn]

    We believe investors should continue to own three types of bank stocks: “Return of Capital (RC) Stocks”, “Risk On (RO) Stocks”, and “Multiple Revaluation (MR) Stocks.” RC stocks include M&T Bank (MTB), PNC Financial Services Group (PNC), and SunTrust Banks (STI); RO stocks include Bank of America, Popular (BPOP), Citigroup, JPMorgan, and KeyCorp (KEY); and MR stocks include BB&T (BBT) and PNC Financial Services Group (PNC).

Best Undervalued Stocks To Own For 2018: Cameco Corporation(CCJ)

Advisors’ Opinion:

  • [By Jim Robertson]

    Today, the Athabasca Basin is home to the McArthur River Uranium Mine -the worlds largest high-grade uranium deposit(accounting for 13% of world mine production) operated by mid cap uranium producer Cameco Corp (NYSE: CCJ).

  • [By Jim Robertson]

    Uranium was first discovered in the region in the 1940s with the first mine being the Rabbit Lake Mine which was discovered in 1968 by Gulf Mineral Resources and opened in 1975. The most important current mineisCameco Corps (NYSE: CCJ) McArthur River mine which isthe world’s largest high-grade uranium mine producing some 13% of global uranium production. Other important Athabasca Basin uranium mines include the Cigar Lake Mine, the Cluff Lake mine (now closed), the Key Lake mine and the McClean Lake mine plus the region continues to be an important center for uranium exploration for good reason as the following infographic illustrates:

Best Undervalued Stocks To Own For 2018: SodaStream International Ltd.(SODA)

Advisors’ Opinion:

  • [By Jeremy Bowman]

    SodaStream International(NASDAQ:SODA) blew the market away in 2016 as shares of the DIY soda-maker popped 142%, beating all but two stocks in the S&P 500.

  • [By Peter Graham]

    Israel based small cap home beverage carbonation stockSodastream International Ltd (NASDAQ: SODA) reported Q1 2017 earnings before the market opened this morning. Revenue increased 14.3% to $115.3 million driven by growth in each of the Company’s four geographic regions, partially offset by a negative foreign currency exchange impact mainly due to the weakening of the Euro/U.S. Dollar exchange rate compared to the same period in 2016. Net income increased 141.8% to $14.7 million.

  • [By Peter Graham]

    Israel based small cap home beverage carbonation stockSodastream International Ltd (NASDAQ: SODA) reportedQ2 2017 earnings before the market opened on Wednesday. Revenue increased 9.6% to $130.6 millionwith theincrease driven by growth in most of the Company’s geographic regions -mainly Western Europe, partially offset by a negative foreign currency exchange impact mainly due to the weakening of the Euro/U.S. Dollar exchange rate compared to the same period in 2016. Net income increased approximately 84% to $14.4 million. As of June 30, 2017, the Company had cash and bank deposits totaling $108.5 million compared to $57.3 millionas ofDecember 31, 2016. The CEO commented:

Best Undervalued Stocks To Own For 2018: INC Research Holdings, Inc.(INCR)

Advisors’ Opinion:

  • [By WWW.GURUFOCUS.COM]

    For the details of LEE THOMAS H PARTNERS LP’s stock buys and sells, go to www.gurufocus.com/StockBuy.php?GuruName=LEE+THOMAS+H+PARTNERS+LP

    These are the top 5 holdings of LEE THOMAS H PARTNERS LPINC Research Holdings Inc (INCR) – 25,174,838 shares, 38.1% of the total portfolio. New PositionParty City Holdco Inc (PRTY) – 65,157,952 shares, 25.55% of the total portfolio. West Corp (WSTC) – 18,099,239 shares, 12.29% of the total portfolio. MoneyGram International Inc (MGI) – 23,604,607 shares, 11% of the total portfolio. Fogo de Chao Inc (FOGO) – 17,053,123 shares, 6.12% of the total portfo

Best Undervalued Stocks To Own For 2018: Eli Lilly and Company(LLY)

Advisors’ Opinion:

  • [By Chris Lange]

    Eli Lilly & Co. (NYSE: LLY) saw its shares in free fall on Wednesday, not from the usual rhetoric of politicians or even the election, for that matter, but a late-stage trial failure. As 24/7 Wall St. has said time and again, clinical trials can make or break biotech and pharma companies. In this case Eli Lilly hit new 52-week lows, not seen since 2014 and this will not be a loss that Eli Lilly will easily forget. Effectively, the company announced results from its Phase 3 solanezumab trial in people with mild dementia due to Alzheimers disease (AD).

  • [By WWW.THESTREET.COM]

    Bond prices were much lower early in the day, with yields up by nearly 10 basis points. But fixed income has rallied back (reducing the drop by half on the day). Valeant Pharmaceuticals (VRX) , more weakness. Large pharma lower, led by Eli Lilly (LLY) . Old tech lags, with International Business Machines (IBM) , Intel (INTC) , Cisco Systems (CSCO) and Microsoft (MSFT) all lower. Media roughed up a bit (CBS (CBS) and Comcast (CMCSA) ). The Ugly
    Gold down another $23 to $1,188 (SPDR Gold Trust ETF (GLD) down $2.25). Urban Outfitters (URBN) down $5. NOTE: There will be no “Takeaways” today!   Happy Thanksgiving. Position: Long GLD small, SDS large, JCP large; short SPY, CSCO, CAT small, IWM, TLT small.

  • [By WWW.THESTREET.COM]

    Cramer recalled recently investing in Eli Lilly (LLY) on hopes the company’s Alzheimer’s research would be worth billions. As time has worn on, Lilly’s obstacles to success seem to be mounting. Not knowing if or when Lilly might see success, Cramer said he sold the stock and moved on.

  • [By David Zeiler]

    Pharma stocks shot up in the wake of Donald Trump’s victory. Eli Lilly and Co. (NYSE: LLY) and Merck & Co. (NYSE: MRK) both rose about 6%, while Pfizer Inc. (NYSE: PFE) jumped 7%.

  • [By Ben Levisohn]

    Following the decision of the PTAB not to institute CHRS IPR on the 166 Humira formulation patent, we continue to anticipate that first likely launch of biosimilar adalimumab (Humira) in the US will be delayed until 2020, in line with our published forecasts and biosimilar model. We anticipate the open IPR hearings for the 135 dosing patent on Humira (filed by Boehringer and Coherus) to begin in Feb 2017 with the ruling in May. We rateAbbVie a Buy. We continue to prefer BUY rated Bristol-Myers Squibb (BMY), Eli Lilly (LLY) among the US names.

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