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VIDEOTicker Shock: Three Stocks That Should Be Trading Higher
Monday's top stories and stocks with potential to move.
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Asian stocks closed lower. The Hang Seng and the Nikkei were both down more than 4%. Meanwhile, Europe was in the red earlier this morning as well. And here in the US, we're currently trading lower.
Here's what I’m focused on this morning:
Underbought, Undervalued?
I run screens almost daily to try to find undervalued situations, or to uncover opportunities. I ran one early this morning that I thought was pretty interesting: Companies that 1. beat earnings estimates in their last reported quarter; and 2. are also trading under book value.1. Carnival Corporation (CCL):
Its last quarter can be seen here.
I think its cruises will appeal to cost-conscious consumers, because they're pretty cheap as compared with other vacations. In addition, Carnival is still expected to generate $2.15 per share this year. That’s pretty impressive, given its dependence on the domestic economy. Long-term, I continue to think this is a great play.
2. Macy’s (M):
Its last quarter can be seen here.
The positive: The retail space is a dangerous place to play right now, but this company is a survivor. However, at about 18 times the current year estimate, it’s a bit rich for my blood right now.
3. Tyco International (TYC):
Its last quarter can be seen here.
At about 9 times the current year estimate, I think the stock is cheap.
Two things: With the stock near its 52-week low, where are the insiders? Also, will investors be paying attention to conglomerates? There are a lot of other, easy-to-understand companies out there that might garner investor attention instead.
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