GBDC - 68 All Star And Graham Value Stocks: 53 Fit To Buy In May
2024-05-24 13:41:41 ET
Summary
- Large Cap Value is a value ranking for large cap stocks that looks at the price of a stock relative to measurements of intrinsic firm value.
- The Ben Graham Formula strategy selects ultra-stable stocks based on sales, total assets, earnings, dividend payments, current ratio, long-term debt, and valuation.
- 53 out of 68 All-Star-Value Dividend stocks offer annual dividends (from $1K invested) exceeding their price per share.
- By yield, Medfast again leads the top-ten All-Star-Value field this time followed by TRMD, FSK, PBR, VALE, OBDC, CPAC, CIB, HTGC, & GBDC. Those ten averaged 13.28% yield. By broker-target-price upside, the top-ten leaders were HSBC, VZ, PFS, T, ET, PBR, MED, TRMD, GRNT & VALE averaging 26.49%.
- $5k invested May 21 in the five top yield value stars projected 7.10% more net-gain than from $5k invested in all the top ten. Little (lower-priced) equities re-took the lead of the top-ten May All-Star Value-derived dividend dogs by over two-thirds of a length.
Foreword
68 All Star And Graham Value Stocks: 53 Fit To Buy In May
"About Large Cap Value
A Value ranking for large cap stocks from YCharts puts together complementary strategies found during their stock research. As a value ranking, it looks at the price of a stock relative to a number of measurements that determine intrinsic firm value. Only the largest 10% of companies based on market cap are allowed in this portfolio.
What it is: The Value Score is a composite score. It tells you how much you are getting in terms of profits, cash flows, assets, sales, etc. for the stock price that you pay. It is a relative measurement, so it says nothing about the overall level of the market. Rather, it answers the question: "Given the current market level, which stocks give you the most current value for your dollar of investment?" Tens are the most value, and 1s are the least.
How to use it: Use it to find companies that are selling at a low price relative to their assets and profits.
Limitations of the Value Score: Watch out for companies with a lot of uncertainty or bad prospects for the future (e.g., Pharma companies with expiring patents, industries on the decline, etc.).
About the Ben Graham Formula
The Ben Graham Formula strategy contains ultra-stable stocks that will infrequently lose money if held over a long period of time. It was developed based on a screen in Graham's book, "The Intelligent Investor." For those who have the book, it is the "Defensive Investor" screen. It selects stocks that are large in terms of sales and total assets, have a strong track record of earnings and dividend payments, have a reasonable current ratio and level of long term debt, and have a low valuation given by PE Ratios and Price to Book Value ratios." -YCharts.