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The Buy List: 2.12.18

The Buy List: 2.12.18



The Buy List

 

Just a quick update on this lovely Monday morning. We’re in the midst of earnings season and we have a few companies on my radar that are reporting this upcoming week. In particular, HCP Inc. (NYSE: HCP) reports on the 13th and Newell Brands (NYSE: NWL) reports on the 16th. Grupo Aeroportuario (NYSE: PAC) reports next week on the 22nd, but also worthy of keeping an eye on. I’m watching these stocks closely as I think there are some good opportunity here.

 

In preparation for earnings being released tomorrow, I ran a quick NAV analysis on HCP last night using annual numbers from the 2016 10K and here’s what I came up with.

 

 

 

As you can see from above, the stock is being valued at a discount to its $32.29 NAV by about 30%. However, a lot can happen over the course of a year. Morningstar is estimating the current NAV at around $31 per share. Either they are high out of there mind or the company is way oversold. The reason HCP’s stock price has been dropping is due to an aggressive quest to reposition their portfolio. We’ll have to wait for the earnings release to find out.



 

I also ran a DCF on NWL and determined that the intrinsic value, based off of 2016 numbers, was $41.74. This represents 35% upside from current levels. I’m excited to see what happens this week when NWL reports, I think we have a decent amount of upside here.

 

So keep these stocks on your radar for this week. I’ll report on updated financials and my investment recommendations within a few days following the earnings announcement.  If you have any stock recommendations or advice on a certain stock you’re looking at, please shoot me a note below!

 

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