{"id":22620,"date":"2024-10-15T21:45:27","date_gmt":"2024-10-15T21:45:27","guid":{"rendered":"https:\/\/www.thinkadvisor.com\/2024\/10\/15\/10-of-john-buckinghams-favorite-overlooked-stocks\/"},"modified":"2024-10-15T21:45:27","modified_gmt":"2024-10-15T21:45:27","slug":"10-of-john-buckinghams-favorite-overlooked-stocks","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2024\/10\/15\/10-of-john-buckinghams-favorite-overlooked-stocks\/","title":{"rendered":"10 of John Buckingham’s Favorite Overlooked Stocks"},"content":{"rendered":"
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We think that demographics and health care are favorable over the long haul. So health care is a growth area we like to invest in.<\/span><\/p>\n<\/div>\n

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Johnson & Johnson (JNJ):<\/b> In the businesses of pharma and medical devices, the diversified company has a super-high-quality triple-A credit rating, a 3% dividend yield and a terrific balance sheet.<\/span><\/p>\n<\/div>\n

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It’s taken a meaningful step toward final resolution of the multi-year litigation \u2014 <\/i>which will cost $13.7 billion payable over 25 years \u2014 <\/i>concerning the pending talc lawsuits against the company and its affiliates in the U.S.<\/span><\/p>\n<\/div>\n

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The MedTech segment is expected to grow revenue north of 6% in each of the next few years. We think the litigation will eventually play out, and that certainly could be a catalyst for the stock to come back.<\/span><\/p>\n<\/div>\n

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The multi-year consolidation in shares offers a great entry point for investors to pick up a defensive, long-term growth opportunity at a reasonable P-E.<\/span><\/p>\n<\/div>\n

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Molson Coors (TAP): <\/b>An amalgamation of three brewing companies, Molson, Coors and Miller, the company offers brands across the value spectrum.<\/span><\/p>\n<\/div>\n

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The stock is inexpensive, trading for less than 10 times earnings per share projected in each of the next few years, though management is faced with deleveraging the company. <\/span><\/p>\n<\/div>\n

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[People] are not likely to stop drinking beer. TAP has consumer loyalty to Miller and Coors brands. <\/span><\/p>\n<\/div>\n

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Prudential Financial (PRU):<\/b> The largest U.S. life insurer has more than $1 trillion of assets under management and additional operations in Asia, Europe and Latin America. <\/span><\/p>\n<\/div>\n

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Operating income grew by 10% in fiscal Q2 on strong product sales and constructive interest rates. <\/span><\/p>\n<\/div>\n

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CEO Chuck Lowrey has suggested that the historic levels of Americans who will turn 65 \u2014<\/i> and many additional people in the red zone for retirement \u2014 <\/i>represent a $137 trillion retirement opportunity in the U.S. and $26 trillion in Japan by 2050.<\/span><\/p>\n<\/div>\n

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While interest rates have retreated, we expect there are still benefits from bond reinvestment given where rates were in the years following the (global) financial crisis. PRU yields 4.3%.<\/span><\/p>\n<\/div>\n

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United Parcel Service (UPS):<\/b> We just bought UPS a couple of weeks ago. Shares have tumbled this year as volume and cost headwinds took their toll. The whole package-delivery [segment] has gone through booms and busts. <\/span><\/p>\n<\/div>\n

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CEO Carol Tome noted, “Our second-quarter performance was a significant turning point for our company, as we returned to volume growth in the U.S., the first time in nine quarters.”<\/span><\/p>\n<\/div>\n

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UPS is trading at levels not seen since late 2020 and has attractive valuation metrics. The dividend yield is 4.9%.<\/span><\/p>\n<\/div>\n

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E-commerce will be part of the overall retail equation long-term. <\/span><\/p>\n<\/div>\n

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Whirlpool (WHR):<\/b> Shares of the top major appliance manufacturer in the world remain unloved, falling more than 15% over the last year.<\/span><\/p>\n<\/div>\n

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But now there’s the likelihood of lower interest and mortgage rates, and [many] first-time home owners. <\/span><\/p>\n<\/div>\n

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CEO Marc Bitzer said, “Our solid Q2 results and actions put us firmly on-track towards expanding our margins sequentially throughout 2024, setting up our business well for the eventual recovery of the housing market.” <\/span><\/p>\n<\/div>\n

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We think Whirlpool will also benefit as emerging markets incorporate modern conveniences into daily living. <\/span><\/p>\n<\/div>\n

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We also like that the firm is on course to deliver cost savings of $300 million to $400 million in 2024. And the dividend yield is a whopping 6.8%.<\/span><\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

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