Thursday, March 15, 2018

President Trump's Top Stocks For 2018

As the president’s chief economic advisor and director of the National Economic Council, will Larry Kudro benefit your portfolio?

Jim Kramer told his audience of crazy money on Wednesday that his previous co-host of "Kudlow & Cramer" was exactly what the White House needed.

Cramer first said that Kudlow is to promote growth, which means higher profits and higher stock prices. Growth is a magical elixir that can solve other diseases. This is what Kudler will fight for in the White House.

Cramer pointed out that Kudroh is also an outstanding speaker. He is good at giving speeches to the media and makes his point clearly visible.

This does not mean that Kudro will reach an agreement with President Trump on all issues. He has always been very optimistic about trade and anti-tariff. But above all, Kramer said that Kudro knows how to compromise and will fight for something for our country.

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Executive Decision: PayPal
For his "administrative decision" section, Cramer sat down with Dan Schulman, president and chief executive officer of PayPal Holdings Inc. (PYPL - Acquiring Report). The company's share price rose by 3.8% today and it has risen 13% this year.

Shulman said that the world is shifting from cash to digital payment systems. That's why PayPal now has 227 million users worldwide, an increase of only 30 million during the quarter.

Shulman said that digital payments are particularly important in emerging markets such as China and India, because these countries are skipping checks and credit cards and transferring directly from cash to mobile phones. Digital payments are not only more effective than alternatives, they are also much less corrupt.

Many people think that PayPal is a North American company, but Schulman explained that 65% of their members are not in the United States, and 50% of their income comes from outside the United States. Although only 5% of all small businesses in China export their goods, nearly 80% of Paypal's members do so.

When asked about millennials in particular, Shulman said Millennials have different views of the world, and as older consumers pull out credit cards, they just share the cost of Venmo's meals at home.

In terms of real money, Cramer said that sleepwear traffickers are best able to participate in this project. Learn more about Cramer's free trial subscription to Real Money.

Akamai's new life
Cramer told the audience that the only thing that was better than a good turnaround story was a turning point. It also had an active investor behind him because he highlighted an Akamai legacy stock (AKAM - Get Report).

Akamai was once the king of cloud content delivery, and it is a smooth, secure video streaming company. But the company fell out of favor in 2015 and 2016, as more and more content providers chose to scale down their Akamai streaming media to support their own networks. This allowed Akamai's performance to increase from 24% in 2014 to a median of two years later.

But then in December, Elliott Management, an active investor, took a seat in Akamai and the company has begun to turn to itself, cutting costs and simplifying operations. This is why the stock price rose 64% from its August low. If the company is successful, this is a victory for investors. If it fails, Elliott may promote the sale of the company and it is also an investor's victory.

Turn off tape: SoFi
In the “Off the Tape” segment, Cramer sits with Anthony Noto, CEO of the new-generation privately held SoFi.

Noto explained that SoFi is completely changing the financial situation to help people achieve financial independence in an unprecedented way. He said that people are passionate about the SoFi brand and have helped the company become a great year with a total loan of 12.9 billion U.S. dollars.

Noto said that culture is a key factor for success. SoFi's culture includes having the best product selection, unmatched convenience and fastest approval possibilities, all of which strengthen the company's unique data and indicators and can be good. The borrower is separated from the bad debts.

SoFi's membership base will be the key to the future, and Noto added that SoFi can become a trusted partner as members step down the financial path.

Lightning round
During the Lightning Round, Cramer is optimistic about Lilly (LLY - Acquire Report), Abbott Laboratories (ABT - Acquire Report), Phillips 66 (PSX - Acquire Report), Five Below (Five Acquires Report) and Cintas (Get Report) Report ).

Kramer takes a look at Merck (MRK - Get Report).

No clutter attacks
In his “Shameless Offense” episode, Cramer conveyed his sincere gratitude to his audience and fans, on the 13th anniversary of “Mad Money”.

Crazy money has always been about one thing: helping ordinary people become better investors. At first, the idea of ​​a solo show for stocks seemed a bit crazy, but the show had experienced economic expansion, a terrible downturn, and even returned to the bull market. Cramer said that this is to thank you, which is why he will come out every night to keep you in the game.

Cramer concludes that ordinary people need to manage their own money. Don't let the critics tell you!

Anticipates GDP Forecast

Dow Jones today is expected to open higher on Thursday morning as investors consider the economic information transferred by the Trump administration during changes in executive personnel.

Today's market may be due to news that the economic growth in the first quarter may be lower than many analysts expected. In January, the Federal Reserve Bank of Atlanta forecasted the possibility of a 5.4% increase in GDP this quarter. However, the Atlanta Fed said on Wednesday that the first quarter GDP may be around 1.9%.

With the reorganization of the Trump White House changing the country’s economic policies, Keith Fitzgerald, the chief investment strategist at Money Morning, is changing the international landscape by investing in currencies. View Keith's trading strategy...

The following are the Dow Jones index, the S&P 500 index and the Nasdaq index:
:
IndexPrevious ClosePoint ChangePercentage Change
Dow Jones24758.12-248.91-1.00%
S&P 5002749.48-15.83-0.57%
Nasdaq7496.81-14.20-0.19%
Now let's take a closer look at today’s most important market events and stocks, plus Thursday’s economic calendar.

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Thursday's Big Five Stock Market Story

Earlier this week, President Trump lifted the post of Secretary of State Rekh Stilson and appointed the Director of the Central Intelligence Agency Mike Pumblep as his successor. At the same time, economic commentator Larry Kudro will become director of the National Economic Council. Kudlow is replacing Gary Cohen, a former Goldman Sachs (NYSE:GS) executive who resigned in early March. Cudlow publicly opposes the recent Tariff White House’s tariff. However, he has always supported the recent tax reform bill and may support Trump's popular economic agenda.

Boeing (NYSE: BA) shares have been under pressure because the market measures the potential of the Sino-US trade war. After the Trump administration decided to impose tariffs on steel and aluminum, many U.S. manufacturers may face restrictions from the Chinese government. Manufacturing fell on Wednesday.


Elon Musk warned earlier this week that people wishing to participate in the Mars mission may not be able to survive the journey. This highly public statement may be a disturbing report for his company Tesla (Nasdaq: TSLA). According to reports, TSLA shares fell more than 4.4% on Wednesday after electric vehicle manufacturers produced a large number of defective parts and cars. Former employees suggested that more than 40% of the company's parts need to be reworked to resolve defects.
Due to concerns about rising interest rates, gold prices are under pressure. The market is preparing for the Federal Reserve Open Market Committee meeting next week. Investors largely expect the central bank to raise interest rates next Wednesday. In fact, some people even speculated that the central bank may increase interest rates by 0.5%. The price of gold also had a negative impact on Larry Kudro's appointment as the highest economic advisor to the Trump administration. Kudlow is a strong supporter of the dollar and will advocate a policy aimed at supporting the dollar.
As the market rebounded this morning, crude oil prices rose. However, analysts were slightly bearish after the Energy Information Administration reported yesterday that crude oil inventories rose. WTI crude oil prices rose 0.6% today. Brent crude oil rose 0.5%.
Watch three stocks today: AVGO,DG,F
Shares of Broadcom Ltd (Nasdaq: AVGO) are focusing on stocks as semiconductor giants prepare to announce results after the close on Thursday. The Trump administration has been at the center of controversy after it blocked potential mergers between Broadcom and rival Qualcomm (Nasdaq: QCOM) earlier this week. The Trump administration has listed national security issues as the reason for deciding to block any transaction. Wall Street expects Broadcom to report earnings of $5.04 per share for $5.32 billion.
Dollar Universal Corporation (NYSE: DG) is on the heels of the earnings report on a busy day. Discount retailers report earnings before earnings today. After the company reported that earnings per share were in line with expectations and improved same-store sales, the stock price rose by nearly 7%.
Ford Motor Company (NYSE: F) announced a massive recall of a total of 1.38 million Ford Fusion models. The company stated that due to loose bolts in the steering column, these vehicles are susceptible to steering wheel failure. Due to this defect, two accidents have been reported.
Looking for Adobe Systems (Nasdaq: ADBE), Restoration Hardware (NYSE: RH), Jabil Inc. (NYSE: JBL), The Children's Place (Nasdaq: PLCE), and Clear Channel Outdoor (NYSE: CCO) Other Income Reports.

Top 5 Undervalued Stocks For 2018

There are many excellent companies on the market today. Using the ModernGraham valuation model, I selected over 900 companies reviewed by ModernGraham and selected five mid-range underestimates for value investors.

According to the Modern Graham method, each company has been identified as a suitable defensive or corporate investor. Defensive investors are defined as investors who are unable or unwilling to conduct substantial research on individual investments, so they only need to choose the company with the lowest risk. On the other hand, corporate investors can do a lot of research, and they can choose companies with moderate (though still low) risk.

Top 5 Undervalued Stocks For  2018:Signet Jewelers Ltd.(SIG)
Signet Jewellery Co., Ltd. is suitable for venture investors, but it is not suitable for more conservative defensive investors. Defensive investors are concerned about stable or insufficient earnings growth and poor dividend history over the past decade. Venture investors do not have initial concerns. Therefore, all corporate investors adopting the ModernGraham approach should be satisfied with the analysis process.

As for valuation, the company seems to be underestimated after increasing EPSmg (standardized earnings defined here) from 3.86 US dollars in 2014 to an estimated value of 6.07 dollars in 2018. This level of real gain growth exceeds the market's implicit estimated annual return loss of 0.22% over the next 7-10 years. Therefore, the Modern Graham valuation model based on the Benjamin Graham's value investment formula returns an intrinsic value estimate that is higher than the price.

In conducting the valuation, a further study of Signet Jewelers Ltd. revealed that the company’s trading price was lower than its Graham number of US$61.99. The company paid dividends of $1.04 per share, yielding a 2.1% yield, making it the best dividend payout today. Its PEmg (price higher than earnings per share - ModernGraham) is 8.06, which is lower than the industry average of 30.22, making it one of the lowest-valued stocks in the industry by some valuation methods. Finally, the company's net current assets (NCAV) is higher than -3.32 USD.



Top 5 Undervalued Stocks For  2018:Simmons First National Corporation (SFNC)
Simmons First Nations is eligible to act as a defensive investor and a corporate investor. In fact, the company met all the requirements of both types of investors. This is a rare achievement and shows that the company's financial position is good. Venture investors do not have initial concerns. Therefore, all value investors who follow the ModernGraham approach should feel at ease in their analysis.

As for valuation, the company appears to have been underestimated after increasing EPSmg (standardized income) from $0.87 in 2014 to an estimate of $1.67 in 2018. This level of real income growth exceeds the market's implied growth rate of 4.86% for the next year 7-10 years. Therefore, the ModernGraham valuation model based on the Benjamin Graham formula returns an intrinsic value estimate that is higher than the price.

In conducting the valuation, further research on Simmons First National Corporation showed that the company's trading price was lower than its Graham Number of US$34.09. The company pays a dividend of $0.50 per share and the yield is 1.6%. Its PEmg (price higher than earnings per share - ModernGraham) was 18.22, below the industry average of 24.17, making it the most undervalued stock in its industry through certain valuation methods.



Top 5 Undervalued Stocks For  2018:Bed Bath&Beyond Inc.(BBBY)
Bed Bath & Beyond Inc. is suitable for aggressive investors but not for more conservative defensive investors. Defensive investors are concerned about low current ratios and have poor dividend history. Venture investors do not have initial concerns. Therefore, all corporate investors adopting the ModernGraham approach should be satisfied with the analysis process.

As for valuation, the company seems to have been underestimated after increasing EPSmg (standardized income) from 4.19 US dollars in 2014 to an estimated 4.19 US dollars in 2018. This level shows that the revenue growth exceeds the market's implied estimate, with a loss of 1.57% in the next 7-10 years. Therefore, the Modern Graham valuation model based on the Benjamin Graham's value investment formula returns an intrinsic value estimate that is higher than the price.

In conducting the valuation, further research on Bed Bath & Beyond Inc. revealed that the company's trading price was lower than Graham Number 34.59. The company pays a dividend of $0.38 per share, and the yield is 1.7%. Its PEmg (price higher than earnings per share - ModernGraham) is 5.36, which is lower than the industry average of 35.42, making it the most in its industry through certain valuation methods. Undervalued stocks. Finally, the company's trading price is higher than its -3.6 US dollar net current asset value.

Top 5 Undervalued Stocks For  2018:Foot Locker, Inc.(FL)
Foot Locker, Inc. is both a defensive investor and a corporate investor. In fact, the company met all the requirements of both types of investors. This is a rare achievement and shows that the company's financial position is good. Venture investors do not have initial concerns. Therefore, all value investors who follow the ModernGraham approach should feel at ease in their analysis.

As for valuation, the company seems to be underestimated after increasing EPSmg (standardized income) from 2.77 USD in 2015 to a value of 3.66 USD in 2019. This level of earnings growth exceeds the market's implied earnings growth rate of 1.67% for the next year 7-10 years. Therefore, the Modern Graham valuation model based on the Benjamin Graham's value investment formula returns an intrinsic value estimate that is higher than the price.

In conducting the valuation, further research on Foot Locker, Inc. revealed that the company's trading price is higher than Graham's $42.1. The company paid a dividend of $1.24 per share, yielding a yield of 2.9%, making it the best dividend payout today. Its PEmg (price higher than earnings per share - ModernGraham) is 11.85, which is below the industry average of 40.48, and has made it one of the lowest-valued stocks in the industry by some valuation methods. Finally, the company's net current assets are worth more than $9.15.


Top 5 Undervalued Stocks For  2018:Hanesbrands Inc. (HBI)
Hanesbrands Inc. is suitable for venture capitalists, but it does not apply to more conservative defensive investors. Defensive investors are concerned about low liquidity ratios, poor dividend history, and high PB ratios. Enterprise investors only care about the level of debt relative to the net value of current assets. Therefore, all corporate investors adopting the ModernGraham approach should be satisfied with the analysis process.

As for valuation, the company appears to be at fair value after increasing EPSmg (standardized income) from $0.75 in 2014 to a value of $1.11 in 2018. This level of revenue growth supports the market's implied annual revenue growth rate of 4.92% for the next 7-10 years. Therefore, the Modern Graham valuation model based on Benjamin Graham's value investment formula will return an intrinsic value estimate within the margin of safety relative to price.


At the time of the valuation, further research on Hanesbrands Inc. revealed that the company's trading price was higher than Graham Number 8.59 US dollars. The company pays a dividend of $0.6 per share, and the yield is 3%, making it the most dividend-paying stock today. Its PEmg (Price higher than earnings per share - ModernGraham) is 18.35, which is below the industry average of 40.48, and has made it one of the lowest-valued stocks in the industry by some valuation methods. Finally, the company's trading price is higher than its -7.73 USD net liquid assets value.