An article on Forbes from the MoneyShow editors, Top Stock Picks For 2019 From Leading Women Advisors, includes commentary from two Cabot Wealth Network Chief Analysts – Crista Huff and Nancy Zambell. As the article notes:
“While women are under-represented in the financial newsletter community, those who have chosen to participate in this field offer some of the industry’s most respected and successful financial publications.”
Here are their contributions to the MoneyShow Top Picks 2019 report:
Crista Huff, Chief Analyst
Cabot Undervalued Stocks Advisor
Apollo Global Management, LLC — with a yield of 8% — is my top investment idea of 2019 for income-oriented investors. Apollo Global is an alternative investment company. Apollo’s assets under management (AUM) total $270 billion, broken down as follows: credit (68%), private equity (27%) and real estate (5%).
Apollo is a mid-cap stock with a market cap of $4.9 billion. The most recent four quarterly dividend payouts totaled $1.93. What’s more, the stock traded as high as $35.50 in October, so there’s 48% capital gain potential for new investors if the stock rebounds to 2018 highs.
As the share price suffered during the recent market downturn, the current dividend yield rose, making the prospect of owning these shares more compelling for both individual and institutional investors.
In late December, Tiger Global Management reported a purchase of 1.1 million APO shares at an approximate cost of $26 million. Apollo Global is a great choice for income investors and growth stock investors.
Sleep Number — my top growth pick for 2019 — is the leader in sleep innovation, and a designer, manufacturer, marketer, retailer and servicer of a line of Sleep Number beds, bases and bedding accessories.
Revenue has increased consistently from $960 million in 2013 to an expectation of $1.6 billion in 2019. Wall Street projects EPS to increase 23.5% and 30.4% in 2018 and 2019. The 2019 P/E is 13.2.
Sleep Number is aggressively reducing its basic outstanding share count, which has fallen 37.7% since year-end 2013. The company is targeting continued earnings growth, 8%-10% revenue growth, and additional share repurchases in 2019.
Nancy Zambell, Chief Analyst
Wall Street’s Best Investments
With so much political and global uncertainty, it doesn’t look like this market volatility is going to cease anytime soon. And since the stock market is the best place to build a retirement portfolio overtime, it’s important to keep safety — as well as growth — in mind.
With that in mind, I ran a list of low-volatility stocks, then put them through my analytic process to see which ones also exhibited the other important characteristics of a good long-term stock: growing earnings, good cash flow, reasonable debt as well as investor and analyst interest.
One of my favorite results of that study is Smith & Nephew plc. The company makes medical devices — primarily for hips and knees — and sells
Some of its products include sports medicine joint repair products, arthroscopic enabling technologies such as high definition cameras, digital image capture, scopes, light sources and monitors to assist with surgery, radio frequency, electromechanical and mechanical tissue resection devices and hand instruments for removing damaged tissue.
Additionally, the company offers internal and external devices used in the stabilization of severe fractures and deformity correction procedures; robotics-assisted surgery, knee implant products and hip implant products for the reconstruction of hip joints. Smith & Nephew also provides advanced wound care products for the treatment and prevention of acute and chronic wounds.
The company has paid dividends since 1937 and has a current annual yield of 1.50%. Technically and fundamentally, the shares look excellent, with bullish rankings from the company’s 15 analysts. Buy now for appreciation and steady dividend cash flow.
The January issue of Wall Street’s Best Investments includes the full list of top picks for 2019.