U.S. Dividend Stocks On Discount – April 2019
April 30, 2019
Special dividends – now available on DividendStocks.Cash
May 5, 2019
Here are last month's winner & loser stocks from the database of DividendStocks.Cash, which analyses over 650 of the world's most popular stocks for long-term investors according to long-term profit growth including valuation:
Dax strikes back! Who would have thought that the lazy German main index would have risen by around 7% in April and thus outperformed the S&P 500 by roughly 4%? Accordingly, 7 German companies and “only” 4 companies from the US can be found on the list of 15 winning stocks. For your information: on DividendStocks.Cash there are more than 3 stocks from the US for each German stock. In the case of loser stocks, on the other hand, US stocks take the lead with a ratio of 12:1.
In the US, the situation is not very euphoric across the board despite the record levels of the indices. There are currently more stocks at a 52-week-low than at a 52-week-high. On a monthly basis, the ratio of low to high is even 2:1.
Winner Stocks of the Month
The time of suffering for Qualcomm shareholders seems to be over. For a long time, Qualcomm’s licensing model and its financial future were on the brink of collapse. But now Apple has buried the hatchet. Too strong is Qualcomm’s technological leadership in 5G modems, so there is no way for Apple to bypass its opponent. Desired partner Intel, on the other hand, discontinues the development of 5G modems.
According to the analysts, profits and cash flows will rise steeply from now on. As a result, the stock would reach a fair value of between 123 and 145 USD in the after next business year compared to 87 USD today.
Qualcomm stock could soon be worth a lot more as profits pick up
BYD Electronic
The stock of BYD Electronic gained a respectable 35%. The supplier for mobile phones shines with a solid growth in sales with low, but increased margins.
BYD Electronics: long-term sales growth with slightly increased margins.
However, in late 2017, the price of the stock has hurried too far ahead of fundamental reality. As can be seen from the development of the fair value, the stock was clearly overvalued with a peak of 25.35 HKD. The overvaluation was followed by undervaluation. As of today, the stock appears to be slightly undervalued.
BYD Electronics: Sometimes overvalued, sometimes undervalued.
Ceconomy
It is doubtful whether Ceconomy’s shareholders also expect a golden future, despite the 25% capital gain. The online competition is too strong for the operators of Saturn and Mediamarkt locataed in the stationary retail business. Cost savings alone may be sufficient for a good month on the stock exchange, but they do not guarantee growing profits in the long term.
Ceconomy: No sign of long-term profit growth (profit gap due to business year change)
Losers of the Month
Indivor
Can a stock collapse by more than 70% within a day? Yes, it can. Indivior provided proof this month when the stock fell 71.6% in one day. The trigger was the U.S. Department of Justice, which sued the company for fraud for at least 3 billion USD.
Members of DividendStocks.Cash will hardly be affected by this fall in stock prices. After all, the spin-off of Reckitt Benckiser is far from long-term profit growth.
Indivior: A little promising investment even without a fine
Tesla
Net profit and positive cash flow each quarter. For a short time, when the numbers for the third quarter of 2018 were announced, it looked as if it could work. Unfortunately, nothing came of it. The technical and entrepreneurial challenges that the pioneer constantly has to solve seem too complex and unpredictable.
Yet, the rising sales give an impression of the future the company could face if its efforts are ultimately crowned with success.
Tesla’s 2017 sales: 70 million USD. Current: 21.5 billion USD
An investment in Tesla is first and foremost a question of faith.
Conclusion
Not all stocks are suitable for a solid investment. But if you focus on stocks with long-term profit growth you can be relaxed about the short-term ups and downs on the stock market. The fall in the price of a single quality stock such as 3M does not change this, which, by the way, was favoured by an overvaluation:
3M: Heavily overvalued with just below 260 USD in the recent past
If you want to know more about 3M I recommend watching this video. If you are interested in finding promising stocks for growing dividends and capital gains, then DividendStocks.Cash is the platform of choice for you.
