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Stocks you should consider for your stock portfolio.
It is a new month and your stocks may have been performing from poor to great this year. Spending time analyzing your current holdings is needed from time to time.
Warren Buffett is a fan of holding stocks forever but, he too, has sold some stocks recently as the market changes.
Buffett also reduced some stocks he was holding in his portfolio.
Warren Buffett said,
“Remember that the stock market is a manic depressive.”
Sometimes when the market changes, you have to sell or reduce your holdings if they do not fit your goal.
This month I discuss five stocks for you to consider.
- Applied Materials (AMAT)
- LGIH Homes (LGIH)
- Pioneer Natural Resources (PXD)
- Urban Outfitters (URBN)
- Wayfair (W)
Some of these stocks are close to their market high. If you decide to buy one of these stocks, I would wait for a dip in the market before buying.
The price for the stocks was recorded on April 5, 2021, at the close of the market.
Applied Materials, Inc. (AMAT)
AMAT Yahoo FinanceCompany Profile.
Applied Materials Inc. provides manufacturing equipment, services, and software to the semiconductor industries. With the reopening of the economy, this should boost demand for this stock. AMAT operates in the United States, China, Japan, Korea, Taiwan, Southeast Asia, and Europe. Applied Materials, Inc. is headquartered in Santa Clara, California, and founded in 1967.
Analysis.
The company’s February quarterly report was above expectations (sales up 24%, earnings up 42%). Management believed this will continue for the near future. There is an increased adoption of 5G handsets, an increase in investments in data centers, and an increase in chip content in automobiles.
CEO Gary E. Dickerson said, “digital transformation touches every sector of the economy and is non-discretionary for many industries. All of this adds up to a very strong demand environment for wafer fab equipment and we believe this strength is sustainable well beyond 2021.”
52 week high.
$146
52 week low.
$44.64
Forward Dividend and Yield.
0.96 (68%)
Analysts.
AMAT Yahoo FinanceLGI Homes, Inc. (LGIH)
LGIH Yahoo FinanceCompany Profile.
LGI Homes, Inc. constructs, designs, and sells homes in the United States. The company is the 10th largest in the country for first-time homeowners in the fastest growing place in the country (Florida). The goal for the company is to be a top-five homebuilder. They sell entry-level homes, detached and attached homes under LGI, and luxury homes under the Terrata Homes brand. The company serves in Alabama, Arizona, California, Colorado, Florida, Georgia, Minnesota, Nevada, New Mexico, North Carolina, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, West Virginia, and Washington. LGI Homes, Inc. is headquartered in The Woodlands, Texas, and founded in 2003.
Analysis.
After a rough year for the homebuilding industry, demand is growing for homebuilders. LGI is considered one of the better homebuilders. Business is very strong for the company as fourth-quarter sales and earnings were up (48% and 106% increase). Despite higher mortgages and home prices, analysts believe LGI is in a position to capture the homebuyers.
52 week high.
$155.65
52 week low.
$39.23
Forward Dividend and Yield.
N/A (N/A)
Analysts.
LGIH Yahoo FinancePioneer Natural Resources (PXD)
Pioneer Natural Resources Yahoo FinanceCompany Profile.
Pioneer is a gas and independent oil exploration and production company. The company develops, explores, and produces gas, natural gas liquids, and oil. Pioneer has operations in Permian in West Texas. The company is headquartered in Irving, Texas, and founded in 1997.
Analysis.
The company is in a good position as it has cut costs to produce cash flow. With owning 920,000 net acres (none on Federal land) in the Midland and Delaware basins, 80% of its drilling activity will be in the Midland basin in 2021. Pioneer believes it will produce $2 billion in cash flow this year. Next year, management is looking to pay investors with a variable dividend from its cash flow. Earnings are higher in the fourth quarter (38 cents above expectations with earnings of $1.07). The stock has performed well along with its peers.
52 week high.
$169.49
52 week low.
$67.00
Forward Dividend and Yield.
2.24 (1.41%)
Analysts.
Pioneer Yahoo FinanceUrban Outfitters, Inc. (URBN)
Urban Outfitters Yahoo financeCompany Profile.
Urban Outfitters offers men’s and women’s clothing, activewear, footwear, home goods, electronics, and beauty products for those between the ages of 18 to 28. The company also offers Blhdn which offers wedding gowns and assorted jewelry. Urban Outfitters also has Terrain stores that provide home products and outdoor living products. For women aged 28 to 45, Urban Outfitters has Anthropologie stores that provide women’s beauty and accessories, casual apparel, shoes, and home furnishings. The company is headquartered in Philadelphia, Pennsylvania, and founded in 1970.
Analysis.
Urban Outfitters made the successful transition from brick and mortar to online sales. The past few quarters show that the company did well. In the third and fourth quarters, the company reported strong sales growth despite reduced hours. Urban Outfitters saw 7% lower revenue in the fourth quarter due to low store traffic. Urban’s Anthropologie and Free People (FP) branded stores reported growth in the quarter (9% comparable-store sales growth for FP). There was 138% customer growth and 150% sales increase for the FP Movement activewear line. Urban Outfitters believes Movement’s revenue will grow from around $100 million last year to over $250 million by 2024.
52 week high.
$41.95
52 week low.
$13.39
Forward Dividend and Yield.
N/A (N/A)
Analysts.
Urban Outfitters Yahoo FinanceWayfair Inc. (W)
Wayfair Yahoo FinanceCompany Profile.
The company is involved in the e-commerce business providing about 22 million products for the home sector. Wayfair offers selections of furniture, houseware and home improvement. The company is headquartered in Boston, Massachusetts, and founded in 2002.
Analysis.
The pandemic worked in Wayfair’s favor as it posted its first-ever profit ($5 per share). Wayfair continues to grow as they beat expectations in the fourth quarter ($1.24 per share up 38 cents). Customers increased 54% and repeat customers made up 73% of orders. Wall Street sees 2020 as a one-time event and big investors are looking at Wayfair as a strong growth candidate. Mutual funds are buying in as 797 owned the stock six months ago to 1,031 by the end of the year.
52 week high.
$369
52 week low.
$64.18
Forward Dividend and Yield.
N/A (N/A)
Analysts.
Wayfair Yahoo FinanceReferences.
Note: The writer does not own any stocks mentioned in this article.
This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.
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