This is the latest in the occasional ‘Investing Notes’ posts. These will sometimes be on individual companies, and sometimes on more asset allocation-related things. None of it will be a recommendation to buy or sell anything, but it’s something that I hope will add value to subscribers that either invest their own or other people’s capital.
Disclosure: I am a portfolio manager at Sorfis Investments, LLC (“Sorfis”) and clients of Sorfis may own shares of stock in a company, companies, or other securities mentioned in either the post below or links associated with the post below. I may in the future buy or sell shares for myself or clients and am under no obligation to update those activities. This is for information and entertainment purposes only, and is not a recommendation to buy or sell a security. Please do your own research before making an investment decision, or consult a qualified financial advisor.
In today’s note, we’re pasting some screenshots (via Koyfin). I’ve noticed a number of companies generally considered high quality or defensive businesses (or both) have been trading at valuation metrics in the lower 1/3 or so percentile that they have been trading at during the last 10 years. Many of these companies are also on my watch lists because investors I follow and admire own shares, and many have been buying around or above current prices.
None of the above, of course, means the names below are great bargains. But for those that look at individual stocks, I thought it might provide of a list of places to hunt for ideas. And given many of them have lower percentile P/S ratios, but not as low a percentile in earnings-based ratios, a key assessment is going to be whether or not dips in margins and earnings is temporary or permanent.
Also, for those that invest in ETFs and not individual stocks, there as an interesting difference between the current and historical valuation of the large holdings of market cap weighted ETFs. We’ll mention one particular example at the end of this post.
Company screenshots:
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