Beginning in March of 2021, KCR’s quantitative research has provided consistent evidence that Staples and Energy stocks present investors with the opportunity to buy companies of high quality for unusually low prices. Subsequent to our evidence-based models’ endorsement, we engaged in a fundamental review of both sectors and the specific stocks our models favored. Steeped in academic research done by the most respected names in behavioral finance, our models continue to advocate for select securities in both sectors. Our fundamental overlay continues to validate those findings.
Is EOG A Good Stock to Buy? The chart below shows the performance of natural gas and crude oil exploration and production firm EOG Resources over the last 3 years. Since the stock’s trough in October of 2020, it has risen over 250%, triggering behavioral errors that often give investors the feeling that they “missed” a stock after it rises that much.
(And nobody is listening, hence the opportunity). Hillenbrand 60 Second Summary:
• $3.5bn market cap
• Double digit earnings growth
• 2% dividend yield
• Authorization to buy-back 10% of shares outstanding.
• 11% FCF Yield so could buy that stock back from ongoing FCF
• Founded in 1906 – longevity
• If management just avoids making an expensive acquisition, this stock can deliver significant growth & cash returns to shareholders
• We have been proponents of investing in companies that make what you need, not what you want.
• Behavioral errors often give investors the feeling that they “missed” a stock after it has risen
• KCR believes that Hillenbrand lies at the intersection of two powerful themes we have highlighted: the opportunity in small-cap value stocks and finding growth at a reasonable price
• The chart shows the performance of aftermarket automotive products supply and distribution firm Advanced Auto Parts, over the last 3 years
• Since 2018 the stock has risen over 50%
• We have been proponents of investing in companies that make what you need, not what you want, particularly in times like today, as explained in our...
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.