Penn Wealth Publishing

2018.11.18 Penn Wealth Report Vol 6 Issue 05

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18 Nov 2018 PeNN Wealth Report volume 6 issue 05 15 Penn Wealth Report Copyright 2018. All Rights Reserved. investment intelligence Under The radar Four companies being ignored—or missed—by investors Facebook, Inc Interactive Media & Services On the 25th of July, Facebook Inc (FB $127-$136-$219) was sitting at $218.62 per share. Despite the headlines about data privacy, Russian hacking, and government investigations, investors couldn't get enough of this FANG darling. en the tech turbulence began, push- ing shares of the $630 billion (at the time) company down to $127. e PE ratio of the company is now 20—almost unfathomable for a growth company with an enormous rev- enue stream. A few short months ago, investors would have lined up for the current set of circumstances; now they are gripped by fear. Not us. We added FB to the ITP. Cognizant Technologies Information Tech Services FedEx Corp Transportation Infrastructure Target Corp Multiline Retail Cognizant Technologies Solutions Corp (CTSH $65-$69-$85), though you may not be familiar with the name, is a consulting and technology firm which has become an integral part of companies across a wide swath of industries. Offering professional and consulting services for industries from financial services to healthcare to manufacturing, Cognizant employs over a quarter of a million people around the globe. Shares of the company peaked around $83 this past summer, which we consider fair value, but have fallen into the $60s since the correction. Revenues, which hit $14.81 billion in 2017, have risen every year for the past decade. In January, following the successful and profitable 2017 Christmas shopping season, FedEx (FDX $208-$222-$275) shares peaked out just shy of $275. All evidence points to another excellent holiday season, which will bode well for the largest (and best) delivery system in the world. Furthermore, the company has been expanding its footprint overseas, with a notable push into Europe. Forget all the talk of Amazon eating into FedEx's business with its own "last mile" delivery system, this company will continue to dominate the industry. Any opportunity to pick up shares when they are near a 52-week low should be taken. Target (TGT $55-$69-$90) hasn't always been one of our top-tier retail picks, but when shares plunged from $90 in September to $69 in November, we took notice. Once again, a strong industry player with a large and dedicated consumer base of customers and a grow- ing online presence ends up on sale during a wide market sell-off. Questioning whether or not it is oversold? e company has a current RSI of 19. We see a fair value of the company at $90 per share, and believe they will be there once again shortly after the new year begins. 3 2 1 4

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