My Top 10 List of Stocks for the Remainder of 2022 and Beyond
Many subscribers have been clamoring for a new list of my very favorite, high confidence stocks for the remainder of 2022 and beyond.
Today's the day to let you see it. They are sorted below, alphabetically by ticker symbol.
Each of the 10 are down meaningfully from their trailing 52-week peaks. Every one offers excellent upside potential, which I consider well-defined and relatively predictable.
I've written extensively about these names in the recent past. Reference my previous articles to learn more about why I like them so much.
The portfolio covers a variety of industry groups and includes both smaller and large-cap companies. Forward multiples of these firms are so low, compared with their own historically average levels that takeover bids or "going private" offers could easily be forthcoming.
There has been insider buying in a few of these names, and I'd be surprised if there are not more disclosures of additional insider purchases before long.
Just this month, significant insider buys on both American Woodmark (AMWD) and Children's Place (PLCE) were reported. In many cases, market volatility has left the shares even cheaper than company officers and directors paid not long ago.
The Thomson Reuters Insider Transactions ratio chart below is published each week. It is almost universally true that insiders sell more shares of their own companies than they buy. That's because many executives receive free shares as part of their compensation packages and/or employee stock options which vest over time.
As such, the indicator is considered bullish whenever insiders as a whole sold less than 12 shares for each one purchased on the open market. Periods when overall insider transactions register more than 20 shares sold for each one bought are considered bearish.
Note that this a coincident, rather than a contrary, indicator.
The overall level of insider activity bodes well for future market action in general, and for the stocks which show up on free websites like GuruFocus.com and InsiderCow.com as being accumulated by corporate officers and 5%-plus holders.
Who knows what a stock is worth better than the people running the company? Accordingly, when corporate officers see absurdly low valuations they are pleased, not scared, to be able to increase positions cheaply.
You should be, too, if you see things selling for much less than your own calculated "fair value" for stocks you follow.
The 12-month target prices ranges on my Top 10 table appear quite rational. I typically figure it might take from nine to 18 months for my picks to reach those goal areas. Occasionally, they get there much sooner. Sometimes it takes a bit longer.
Patient investors with reasonable time horizons will almost always see stocks like these be much higher by the time they are willing to "ring the register".
Nobody can predict what the timeline or duration of the Russian-Ukrainian war will be. I can say with some conviction, however, that whenever a truce is brokered, we're likely to see a rip-your-face-off rally that could send the major averages up extremely sharply.
You need to position your portfolio in advance of that moment if you hope to benefit from it.
Don't say you weren't alerted in advance.
Paul Price is long shares and short options on all 10 of the stocks listed on his top 10 list.