This week’s Sunday Screener is inspired by the late Charlie Munger, Warren Buffett’s business partner, who once described a dead-simple strategy for beating the market:
If all you ever did was buy high-quality stocks on the 200-week moving average, you would beat the S&P 500 by a large margin over time. The problem is, few human beings have that kind of discipline.
In today's Sunday Selection, we report on a natural gas producer that held volumes flat last year – right now, the market reads flat production as a company standing still, but holding volumes flat is exactly how it out-earned every giant in the industry.
As of Thursday’s close, the Munger screen produced the following 16 stocks:
To see the criteria applied to create our Modified Munger Screen, click here.
Questions about our Sunday Screener?... drop us an email at porterstansberrydirect@gmail.com.
Highs And Lows
Each week, we also monitor any stocks in the market making 52-week highs. We do this because any stock on its way to generating 2x, 3x, or 10x returns will spend a lot of time making new 52-week highs along the way. Thus, the 52-week-high list provides an opportunity to flag these potential high performers before they really break out, with a particular emphasis on lower-profile, less widely-followed stocks that might have otherwise gone unnoticed.
Notable stocks making a 52-week high this week:
- AbbVie (ABBV)
- Dell Technologies (DELL)
- CrowdStrike (CRWD)
- Thermo Fisher Scientific (TMO)
- Fortinet (FTNT)
- Marathon Petroleum (MPC)
- Valero Energy (VLO)
- Phillips 66 (PSX)
- Natera (NTRA)
- Atlassian (TEAM)
- IQVIA (IQV)
- Waters (WAT)
- Archer-Daniels-Midland (ADM)
- Illumina (ILMN)
- Okta (OKTA)
- Quest Diagnostics (DGX)
- Principal Financial Group (PFG)
- F5 (FFIV)
- Guardant Health (GH)
- Best Buy (BBY)
- Semtech (SMTC)
- Revvity (RVTY)
- Exelixis (EXEL)
- Halozyme Therapeutics (HALO)
- Bio-Techne (TECH)
Presented By: Paradigm Press
Oil Prices Could Send These Three Stocks Soaring
If the turmoil in the Middle East has you rushing to buy oil stocks right now - STOP and read this.
The biggest gains from the last oil crisis didn't come from oil companies.
The top-performing energy stocks were tiny. Practically unknown. And every major oil company in America was completely dependent on them.
Today, it’s the exact scenario— except the scale is roughly 13,000 times larger.
That’s why I just vetted three of these companies in this exact same position.
But this time it’s not just oil that’s driving them higher...
Trump’s latest initiative could lead this sector to a major surge.
Editor’s Note: Keep in mind, we only accept advertising from publishers we know to offer well-researched ideas vetted by a legal team, excellent customer service, and reasonable refund policies. Paradigm Press is one such partner. We do not, however, under any circumstances make any representations about their investment ideas or strategies, nor will we warrant them as equal to our own. We do recognize that the markets are tempestuous and, at times, ideas that we may not endorse prove valuable.
We also monitor stocks on the 52-week-low list. In many cases, the names on this list are there for good reason – the market is often correctly pricing in weak fundamentals. However, once in a while, a great business with excellent long-term prospects finds itself on this list due to a temporary setback. This can create the rare opportunity to buy top-shelf merchandise at bargain-basement prices.
Notable stocks making a 52-week low last week:
- PepsiCo (PEP)
- McDonald's (MCD)
- TJX (TJX)
- Lowe's (LOW)
- Southern Company (SO)
- O'Reilly Automotive (ORLY)
- Aon (AON)
- Boston Scientific (BSX)
- TransDigm (TDG)
- Nike (NKE)
- AutoZone (AZO)
- L3Harris Technologies (LHX)
- Xcel Energy (XEL)
- Exelon (EXC)
- Ferguson Enterprises (FERG)
- IDEXX Laboratories (IDXX)
- Yum! Brands (YUM)
- Public Service Enterprise Group (PEG)
- Martin Marietta Materials (MLM)
- WEC Energy Group (WEC)
- Vulcan Materials (VMC)
- Carnival (CCL)
- Zoetis (ZTS)
FOR PARTNERS ONLY
A Small Producer, With Leading Returns
This week's Sunday Selection comes off last week’s 3X screen, and it is one of the smaller companies that made the cut. Last year the company earned a return on invested capital (“ROIC”) more than double the industry leader.
It pays no dividend at all. Instead, since March 2022 it has spent $920 million buying back its own stock, at an average price of $125 a share. Management returned more than 100% of last year's free cash flow to shareholders through repurchases while holding leverage below one turn of EBITDA.
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