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Time Is Running Out To Lock In  The Best Wall Street Deals Of 2021

Time Is Running Out To Lock In The Best Wall Street Deals Of 2021

Posted On February 22, 2021 3:24 am
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(Source: imgflip)

The March 2020 pandemic crash made most companies attractively valued and created incredible opportunities for smart long-term investors.

Naturally, the fastest bear market in history generated incredible opportunities, including in the fastest-growing and most popular Wall Street darlings.

Not surprisingly, these world-class companies have gone on to make the Dividend King Phoenix Portfolio massive gains in less than a year. Since April 2020, I’ve been investing 100% of my savings into that matching strategy. That’s over $300,000 and counting in real money buys that are tracked by our Daily Blue-Chip Deal Videos, DK Videos, and DS Phoenix screenshots on our chat board.

Consider Paypal (PYPL), as featured below. It’s the Phoenix Portfolio’s biggest winner, though now incredibly overvalued…

(Source: FAST Graphs, FactSet Research)

  • Quality score: 88%
  • Quality rating: 12/12 Ultra-SWAN
  • 2021 average historical fair value: $176
  • Potential good buy price: $168 (5% margin of safety)
  • Valuation: 65% overvalued
  • DK rating: potential trim/sell
  • DK cost basis: $91
  • The yield on cost: 0%
  • Unrealized gain: 219%
  • Time-weighted total return: 250% CAGR.

There’s also Lowe’s (LOW), our second-biggest winner and 14% overvalued:

(Source: FAST Graphs, FactSet Research)

  • Quality score: 92%
  • Quality rating: 12/12 Ultra-SWAN
  • 2021 average historical fair value: $156
  • Potential good buy price: $148 (5% margin of safety)
  • Valuation: 14% overvalued
  • DK rating: Hold
  • DK cost basis: $77
  • The yield on cost: 3.1%
  • Capital gain: 131%
  • Time-weighted total return: 140% CAGR.

Of course, it’s not hard to make impressive short-term gains from intense bear market lows that featured the lowest valuations in a decade.

But guess what? The great thing about bear markets is they create wonderful buying opportunities for many months, not just weeks.

So here’s more, including Chubb (CB), our 16th biggest winner, which we bought on May 8…

(Source: FAST Graphs, FactSet Research)

  • Quality score: 85%
  • Quality rating: 11/12 Super SWAN
  • 2021 average historical fair value: $148
  • Potential good buy price: $133 (10% margin of safety)
  • Valuation: 11% overvalued
  • DK rating: Hold
  • DK cost basis: $101
  • The yield on cost: 3.1%
  • Capital gain: 63%
  • Time-weighted total return: 66% CAGR.

Apogee Enterprises (APOG) is our 18th-biggest winner, bought back on June 6.

(Source: FAST Graphs, FactSet Research)

  • Quality score: 69%
  • Quality rating: 8/12 above-average – speculative
  • 2021 average historical fair value: $48
  • Potential good buy price: $34 (30% margin of safety)
  • Valuation: 24% undervalued
  • DK rating: potential reasonable but Speculative Buy
  • DK cost basis: $23
  • The yield on cost: 3.5%
  • Capital gain: 61%
  • Time-weighted total return: 112% CAGR.

Next up is Tencent (OTCPK:TCEHY), our 39th-biggest winner, purchased between September 10 and October 6.

(Source: FAST Graphs, FactSet Research)

  • Quality score: 81%
  • Quality rating: 11/12 Super SWAN – speculative
  • 2021 average historical fair value: $77
  • Potential good buy price: $66 (15% margin of safety)
  • Valuation: 24% undervalued
  • DK rating: Hold
  • DK cost basis: $67
  • Yield on cost: 0.20%
  • Capital gain: 42%
  • Time-weighted total return: 163% CAGR.

We’ve also made a killing opportunistically buying boring old blue-chips growing at modest rates.

Walgreens (WBA), meanwhile, is our 56th-biggest winner and one that’s succeeding in its turnaround.

(Source: FAST Graphs, FactSet Research)

  • Quality score: 68%
  • Quality rating: 9/12 speculative blue-chip dividend aristocrat (turnaround company)
  • 2021 average historical fair value: $72
  • Potential good buy price: $54 (25% margin of safety)
  • Valuation: 32% undervalued
  • DK rating: potentially good but Speculative Buy
  • DK cost basis: $39
  • The yield on cost: 4.8%
  • Capital gain: 26%
  • Time-weighted total return: 227% CAGR.

We bought Cisco (CSCO), our 67th-biggest winner, at the best valuation in four years:

(Source: FAST Graphs, FactSet Research)

  • Quality score: 81%
  • Quality rating: 11/12 Super SWAN
  • 2021 average historical fair value: $46
  • Potential good buy price: $42 (10% margin of safety)
  • Valuation: fairly valued
  • DK rating: potentially reasonable Buy
  • DK cost basis: $39
  • Yield on cost: 3.8%
  • Capital gain: 20%
  • Time-weighted total return: 73% CAGR.

Intel (NASDAQ:INTC) is our 54th-biggest winner, bought at some of the lowest valuations it’s seen in eight years:

(Source: FAST Graphs, FactSet Research)

  • Quality score: 84%
  • Quality rating: 11/12 Super SWAN
  • 2021 average historical fair value: $53
  • Potential good buy price: $48 (10% margin of safety)
  • Valuation: 16% overvalued
  • DK rating: Hold
  • DK cost basis: $47
  • The yield on cost: 2.9%
  • Capital gain: 30%
  • Time-weighted total return: 62% CAGR.

Back in the “undervalued” category is AT&T (T), a dividend aristocrat we bought at one of its lowest valuations in history.

(Source: FAST Graphs, FactSet Research)

  • Quality score: 77%
  • Quality rating: 10/12 speculative SWAN dividend aristocrat (turnaround company)
  • 2021 average historical fair value: $38
  • Potential good buy price: $30 (20% margin of safety)
  • Valuation: 23% undervalued
  • DK rating: potentially good but Speculative Buy
  • DK cost basis: $27
  • The yield on cost: 7.7%
  • Capital gain: 9%
  • Time-weighted total return: 39% CAGR.

And guess what? Regardless of your goals – whether growth, income or both – reasonably to attractively valued blue-chips are still available today!

Blue-Chip Bargains We’re Still Buying Today

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About author

Dividend Sensei

I'm an Army veteran and former energy dividend writer for The Motley Fool. I'm a proud co-founder of Wide Moat Research, Dividend Kings, and the Intelligent Dividend Investor. My work can be found on Seeking Alpha, Dividend Kings, iREIT, and the Intelligent Dividend Investor. My goal is to help all people learn how to harness the awesome power of dividend growth investing to achieve their financial dreams and enrich their lives. With 24 years of investing experience, I've learned what works and more importantly, what doesn't, when it comes to building long-term wealth and income streams and achieving long-term financial goals.

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