Top 3 Stocks in December 2019
My top 3 Stocks in December 2019 in the NYSE are:
The reasons that I choose these 3 Stocks are:
– Dividend Yield over 6%
– Price under 10$
– EPS growth qtr over qtr Positive
– EPS growth next year Positive
– The 50 SMA above the 200 SMA
What is MFA and Why?
MFA Financial, Inc. is a real estate investment trust primarily engaged in the business of investing, on a leveraged basis, in residential mortgage assets, including residential mortgage-backed securities and residential whole loans.
MFA Financial is a real estate investment trust or REIT mostly engaged in investing, on a leveraged basis, in residential mortgage assets such as mortgage-backed securities.
The firm is coming off back-to-back bottom line beats and MFA stock has climbed 15% in 2019.
We estimate call for MFA’s full-year sales to jump 7.3% and 7.2%, respectively, in fiscal 2019 and 2020.
Meanwhile, its adjusted earnings are projected to pop 13.2% and 6.5% during this same stretch.
MFA is currently trading at 9.4X , which marks a discount against its own three median and its industry’s 16.6X average.
Plus, the firm’s dividend yields a whopping 10.40% at the moment.
And this isn’t artificially inflated since the stock is up 7% in the last 12 months and has moved relatively sideways for nearly five years.
What is CELP and Why?
“Cypress Energy Partners, L.P. (“Cypress”) is a master limited partnership traded on the New York Stock Exchange (NYSE: CELP) that provides essential midstream services to the energy industry.
As a publicly traded partnership, Cypress complies with the stringent requirements of the Securities and Exchange Commission (“SEC”) and the NYSE.
Cypress also has a code of conduct and operates ethically, honestly, and with integrity in the same way our clients operate.
Cypress provides independent pipeline inspection, integrity, and support services for pipeline owners and operators, public utilities, and energy companies.
Cypress also is an owner in minority controlled inspection affiliate who offers similar services for clients seeking a minority vendor solution.
Cypress also provides water and environmental services to oil and gas companies and their approved vendors. In all our business segments, we work closely with our customers to help them comply with increasingly complex federal and state environmental and safety rules and regulations.”
Third quarter 2019 results compared to third quarter of 2018 and other highlights:
- Revenue of $108.9 million, an increase of 28%;
- Gross margin of $15.4 million, an increase of 19%;
- Net income of $5.5 million, an increase of 11%;
- Adjusted EBITDA attributable to limited partners of $8.7 million, an increase of 21%;
- Cash and cash equivalents of $12.7 million, an increase of 121% or $7.0 million from June 30, 2019;
- Net debt leverage ratio of 2.34x, a decrease of 17% from the third quarter of 2018;
- Cash distribution of $0.21 per unit, consistent with the last ten quarters;
- Common unit distribution coverage ratio of 2.28x for the third quarter 2019 and 1.62x for the twelve months ended September 30, 2019;
- In October 2019, increased the total capacity on our credit facility from $90 million to $110 million.
What is SNR and Why?
“New Senior Investment Group (NYSE: SNR) is a publicly-traded real estate investment trust with a diversified portfolio of senior housing properties located across the United States.
As of September 30, 2019, we are one of the largest publicly-traded owners of senior housing properties, owning 131 properties across 37 states.
Our portfolio is well diversified in both product type and geography.
As of September 30, 2019, we have 102 independent living (“IL”) properties, 28 assisted living / memory care (“AL/MC”) properties and 1 continuing care retirement community (“CCRC”) property.
Our portfolio is categorized into two major segments:
(1) Managed Properties, which are operated by property managers pursuant to property management agreements
(2) Triple Net Lease Properties, which we lease to tenants. Our managed portfolio includes 130 assisted living, memory care and independent living properties and our triple net lease portfolio includes 1 continuing care retirement community.”
New Senior Investment Group Inc. (SNR): This real estate investment trust has witnessed Consensus Estimate for its current year earnings increasing 7.4% over the last 60 days.
Company has a dividend yield of 6.6%, compared with the industry average of 2.9%.
Its five-year average dividend yield is 9.5%.
The stock is trading with a P/E ratio of 13.43, which compares to its industry’s average of 21.62.
Over the last 12 months, SNR’s Forward P/E has been as high as 13.99 and as low as 7.11, with a median of 11.63.
Another notable valuation metric for SNR is its P/B ratio of 2.56.
The P/B ratio is used to compare a stock’s market value with its book value, which is defined as total assets minus total liabilities.
This stock’s P/B looks attractive against its industry’s average P/B of 3.04. Over the past 12 months, SNR’s P/B has been as high as 2.63 and as low as 0.91, with a median of 2.06.
I hope this post help you to understand why I pick these 3 stocks for the Month of December 2019.
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