Top 10 Performing Stocks To Own Right Now

tags:EXP,TSN,PF,OSUR,PRMW,PHH,EXTR,EBSB,NTWK,LH,

Facebook Inc. (NASDAQ: FB) was worried about this, and so was traditional media. Bogus news sites had more traffic than legitimate ones late in the election cycle, according to a survey done by BuzzFeed:

A BuzzFeed News analysis found that top fake election news stories generated more total engagement on Facebook than top election stories from 19 major news outlets combined.

The sites examined were among the most traditionally trusted news sites in the world:

To examine the performance of election content from mainstream sites, we created a list that included the websites of the New York Times, Washington Post, NBC News, USA Today, Politico, CNN, Wall Street Journal, CBS News, ABC News, New York Daily News, New York Post, BuzzFeed, Los Angeles Times, NPR, The Guardian, Vox, Business Insider, Huffington Post, and Fox News. We then searched for their top-performing election content in the same three-month segments as above.

It is frightening to examine the extent to which false stories did well, and the fact that many came from virtually unknown sources:

Top 10 Performing Stocks To Own Right Now: Eagle Materials Inc(EXP)

Advisors' Opinion:

• [By Shane Hupp]

  Get a free copy of the Zacks research report on Eagle Materials (EXP)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

• [By Lisa Levin]

  Eagle Materials Inc (NYSE: EXP) is projected to report quarterly earnings at $1.08 per share on revenue of $306.04 million.

  AZZ Inc. (NYSE: AZZ) is estimated to report quarterly earnings at $0.44 per share on revenue of $231.53 million.

• [By Stephan Byrd]

  Eagle Materials (NYSE:EXP) – Analysts at Northcoast Research issued their Q1 2019 earnings per share (EPS) estimates for shares of Eagle Materials in a research note issued to investors on Thursday, May 17th. Northcoast Research analyst K. Hocevar anticipates that the construction company will post earnings of $1.53 per share for the quarter. Northcoast Research also issued estimates for Eagle Materials’ Q2 2019 earnings at $1.80 EPS, Q3 2019 earnings at $1.70 EPS, Q4 2019 earnings at $1.17 EPS and FY2020 earnings at $7.40 EPS.

Top 10 Performing Stocks To Own Right Now: Tyson Foods Inc.(TSN)

Advisors' Opinion:

• [By Joseph Griffin]

  US Bancorp DE raised its position in shares of Tyson Foods, Inc. (NYSE:TSN) by 3.7% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 50,012 shares of the company’s stock after acquiring an additional 1,799 shares during the period. US Bancorp DE’s holdings in Tyson Foods were worth $3,661,000 at the end of the most recent reporting period.

• [By Max Byerly]

  Media headlines about Tyson Foods (NYSE:TSN) have been trending somewhat positive this week, according to Accern Sentiment Analysis. The research group rates the sentiment of news coverage by monitoring more than 20 million news and blog sources in real time. Accern ranks coverage of public companies on a scale of negative one to positive one, with scores nearest to one being the most favorable. Tyson Foods earned a media sentiment score of 0.19 on Accern’s scale. Accern also assigned headlines about the company an impact score of 46.975937339582 out of 100, indicating that recent news coverage is somewhat unlikely to have an effect on the company’s share price in the next several days.

• [By ]

  Tyson Foods (TSN) CEO Tom Hayes wasn't kidding when he told TheStreet he wanted to make another big acquisition soon. 

  But the argument could be made that Wall Street wasn't expecting his latest food purchase. On Tuesday, Tyson Foods said it will spend $850 million to buy the poultry rendering and blending assets of American Proteins, Inc. and AMPRO Products, Inc.

• [By Shane Hupp]

  HL Financial Services LLC purchased a new position in shares of Tyson Foods (NYSE:TSN) during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor purchased 61,568 shares of the company’s stock, valued at approximately $4,506,000.

Top 10 Performing Stocks To Own Right Now: Pinnacle Foods, Inc.(PF)

Advisors' Opinion:

• [By Jeremy Bowman]

  Shares of�Pinnacle Foods Inc.�(NYSE:PF) were moving higher in April after the packaged-foods company became a target of activist investor Jana Partners. As a result the stock finished the month up 12%, according to data from S&P Global Market Intelligence.�

• [By Logan Wallace]

  Pinnacle Foods (NYSE:PF) – Research analysts at Jefferies Group dropped their Q2 2018 EPS estimates for Pinnacle Foods in a research report issued on Tuesday, May 8th. Jefferies Group analyst A. Jagdale now forecasts that the company will post earnings per share of $0.56 for the quarter, down from their prior forecast of $0.58. Jefferies Group currently has a “Buy” rating and a $72.00 target price on the stock. Jefferies Group also issued estimates for Pinnacle Foods’ Q1 2019 earnings at $0.62 EPS, Q2 2019 earnings at $0.62 EPS, Q3 2019 earnings at $0.76 EPS, Q4 2019 earnings at $1.15 EPS, FY2019 earnings at $3.16 EPS and FY2020 earnings at $3.44 EPS.

• [By Lisa Levin] Gainers AGM Group Holdings Inc. (NASDAQ: AGMH) shares climbed 30.3 percent to $11.05 after climbing 34.60 percent on Thursday. Limelight Networks, Inc. (NASDAQ: LLNW) jumped 21.2 percent to $4.9699 following a first-quarter earnings beat. The company also raised its fiscal 2018 estimates. Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC) shares climbed 18.8 percent to $7.89 after reporting strong Q1 earnings. Farmers Capital Bank Corp (NASDAQ: FFKT) gained 15.4 percent to $48.75. WesBanco Inc (NASDAQ: WSBC) announced an agreement and plan of merger with Farmers Capital Bank Corporation. TransUnion (NYSE: TRU) climbed 10.2 percent to $66.76 after the company posted upbeat Q1 results and issued a strong forecast for the second quarter. TransUnion announced plans to acquire Callcredit. Myomo, Inc. (NYSE: MYO) shares gained 9.2 percent to $3.9299 after rising 8.11 percent on Thursday. Pinnacle Foods Inc (NYSE: PF) gained 8.8 percent to $60.04 after a 13-D filing from Jana Partners showed an increased stake in the comapny, from 1.42 million shares at the end of last quarter to 10.83 million shares, or a 9.3-percent stake. Associated Banc-Corp (NYSE: ASB) shares climbed 8.8 percent to $26.70 following upbeat Q1 earnings. OFG Bancorp (NYSE: OFG) gained 8.5 percent to $12.80 after reporting Q1 results. Cleveland-Cliffs Inc. (NYSE: CLF) climbed 7.5 percent to $7.73 following Q1 results. Seaspan Corporation (NYSE: SSW) shares climbed 6.7 percent to $7.50. Deutsche Bank upgraded Seaspan from Hold to Buy. General Electric Company (NYSE: GE) shares rose 4.6 percent to $14.63 after the company reported better-than-expected earnings for its first quarter. Ionis Pharmaceuticals, Inc. (NASDAQ: IONS) rose 4.3 percent to $47.80. Biogen and Ionis have expanded their strategic collaboration to develop drug candidates for a broad range of neurological diseases.

  Check out these big penny stock gainers and losers

Top 10 Performing Stocks To Own Right Now: OraSure Technologies, Inc.(OSUR)

Advisors' Opinion:

• [By Shane Hupp]

  Get a free copy of the Zacks research report on OraSure Technologies (OSUR)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

• [By Lisa Levin]

   

  Losers Heat Biologics, Inc. (NASDAQ: HTBX) shares tumbled 48.59 percent to close at $1.275 on Thursday after the company priced its $18,000,000 public offering. InVivo Therapeutics Holdings Corp. (NASDAQ: NVIV) fell 38.77 percent to close at $8.26 on Thursday. Check-Cap Ltd. (NASDAQ: CHEK) shares tumbled 27.43 percent to close at $8.81. Achaogen, Inc. (NASDAQ: AKAO) dropped 24.76 percent to close at $11.06 in reaction to a disappointing update from an FDA AdCom panel. The FDA panel voted favorably for the company's Plazcomicin for treatment of adults with complicated urinary tract infections, but also voted against the therapy to be used as a treatment for bloodstream infections. Anika Therapeutics, Inc. (NASDAQ: ANIK) shares declined 24.68 percent to close at $34.80 after the company posted downbeat quarterly results. LSC Communications, Inc. (NASDAQ: LKSD) shares fell 24.22 percent to close at $12.64 following wider-than-expected Q1 loss. Cardinal Health, Inc. (NYSE: CAH) fell 21.42 percent to close at $50.80 following downbeat quarterly profit. Horizon Global Corporation (NYSE: HZN) dropped 20.42 percent to close at $6.00 following downbeat quarterly earnings. Hornbeck Offshore Services, Inc. (NYSE: HOS) slipped 20.11 percent to close at $2.90 following wider-than-expected Q1 loss. Esperion Therapeutics, Inc. (NASDAQ: ESPR) fell 19.28 percent to close at $36.93. Esperion Therapeutics stock lost roughly a third of its value Wednesday after the company reported mixed Phase III results for its leading drug candidate, bempedoic acid. JP Morgan downgraded Esperion Therapeutics from Neutral to Underweight. Laredo Petroleum, Inc. (NYSE: LPI) declined 17.77 percent to close at $8.98 after the company reported weaker-than-expected Q1 earnings. The Habit Restaurants, Inc. (NASDAQ: HABT) dipped 16.1 percent to close at $8.60 after the company reported downbeat quarterly results. Arcadia Biosciences, Inc. (N
• [By Joseph Griffin]

  OraSure Technologies (NASDAQ:OSUR) has earned a consensus recommendation of “Hold” from the seven brokerages that are covering the firm, MarketBeat Ratings reports. Four investment analysts have rated the stock with a hold recommendation and two have assigned a buy recommendation to the company. The average twelve-month price objective among brokers that have covered the stock in the last year is $20.00.

Top 10 Performing Stocks To Own Right Now: Primo Water Corporation(PRMW)

Advisors' Opinion:

• [By Logan Wallace]

  Get a free copy of the Zacks research report on Primo Water (PRMW)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

• [By Jon C. Ogg]

  Primo Water Corp. (NASDAQ: PRMW) was started with an Outperform rating at William Blair.�BMO Capital Markets maintained its Market Perform rating but the price target was raised to $16 from $15.

• [By Logan Wallace]

  Primo Water (NASDAQ:PRMW) had its price objective hoisted by analysts at BMO Capital Markets from $15.00 to $16.00 in a research note issued on Thursday. The firm currently has a “market perform” rating on the stock. BMO Capital Markets’ price target points to a potential upside of 0.88% from the company’s current price.

• [By Andy Pai]

  Primo Water Corporation (Nasdaq: PRMW) appears to be the most undervalued stock in the fund. The company has a blended upside of 31.1 percent relative to its current trading price.

• [By Logan Wallace]

  Primo Water (NASDAQ:PRMW) CFO David J. Mills sold 5,934 shares of the business’s stock in a transaction dated Monday, May 7th. The stock was sold at an average price of $13.50, for a total value of $80,109.00. Following the completion of the transaction, the chief financial officer now owns 79,624 shares in the company, valued at approximately $1,074,924. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link.

Top 10 Performing Stocks To Own Right Now: PHH Corp(PHH)

Advisors' Opinion:

• [By Stephan Byrd]

  Media headlines about PHH (NYSE:PHH) have been trending somewhat positive recently, Accern Sentiment reports. Accern rates the sentiment of media coverage by monitoring more than twenty million blog and news sources. Accern ranks coverage of publicly-traded companies on a scale of -1 to 1, with scores nearest to one being the most favorable. PHH earned a news impact score of 0.17 on Accern’s scale. Accern also gave news coverage about the credit services provider an impact score of 45.9794154743809 out of 100, indicating that recent media coverage is somewhat unlikely to have an impact on the company’s share price in the next few days.

• [By Max Byerly]

  Orix (NYSE: IX) and PHH (NYSE:PHH) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, profitability, earnings, dividends, risk and institutional ownership.

• [By Logan Wallace]

  PHH (NYSE: PHH) and Orix (NYSE:IX) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitability.

• [By Max Byerly]

  PHH (NYSE:PHH) is scheduled to be announcing its earnings results after the market closes on Tuesday, May 8th. Analysts expect the company to announce earnings of ($0.94) per share for the quarter.

Top 10 Performing Stocks To Own Right Now: Extreme Networks Inc.(EXTR)

Advisors' Opinion:

• [By Logan Wallace]

  Extreme Networks (NASDAQ:EXTR) Director Edward H. Kennedy bought 50,000 shares of Extreme Networks stock in a transaction on Friday, May 18th. The shares were bought at an average price of $9.03 per share, for a total transaction of $451,500.00. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website.

• [By Lisa Levin]

  Extreme Networks, Inc. (NASDAQ: EXTR) shares dropped 24 percent to $8.95 after the company reported downbeat earnings for its third quarter and issued weak Q4 guidance.

• [By Anders Bylund]

  Shares of Extreme Networks (NASDAQ:EXTR) fell 19.5% in May 2018, according to data from S&P Global Market Intelligence. The maker of data center networking equipment delivered a weak third-quarter report and modest guidance on May 8. The stock crashed hard�and hasn't recovered yet.

• [By Lisa Levin]

  Some of the stocks that may grab investor focus today are:

  Wall Street expects Booking Holdings Inc. (NASDAQ: BKNG) to post quarterly earnings at $10.67 per share on revenue of $2.87 billion after the closing bell. Booking Holdings shares gained 0.99 percent to $2,183.00 in after-hours trading. Tripadvisor Inc (NASDAQ: TRIP) reported stronger-than-expected results for its first quarter on Tuesday. Tripadvisor shares climbed 20.55 percent to $46.75 in the after-hours trading session. Analysts are expecting Anheuser-Busch InBev SA/NV (NYSE: BUD) to have earned $0.89 per share on revenue of $13.06 billion in the latest quarter. Anheuser-Busch will release earnings before the markets open. Anheuser-Busch shares gained 0.77 percent to $99.00 in after-hours trading. Extreme Networks, Inc (NASDAQ: EXTR) reported downbeat earnings for its third quarter and issued weak Q4 guidance. Extreme Networks shares fell 28.51 percent to $8.40 in the after-hours trading session. Before the opening bell, Ameren Corporation (NYSE: AEE) is projected to report quarterly earnings at $0.57 per share on revenue of $1.55 billion. Ameren shares dropped 2.78 percent to close at $56.91 on Tuesday.

  Find out what's going on in today's market and bring any questions you have to Benzinga's PreMarket Prep.

• [By Ethan Ryder]

  Extreme Networks (NASDAQ:EXTR) insider Edward Meyercord acquired 20,000 shares of the stock in a transaction dated Monday, May 14th. The shares were bought at an average cost of $8.42 per share, with a total value of $168,400.00. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink.

• [By Anders Bylund]

  Shares of network equipment maker Extreme Networks (NASDAQ:EXTR) are having a rough Wednesday. The stock opened 26.8% lower today, following last night's release of disappointing third-quarter results.

Top 10 Performing Stocks To Own Right Now: Meridian Interstate Bancorp Inc.(EBSB)

Advisors' Opinion:

• [By Logan Wallace]

  BidaskClub upgraded shares of Meridian Bancorp (NASDAQ:EBSB) from a hold rating to a buy rating in a research report sent to investors on Friday morning.

Top 10 Performing Stocks To Own Right Now: NetSol Technologies Inc.(NTWK)

Advisors' Opinion:

• [By Ethan Ryder]

  NetSol Technologies (NASDAQ:NTWK) CEO Najeeb Ghauri purchased 2,500 shares of the business’s stock in a transaction on Friday, May 25th. The shares were acquired at an average cost of $6.20 per share, with a total value of $15,500.00. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink.

• [By Lisa Levin] Gainers Precipio, Inc. (NASDAQ: PRPO) jumped 43.3 percent to $0.5447 after the micro-cap specialty diagnostics company reported preliminary first-quarter results. The company said its first quarter revenue rose 286 percent from the same quarter a year ago to $712,000. Galectin Therapeutics, Inc. (NASDAQ: GALT) gained 34.5 percent to $4.52 after the company announced it would proceed with Phase 3 development of GR-MD-02 for NASH Cirrhosis following the FDA meeting. Boxlight Corporation (NASDAQ: BOXL) shares rose 21.9 percent to $8.1063. Evolus, Inc. (NASDAQ: EOLS) shares surged 16 percent to $15.65. Myomo, Inc. (NYSE: MYO) shares jumped 15.5 percent to $3.6263 after the company disclosed that its application for Medicare codes received favorable preliminary decision. Tandem Diabetes Care, Inc. (NASDAQ: TNDM) rose 13.7 percent to $10.12. ProPhase Labs, Inc. (NASDAQ: PRPH) gained 13.7 percent to $4.6743. Acacia Communications, Inc. (NASDAQ: ACIA) shares gained 12.2 percent to $35.34 as optical sector is seeing strength following President Trump's announcement that he would work with China related to ZTE Corp. Tailored Brands, Inc. (NYSE: TLRD) shares rose 11.3 percent to $35.17. Jefferies upgraded Tailored Brands from Hold to Buy. Kona Grill, Inc. (NASDAQ: KONA) jumped 10.6 percent to $2.875. Federated National Holding Company (NASDAQ: FNHC) shares rose 10.6 percent to $20.29. Raymond James upgraded Federated National Holding from Outperform to Strong Buy. Renewable Energy Group, Inc. (NASDAQ: REGI) climbed 10.2 percent to $15.15. Renewable Energy will replace Synchronoss Technologies Inc. (NASDAQ: SNCR) in the S&P SmallCap 600 on Tuesday, May 15. Stein Mart, Inc. (NASDAQ: SMRT) shares climbed 10.1 percent to $3.16. Stein Mart is expected to release Q1 earnings on May 23. NXP Semiconductors N.V. (NASDAQ: NXPI) rose 9.7 percent to $108.60 after Bloomberg reported that the China’s Commerce Ministry has restar
• [By Logan Wallace]

  Sapiens International (NASDAQ: SPNS) and NetSol Technologies (NASDAQ:NTWK) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, dividends and risk.

• [By Stephan Byrd]

  TheStreet upgraded shares of NetSol Technologies (NASDAQ:NTWK) from a d+ rating to a c- rating in a research note published on Tuesday morning.

  Separately, ValuEngine raised shares of NetSol Technologies from a hold rating to a buy rating in a research report on Thursday, May 17th.

• [By Stephan Byrd]

  NetSol Technologies (NASDAQ:NTWK) CEO Najeeb Ghauri acquired 2,500 shares of NetSol Technologies stock in a transaction that occurred on Wednesday, May 30th. The stock was acquired at an average price of $6.50 per share, with a total value of $16,250.00. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link.

Top 10 Performing Stocks To Own Right Now: Laboratory Corporation of America Holdings(LH)

Advisors' Opinion:

• [By Shane Hupp]

  These are some of the headlines that may have impacted Accern’s analysis:

  Get LabCorp alerts: $2.92 Earnings Per Share Expected for LabCorp (LH) This Quarter (americanbankingnews.com) Global Contract Research Organization Market 2018 Pioneers by 2023: Parexel, LabCorp (Covance), PRA, PPD … (theexpertconsulting.com) OmniSeq and LabCorp Launch OmniSeq Advance? Assay (nasdaq.com) LabCorp’s latest collaboration aims to accelerate personalized, genomic medicine (bizjournals.com) Can Laboratory Corporation of America Holdings (NYSE:LH) Continue To Outperform Its Industry? (finance.yahoo.com)

  LH has been the topic of several analyst reports. Barclays lifted their target price on shares of LabCorp from $195.00 to $210.00 and gave the stock an “overweight” rating in a research note on Monday, February 26th. They noted that the move was a valuation call. Zacks Investment Research raised shares of LabCorp from a “hold” rating to a “buy” rating and set a $190.00 target price on the stock in a research note on Friday, February 9th. Jefferies Group reaffirmed a “hold” rating and issued a $176.00 target price on shares of LabCorp in a research note on Tuesday, March 6th. ValuEngine raised shares of LabCorp from a “hold” rating to a “buy” rating in a research note on Friday, February 2nd. Finally, Morgan Stanley lifted their target price on shares of LabCorp from $182.00 to $192.00 and gave the stock an “overweight” rating in a research note on Wednesday, February 28th. Five research analysts have rated the stock with a hold rating, twelve have given a buy rating and two have assigned a strong buy rating to the stock. LabCorp has an average rating of “Buy” and an average target price of $191.06.

• [By Max Byerly]

  MUFG Americas Holdings Corp trimmed its stake in LabCorp (NYSE:LH) by 55.0% during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 10,683 shares of the medical research company’s stock after selling 13,073 shares during the quarter. MUFG Americas Holdings Corp’s holdings in LabCorp were worth $1,728,000 as of its most recent filing with the Securities & Exchange Commission.

• [By Joseph Griffin]

  Here are some of the headlines that may have impacted Accern Sentiment’s rankings:

  Get Laboratory Corp. of America alerts: Stock Traders Buy Large Volume of Laboratory Corp. of America Put Options (LH) (americanbankingnews.com) Credit Suisse Group Lowers Laboratory Corp. of America (LH) to Hold (americanbankingnews.com) Laboratory Corp. of America (LH) Set to Announce Quarterly Earnings on Wednesday (americanbankingnews.com) Can LaunchPad Aid LabCorp's (LH) Covance Arm in Q1 Earnings? (finance.yahoo.com) As Laboratory Corp Of America Holdings (LH) Shares Rose, Shareholder Veritas Investment Management Llp … (djzplanet.com)

  LH has been the subject of several research analyst reports. Craig Hallum restated a “buy” rating and set a $204.00 price target (up from $180.00) on shares of Laboratory Corp. of America in a research note on Wednesday, February 7th. Morgan Stanley upped their target price on Laboratory Corp. of America from $182.00 to $192.00 and gave the stock an “overweight” rating in a research report on Wednesday, February 28th. Zacks Investment Research downgraded Laboratory Corp. of America from a “hold” rating to a “sell” rating in a research report on Wednesday, January 3rd. Mizuho set a $178.00 target price on Laboratory Corp. of America and gave the stock a “hold” rating in a research report on Wednesday, January 24th. Finally, Robert W. Baird set a $183.00 target price on Laboratory Corp. of America and gave the stock a “hold” rating in a research report on Thursday, February 8th. Seven investment analysts have rated the stock with a hold rating, ten have assigned a buy rating and two have assigned a strong buy rating to the company. The company presently has an average rating of “Buy” and a consensus price target of $189.19.

Treasure Hunting In The OTC Market

Background

Even after the recent sell-off in US stocks, the market still looks expensive by many metrics, including the Warren Buffett Indicator now telling you not to bet on America... well, at least not to bet solely on America. Even currently overpriced, the US stocks account for just nearly half of the world's total stock market value. American investors should consider shopping overseas.

Additionally, it is widely believed that markets are efficient, meaning that information is readily reflected in stock prices. Hence, investors may have to find the oasis in the desert.

For both reasons above, I recommend long-term investors turn to the less liquid OTC market, where many high-quality foreign businesses are listed.

Foreign Stocks on the US OTC

The OTC market often earns its shady reputation of exposing investors to the risk of fraud through many Pink Sheet companies due to lack of transparency. But these stereotypical penny stocks are not the only companies trading OTC.

Big foreign brands like Samsung (OTC:SSNLF), Nestle (OTCPK:NSRGY), BMW (OTCPK:BMWYY), or Nintendo (OTCPK:NTDOY) should sound familiar to many Americans. While you would not see any of those popular names on NYSE or any other major exchange in the US, the OTC market does offer the access for US investors to own a piece of those foreign businesses that are large-scale, well-established and hopefully wonderful.

Risks

According to Investopedia, around 15,000 companies trade OTC in the States, and they can roughly divide into the following four categories:

Companies that fail to meet the listing requirements for the major stock exchanges; Companies that are de-listed from the major exchanges, often for lack of financial information; Companies that fall off after their stock drops under $1.00; Foreign companies that do not want to meet the filing and listing requirements of the major U.S. exchanges.

Obviously, large foreign companies, such as Samsung, would belong to the 4th category and should not have the issues described in the other three categories.

In order for any stock to list on a major American exchange, the company it represents must meet all the typical NYSE or Nasdaq SEC disclosure requirements. This is still the case for foreign companies even when they already meet the requirements of their home country. Therefore, getting "officially" listed here is often considered expensive and unnecessary.

For the instance of Nestle, costs associated with hiring a legal team specializing in U.S. market regulations would be quite large. However, since the company already meets the regulatory listings of the SIX Swiss Exchange, the Euronext, the Bombay Stock Exchange and the National Stock Exchange of India Limited, Nestle simply chooses not to officially list in the U.S. Instead, US investors have the option to buy its ADRs over-the-counter.

The risk associated with lack of regulation is almost nonexistent for those foreign companies trading OTC in the US, as investors have access to and should carefully examine their public information (e.g., financial statements, annual reports) per requirements of their primary listing exchanges. I always go through all relevant info on the company's website (especially the "Investors" section) and research based on the primarily-listed stock ticker through sources like Morningstar, GuruFocus, Investing.com (all these websites provide analysis, data, research on overseas-listed stocks) before buying their corresponding ADRs on the OTC market.

However, OTC stocks lack liquidity in general and are often thinly traded, which can make them volatile with wide bid-ask spreads.

My Top Quality Investing Picks

I was trying to screen out top quality stocks based on the following rigorous criteria:

Return on invested capital and on equity both above 15% each year for the past 10 years; Return on assets above 10% each year for the past 10 years; Earning-before-tax margin above 10% each year for the past 10 years; Positive free cash flow each year for the past 10 years.

To my surprise, I landed on a dozen companies - more than I could have imagined, as a majority of Corporate America cannot even get close to meeting all of the above criteria, including from tech giant Google (NASDAQ:GOOG) (NASDAQ:GOOGL), Microsoft (MSFT) to iconic American brands Walmart (WMT) and Coca-Cola (KO).

I admire the business fundamentals of all the below companies, while the current valuation for each stock varies and investors should decide their own entry point based on respective time horizons.

Rightmove PLC

Created in 2000 as a joint venture between some property agents, Rightmove is now the UK's No. 1 online real estate portal and property website. The company is primarily listed on the London Stock Exchange under ticker RMV, while US investors can get access to its shares OTC under tickers OTCPK:RTMVY and OTCPK:RTMVF.

Rightmove has achieved tremendous successes in growing its business and delivering value to shareholders for the past decade. It also recently tops my stock quality ranking with a skyrocketing return on assets currently at over 200% (see below).

Source: Morningstar; data as of 6/21/2018.

RTMVY (the ADR of the stock) is currently valued in line with its historical levels in terms of P/E and slightly overvalued in terms of P/S and P/CF (see below). Consider the high return on capital, I recommend long-term investors initiate a position and accumulate more shares over time.

Source: Morningstar; data as of 6/21/2018.

Hargreaves Lansdown PLC

Founded in 1981 by its two founders who had initially traded from a bedroom, Hargreaves Lansdown now claims to be the UK's No. 1 investment platform for private investors. The company is primarily listed on the London Stock Exchange under ticker HL while US investors can get access to its shares OTC under tickers OTCPK:HRGLY and OTCPK:HRGLF.

The revenue growth has slowed down in recent years, but this cannot stop the company from earning an astonishingly high return on capital as it did for the past 10 years (see below).

Source: Morningstar; data as of 6/21/2018.

According to Morningstar, HRGLY (the ADR of the stock) looks overpriced based on all metrics (see below). Investors may want to wait for a pull-back to initiate a position.

Source: Morningstar; data as of 6/21/2018.

Swedish Match

With the vision of "a world without cigarettes" (which I personally like a lot), Swedish Match is the market leader in snus in Sweden and Norway and chewing tobacco in the US.

Source: www.swedishmatch.com; data as of 6/21/2018.

The company is primarily listed on the Stockholm Stock Exchange under ticker SWMA, while US investors can get access to its shares OTC under tickers OTCPK:SWMAY and OTCPK:SWMAF.

The company has remarkably increased its returns on assets from 12.99% to 21.29% (see below) over the past 10 years, demonstrating increasing efficiencies of allocating capitals.

Source: Morningstar; data as of 6/21/2018.

SWMAY (the ADR of the stock) is currently overvalued in terms of P/E, P/S, and P/CF compared with their historical averages (see below). Hence, investors may want to wait for a pull-back to initiate a position.

Source: Morningstar; data as of 6/21/2018.

Domino's Pizza Group PLC

Domino's Pizza Group PLC is a UK-based pizza delivery company, holding the exclusive franchise rights (through two Master Franchise Agreements in place with Domino's Pizza International Franchising Inc.) for the Domino's brand in the United Kingdom, Republic of Ireland, Switzerland, Liechtenstein, and Luxembourg. In addition, the company has associate investments in Germany, Iceland, Norway, and Sweden.

Source: Domino's Pizza Group PLC 2016 Annual Report.

The company is primarily listed on the London Stock Exchange under ticker DOM, while US investors can get access to its shares OTC under tickers OTCPK:DPUKY and OTC:DPUKF.

Earlier this year, I wrote this article, praising the company's capital-light franchise model in a recession-proof market segment. For the past 10 years, Domino's UK master franchise has achieved consistently high ROIC (see below), uninterrupted strong growth, and a track record of paying back its owners.

Source: Morningstar; data as of 6/21/2018.

DOM (the primarily-listed share) is looking slightly cheap and traded at discount to its historical average in terms of P/E, P/S, and P/CF at the moment (see below). I suggest investors initiate a position and accumulate more shares over time.

Source: Morningstar; data as of 6/21/2018.

Novozymes AS

Founded in 2000 as a spinout from pharmaceutical company Novo Nordisk (NVO), Novozymes is now the world leader in industrial enzymes with almost 50% market share globally.

Novozymes' B shares (the A share, which carries 10 times as many votes as the B share, is held by the Novo Nordisk Foundation and not publicly traded) are listed on NASDAQ Copenhagen under ticker NZYMB, while US investors can get access to its stocks OTC under tickers OTCPK:NVZMY and OTCPK:NVZMF.

For the past decade, the management has done an excellent job of expanding the margins from all levels (i.e., gross margin, operating margin and pre-tax margin). In the meantime, the annual free cash flow tripled (from 738 million DKK in 2008 to 2,371 million in 2017).

Source: Morningstar; data as of 6/21/2018.

NVZMY (the ADR of the stock) appears to trade at discount in terms of P/E and P/CF compared to their historical averages and slightly overvalued in terms of P/S (see below). To avoid missing out, I recommend investors with long-term time horizons initiate a position and accumulate more shares over time. Source: Morningstar; data as of 6/21/2018.

Industria De Diseno Textil SA

As the biggest fashion group in the world, Industria De Diseno Textil SA (or Inditex) operates over 7,200 stores in 93 markets worldwide. The company's flagship store is Zara, but it also owns the chains Zara Home, Massimo Dutti, Bershka, Oysho, Pull and Bear, Stradivarius and Uterq眉e. The majority of its stores are corporate-owned, while franchises are mainly conceded in countries where corporate properties cannot be foreign-owned.

The company is primarily listed on the Madrid Stock Exchange under ticker ITX, while US investors can get access to its shares OTC under tickers OTCPK:IDEXF and OTCPK:IDEXY.

Inditex operates a unique business model: instead of committing a large percentage of production for the next fashion season, the company commits a small amount and uses customer feedback and an efficient production network to replenish stores with new and different products weekly. As a result, the company keeps customers coming back often, earning consistently high returns on capital (e.g., 25%+ ROE, 25%+ ROIC, 15%+ ROA, each year for the past 10 years), demonstrating strong and durable competitive advantages (see below).

Source: Morningstar; data as of 6/21/2018.

At the moment, IDEXY (the ADR of the stock) looks cheap in terms of P/E, P/S and P/CF compared to their historical averages (see below). I think IDEXY is a buy here.

Source: Morningstar; data as of 6/21/2018.

Pandora AS

Founded in 1982 by a Danish couple, Pandora has become the world's third-largest jewelry company in terms of sales, after Cartier and Tiffany (TIF), and is the world's largest player in the affordable jewelry market segment.

The company is primarily listed on the Copenhagen Stock Exchange under ticker PNDORA, while US investors can get access to its shares OTC under tickers OTCPK:PNDZF, OTCPK:PNDZY and OTCPK:PANDY.

Pandora builds its moat through strong branding and economies of scale, and as a result, has earned high returns on capital over the past decade. Even during the time when the silver price spiked in 2011/2012, pressuring the margins, the company managed to generate over 20% returns on equity and invested capital (see below).

Pandora shares fell nearly 80% in 2011 after a shift in focus to higher-end designs alienated core customers, but performance has recovered after a return to the more affordable mass market. The management is able to achieve a healthy net margin of 25% and asset turnover of 1.4.

Source: Morningstar; data as of 6/21/2018.

According to Morningstar, the OTC share is currently traded at a deep discount to its historical average in terms of P/E, P/S, and P/CF (see below). At this level, Pandora is a buy.

Source: Morningstar; data as of 6/21/2018.

Unilever Indonesia

Established in1933, Unilever Indonesia, a publicly-traded subsidiary of the Unilever Group (UN) (UL), has now grown to become one of Indonesia's leading Fast Moving Consumer Goods companies. The company has been accompanying Indonesian societies through world-renowned brands, including Pepsodent, Lux, Lifebuoy, Dove, Sunsilk, Clear, Rexona, Vaseline, Rinso, Molto, Sunlight, Wall's, Blue Band, Royco, Bango and more.

The company is primarily listed on the Jakarta Stock Exchange under ticker UNVR, while US investors can get access to its shares OTC under tickers OTCPK:UNLRY and OTCPK:UNLRF.

The management has been able to maintain the EBT margin above 20% for the past decade, while the asset turnover has been trending down. Even so, the return on assets stands well above our 10% threshold (see below).

Source: Morningstar; data as of 6/21/2018.

UNLRY (the ADR of the stock) is currently traded in line with its historical valuation level in terms of P/E, P/S, and P/CF (see below). Considering the high quality of the business, I recommend long-term investors start a position in UNLRY and accumulate more shares over time.

Source: Morningstar; data as of 6/21/2018.

Hermes International SA

This is the stock topping my quality ranking earlier this year. Established in 1837, Hermes is the designer, manufacturer, and marketer of high fashion luxury goods, with specialization in leather, lifestyle accessories, home furnishings, perfumery, jewelry, watches and ready-to-wear. The company is primarily listed on the Euronext Paris under ticker RMS, while US investors can get access to its shares OTC under tickers OTCPK:HESAY and OTCPK:HESAF.

The business targets at the ultra-rich, and is therefore recession-proof on the downside. With ongoing consumption upgrade in China, Hermes is positioned well for tremendous growth opportunities ahead.

The inherent uniqueness and scarcity reflected by the Hermes brand help the company build a wide moat through high customer loyalty. The returns on capital and margins at Hermes are not so sexy but quite stable (see below).

Source: Morningstar; data as of 6/21/2018.

HESAY (the ADR of the stock) is currently looking expensive in terms of its P/E, P/S, P/CF compared to historical averages (see below). Investors may want to look for a pull-back before buying HESAY. Source: Morningstar; data as of 6/21/2018.

Roche Holding AG

Founded in Europe in 1896, Roche was first known for producing various vitamin preparations and derivatives. Since then, Roche has grown into one of the world's leading healthcare companies with focuses on pharmaceuticals and diagnostics.

The company is primarily listed on the SIX Swiss Exchange under ticker ROG, while US investors can get access to its shares OTC under tickers OTCQX:RHHBY and OTCQX:RHHBF.

Roche is one of the very few foreign companies increasing their dividend every year for over 30 years. This track record is likely to continue, given the current free cash flow dividend coverage of around 50% and a stable free cash flow margin at Roche (see below).

Source: Morningstar; data as of 6/21/2018.

RHHBY (the ADR of the stock) appears to be undervalued in terms of P/E, P/S, and P/CF compared to their historical averages (see below). The stock is a buy at this level in my view.

Source: Morningstar; data as of 6/21/2018.

Fuchs Petrolub SE

Founded in 1931 and headquartered in Germany, Fuchs Petrolub SE is the world's largest independent manufacturer of lubricants and related specialty products.

The company is primarily listed on the Frankfurt Stock Exchange under ticker FPE, while US investors can get access to its shares OTC under tickers OTCPK:FUPBY, OTC:FUPEY, and OTCPK:FUPEF.

The management has shown great capital allocation skills with the focus on Fuchs Value Added (i.e., EBIT - cost of capital), which is the central KPI. The return on invested capital stood above 20% over the past 10 years (see below), although it has been trending down during the recent years.

Source: Morningstar; data as of 6/21/2018.

At the moment, FPE (the primarily-listed share) is trading at a premium to its historical average in terms of P/E and P/CF but at a discount in terms of P/S (see below). Therefore, investors may want to look for a pull-back on this stock.

Source: Morningstar; data as of 6/21/2018.

Summary

Investors should not ignore the OTC market, where many high-quality foreign stocks are traded. Those who believe in Quality Investing may want to follow my above picks, all of which have demonstrated consistently high returns on capital and margins. Even for value-sensitive investors, I believe that Rightmove, Domino's UK, Roche, Novozymes, Unilever Indonesia, Inditex, and Pandora are great candidates being wonderful businesses at fair prices to diversify US-concentrated portfolios. For the other companies mentioned above (i.e., Swedish Match, Hargreaves Lansdown, Fuchs Petrolub, Herme), investors may want to be a little patient, waiting for a more attractive entry point.

If you have any thought regarding the OTC market or any of the companies mentioned here, feel free to comment below.

Disclosure: I am/we are long RTMVY.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.

Key Comments From Mario Draghi And Jerome Powell In Sintra

The US Federal Reserve chairman Jerome Powell reiterated his stance of gradual monetary policy normalization in the US. The ECB President Mario Draghi also used the central bankers’ gathering in Sintra to confirm the message from last ECB Governing Council meeting that although asset purchasing will end in December, the ECB will remain vigilant with monetary policy accommodation, meaning the interest rates will remain low for at least first half of 2019.

While speaking in central bankers’ symposium in Sintra, Portugal, the world’s most important central bankers governors failed to surprise the markets and mostly reiterated their key policy messages from their last meetings.

Fed’s chairman Jerome Powell Federal Reserve chairman Jerome Powell repeated that the case for gradual interest rate increases is strong.  Moderate wage growth suggests jobs market is “not excessively tight.”  Powell also pointed out that flatter Phillips curve suggests it is possible that impact on inflation of unemployment below natural rate for an extended period "might not be large."  Powell said the US economy is performing very well and the US job market is likely to strengthen further. ECB President Mario Draghi The ECB President Mario Draghi said factors holding back wage growth are gradually waning.  Draghi says see unit labor cost on the upward path and he is confident that inflation converging toward the inflation target.

Is Wheaton Precious Metals Corp. a Buy?

Wheaton Precious Metals Corp. (NYSE:WPM) is one of the largest silver and gold streaming companies in the world. However, over the last five years, Wheaton's stock is down nearly 10% while peers Royal Gold, Inc. (NASDAQ:RGLD) and Franco-Nevada Corporation (NYSE:FNV) are up over 60% each. What's going on at Wheaton, and is it worth buying what clearly looks like the industry laggard?

An advantaged model

The first thing to understand about Wheaton and its peers is the streaming business model. Essentially, these companies provide cash up front to miners for the right to buy silver and gold at reduced prices in the future. These deals are good for miners, as they provide access to capital beyond the equity and debt markets, which aren't always the cheapest way to raise money. For Wheaton and its peers, streaming deals lock in low prices and wide margins in good years and bad. For investors considering investing in the mining space, owning a streaming company instead of miner will usually be the best all-around option.

Image source: Getty Images.

The next piece of the puzzle at Wheaton is its historical focus on silver. In fact, Wheaton changed its name from Silver Wheaton, meant to highlight the importance of the metal to the company's results, to Wheaton Precious Metals in early 2017 (more on this in a second). Silver materially underperformed the price of gold over the past five years. That, of course, helps explain a portion of Wheaton's relatively poor showing compared to its gold-focused peers Royal Gold and Franco-Nevada. The name change, however, is important here because it highlights management's efforts to shift to a more balanced portfolio.� �

A new direction

In 2013, gold accounted for about 25% of Wheaton's production. In 2017, though, gold's share of production had increased to around 50%. To be fair, that's still less exposure to gold than either Royal Gold or Franco-Nevada, which each get more revenue from their gold-streaming deals than any other source. However, Wheaton is clearly a different company today than it was just five years ago. In fact, for investors seeking a balanced portfolio of precious metals, Wheaton's relatively heavy silver exposure could be seen as a net positive.� �

That said, there's another area where Wheaton stands out: valuation. The company's price to tangible book value is a touch under two times today. Peers Royal Gold and Franco-Nevada, meanwhile, have price to tangible book values of roughly 2.8 times. Simply put, Wheaton is relatively cheap compared to its closest streaming peers. That's largely the result of its lagging stock performance over the past five years, of course. But the company's production profile is notably different today than it was just a few short years ago, so investors may not be fully rewarding Wheaton for the changes it's made.

WPM Price to Tangible Book Value data by YCharts.

One area where you want to be careful, however, is the dividend. Wheaton's 1.7% yield is notably higher than what you could get from Royal Gold (1.1%) or Franco-Nevada (1.3%), and most miners, for that matter. However, Royal Gold and Franco-Nevada have long histories of annual dividend increases (17 years and 10 years, respectively). Wheaton's dividend is variable, pegged at 30% of the average cash generated by operating activities over the trailing four quarters. This isn't a bad approach, as it allows investors to benefit directly from strong precious metals prices. However, a variable dividend policy means that Wheaton is not appropriate for investors seeking out consistent income.� � �

Worth a look for value investors

Wheaton has been hampered by its relatively heavy exposure to silver, a metal that has lagged gold in recent years. However, Wheaton has been adjusting its portfolio and gold and silver are now more evenly balanced than they were just five years ago. For investors seeking broad precious metals exposure this could be an attractive investment for this reason alone. More attractive, however, is likely to be Wheaton's low valuation compared to its closest peers. It doesn't appear that investors are giving Wheaton much credit for the changes it has made, which could spell a buying opportunity for those with a value bent.

Why Guess? Inc. Stock Dropped Today

What happened

Shares of Guess? Inc. (NYSE:GES) fell 19.4% on Thursday after the clothing retailer announced solid fiscal first-quarter 2019 results but followed with underwhelming forward earnings guidance.

On the former, the company's quarterly revenue grew 14.7% year over year (or 8% at constant currency), to $521.3 million. This translated to an adjusted loss of $17.8 million, or $0.23 per share, narrowed from a loss of $0.24 per share in the same year-ago period. Analysts, on average, were looking for roughly the same adjusted loss on lower revenue of $508 million.

IMAGE SOURCE: GETTY IMAGES.

So what

Guess? CEO Victor Herrero noted that the company's results were near the high end of the company's expectations and credited particularly strong momentum in both Europe and Asia. Herrero also praised its efforts in North America, where the company achieved 1% comparable-sales growth "while being significantly less promotional."

"Overall, I am very excited by the continued momentum, as the first quarter marks the seventh consecutive quarter of revenue growth for the company," Herrero added. "For me, it speaks to the global strength and potential of the Guess? brand."

Now what

Looking forward to the fiscal second quarter, however, Guess? told investors to expect revenue growth of between 14% and 15.5%, with adjusted earnings of $0.27 to $0.30 per share. By contrast, most investors were looking for a more modest 8.5% revenue growth, but with earnings near the high end of the company's guidance range.

Finally, for the full fiscal year, Guess? sees revenue climbing between 8.5% and 9.5%, marking an increase from its previous guidance for 7% to 8% growth, with adjusted earnings per share of $0.88 to $0.99. Here again, Wall Street was anticipating earnings near the high end of the company's range, at $0.97 per share, and more modest full fiscal-year revenue growth of 7.6%.

In the end, while it's hard to fault Guess? for its better-than-expected top-line growth, the market is disappointed that this growth still seems to be coming at the expense of profitability. With shares nearly doubling in the year leading up to this report, it's no surprise to see the stock pulling back today.