10-15-2020, 03:59 PM
(10-15-2020, 03:41 PM)EricL Wrote:I will look at the rails tonight and pick one to get this started. I could always switch horses later but I am going to try to avoid that. There are a lot of stocks with 20+ PEs and virtually zero growth in the near future. I am going to avoid those. Real growth stocks grow annually, but yes 2020 could be an exception. I'm not looking for a promise that starts three years from now. The market is currently not properly discounting that wait time IMO.(10-15-2020, 03:10 PM)divmenow Wrote: Tech - APPL, MSFT, AVGO, and MA
RETAIL- COST, SBUX, DG, HD and LOW
Utilities - NEE and AWK
Defense - LMT
Consumer - MKC, PEP and PG
Chemicals - APD
Restaurant - MCD
Rails - NSC
Industrials - ITW and WM
You can throw in a few name to have fun with as well like the Renewal energy names
UNP is trading at 26X 2020 estimates while NSC is at 24.5, and that is with current year earnings being negatively impacted by a recession and historically low energy prices. Both are currently projected for double-digit growth going forward.
They are expensive against historical levels, but not anymore than others on your list. AAPL, APD, AWK, COST, MA, MKC are all trading at PE's of 35-40.
