Two AllStar Stocks Under $20�TD Ameritrade (AMTD) and Enersis (ENI)
Post on: 13 Апрель, 2015 No Comment
Over the last four months, the stock market has been red hot. Since early March, the Dow Jones Industrial Average has tacked on over 2500 points. That�s one of its biggest percentage moves in decades. Some analysts now say that the rally is looking tired, and it will also end soon.
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I don�t think that�s the case, but I do see the market breaking in two: Low-quality stocks will be shaken out, but high-quality names will continue to reap big rewards. That�s why it�s crucial for investors to focus on high-quality stocks right now.
Many investors think high-quality means a high share price. That�s not true at all. Today I want to share with you two very high-quality stocks that are both going for less than $20 a share: Enersis (ENI) and TD Ameritrade (AMTD). If you want to own them, you may want to move fast. I think both stocks have a good shot at breaking $30 before the end of the year.
Enersis (ENI ) — The King of Latin American Power
Enersis is the largest utility in Latin America. Based in Chile, the company distributes power to almost 45 million people in regions of Chile, Argentina, Brazil, Colombia and Peru. Enersis also owns a 60% of Endesa Chile, which is Chile�s largest power generator, with 13,700 megawatts of generating capacity. The company�s other operations include real estate, electrical engineering, energy trading and support services.
For the first quarter, Enersis� earnings shot up 50.5% to $257 million. Since Enersis generates electricity using water, coal, oil, natural gas and wind, it has a big advantage over other utilities. There�s an abundance of hydroelectric power generation facilities in Chile that Enersis can take advantage of, and this makes the company more competitive than utilities that have to burn fossil fuels to generate electricity.
Also, thanks to a growing middle class in Latin America, electricity demand will continue to rise, and Enersis will be a big winner. The fact that Chile�s currency has been appreciating strongly against the U.S. dollar is also helping the company post extraordinary returns. The next earnings report is due on Wednesday, July 29.
Enersis is an excellent buy.
The Broker for the Masses — TD Ameritrade (AMTD )
If you�ve sat through any TV commercials lately, you�ve probably seen the ads featuring Sam Waterston for TD Ameritrade. This company is an online retail brokerage that serves active traders, investment advisors and long-term investors with the services they need, from traditional discount trading to advanced tools for more seasoned traders.
TD Ameritrade generates most of its revenue through trading accounts and transaction volume. Asset-based revenue is generally considered more stable than transaction-based fees, but the Fed�s dramatic interest rate cuts have greatly reduced the amount of interest revenue Ameritrade collects. Despite the low-rate environment, the company�s trading volume is rising fast.
Last week, TD Ameritrade said it earned 33 cents for the June quarter, which topped Wall Street�s consensus by four cents a share. The firm handled an average of 392,000 trades per day, which is 36% higher than the same period a year ago. Trading volume has also perked up because investor confidence is improving, which bodes well for its future earnings. I expect to see many analysts raise their forecasts higher for this stock.
TD Ameritrade is a very solid, low-priced stock.
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