Last year the old loyalty bubbles loyalty, but pay attention to a sprint

April 28, 2024 (Maple Hill Syndicate) One of my favorite tools for the selection of stocks is a paradigm that I call Old Faithful named after the geyser in Yellowstone Park. This paradigm swore last year, but has an outstanding long -term record.

In order to appear on the old loyal list, an inventory must:

Post good profits (15% return for equity).

Have debts under control (debts less than shareholders equity).

Be cheap (no more than 15 times -income and twice book value).

Show decent profit growth (average at least 10% per year in the past five years).

Here are four stocks that I will be optimistic over the next 12 months.

Halliburton

Halliburton Co. (NYSE: HAL) with headquarters in Houston, Texas, is one of the three large Ölfield service companies. The other two are Schlumberger Ltd. (NYSE: SLB) and Baker Hughes Co. (Nasdaq: BKR).

I look at a 15% return of equity capital and 20%. Halliburton has achieved 20.6%in the last four quarters. Its stock is below $ 21 from April 25, and Wall Street analyst consensus is that it will increase to $ 30 in the next 12 months.

Out of 29 analysts that cover the stock, recommend 22. The share is sold for around 9 times the income, while it has usually achieved many times of around 17 in the past ten years.

Cincinnati Financial

Based in Cincinnati, but in Fairfield, Ohio, sells Cincinnati Financial Corp. (Nasdaq: Cinf) House, auto and life insurance. It is shops in all 50 states and has relatively low exposure in Florida, where hurricanes often cause serious losses.

The growth of profit has an average of 13%in the past five years. It was faster last year, but I didn't attach much emphasis because the insurers had recently gained great price increases from the supervisory authorities. This is not a regular event.

The company has very few debts only 6% of equity.

Oshkosh

Firefighters, garbage trucks, military cars and air work platforms are the main products at Oshkosh Corp. (NYSE: OSK) based in Oshkosh, Wisconsin. The stock has not run much anywhere in three years.

It sells for less than nine -time income compared to a typical multiple multi -multi -multi -multi -multiple multi -year. This measure and other evaluation measures are five years or ten years.

The analysts are divided, with eight recommending the share and eight demurring. Recession is a risk. In the pandemic recession of 2020, profits fell by almost 50%, but the company remained profitable. In the large recession from 2008-2009 it recorded a big loss.

I may be biased because I made a lot of money in this stock many years ago, but Oshkosh looks attractive to me. Investors may now want to take a dead person and add to it if the shares now fall under 80 US dollars at about 89 US dollars.