In a recent article for Forbes, Validea CEO John Reese discussed how investors can take advantage of the ongoing bull market without getting trampled.
He refers to the strategy of Warren Buffett who, Reese writes, “would probably answer this question by advising investors to be prepared–to stick to business fundamentals rather than stock market trends when deciding what to buy.”
Using the stock screening models he created based on the investment philosophy of Buffett and other legendary market investors, Reese identified the following high-scoring stocks:
- Tractor Supply Company (TSCO)is an operator of rural lifestyle retail stores in the U.S. that focuses on supplying the needs of recreational farmers, ranchers, tradesmen and small businesses. The company earns a high score due to its ability to pay off debt with earnings within two years as well as predictable earnings growth. View Full Guru Analysis Here.
- Gilead Sciences (GILD) is a research-based biopharmaceutical company that discovers, develops and commercializes medicines in areas of unmet medical need. The company scores well based on its favorable return-on-equity and free cash flow-per-share. View Full Guru Analysis Here.
- Dow Chemical Company (DOW)manufactures and supplies products used primarily as raw materials for various other manufacturing applications. The company earns high marks for its size as well as its cash flow-per-share. View Full Guru Analysis Here.
- Snap-On (SNA)is a manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions that scores highly for its ratio of price-earnings to growth in earnings-per-share (PEG ratio) as well as its debt-equity ratio. View Full Guru Analysis Here.