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Company name Patrick Industries, Inc.
Stock ticker PATK
Live stock price [stckqut]PATK[/stckqut]
P/E compared to competitors Fair

 

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Good
EPS growth Good
P/E growth Good
EBITDA growth Good
Price growth Good
R&D growth Poor
Income growth Good
Assets growth Good
Return on Assets growth Good
Income / Rev growth Good
TWCA Plus Good
Standard TWCA Good
Weighted ann. stock price increase Good

 

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $93.57
Target stock price (averages with growth) $120.4
Target stock price (averages with no growth) $78.55
Target stock price (manual assumptions) $73.72

 

The following company description is from Reuters: https://finance.yahoo.com/quote/patk/profile?p=patk

Patrick Industries, Inc. manufactures and distributes building products and materials for the recreational vehicle, marine, manufactured housing, and industrial markets in the United States and Canada. Its Manufacturing segment manufactures and sells furniture, shelving, walls, countertops, and cabinet products; cabinet doors, fiberglass bath fixtures, and tile systems; hardwood furniture, vinyl printing, solid surface, granite, and quartz countertop fabrication products; RV paintings; fabricated aluminum products; decorative vinyl and paper laminated panels; fiberglass and plastic components; softwoods lumber; custom cabinets; polymer-based flooring products; and electrical systems and components, including instrument and dash panels, and other products. This segment also provides wrapped vinyl, paper, and hardwood profile moldings; interior passage doors; slide-out trim and fascia products; thermoformed shower surrounds; specialty bath and closet building products; fiberglass and plastic helm systems and components; wiring and wire harnesses; aluminum fuel tanks; boat covers, towers, tops, and frames; CNC molds and composite parts; and slotwall panels and components. The company’s Distribution segment distributes pre-finished wall and ceiling panels, drywall and drywall finishing products, electronics, audio systems components, appliances, wiring products, electrical and plumbing products, cement siding products, raw and processed lumber, fiber reinforced polyester products, interior passage doors, roofing products, laminate and ceramic flooring products, shower doors, furniture, fireplaces and surrounds, interior and exterior lighting products, and other products. This segment also offers transportation and logistics services. It offers its products through a network of manufacturing and distribution centers. The company was founded in 1959 and is headquartered in Elkhart, Indiana.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Patrick Industries, Inc. as long as the indicators that I describe in my book The Confident Investor are favorable.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Patrick Industries, Inc. calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(access_s2member_level1)]

In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $60.57
  • Growth: 0.2
  • Current EPS (TTM): $4.542448
  • P/E: 10.5034805060743
  • Future EPS Calc: $11.3
  • Future Stock Price Calc: $118.72
  • Target stock price: $73.71

[/s2If]
I hope that this makes you a Confident Investor.

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Company name Methode Electronics Inc.
Stock ticker MEI
Live stock price [stckqut]MEI[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Poor
EPS growth Good
P/E growth Fair
EBIT growth Good

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $54.89
Target stock price (averages with growth) $54.67
Target stock price (averages with no growth) $25.06
Target stock price (manual assumptions) $49.42

The following company description is from Google Finance: http://www.google.com/finance?q=mei

Methode Electronics, Inc. (Methode) is a manufacturer of component and subsystem devices. The Company designs, manufactures and markets devices employing electrical, radio remote control, electronic, wireless and sensing technologies. The Company operates through segments, including Automotive, Interface, Power Products and Other. The Automotive segment supplies electronic and electro-mechanical devices and related products to automobile original equipment manufacturers (OEMs). The Interface segment provides a range of copper and fiber-optic interface and interface solutions. The Power Products segment manufactures braided flexible cables, current-carrying laminated bus devices, custom power-product assemblies, such as PowerRail solution, high-current low voltage flexible power cabling systems and powder coated bus bars. The Other segment includes medical devices, inverters and battery systems, and insulated gate bipolar transistor solutions.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Methode Electronics Inc. as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Methode Electronics Inc. calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(access_s2member_level1)]

In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $36.16
  • Growth: 0.17
  • Current EPS (TTM): $2.2
  • P/E: 16.5
  • Future EPS Calc: $4.82
  • Future Stock Price Calc: $79.58
  • Target stock price: $49.41

[/s2If]
I hope that this makes you a Confident Investor.

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Company name ABIOMED, Inc.
Stock ticker ABMD
Live stock price [stckqut]ABMD[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Good
EPS growth Good
P/E growth Good
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $153.31
Target stock price (averages with growth) $169.57
Target stock price (averages with no growth) $77.13
Target stock price (manual assumptions) $151.03

The following company description is from Google Finance: http://www.google.com/finance?q=abmd

Abiomed, Inc. is a provider of temporary percutaneous mechanical circulatory support devices. The Company offers care to heart failure patients. The Company’s products include Impella 2.5, a percutaneous micro heart pump with an integrated motor and sensors; Impella CP, which is primarily used by either interventional cardiologists to support patients in the catheter lab or by surgeons in the heart surgery suite; Impella 5.0 and Impella LD, a percutaneous micro heart pumps with integrated motors and sensors for use primarily in the heart surgery suite; Impella RP, a percutaneous catheter-based axial flow pump that is designed to allow greater than four liters of flow per minute; AB5000, a circulatory support system for the temporary support of acute heart failure patients in profound shock, and Symphony, a minimally invasive implantable cardiac assist device.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in ABIOMED, Inc..

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of ABIOMED, Inc. calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(access_s2member_level1)]

In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $99.23
  • Growth: 0.2
  • Current EPS (TTM): $0.85
  • P/E: 115
  • Future EPS Calc: $2.11
  • Future Stock Price Calc: $243.23
  • Target stock price: $151.02

[/s2If]
I hope that this makes you a Confident Investor.

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Company name Helmerich & Payne, Inc.
Stock ticker HP
Live stock price [stckqut]HP[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Fair
EPS growth Good
P/E growth Fair
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $166.81
Target stock price (averages with growth) $375.71
Target stock price (averages with no growth) $431.83
Target stock price (manual assumptions) $148.52

The following company description is from Google Finance: https://www.google.com/finance?q=NYSE%3AHP&ei=Y_JrU_CNC9HzqwHO3IAg

Helmerich & Payne, Inc. is engaged in contract drilling of oil and gases wells for others and this business. The Company’s contract drilling business is composed of three reportable business segments: U.S. Land, Offshore and International Land. During the fiscal year ended September 30, 2012 (fiscal 2012), the Company’s U.S. Land operations drilled in Oklahoma, California, Texas, Wyoming, Colorado, Louisiana, Pennsylvania, Ohio, Utah, Arkansas, New Mexico, Montana, North Dakota and West Virginia. Offshore operations were conducted in the Gulf of Mexico, and offshore of California, Trinidad and Equatorial Guinea. During fiscal 2012, the Company’s International Land segment operated in six international locations: Ecuador, Colombia, Argentina, Tunisia, Bahrain and United Arab Emirates. The Company is also engaged in the ownership, development and operation of commercial real estate and the research and development of rotary steerable technology.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Helmerich & Payne, Inc.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Helmerich & Payne, Inc. calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(s2member_level1)]
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

Stock price at the time of the calculation: $107.97

Growth: 0.18

Current EPS (TTM): $6.97

P/E: 15

Future EPS Calc: $15.94

Future Stock Price Calc: $239.18

Target stock price: $148.51

I hope that this makes you a better investor. [/s2If]

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This is not a political site. I try very hard to avoid political issues, especially those that are controversial. The last thing I want people to do is to get bad advice on investing because of political preferences. One of my readers asked my advice on health insurance companies though. The theory was that since so many people thought that health insurance companies were making a ton of profit (one of the reasons for Obamacare), they should be great investments.

My first comment is that you should never buy the stock of a company due to an entire industry. You should evaluate the company by itself and not based on the industry. If you don’t know how to do this, I suggest that you buy my book, The Confident Investor.   You can purchase my book wherever books are sold such as Amazon, Barnes and Noble, and Books A Million. It is available in e-book formats for Nook, Kindle, and iPad.

My second comment is that you should avoid sector investments. You can buy mutual funds or ETFs that follow a single sector. Avoid putting these into your portfolio. Find the best companies to invest in and then invest in them with a plan. Once again, if you don’t know how to do this, check out my book.

To answer the reader question, I started researching United HealthGroup [stckqut]UNH[/stckqut]. I went to Morningstar for my initial research and used that tool to generate the data for United HealthGroup and its top competitors. Morningstar gave me a list of companies and then I did a bit of quick analysis.

Symbol Revenue Net Income Profit Market Cap
    (M) (M) percentage (M)
UnitedHealth Group Inc UNH $113,700 $5,330 4.69% $72,879
Express Scripts ESRX $107,800 $1,418 1.32% $54,365
WellPoint Inc WLP $64,000 $2,684 4.19% $26,071
Cigna Corp CI $30,500 $1,309 4.29% $22,209
Aetna Inc AET $37,200 $1,637 4.40% $21,017
Humana HUM $39,400 $1,447 3.67% $14,030
Centene Corporation CNC $9,600 $1 0.01% $3,019
WellCare Health Plans, Inc. WCG $7,900 $155 1.96% $2,675
Health Net Inc HNT $11,300 $198 1.75% $2,640
Odontoprev S.A. ODPVY $1,000 $161 16.10% $2,276
Molina Healthcare, Inc. MOH $6,200 $21 0.34% $1,812
 Sum   $428,600 $14,361 3.35%

 

As we can see, the health insurance companies don’t generate that great of a return. These companies average out to 3.35% profit. The S&P500 averaged 16.14%! That means that health insurance companies aren’t just rolling in cash like Michael Moore implies. Taking the profit motive out of healthcare doesn’t seem to be the driving focus of Obamacare.

This article points out the fallacy of following the news to find your investments. While it is worthwhile to research companies that you hear about on the news or read about in the newspaper, just because they sound good there doesn’t make them great investments. The only sound way to make a great investment is to research the company using solid tools.