Buy And Sell Ratings For The Largest 20 Stocks By admin, Sunday 20th June 2021

There are a few thousand stocks in the U.S. But a big part of the market value, the trading volume – in short, the action – is in the largest equities. Here are my ratings on the largest stocks.

Apple AAPL market value $2.0 trillion, Buy. Apple has billions in cash, billions in investments, and earnings growth rate over the past ten years, and a loyal following who depend on its iPhones.

Microsoft MSFT  Sell. Microsoft’s -year earnings growth rate is nice, but not good enough to justify the stock selling for times earnings.

Amazonm AMZN, Sell. C’mon, times earnings? That multiple puts to shame even the extravagant multiples of the “Nifty Fifty” stocks in the early s.

Alphabet GOOGL , Buy. Artificial intelligence, self-driving car development, You Tube, and, oh yes, the leading U.S. search engine. Expensive but worth it.

FB , Sell. I think it will have to spend a lot of money to address concerns about privacy, abusive posts and antitrust.

Berkshire Hathaway BRK.B,  Buy. Warren Buffett probably can’t live forever, but he has groomed an able team. And if Berkshire ever wanted to sell some of its subsidiaries, I believe it would find an eager market.

Visa V,  Sell. I expect Visa’s revenue to be laggy , as a lingering recession dampens retail sales. Also, this stock sells for times revenue, while the average stock sells for ..

Walmart WMT,  Buy. Assuming I’m right that the economy faces tough times , this low-priced retailer is in a good place to be. In the past four quarters, it achieved almost a great return on stockholders’ equity.

Walmart WMT,  Buy. Assuming I’m right that the economy faces tough times , this low-priced retailer is in a good place to be. In the past four quarters, it achieved almost a great return on stockholders’ equity.

Tesla TSLA , Sell. The electric-car maker’s stock has come too far too fast. Tesla trades at times next year’s anticipated earnings.

Procter & Gamble Co PG, Sell. The consumer-staples king’s -year earnings growth rate is slightly negative. Yet the stock sells for times earnings.

Mastercard MA MA, Sell. My concerns about Mastercard stock are very similar to those I have for Visa.

Nvidia NVDA , Sell. Great company, but I judge it too pricey at times earnings and times revenue.

General Electric GE, Sell. In the past five years, this once-mighty stock has lost much of its value. Tempting though it is to bottom-fish, I think the company is too badly run.

Home Depot HD , Sell. Home Depot has a good growth record, but I’m troubled by its balance sheet. Liabilities exceed assets.

United Health Group UNH, Buy. This managed-care company boasts good growth, good profitability, and a reasonable valuation at times earnings.

J.P. Morgan Chase JPM,  Buy. Banks are out of favor because loans may sour in this recession, but I like CEO Jamie Dimon, and the price is right at times earnings.

Verizon Communications VZ , Sell. It’s a mixed bag. The dividend yield is nice at %, but I dislike the company’s balance sheet.

Adobe ADBE Sell. I suspect you’ll make money in Adobe, but I’m not confident you’ll beat the overall market if you start by paying times earnings.

Walt Disney Co DIS , Buy. I expect to be rough for theme parks and movies, but I like the new streaming service, and I think investors will be patient here.

Bear in mind that my column recommendations are theoretical and don’t reflect actual trades, trading costs or taxes. Their results shouldn’t be confused with the performance of portfolios I manage for clients. And past performance doesn’t predict future results.

Disclosure: I own Alphabet, Apple, Berkshire Hathaway and Disney personally and for clients. My wife and some of my firm’s clients own Adobe, Amazon, Microsoft and Nvidia. Some clients own Johnson & Johnson and J.P. Morgan. A fund I manage has a short position in Tesla.

John Dorfman is chairman of Dorfman Value Investments LLC. His firm or clients may own or trade securities discussed in this column.

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