Online stock trading benefits a lot from the right trading software. It helps identify opportunities by presenting a great view of the market. Along with that, expert opinion helps too.
With the S&P 500 trading currently for over 25 times trailing earnings, a quite expensive figure, it does get hard to find value. But analysts at Motley Fool have done some digging around to find out any isolated value stocks that could be out there. The following are two of these options. These are high-quality companies trailing the returns of the market year to date. That drops a hint that it could be a value decision to buy these shares now.
Forget ESPN, $DIS Has Other Growth Channels
Walt Disney (NYSE: DIS) is one company we’ve documented on before. It has faced the brunt of the stock market, with shares facing a nearly 8% decline since the year began, significantly lagging the S&P 500 general gain of 6%. But that has to do with the Disney-owned ESPN’s rapidly shrinking subscription base which currently stands at only around 90 million, while it had more than 100 million subscribers in 2011. The resultant fears of negative growth have caused concern for Wall Street, but, on the other hand, there is much more to $DIS than just ESPN, as we’ve mentioned in an earlier blog.
The company’s amusement park segment is growing at quite a healthy pace and, notably, the Shanghai Disneyland opened to a massive reception. And let’s not forget its booming movie studio business. It’s got the Pixar, Marvel and Star Wars labels under its umbrella and these have been producing consistent and popular high-quality content. These have significant potential to continue to churn out hits, giving Disney massive growth potential enough to keep those worries about ESPN’s declining subscribers behind.
So there is significant potential for growth, and analysts are projecting profit growth in double digits in the coming five years. It sounds right to buy $DIS shares now when they are trading for below 16 times the earnings for next year. It also provides a 1.5% dividend yield.
$CELG Shining in the Biotech Industry
Moving to the biotech industry, this sector has gone through tough times in the past year leading to declining valuations all across the board. Investors can therefore consider this to be the right time to buy shares in this sector, and among these, Celgene (NASDAQ: CELG) is a particularly great option for investors looking for fast growth. The company has tasted great success with its blood cancer multiple myeloma drug Revlimid. However, it has only been able to register double-digit growth since label expansion claims, global expansion, and price rises have slowed it down.
But $CELG has other blockbuster drugs in its arsenal too, such as the Otezia anti-inflammatory drug which has been experiencing triple-digit growth. Another multiple myeloma drug, Pomalyst, keeps growing rapidly. While these drugs are raising the company to new heights, more potentially blockbuster ones are on the way as well. One of these is Ozanimod whose peak sales potential is $4 billion annually. If this potential is reached, it can power massive growth for Celgene.
In fact, the company’s management has forecasted total sales of at least $21 billion and earnings per share exceeding $13 by 2020. This translates to over 22% annual growth in bottom line in the coming few years. Shares are currently trading for 16 times the earnings of next year, meaning it’s probably the right time to get hold of this stock.
With the right trading software and expert opinion you can identify other potential high value stocks out there. At TradeZero we provide all the technology and support needed to carry out successful online stock trading. Get in touch with us at +1 954-944-3885 or email support@tradezero.co.
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