Investing 101: 7 Low Volatility Stocks with Encouraging Sales Trends
Investing 101: 7 Low Volatility Stocks with Encouraging Sales Trends
2011 was a rather volatile year for stock market investors, with the Euro crisis amplifying price movements through the year's end. If you're looking for stocks exhibiting lower volatility, here are some ideas to get started on your search.
We ran a stock screen by beginning with stocks that have exhibited low intra-day movements over the past month. We screened for stocks with average monthly intra-day movements under 2%.
We then screened these low volatility stocks for those with strong trends in accounts receivable relative to revenue: increases in quarterly revenue year-over-year outpacing changes in quarterly accounts receivable, and a decrease in quarterly accounts receivable as a percent of quarterly current assets year-over-year.
These trends are viewed positively because when accounts receivable becomes a larger percentage of the revenues reported by a company, it indicates lower quality revenues since there is no guarantee that accounts receivable will be paid back in full.
Business Section: Investing Ideas
Below is the final list of stocks from this screen. These stocks have exhibited low volatility over the past month, as well as strong trends in receivables relative to revenue.
Do you think these stocks will continue to see low volatility?
List sorted by average intra-day volatility over the last month.
1. DaVita, Inc. (DVA, Earnings, Analysts, Financials): Provides kidney dialysis services in the United States. Average intra-day volatility over the last month at 1.63%. TTM gross margin at 32.02% vs. industry average at 21.49%. TTM operating margin at 15.83% vs. industry average at 8.43%. TTM pretax margin at 11.17% vs. industry average at 6.96%. Revenue grew by 9.6% during the most recent quarter ($1,807.87M vs. $1,649.56M y/y). Accounts receivable grew by 2.24% during the same time period ($1,407.23M vs. $1,376.4M y/y). Receivables, as a percentage of current assets, decreased from 60.85% to 59.37% during the most recent quarter (comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30).
?
2. Marsh & McLennan Companies, Inc. (MMC, Earnings, Analysts, Financials): Provides advice and solutions in the areas of risk, strategy, and human capital. Average intra-day volatility over the last month at 1.42%. TTM gross margin at 17.31% vs. industry average at 13.61%. TTM operating margin at 14.4% vs. industry average at 10.39%. TTM pretax margin at 11.91% vs. industry average at 9.46%. Revenue grew by 11.17% during the most recent quarter ($2,806M vs. $2,524M y/y). Accounts receivable grew by -4.26% during the same time period ($2,925M vs. $3,055M y/y). Receivables, as a percentage of current assets, decreased from 60.56% to 58.15% during the most recent quarter (comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30).
?
3. Sempra Energy (SRE, Earnings, Analysts, Financials): Engages in the development of energy infrastructure, operation of utilities, and provision of energy-related products and services worldwide. Average intra-day volatility over the last month at 1.40%. TTM gross margin at 26.83% vs. industry average at 26.32%. TTM operating margin at 17.07% vs. industry average at 16.99%. TTM pretax margin at 17.17% vs. industry average at 12.58%. Revenue grew by 21.74% during the most recent quarter ($2,576M vs. $2,116M y/y). Accounts receivable grew by 10.25% during the same time period ($1,398M vs. $1,268M y/y). Receivables, as a percentage of current assets, decreased from 50.82% to 47.58% during the most recent quarter (comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30).
?
4. HJ Heinz Co. (HNZ, Earnings, Analysts, Financials): Manufactures and markets food products for consumers, and foodservice and institutional customers in North America, Europe, the Asia Pacific, and internationally. Average intra-day volatility over the last month at 1.24%. TTM gross margin at 39.01% vs. industry average at 32.49%. TTM operating margin at 14.54% vs. industry average at 11.83%. TTM pretax margin at 11.46% vs. industry average at 9.36%. Revenue grew by 8.31% during the most recent quarter ($2,831.83M vs. $2,614.62M y/y). Accounts receivable grew by 1.74% during the same time period ($1,056.95M vs. $1,038.92M y/y). Receivables, as a percentage of current assets, decreased from 31.27% to 27.65% during the most recent quarter (comparing 13 weeks ending 2011-10-26 to 13 weeks ending 2010-10-27).
?
5. NextEra Energy, Inc. (NEE, Earnings, Analysts, Financials): Engages in the generation, transmission, distribution, and sale of electric energy in the United States and Canada. Average intra-day volatility over the last month at 1.20%. TTM gross margin at 32.57% vs. industry average at 26.87%. TTM operating margin at 22.35% vs. industry average at 18.42%. TTM pretax margin at 15.98% vs. industry average at 14.13%. Revenue grew by 13.21% during the most recent quarter ($3,864M vs. $3,413M y/y). Accounts receivable grew by -30.21% during the same time period ($1,802M vs. $2,582M y/y). Receivables, as a percentage of current assets, decreased from 49.11% to 36.99% during the most recent quarter (comparing 3 months ending 2011-12-31 to 3 months ending 2010-12-31).
?
6. The J. M. Smucker Company (SJM, Earnings, Analysts, Financials): Engages in the manufacture and marketing of branded food products in the United States and internationally. Average intra-day volatility over the last month at 1.17%. TTM gross margin at 38.3% vs. industry average at 32.48%. TTM operating margin at 17.55% vs. industry average at 11.82%. TTM pretax margin at 13.57% vs. industry average at 9.32%. Revenue grew by 18.37% during the most recent quarter ($1,513.9M vs. $1,278.91M y/y). Accounts receivable grew by 11.14% during the same time period ($462.17M vs. $415.83M y/y). Receivables, as a percentage of current assets, decreased from 22.43% to 21.07% during the most recent quarter (comparing 3 months ending 2011-10-31 to 3 months ending 2010-10-31).
?
7. Duke Energy Corporation (DUK, Earnings, Analysts, Financials): Operates as an energy company in the Americas. Average intra-day volatility over the last month at 1.10%. TTM gross margin at 34.8% vs. industry average at 26.87%. TTM operating margin at 22.49% vs. industry average at 18.42%. TTM pretax margin at 18.69% vs. industry average at 14.13%. Revenue grew by 0.46% during the most recent quarter ($3,964M vs. $3,946M y/y). Accounts receivable grew by -4.77% during the same time period ($1,916M vs. $2,012M y/y). Receivables, as a percentage of current assets, decreased from 33.33% to 30.54% during the most recent quarter (comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30).
?
?
?
(Written by Alexander Crawford. Profitability data sourced from Fidelity, accounting data sourced from Google Finance.)
?
?
Use Kapitall's Tools: Looking for ways to analyze this list?Use this article snapshot as a launch pad (click here for help): Simply click on the links, and use Kapitall's tab navigation to browse through the data...
?
Analyze These Ideas: Getting Started
Read descriptions for all companies mentioned
Access a performance overview for all stocks in the list
Compare analyst ratings for the companies mentioned
Compare analyst ratings to annual returns for stocks mentioned
Real-Time Opinion: Scan the latest tweets about these companies (feed will open in a new window)
Dig Deeper: Access Company Snapshots, Charts, Filings
DaVita, Inc. (DVA, Chart, Download SEC Filings)
Marsh & McLennan Companies, Inc. (MMC, Chart, Download SEC Filings)
Sempra Energy (SRE, Chart, Download SEC Filings)
HJ Heinz Co. (HNZ, Chart, Download SEC Filings)
NextEra Energy, Inc. (NEE, Chart, Download SEC Filings)
The J. M. Smucker Company (SJM, Chart, Download SEC Filings)
Duke Energy Corporation (DUK, Chart, Download SEC Filings)
New to Kapitall?1. New to the site? Click here to register for a free account, and gain access to more tools and data2. Looking for more investing ideas like this? Click here to sign up for your free copy of Kapitall Weekly3. Follow us on SeekingAlpha, Motley Fool, Nasdaq and Twitter
?
?
Articles
Investing 101: 7 Low Volatility Stocks with Encouraging Sales Trends
2011 was a rather volatile year for stock market investors, with the Euro crisis amplifying price movements through the year's end. If you're looking for stocks exhibiting lower volatility, here are some ideas to get started on your search.
We ran a stock screen by beginning with stocks that have exhibited low intra-day movements over the past month. We screened for stocks with average monthly intra-day movements under 2%.
We then screened these low volatility stocks for those with strong trends in accounts receivable relative to revenue: increases in quarterly revenue year-over-year outpacing changes in quarterly accounts receivable, and a decrease in quarterly accounts receivable as a percent of quarterly current assets year-over-year.
These trends are viewed positively because when accounts receivable becomes a larger percentage of the revenues reported by a company, it indicates lower quality revenues since there is no guarantee that accounts receivable will be paid back in full.
Business Section: Investing Ideas
Below is the final list of stocks from this screen. These stocks have exhibited low volatility over the past month, as well as strong trends in receivables relative to revenue.
Do you think these stocks will continue to see low volatility?
List sorted by average intra-day volatility over the last month.
1. DaVita, Inc. (DVA, Earnings, Analysts, Financials): Provides kidney dialysis services in the United States. Average intra-day volatility over the last month at 1.63%. TTM gross margin at 32.02% vs. industry average at 21.49%. TTM operating margin at 15.83% vs. industry average at 8.43%. TTM pretax margin at 11.17% vs. industry average at 6.96%. Revenue grew by 9.6% during the most recent quarter ($1,807.87M vs. $1,649.56M y/y). Accounts receivable grew by 2.24% during the same time period ($1,407.23M vs. $1,376.4M y/y). Receivables, as a percentage of current assets, decreased from 60.85% to 59.37% during the most recent quarter (comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30).
?
2. Marsh & McLennan Companies, Inc. (MMC, Earnings, Analysts, Financials): Provides advice and solutions in the areas of risk, strategy, and human capital. Average intra-day volatility over the last month at 1.42%. TTM gross margin at 17.31% vs. industry average at 13.61%. TTM operating margin at 14.4% vs. industry average at 10.39%. TTM pretax margin at 11.91% vs. industry average at 9.46%. Revenue grew by 11.17% during the most recent quarter ($2,806M vs. $2,524M y/y). Accounts receivable grew by -4.26% during the same time period ($2,925M vs. $3,055M y/y). Receivables, as a percentage of current assets, decreased from 60.56% to 58.15% during the most recent quarter (comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30).
?
3. Sempra Energy (SRE, Earnings, Analysts, Financials): Engages in the development of energy infrastructure, operation of utilities, and provision of energy-related products and services worldwide. Average intra-day volatility over the last month at 1.40%. TTM gross margin at 26.83% vs. industry average at 26.32%. TTM operating margin at 17.07% vs. industry average at 16.99%. TTM pretax margin at 17.17% vs. industry average at 12.58%. Revenue grew by 21.74% during the most recent quarter ($2,576M vs. $2,116M y/y). Accounts receivable grew by 10.25% during the same time period ($1,398M vs. $1,268M y/y). Receivables, as a percentage of current assets, decreased from 50.82% to 47.58% during the most recent quarter (comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30).
?
4. HJ Heinz Co. (HNZ, Earnings, Analysts, Financials): Manufactures and markets food products for consumers, and foodservice and institutional customers in North America, Europe, the Asia Pacific, and internationally. Average intra-day volatility over the last month at 1.24%. TTM gross margin at 39.01% vs. industry average at 32.49%. TTM operating margin at 14.54% vs. industry average at 11.83%. TTM pretax margin at 11.46% vs. industry average at 9.36%. Revenue grew by 8.31% during the most recent quarter ($2,831.83M vs. $2,614.62M y/y). Accounts receivable grew by 1.74% during the same time period ($1,056.95M vs. $1,038.92M y/y). Receivables, as a percentage of current assets, decreased from 31.27% to 27.65% during the most recent quarter (comparing 13 weeks ending 2011-10-26 to 13 weeks ending 2010-10-27).
?
5. NextEra Energy, Inc. (NEE, Earnings, Analysts, Financials): Engages in the generation, transmission, distribution, and sale of electric energy in the United States and Canada. Average intra-day volatility over the last month at 1.20%. TTM gross margin at 32.57% vs. industry average at 26.87%. TTM operating margin at 22.35% vs. industry average at 18.42%. TTM pretax margin at 15.98% vs. industry average at 14.13%. Revenue grew by 13.21% during the most recent quarter ($3,864M vs. $3,413M y/y). Accounts receivable grew by -30.21% during the same time period ($1,802M vs. $2,582M y/y). Receivables, as a percentage of current assets, decreased from 49.11% to 36.99% during the most recent quarter (comparing 3 months ending 2011-12-31 to 3 months ending 2010-12-31).
?
6. The J. M. Smucker Company (SJM, Earnings, Analysts, Financials): Engages in the manufacture and marketing of branded food products in the United States and internationally. Average intra-day volatility over the last month at 1.17%. TTM gross margin at 38.3% vs. industry average at 32.48%. TTM operating margin at 17.55% vs. industry average at 11.82%. TTM pretax margin at 13.57% vs. industry average at 9.32%. Revenue grew by 18.37% during the most recent quarter ($1,513.9M vs. $1,278.91M y/y). Accounts receivable grew by 11.14% during the same time period ($462.17M vs. $415.83M y/y). Receivables, as a percentage of current assets, decreased from 22.43% to 21.07% during the most recent quarter (comparing 3 months ending 2011-10-31 to 3 months ending 2010-10-31).
?
7. Duke Energy Corporation (DUK, Earnings, Analysts, Financials): Operates as an energy company in the Americas. Average intra-day volatility over the last month at 1.10%. TTM gross margin at 34.8% vs. industry average at 26.87%. TTM operating margin at 22.49% vs. industry average at 18.42%. TTM pretax margin at 18.69% vs. industry average at 14.13%. Revenue grew by 0.46% during the most recent quarter ($3,964M vs. $3,946M y/y). Accounts receivable grew by -4.77% during the same time period ($1,916M vs. $2,012M y/y). Receivables, as a percentage of current assets, decreased from 33.33% to 30.54% during the most recent quarter (comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30).
?
?
?
(Written by Alexander Crawford. Profitability data sourced from Fidelity, accounting data sourced from Google Finance.)
?
?
Use Kapitall's Tools: Looking for ways to analyze this list?Use this article snapshot as a launch pad (click here for help): Simply click on the links, and use Kapitall's tab navigation to browse through the data...
?
Analyze These Ideas: Getting Started
Read descriptions for all companies mentioned
Access a performance overview for all stocks in the list
Compare analyst ratings for the companies mentioned
Compare analyst ratings to annual returns for stocks mentioned
Real-Time Opinion: Scan the latest tweets about these companies (feed will open in a new window)
Dig Deeper: Access Company Snapshots, Charts, Filings
DaVita, Inc. (DVA, Chart, Download SEC Filings)
Marsh & McLennan Companies, Inc. (MMC, Chart, Download SEC Filings)
Sempra Energy (SRE, Chart, Download SEC Filings)
HJ Heinz Co. (HNZ, Chart, Download SEC Filings)
NextEra Energy, Inc. (NEE, Chart, Download SEC Filings)
The J. M. Smucker Company (SJM, Chart, Download SEC Filings)
Duke Energy Corporation (DUK, Chart, Download SEC Filings)
New to Kapitall?1. New to the site? Click here to register for a free account, and gain access to more tools and data2. Looking for more investing ideas like this? Click here to sign up for your free copy of Kapitall Weekly3. Follow us on SeekingAlpha, Motley Fool, Nasdaq and Twitter
2011 was a rather volatile year for stock market investors, with the Euro crisis amplifying price movements through the year's end. If you're looking for stocks exhibiting lower volatility, here are some ideas to get started on your search.
Use Kapitall's Tools: Looking for ways to analyze this list?Use this article snapshot as a launch pad (click here for help): Simply click on the links, and use Kapitall's tab navigation to browse through the data...
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.