Recap from April's Picks
Our Most Attractive Stocks (-0.4%) underperformed the S&P 500 (+0.4%) last month. Most Attractive Large Cap stock USANA Health Sciences (USNA) gained 15%. Most Attractive Small Cap stock Heidrick & Struggles International (HSII) was up 21%. Overall, 16 out of the 40 Most Attractive stocks outperformed the S&P 500 in April.
Our Most Dangerous Stocks (-0.6%) outperformed the S&P 500 (+0.4%) as a short portfolio last month. Most Dangerous Large Cap stock Dish Network Corp (DISH) fell by 14% and Most Dangerous Small Cap Stock Unifi Inc. (UFI) fell by 17%. Overall, 22 out of the 40 Most Dangerous stocks outperformed the S&P 500 as shorts in April.
The successes of these model portfolios highlight the value of our machine learning and AI Robo-Analyst technology[1], which helps clients fulfill the fiduciary duty of care and make smarter investments[2].
13 new stocks make our Most Attractive list this month and 14 new stocks fall onto the Most Dangerous list this month. May's Most Attractive and Most Dangerous stocks were made available to members on May 3, 2018.
Our Most Attractive stocks have high and rising returns on invested capital (ROIC) and low price to economic book value ratios. Most Dangerous stocks have misleading earnings and long growth appreciation periods implied by their market valuations.
Most Attractive Stocks Feature for May: Winnebago Industries (WGO: $35/share)
Winnebago Industries (WGO), recreational vehicle manufacturer, is the featured stock from May's Most Attractive Stocks Model Portfolio.
Over the past decade, WGO has grown revenue 6% compounded annually while after-tax operating profit (NOPAT) has grown 7% compounded annually, to $74 million in 2017. NOPAT has increased to $100 million over the last twelve months (TTM). The company's NOPAT margin has increased from 4% in 2013 to 5% TTM.
Figure 1: WGO's Revenue & NOPAT Since 2009
