Librarian Capital's Monthly Ranked Top Buys - February 2023

(Substack Exclusive) Portfolio Strategy

Welcome to the February edition of our monthly ranked top buys series, designed to facilitate regular reviews of our selection of preferred stocks. This month’s edition is later than usual because of the need to review Q4 CY22 results.

This month, we have dropped Zoetis from #11 to #14, removed Meta Platforms and added NatWest at #15:

A recap of the investment case on each stock is below, along with recent key news, current valuation and forecasted returns. For most of our stocks, the key news this month is Q4 2022 results. Where our ranking has changed, we have listed the reasons. We have also constructed an illustrative Select-15 portfolio in the appendix to track our performance.

(all market data as of February 20, 2023)

1.     Visa

Our investment case on Visa is that EPS growth will be at mid-teens or higher, driven by consumer expenditure growth, new payments flows and expanding value-add services, while the P/E multiple will be 35x at exit. Dividends, which represent a yield of just …