Librarian Capital's Monthly Top Buys & Price Moves - October 2021

(Preview) Portfolio Strategy

Summary

• Tobacco stocks fell after an ITC order on IQOS, and now offer mid-teens or better returns, though new U.S. tax proposals need to be watched.

• Cable stocks corrected after cuts in Q3 outlooks. Charter and Comcast are fine operationally, Altice USA is in a turnaround - all three are cheap.

• Verizon has a new Buy rating - it offers a mid-teens annualized return at undemanding expectations; P/E is 11x and Dividend Yield is 4.6%.

• Elevator stocks offer mid-teens returns after 10%+ corrections on fears about Chinese property; urbanization makes long-term growth certain.

• Other notable price falls in September include Buy-rated Facebook, Estée Lauder and Admiral, and Neutral-rated L'Oréal, Root and Metromile.

Introduction

This is part of a monthly series where we highlight notable share price moves and rating changes in our research coverage. The goal is to identify the most attractive opportunities each month and to provide a track record of our research. Similar content previously formed part…