Daily Stock Pick: Atlas Copco
Today, I'm looking the fifth industrials representative of eight for my Ivy portfolio.
That sector includes twenty-three industries all related to designing, fabricating and servicing stuff we want and use. The industrials industries range from aerospace and defense to waste management with all the transportation, business services, and equipment required in between.
Today I'm reviewing a large-cap diversified industrials organization named Atlas Copco AB. Its trading ticker symbol is ATLKY.
Atlas Copco is a 140-year-old Swedish company and a pioneer in air compression technology. Today, the company is still the world's leading air compressor manufacturer, with around 25% market share. Its product portfolio includes power tools and vacuum pumps, commonly used by its diverse compression customer base. Atlas Copco generates revenue from three sources: initial equipment sales, spare parts, and maintenance. The company's worldwide operations span 180 countries.
For example, the company offers portable compressors, boosters, generators, lighting towers, pumps, and construction and demolition tools for civil engineering, construction, and demolition applications, as well as offers specialty rental services.
The company was founded in 1873 and is headquartered in Nacka, Sweden.
I use three key data points to gauge the value of any dividend equity-like Atlas Copco AB:
(1) Price
(2) Dividends
(3) Returns
Besides those three, several other keys will finally unlock an equity or fund in which to invest.
Those first three primary keys, however, best tell whether a company has made, is making, and will make money.
ATLKY Price
Atlas's price per share closed at $30.20 yesterday. A year ago its price was $39.40. Price decreased $9.20 or 23.35% in the past year.
Assuming Atlas's stock trades in the range of $24.00 to $36.00 this year, Atlas's recent $30.20 price could rise by $3.80 and go to $34.00 by late-April, 2020.
ATLKY Dividends
Atlas's most recent declared semi-annual dividend was $0.34 declared March 13th, 2018 and payable, April 26th, tomorrow.
A $0.34 SA dividend equates to an annual yield of 2.25% at yesterday's $30.20 closing price.
Gains For ATLKY?
Adding a $0.68 annual estimated dividend to my $3.80 estimate of Atlas's price upside shows a $4.48 potential gross annual gain, per share, which will be reduced by costs to trade those shares.
If we pay a little under $1,000.00 today at the $30.20 recent stock price would buy us 33 Atlas Copco AB shares.
A $10 broker fee paid half at purchase and half at sale will cost us $0.30 per share.
Subtract that $0.30 brokerage cost from the estimated $4.48 gross annual gain leaves a net gain of $4.18 X 33 shares
= $137.94 or a 13.8% net gain on a $996.60 investment.
Therefore, Atlas Copco AB, whose trading ticker symbol is ATLKY, now shows a possible net gain of 12.8% including a 2.25% dividend yield.
No brokers cover this stock:
No consensus score is available.
However, you can look at Atlas Copco AB and see it has made money, is making money, and could net 12.8% gains including a 2.25% dividend yield. It could be more, it could be less.
The above speculation is based on past year performance. The actual results remain to be seen to determine if Atlas Copco AB is worth your time and money.
Disclosure: This article was compiled by Rydlun & Co., LLC from data derived from www.ycharts. com; www.finance.yahoo.com; analyst median target price by YCharts
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Nice pick on $ATLKY.