Daily Stock Pick: Metso

This week, I'm looking for the fourth 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 mid-cap Conglomerate entity named Metso Corporation. Its trading ticker symbol is MXCYY.

Metso Corp is a minerals processing and flow control technology and services supplier for the mining, aggregates, and oil and gas industries. Metso employs approximately 13,000 employees, and the firm's sales are diversified globally, with approximately 55% of revenue generated in emerging markets. Strategically, Metso is focused on increasing its mining and construction business and looking to build on its more stable service business.

The company provides expert, flow control, maintenance, performance and engineering, and training services. Metso Corporation is headquartered in Helsinki, Finland.

I use three key data points to gauge the value of any dividend equity-like Metso Corp:

(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.

MXCYY Price

Metso's price per share closed at $9.34 yesterday. A year ago its price was $8.24. Price increased $1.10 or 13.35% in the past year.

Assuming Metso's stock trades in the range of $7.00 to $10.00 this year, Metsos recent $9.34 price could rise by $0.41 and go to $9.75 by late-April, 2020.

MXCYY Dividends

Metso's most recent Annual dividend was $0.322  declared March 23rd, 2018 and paid, April 16th. 2018. The company's next general meeting is in April this year. Any dividend for 2019 will be declard after that event.

A $0.322 A dividend equates to an annual yield of 3.45% at yesterday's $9.34 closing price.

Gains For MXCYY?

Adding a $0.322 annual estimated dividend to my $0.41 estimate of Metso's price upside shows a $0.732 potential gross annual gain, per share, which will be reduced by costs to trade those shares.

If we paid a little under $1,000.00 today at the $9.34 recent stock price would buy us 107 Metso Corp shares.

A $10 broker fee paid half at purchase and half at sale will cost us $0.09 per share.

Subtract that $0.09 brokerage cost from the estimated $0.73 gross annual gain leaves a net gain of $0.64 X 107 shares

= $68.48 or a 6.85% net gain on a $999.38 investment.

Therefore, Metso Corp, whose trading ticker symbol is MXCYY, now shows a possible net gain of  6.85% including a 3.45% dividend yield.

One broker covers this stock:

She says "buy" Metso.

The consensus score is 1.0 or "Buy"

Therefore, you can look at  Metso Corp and see it has made money, is making money, and could net 6.85% gains including a 3.45% 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 Metso Corp is worth your time and money.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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