Daily Stock Pick: Nielsen Holdings

This week, I'm looking for the third industrials sector 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 business services company, named Nielsen Holdings PLC. Its trading ticker symbol is NLSN.

Nielsen Holdings PLC offers marketing and client analytics services to retailers and media companies. The company specializes in two segments: Buy and Watch.

The Buy segment provides retail transactional measurement data and consumer behavior analytics information to the consumer packaged goods industry.

The Watch segment collects and analyses media usage behavior data for various forms of media, including television, radio, online, and mobile. The generated analytics are used within the media industry to determine advertising inventory values. Maximum revenue comes from the United States of America region.

Thus, Nielsen Holdings plc provides media and marketing information, analytics, and manufacturer and retailer expertise about what and where consumers buy, read, watch, and listen.

The company was formerly known as Nielsen N.V. and changed its name to Nielsen Holdings plc in August 2015. Nielsen Holdings plc was founded in 1923 and is headquartered in New York, New York.

I use three key data points to gauge the value of any dividend equity-like Nielsen Holdings plc:

(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.

NLSN Price

Nielsen's price per share closed at $27.06 yesterday. A year ago its price was $33.50. Price fell $6.44 or 19.2% in the past year.

Assuming Nielsen's stock trades in the range of $20 to $32 this year, Nielsen's recent $27.06 price could rise by $0.94 and go to $28.00 by early-March, 2020.

NLSN Dividends

Nielsen's most recent Quarterly dividend was $0.35 declared February 22nd and payable March 21st.

That $0.35 Q dividend equates to a  $1.40 annual payout and a yield of 5.2% at yesterday's $27.06 closing price.

Gains For NLSN?

Adding the $1.40 annual estimated dividend to my $0.94 estimate of Nielsen's estimated price upside shows a $2.34 potential gross annual gain, per share, which will be reduced by costs to trade those shares.

Say we put a little under $1,000.00 today at the $27.06 recent stock price would buy us 37 Nielsen Holdings PLC shares.

A $10 broker fee paid half at purchase and half at sale costs $0.27 per share.

Subtract that $0.27 brokerage cost from the estimated $2.34 gross annual gain leaves a net gain of $2.07 X 37 shares

= $76.59 or 7.7% net gain on a $1,001.22 investment.

Therefore, Nielsen Holdings PLC  whose trading ticker symbol is NLSN now shows a possible net gain of 7.7% including a 5.2% dividend yield.

Seventeen brokers cover this stock:

Eight say "buy" NLSN.

Three say NLSN will "outperform" peers

Six say "Hold" NLSN.

Therefore, you can look at Nielsen Holdings PLC and see it has made money, is making money, and could throw a net gain of 7.7% including a 5.2% 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 Nielsen Holdings PLC is worth your time and money.

 

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