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5 Winning Stocks for the Contrarian Investor
live (public) 0.08% May 03
For those with the stomach to get into contrarian plays, this selection
may be of interest to you. Now is a great time to be a contrarian
because the herd is stampeding away from risk and there may be
opportunities to consider. According to the Motley Fool's Jim Royal, "The time to buy is when investors are selling en
masse. While fearful investors wait for the situation to become "safe,"
opportunistic investors are scooping up great deals on solid companies
-- just like what happened immediately after the financial crisis,
before the S&P went on to rally 84% since March 2009"
With that in mind, Jim selected five stocks with low or moderate P/Es that can appeal to the contrarian streak of opportunistic investors. Most even sport solid dividends, so you can get paid while you wait for other investors to spot these great deals (and your own foresight).
|
Company |
P/E |
Dividend Yield |
Contrarian Because... |
|---|---|---|---|
| Bridgepoint Education (NYSE: BPI) | 8.2 | 0% | The for-profit education sector is under regulatory scrutiny. |
| National Grid (NYSE: NGG) | 9.8 | 5.9% | A high-yield utility with low growth. |
| Philip Morris International (NYSE: PM) | 14.8 | 4.5% | Company derives 40% of revenue from the EU, which is in dire straits. |
| Ultra Petroleum (NYSE: UPL) | 13.2 | 0% | Natural gas at multiyear lows, so no one loves gas players. |
| Brookfield Infrastructure (NYSE: BIP) | 6.6 | 5.0% | Who likes infrastructure stocks? |
Source: S&P's Capital IQ.
These are five cheap
contrarian stocks that may be poised for solid long-term gains, and let's see how they do against our reference ETF portfolio
| Asset | Fund in this portfolio | Price change* | Percentage |
|---|---|---|---|
| Asset1 | MO (Altria Group) | 0.89% | 15.76% |
| Asset1 | GSK (GlaxoSmithKline PLC ADR) | 0.35% | 7.39% |
| Asset1 | MCD (McDonald’s Corporation) | 1.08% | 22.88% |
| Asset1 | COF (Capital One Financial Corporation) | 0.42% | 32.78% |
| Asset1 | BIDU (Baidu Inc) | 1.49% | 20.78% |
| CASH | CASH (CASH) | 0.0% | 0.41% |
* Day change on 05/03/2024.
Previous
Since 04/15/2009
| Name | YTD* Return |
1Yr AR** |
3Yr AR** |
5Yr AR** |
10Yr AR** |
15Yr AR** |
|---|---|---|---|---|---|---|
| 5 Winning Stocks for the Contrarian Investor | 2.3% | 14.4% | -2.7% | 2.6% | 3.2% | 11.9% |
| VFINX (Vanguard (S&P 500) Index) | 7.9% | 27.1% | 8.5% | 13.5% | 12.5% | 14.6% |
| VBINX (Vanguard Balance (60% stocks/40% bonds) | 3.5% | 15.3% | 2.8% | 7.7% | 7.7% | 9.7% |
* YTD: Year to Date
** AR: Annualized Return
| Last 1 Week* | YTD*(2024) | 1 Yr | 3 Yr | 5 Yr | 10 Yr | 15 Yr | Since 04/15/2009 |
2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Annualized Return(%) | 1.8 | 2.3 | 14.4 | -2.7 | 2.6 | 3.2 | 11.9 | 12.1 | 15.4 | -17.2 | 7.0 | 16.2 | 3.8 | -23.5 | 24.2 | 1.9 | -6.0 | 16.2 | 44.6 | 1.2 | 19.3 | 46.5 | 63.2 |
| Sharpe Ratio | NA | 0.08 | 0.7 | -0.23 | 0.04 | 0.08 | NA | 0.44 | 0.61 | -0.67 | 0.27 | 0.43 | 0.14 | -0.48 | 1.98 | 0.1 | -0.28 | 0.85 | 2.59 | 0.06 | 0.65 | 1.84 | 2.32 |
| Draw Down(%) | NA | 7.4 | 19.3 | 31.0 | 42.4 | 64.0 | NA | 64.0 | 19.3 | 29.0 | 21.9 | 41.4 | 20.2 | 45.4 | 7.2 | 13.6 | 22.8 | 11.8 | 10.9 | 19.5 | 23.0 | 11.7 | 8.1 |
| Standard Deviation(%) | NA | 13.6 | 15.0 | 21.6 | 26.2 | 27.0 | NA | 26.0 | 18.5 | 27.9 | 25.6 | 37.5 | 17.0 | 51.5 | 11.9 | 17.8 | 21.6 | 19.0 | 17.2 | 18.9 | 29.6 | 25.2 | 27.2 |
| Treynor Ratio | NA | 0.02 | 0.13 | -0.06 | 0.01 | 0.03 | NA | 0.25 | 0.11 | -0.21 | 0.07 | 0.17 | 0.02 | -4.95 | 7.17 | 0.41 | 1.01 | -8.87 | 10.77 | 0.37 | -3.51 | 41.34 | -4.09 |
| Alpha | NA | -0.03 | -0.02 | -0.03 | -0.03 | -0.01 | NA | 0.03 | -0.03 | 0.01 | -0.06 | 0.01 | -0.09 | -0.06 | 0.08 | 0.01 | -0.02 | 0.07 | 0.15 | 0.01 | 0.09 | 0.16 | 0.31 |
| Beta | NA | 0.62 | 0.83 | 0.9 | 0.94 | 0.7 | NA | 0.46 | 1.01 | 0.9 | 1.04 | 0.95 | 1.02 | 0.05 | 0.03 | 0.04 | -0.06 | -0.02 | 0.04 | 0.03 | -0.05 | 0.01 | -0.15 |
| RSquared | NA | 0.29 | 0.41 | 0.52 | 0.59 | 0.21 | NA | 0.1 | 0.51 | 0.6 | 0.28 | 0.78 | 0.56 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.01 |
| Sortino Ratio | NA | 0.11 | 1.04 | -0.33 | 0.05 | 0.11 | NA | 0.62 | 0.93 | -0.95 | 0.4 | 0.57 | 0.18 | -0.65 | 2.92 | 0.14 | -0.37 | 1.26 | 4.22 | 0.09 | 0.92 | 2.86 | 3.64 |
| Yield(%) | N/A | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | N/A | 0.31 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.49 | 2.27 | 1.93 | 0.0 | 0.0 | 0.0 |
| Dividend Growth(%) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
*: NOT annualized;YTD: Year to Date
**Inception: starting from 04/15/2009
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