Macquarie Infrastructure, Haverty Furniture and Others Analysts Are Bullish On
Recent earnings disappointments from tech giants like Apple (NASDAQ: AAPL), Google (NASDAQ: GOOG) and Microsoft (NASDAQ: MSFT), as well as industrials such as Caterpillar (NYSE: CAT) and DuPont (NYSE: DD), have taken their toll. The S&P 500 is down about three percent in the past three weeks.
Here is a quick look at five dividend payers in the services sector that have a consensus recommendation of analysts of Strong Buy:
Core-Mark Holding (NASDAQ: CORE) is up more than 23 percent in the past six months, despite having traded mostly between $44 and $48 since early August. Core-Mark's CEO of nine years is set to retire in January. The San Francisco-based supplier to convenience stores and supermarkets has a market cap near $547 million, a dividend yield of about 1.4 percent and a long-term EPS growth forecast near 14 percent. Despite not breaking through resistance for the past two months, shares have easily outperformed the broader markets over the past six months.
Deluxe Corp. (NYSE: DLX) is more than 31 percent higher in the past six months despite trading about the same as six weeks ago. The business services company, headquartered near Minneapolis, posted better-than-expected third-quarter results last week. It has a market cap near $1.6 billion. The dividend yield is about 3.2 percent and its return on equity is more than 50 percent. Over the past six months, the stock has outperformed competitor R.R. Donnelley (NASDAQ: RRD).
Haverty Furniture (NYSE: HVT) shares are up more than 24 percent from six months ago, despite pulling back more than two percent from a recent multiyear high. The Atlanta-based retailer of residential furniture is expected to post strong EPS and sales growth Wednesday. It has a market cap near $330 million and a dividend yield of about 1.1 percent. The stock has outperformed larger competitor Ethan Allen (NYSE: ETH) and the S&P 500 year to date.
Shares of Macquarie Infrastructure (NYSE: MIC) are trading more than 23 percent higher than six months ago, mostly due to a jump following the better-than-expected second-quarter earnings and a sizeable boost in the dividend. The New York-based company has a dividend yield of nearly six percent and a market cap near $2 billion. The mean price target indicates more than nine percent upside potential. Over the past six months, the stock has easily outperformed the broader markets.
Houston-based Service Corp. International (NYSE: SCI) reached a new multi-year high late last week after posted better-than-expected EPS, and the stock is up more than 31 percent year to date. The deathcare product and service provider has a $3 billion market cap and a long-term EPS growth forecast of 10 percent. The dividend yield is about 1.7 percent. The stock has outperformed peer StoneMor Partners (NYSE: STON) and the S&P 500 over the past six months.
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Tags: Apple, Caterpillar, Core-Mark Holding, Deluxe Corp., DuPont, Ethan Allen, Google, Haverty Furniture, Macquarie Infrastructure, Microsoft, R.R. Donnelley, Service Corp. International, Stonemor Partners