If there is any place where the herd mentality is most prominent it is on Wall Street. There are numerous reasons why. Portfolio managers and traders talk and shares ideas and data. Algorithm programs target high-volume stocks that continue to be bought when seemingly overbought. Plus, one of the biggest reasons may be that once a sector gets hot, the money pours in from retail investors, and that’s when the institutions start to sell.
We all know what’s been hot. The FANG stocks are a great example. But how much upside is left? Maybe a lot, then perhaps maybe not. We screened our 24/7 Wall St. research database for companies that have big dividends, and also seem to be way out-of-favor on Wall Street. We found five rated Buy that could be good ideas for aggressive accounts.
This stock has bounced off the lows but is still down from highs printed in January. AT&T Inc. (NYSE: T) is the world’s largest provider of pay TV, with TV customers in the United States and 11 Latin American countries. In the United States, the AT&T wireless network has the nation’s self-described strongest 4G LTE signal and most reliable 4G LTE. The company also helps businesses worldwide serve their customers better with mobility and highly secure cloud solutions.
With its shares trading at a very cheap 12.8 times estimated 2018 earnings, the company continues to expand its user base, and strong product introductions from smartphone vendors have not only driven traffic but increased device financing plans.
AT&T has several major catalysts that will likely drive strong network traffic demand: DirecTV Now and Mobile, “Data-Free TV” for DirecTV/U-verse subscribers, and increasing penetration of unlimited data plans. Many on Wall Street believe that the company is well-positioned to address ongoing traffic requirements, with additional LTE capacity available and the ability to leverage small cell deployments.
The company posted solid numbers for the third quarter, but between concerns over the Time Warner deal risk and the overhang from the arbitrage accounts, the stock has been in a funk.
AT&T investors receive a 5.84% dividend. Nomura has a big $45 price target, and the Wall Street consensus target is $39.68. The shares traded Thursday morning at $33.45.
Golar LNG Partners
This is a liquefied natural gas (LNG) shipping and storage play that holds a big distribution for shareholders and is the top pick across Wall Street. Golar LNG Partners L.P. (NASDAQ: GMLP) owns and operates floating storage regasification units (FSRUs) and LNG carriers under long-term charters in Brazil, the United Arab Emirates, Indonesia and Kuwait. The company also engages in the leasing of its fleets.
The Marshall Islands based company has a fleet of six FSRUs and five LNG carriers, a combined average remaining useful life of 25 years, and an average remaining charter duration of five-plus years. The company posted solid second-quarter results and also was successful in lowering leverage.
Golar LNG Partners has a diverse pipeline that includes its FLNG projects and, as a result, some Wall Street analysts feel the company has the largest growth potential over its peer group, with potential drop-downs/newbuilding inventories of 16 vessels.
Golar shareholders receive a 10.74% distribution. Merrill Lynch has set its price target at $25. The posted consensus target is $23, and shares traded at $21.40.