Focus List - Wells Fargo Advisors
November 2, 2021 Larry Pfeffer, CFA, Equity Sector Analyst
Advice & Research
Focus List
Holdings by Sector
Focus List Overview
The Focus List is a concentrated list of stocks that represents a combination of the equity sector guidance from the Wells Fargo Investment Institute (WFII) and security selection from our Wells Fargo Advisors Equity Sector Analysts. The objective is to exceed the total return of the S&P 500 Index over an approximate one-year timeframe.
Focus List Holdings Statistics
Company Communication Services (average) Activision Blizzard, Inc. Alphabet, Inc. Netflix, Inc. The Walt Disney Co. Consumer Discretionary , Inc. General Motors Co. The Home Depot, Inc. Ross Stores, Inc.
Symbol N/A ATVI GOOGL NFLX DIS N/A AMZN GM HD ROST
Price N/A
$79.35 $2,869.94
$681.17 $170.19 N/A $3,318.11
$55.49 $366.48 $114.01
Market Cap (billion) $645.1 $61.7 $1,907.6 $301.7 $309.2 $548.3 $1,682.3 $83.2 $387.0 $40.6
Dividend per
Share N/A
$0.47 $0.00 $0.00 $0.00
N/A $0.00 $0.00 $6.60 $1.14
Dividend Yield 0.1% 0.6% 0.0% 0.0% 0.0% 0.7% 0.0% 0.0% 1.8% 1.0%
Consensus NTM EPS Estimate
N/A $3.83 $107.55 $11.67 $4.31
N/A $42.35
$6.19 $14.49
$4.71
NTM PE 36.3x 20.7x 26.7x 58.3x 39.5x 34.2x 78.4x 9.0x 25.3x 24.2x
Consensus EPS L-T Growth Estimate 28% 14% 24% 32% 35% 19% 23% 14% 11% 39%
Date Added to
List N/A 3/31/20 3/5/20 12/9/20 11/17/16
N/A 6/29/17
3/8/21 5/7/12 3/31/20
Energy Chevron Corp.
N/A
N/A
$221.5
N/A
4.7%
CVX
$114.53
$221.5
$5.36
4.7%
N/A $9.86
11.6x 11.6x
25%
N/A
25% 5/28/21
Financials Bank of America Corp. BlackRock, Inc. JPMorgan Chase & Co. UBS Group AG Health Care Danaher Corp. Humana, Inc. Zoetis, Inc. Industrials Canadian Pacific Railway Ltd. Parker-Hannifin Corp. Trane Technologies Plc Information Technology Accenture Plc Adobe, Inc. ASML Holding NV Keysight Technologies, Inc. Mastercard, Inc. Microsoft Corp. PayPal Holdings, Inc. Texas Instruments Incorporated
N/A BAC BLK JPM UBS N/A DHR HUM ZTS N/A CP PH TT N/A ACN ADBE ASML KEYS MA MSFT PYPL TXN
N/A $47.85
$936.23 $169.80
$18.52 N/A $309.68 $459.51 $213.60 N/A
$77.33 $300.82 $181.33 N/A $355.32 $640.20 $807.45 $181.03 $334.05 $329.37 $231.28 $187.47
$275.6 $394.3 $142.3 $501.8
$63.8 $127.2 $221.3
$59.0 $101.3
$46.1 $51.6 $43.4 $43.4 $517.6 $224.6 $304.7 $330.9 $33.3 $328.6 $2,473.6 $271.8 $173.1
N/A $0.84 $16.52 $4.00 $0.37
N/A $0.84 $2.80 $1.00
N/A $0.61 $4.12 $2.36
N/A $3.88 $0.00 $3.37 $0.00 $1.76 $2.48 $0.00 $4.60
2.0% 1.8% 1.8% 2.4% 2.0% 0.4% 0.3% 0.6% 0.5% 1.2% 0.8% 1.4% 1.3% 0.7% 1.1% 0.0% 0.4% 0.0% 0.5% 0.8% 0.0% 2.5%
N/A $3.13 $40.33 $11.85
N/A $9.84 $21.94 $4.72 N/A $3.37 $16.86 $6.52 N/A $10.13 $13.64 $19.04 $6.48 $9.80 $9.32 $5.09 $7.93
16.8x 15.3x 23.2x 14.3x
29.5x 31.5x 20.9x 45.2x 22.1x 22.9x 17.8x 27.8x 34.6x 35.1x 46.9x 42.4x 27.9x 34.1x 35.3x 45.5x 23.6x
10%
N/A
20% 2/22/21
10% 3/31/20
10% 4/30/19
10%
3/8/21
44%
N/A
23%
2/6/18
13% 3/31/20
14% 11/27/18
16%
N/A
9%
8/6/20
10% 2/22/21
16% 2/10/21
17%
N/A
9%
1/3/14
19%
8/6/20
25% 7/16/20
14% 12/9/20
22% 4/31/19
16% 10/4/17
23% 7/20/15
10% 1/28/16
Materials The Sherwin-Williams Co. Real Estate Prologis, Inc. Focus List Average1 S&P 500
N/A SHW N/A PLD N/A SP50
N/A $310.09 N/A $144.73 N/A $4,613.67
$81.3 $81.3 $107.0 $107.0 $377.4 $78.3
N/A $2.20
N/A $2.52
N/A $57.28
0.7% 0.7% 1.7% 1.7% 1.0% 1.2%
N/A $9.64
N/A $2.93
N/A $218
32.2x 32.2x 49.4x 49.4x 25.1x 21.2x
13%
N/A
13% 2/10/21
8%
N/A
8% 5/28/21
16% 4/26/19
17%
N/A
Source: FactSet, Wells Fargo Advisors, company reports
1 Simple average for market cap, dividend yield, date added. Harmonic average for PE. Median for L-T growth estimate.
NTM = next twelve months
EPS = earnings per share, funds from operations used for real estate investment trusts
PE = price to earnings ratio
L-T = long-term
Please see pages 3-5 of this report for Important Disclosures, Disclaimers and Analyst Certification
Investment and Insurance Products: NOT FDIC Insured / NO Bank Guarantee / MAY Lose Value
Focus List Holdings by Sector
Focus List Holdings Statistics
November 2, 2021
Symbol Communication Services (average)
ATVI
Sub-Industry N/A Interactive Home Entertainment
Price N/A
$79.35
52-Week Low N/A
$71.19
52-Week High N/A
$104.53
Fiscal Year End
N/A
DEC
NTM Relative
PE
1.3x
0.9x
5-Yr Avg NTM Relative PE
1.7x
1.3x
Int'l Sales
44%
45%
GOOGL
Interactive Media & Services
$2,869.94 $1,601.57 $2,973.00 DEC
1.2x
1.4x
53%
NFLX
Movies & Entertainment
$681.17
$463.41
$690.97 DEC
2.5x
3.9x
57%
DIS
Movies & Entertainment
$170.19
$119.09
$203.02 OCT
1.6x
1.5x
20%
Consumer Discretionary
N/A
N/A
N/A
N/A
N/A
0.8x
0.9x
16%
AMZN
Internet & Direct Marketing Retail
$3,318.11 $2,881.00 $3,773.08 DEC
3.0x
4.4x
39%
GM
Automobile Manufacturers
$55.49
$33.96
$64.30 DEC
0.4x
0.4x
17%
HD
Home Improvement Retail
$366.48
$246.59
$375.15 JAN
1.2x
1.1x
8%
ROST
Apparel Retail
$114.01
$84.68
$134.22 JAN
1.0x
1.3x
0%
Energy
N/A
N/A
N/A
N/A
N/A
0.6x
1.7x
61%
CVX
Integrated Oil & Gas
$114.53
$68.08
$115.29 DEC
0.6x
1.7x
61%
Financials
N/A
N/A
N/A
N/A
N/A
0.6x
0.7x
37%
BAC
Diversified Banks
$47.85
$23.24
$48.43 DEC
0.7x
0.6x
12%
BLK
Asset Management & Custody Banks
$936.23
$587.90
$959.89 DEC
1.1x
1.0x
35%
JPM
Diversified Banks
$169.80
$96.23
$172.96 DEC
0.6x
0.7x
24%
UBS
Diversified Capital Markets
$18.52
$11.53
$18.55 DEC
0.4x
0.5x
79%
Health Care
N/A
N/A
N/A
N/A
N/A
1.3x
1.3x
36%
DHR
Life Sciences Tools & Services
$309.68
$211.22
$333.96 DEC
1.4x
1.5x
61%
HUM
Managed Health Care
$459.51
$370.22
$475.44 DEC
0.9x
1.0x
0%
ZTS
Pharmaceuticals
$213.60
$141.41
$217.64 DEC
2.0x
1.7x
47%
Industrials
N/A
N/A
N/A
N/A
N/A
1.0x
1.0x
49%
CP
Railroads
$77.33
$58.79
$83.07 DEC
1.1x
1.0x
24%
PH
Industrial Machinery
$300.82
$204.66
$324.68 JUN
0.8x
0.9x
37%
TT
Building Products
$181.33
$130.33
$207.06 DEC
1.3x
1.1x
87%
Information Technology
N/A
N/A
N/A
N/A
N/A
1.6x
1.5x
67%
ACN
IT Consulting & Other Services
$355.32
$213.64
$359.88 AUG
1.6x
1.4x
67%
ADBE
Application Software
$640.20
$420.78
$673.88 NOV
2.1x
1.9x
48%
ASML
Semiconductor Equipment
$807.45
$359.01
$895.93 DEC
2.0x
1.7x 100%
KEYS
Electronic Equipment & Instruments
$181.03
$102.77
$182.49 OCT
1.3x
1.1x
64%
MA
Data Processing & Outsourced Services
$334.05
$281.20
$401.50 DEC
1.6x
1.8x
67%
MSFT
Systems Software
$329.37
$199.62
$332.00 JUN
1.6x
1.5x
50%
PYPL
Data Processing & Outsourced Services
$231.28
$174.81
$310.16 DEC
1.9x
2.1x
49%
TXN
Semiconductors
$187.47
$142.53
$202.26 DEC
1.1x
1.2x
89%
Materials
N/A
N/A
N/A
N/A
N/A
1.5x
1.3x
20%
SHW
Specialty Chemicals
$310.09
$218.06
$323.82 DEC
1.5x
1.3x
20%
Real Estate
N/A
N/A
N/A
N/A
N/A
2.6x
2.6x
11%
PLD
Industrial REITs
$144.73
$93.08
$146.89 DEC
2.6x
2.6x
11%
Focus List Average1
N/A
N/A
N/A
N/A
1.1x
1.1x
44%
S&P 500
SP50
$4,613.67
$3,280
$4,620
N/A
1.0x
1.0x
32%
Source: FactSet, Wells Fargo Advisors, company reports
1 Simple average for international sales, net debt/capital, S&P credit rating. Harmonic average for PEs.
NTM = next twelve months
PE = price to earnings ratio
EPS = earnings per share, funds from operations used for real estate investment trusts
Net Debt / Capital
-3%
-30% -42% 31% 28% 39% 20% 51% 85%
0% 18% 18% 39% 61%
65% -9% 27% 31% 17% 32% 36% 51% 39% 18% -5% -20% -8% -2% -2% 31% -22% -9% -10% 78% 78% 34% 34% 19% 32%
S&P Credit Rating
N/A
AAA+ BB A-
N/A AABBB A BBB+
N/A AA
N/A AAAAA-
N/A BBB+ BBB+ BBB
N/A BBB+ BBB+ BBB
N/A AAA BBB A+ AAA BBB+ A+
N/A BBB-
N/A AABBB+
Consensus Target Price N/A
$113.17 $3,299.62
$682.60 $208.19
N/A $4,090.16
$74.47 $352.66 $138.69
N/A $126.86
N/A $47.64 $973.73 $174.40 $20.70
N/A $348.82 $488.86 $225.91
N/A $81.38 $352.00 $199.68
N/A $377.73 $712.72 $935.00 $183.58 $432.37 $358.80 $328.72 $203.25
N/A $334.27
N/A $152.97
N/A ecember
Page 2 of 5
Focus List Holdings by Sector
November 2, 2021
IMPORTANT DISCLOSURES
Disclosure information . . . For important disclosure information, please contact: Wells Fargo Advisors Attn: Advice & Research (Disclosure Information) One North Jefferson, St. Louis, MO 63103 Or call (877) 785-4332 Web Address: disclosures/research Please remember to specify the issuer(s) with respect to which you would like to receive disclosure information.
ANALYST CERTIFICATION: The analyst who prepared this report hereby certifies that the views expressed in this report accurately reflect his/her personal views about the subject companies and their securities. The analyst also certifies that he/she has not been, is not, and will not be receiving direct or indirect compensation for expressing the specific recommendation(s) or view(s) in this report.
Disclaimers Prices and estimates are as of November 1, 2021 unless indicated otherwise.
You should be aware that investments can fluctuate in price, value and/or income, and you may get back less than you invested. We recommend that existing shareholders consider their objectives, their risk tolerance, and the size of their positions relative to their portfolios when evaluating their holdings.
Equity securities are subject to market risk which means their value may fluctuate in response to general economic and market conditions and the perception of individual issuers. Investments in equity securities are generally more volatile than other types of securities.
The prices of mid-cap company stocks are generally more volatile than large company stocks. They often involve higher risks because smaller companies may lack the management expertise, financial resources, product diversification and competitive strengths to endure adverse economic conditions.
Investing in foreign securities presents certain unique risks not associated with domestic investments, such as currency fluctuation and political and economic changes. This may result in greater price volatility.
Sector investing can be more volatile than investments that are broadly diversified over numerous sectors of the economy and will increase a portfolio's vulnerability to any single economic, political, or regulatory development affecting the sector. This can result in greater price volatility. The Communication Services sector is subject to the risks associated with rising interest rates which could increase debt service costs, competition, increased costs to providers due to potential for large equipment upgrades. Risks associated with the Consumer Discretionary sector include, among others, apparel price deflation due to low-cost entries, high inventory levels and pressure from e-commerce players; reduction in traditional advertising dollars, increasing household debt levels that could limit consumer appetite for discretionary purchases, declining consumer acceptance of new product introductions, and geopolitical uncertainty that could affect consumer sentiment. Consumer Staples industries can be significantly affected by competitive pricing particularly with respect to the growth of low-cost emerging market production, government regulation, the performance of the overall economy, interest rates, and consumer confidence. The Energy sector may be adversely affected by changes in worldwide energy prices, exploration, production spending, government regulation, and changes in exchange rates, depletion of natural resources, and risks that arise from extreme weather conditions. Investing in the Financial services companies will subject an investment to adverse economic or regulatory occurrences affecting the sector. Some of the risks associated with investment in the Health Care sector include competition on branded products, sales erosion due to cheaper alternatives, research and development risk, government regulations and government approval of products anticipated to enter the market. There is increased risk investing in the Industrials sector. The industries within the sector can be significantly affected by general market and economic conditions, competition, technological innovation, legislation and government
Page 3 of 5
Focus List Holdings by Sector
November 2, 2021
regulations, among other things, all of which can significantly affect a portfolio's performance. Materials industries can be significantly affected by the volatility of commodity prices, the exchange rate between foreign currency and the dollar, export/import concerns, worldwide competition, procurement and manufacturing and cost containment issues. Real estate investments have special risks, including possible illiquidity of the underlying properties, credit risk, interest rate fluctuations, and the impact of varied economic conditions. Risks associated with the Technology sector include increased competition from domestic and international companies, unexpected changes in demand, regulatory actions, technical problems with key products, and the departure of key members of management. Technology and Internet-related stocks, especially smaller, less-seasoned companies, tend to be more volatile than the overall market. Utilities are sensitive to changes in interest rates, and the securities within the sector can be volatile and may underperform in a slow economy.
Diversification does not guarantee a profit or protect against loss.
Standard & Poor's uses upper-case letters to identify a bond's credit quality rating. 'AAA' and 'AA' (high credit quality) and 'A' and 'BBB' (medium credit quality) are considered investment grade. Credit ratings for bonds below these designations ('BB', 'B', 'CCC', etc.) are considered low credit quality, and are commonly referred to as "junk bonds". Ratings may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.
Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock. EPS serves as an indicator of a company's profitability.
Price to earnings ratio (PE ratio) is a valuation ratio of company's current share price compared to its per-share earnings. PE = market value per share/EPS.
Dividend payout ratio is the percentage of a company's earnings paid out as dividends. Dividend payout ratio = dividend per share / EPS.
S&P 500 Index is a market capitalization-weighted index composed of 500 widely held common stocks that is generally considered representative of the U.S. stock market. An index is unmanaged and not available for direct investment.
Wells Fargo Advisors publishes several theme-based lists of recommended equity securities. Each list is based on a specific investment objective and time horizon which may be different from the other lists. This may cause Wells Fargo Advisors to recommend an equity security to be added to one list and removed from another list. Thus, one list may contain different recommendations or conclusions that could result in short-term price movements contrary to the recommendations in another list.
Wells Fargo Advisors research analysts receive no compensation in connection with the firm's investment banking, sales and trading, or principal trading revenues. Analysts may be eligible for annual bonus compensation based on the overall profitability of the firm, which takes into account revenues derived from all the firm's business activities, including its investment banking business, sales and trading, and principal trading.
Advice & Research works with information received from various resources including, but not limited to, research from affiliated and unaffiliated research correspondents as well as other sources. Advice & Research does not assign ratings to or project target prices for any of the securities mentioned in this report.
Advice & Research receives research from affiliated and unaffiliated correspondent research providers with which Wells Fargo Advisors has an agreement to obtain research reports. Each correspondent research report reflects the different assumptions, opinions, and the methods of the analysts who prepare them. Any opinions, prices or estimates contained in this report is as of the date of this publication and is subject to change without notice.
Additional information available upon request. Past performance is not a guide to future performance. The material contained herein has been prepared from sources and data we believe to be reliable but we make no guarantee as to its
Page 4 of 5
Focus List Holdings by Sector
November 2, 2021
accuracy or completeness. This material is published solely for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or investment product. Opinions and estimates are as of a certain date and subject to change without notice.
Wells Fargo Advisors is registered with the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority, but is not licensed or registered with any financial services regulatory authority outside of the U.S. Non-U.S. residents who maintain U.S.-based financial services account(s) with Wells Fargo Advisors may not be afforded certain protections conferred by legislation and regulations in their country of residence in respect of any investments, investment transactions or communications made with Wells Fargo Advisors.
Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC and Wells Fargo Advisors Financial Network, LLC, Members SIPC, separate registered broker-dealers and non-bank affiliates of Wells Fargo & Company.
?2021 Wells Fargo Clearing Services, LLC. All rights reserved. RSNIP 0721-00824 v07.23.2021
Page 5 of 5
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related download
Related searches
- wells fargo personal loan rates
- wells fargo line of credit rates
- wells fargo balance transfer offers
- wells fargo credit cards
- wells fargo pre qualified offers
- wells fargo advisors credit card
- wells fargo advisors visa signature
- wells fargo advisors by invitation visa card
- wells fargo advisors visa card
- list of financial advisors ratings
- wells far wells fargo log in
- wells fargo advisors money market funds