Latest / STOCK PICKS BY JOE COTTON CHAMPION STOCK PICKER / Three Quality Stocks

Transcript

Three Quality Stocks · STOCK PICKS BY JOE COTTON CHAMPION STOCK PICKER

• 0:03
  SPEAKER_00: Hi, and welcome to our podcast.
• 0:06
  SPEAKER_00: My name is Joe Cotton, and I'm a champion stock picker and expert market timer.
• 0:12
  SPEAKER_00: You can subscribe to my market letter, Cottons Technically Speaking, at our website, www.cottonstocks.net.
• 0:20
  SPEAKER_00: It comes with a risk-free 30-day 100% money-back guarantee from data purchase.
• 0:26
  SPEAKER_00: Nothing I say in this video is investment advice.
• 0:29
  SPEAKER_00: For investment advice, contact a registered investment advisor or certified financial planner.
• 0:35
  SPEAKER_00: Now we have three stock picks today that are quality stocks and way down from their highs.
• 0:42
  SPEAKER_00: The first one is Home Depot.
• 0:48
  SPEAKER_00: Symbol HD, it closed at 309.63 on Friday.
• 0:54
  SPEAKER_00: It's down about 100 points since September of 2025.
• 0:59
  SPEAKER_00: Melius Research gave it a buy rating on October 6th.
• 1:03
  SPEAKER_00: Now, if you look at the chart, it's made a downward slanting consolidation triangle in the last 24 months.
• 1:10
  SPEAKER_00: It had a bullish MACD crossover about seven days ago, and we think it's going to cross above its 50-day moving average this week or next.
• 1:19
  SPEAKER_00: That's a bullish event.
• 1:22
  SPEAKER_00: Now, it's a quality stock selling at a PE ratio of 21.67 with current earnings of$14.29 a share.
• 1:32
  SPEAKER_00: Next year's earnings are projected to be$15.93 a share with a PE ratio of 19.43, and the dividend is 3%.
• 1:46
  SPEAKER_00: Now, the second stock we've got is McDonald's symbol MCD.
• 1:53
  SPEAKER_00: It closed at$2242.97 on Friday.
• 1:59
  SPEAKER_00: Morgan Stanley reiterated their equal weight rating and reduced their target price to$297 from$308.
• 2:07
  SPEAKER_00: You can see from the chart, it's also down about 100 points from its high of 341 only eight months ago on February 27th.
• 2:17
  SPEAKER_00: We think the stock probably bottomed in early October at about$230 a share.
• 2:23
  SPEAKER_00: Now, it had a bullish MACD crossover about seven days ago.
• 2:31
  SPEAKER_00: Current earnings are$12.31 a share with a PE ratio of$19.35.
• 2:37
  SPEAKER_00: Next year's estimated earnings are$13.78 a share with a PE ratio of 17.63.
• 2:47
  SPEAKER_00: That's pretty low for this quality stock.
• 2:50
  SPEAKER_00: And it has a dividend of 3.1%.
• 2:53
  SPEAKER_00: Now to ensure good prices in this risky geopolitical environment, we would use our normal buying strategy, which is shown in our market letter, cottons technically speaking.
• 3:04
  SPEAKER_00: That is, you buy 40% of your allocated investment amount now, and then you buy 30% more on each 20% decline from your original buy price, which should ensure that you get great low entry prices.
• 3:20
  SPEAKER_00: Now our third stock pick is Wing Stop, symbol WING.
• 3:27
  SPEAKER_00: It closed Friday at$131.72.
• 3:32
  SPEAKER_00: Raymond James reiterated their strong buy rating with a reduced price target of$185 down from$240.
• 3:43
  SPEAKER_00: The stock used to be a high flower flyer that traded for$425 a share in October of 2024, just two years ago.
• 3:54
  SPEAKER_00: Now if you look at the chart, you can see it made a two and a half year downward consolidation triangle.
• 4:00
  SPEAKER_00: And nine trading days ago, it crossed above its 50-day moving average.
• 4:05
  SPEAKER_00: That's a bullish event.
• 4:06
  SPEAKER_00: And a week before that, it had a bullish MACD crossover.
• 4:11
  SPEAKER_00: We think it's a bargain at this price.
• 4:13
  SPEAKER_00: Now the current earnings are$4.21 a share with a PE ratio of 29.06.
• 4:20
  SPEAKER_00: Next year's estimated earnings are$5.33 a share and a PE ratio of 22.95.
• 4:29
  SPEAKER_00: It's a fairly thin stock with only 27.24 million shares outstanding per finvis.cam.
• 4:38
  SPEAKER_00: It has 5.02 million shares short, which is a high short float of 18.57%, which could result in a short squeeze.
• 4:48
  SPEAKER_00: It has a$1, excuse me, a 1% dividend yield.
• 4:53
  SPEAKER_00: Now we want to wish you good luck in your trading and thank you for stopping.
• 4:58
  SPEAKER_00: Thank you for uh listening today and tuning in.
• 5:01
  SPEAKER_00: Uh good luck and thank you for thank you for calling.
• 5:03
  SPEAKER_00: Bye.