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The NCAA men’s basketball tournament will conclude on Monday, but Wyatt Research’s stock-based version of March Madness is officially in the books.
The champion: Alphabet (NASDAQ: GOOGL) in a barn burner.
Alphabet squeaked by Wal-Mart (NYSE: WMT) by the thinnest of margins. The final tally was a weekly gain of 1.96% for Alphabet, compared to a 1.56% gain for Wal-Mart shares.
So congratulations to Google’s parent company! I hope it’s some consolation after its botched April Fools’ Day prank.
Here’s the final bracket:
On a cumulative basis, from the start of the tourney on March 7 until Friday’s market close, the stocks performed as follows:
- McDonald’s (NYSE: MCD): +8.40%
- Chevron (NYSE: CVX): +7.20%
- Facebook (NASDAQ: FB): +7.08%
- Microsoft (NASDAQ: MSFT): +6.80%
- Apple (NASDAQ: AAPL): +6.78%
- Alphabet (NASDAQ: GOOGL): +5.40%
- General Electric (NYSE: GE): +4.83%
- Verizon Communications (NYSE: VZ): +4.25%
- Amazon.com (NASDAQ: AMZN): +4.062%
- Netflix (NASDAQ: NFLX): +4.056%
- Wal-Mart (NYSE: WMT): +3.41%
- Pfizer (NYSE: PFE): +1.11%
- Exxon Mobil (NYSE: XOM): +0.81%
- The Walt Disney Co. (NYSE: DIS): +0.60%
- JPMorgan Chase (NYSE: JPM): -0.30%
- Wells Fargo (NYSE: WFC): -3.31%
So, my original pick to win it all, Facebook, didn’t fare too badly, despite losing in the opening round. It was merely the victim of a tough matchup against McDonald’s, the big winner on a cumulative basis.
As I mentioned in the first installment of this March Madness series, I was worried about that matchup, since McDonald’s has been riding a wave of all-day breakfast fandom. In fact, McDonald’s shares hit an all-time high this week.
Facebook shares managed a modest 2.66% weekly gain after the long-awaited Oculus Rift virtual reality headset was released on Monday to mixed reviews.
So I suppose, looked at a certain way, the chance to eat an Egg McMuffin for dinner won out over the chance to virtually travel to distant lands from the comfort of one’s couch.
That said, I like both McDonald’s and Facebook as long-term portfolio holdings.
Here are some of my favorite Wyatt Research articles from the past week:
Is the Oil Bottom In? – A lot of supply has been taken out of the oil market as producers have shut down production to save cash flows, as well as to avoid selling their commodity at rock-bottom prices. Specifically, the number of oil drilling rigs in the U.S. that are operational has fallen by 70% from the highs of just a couple years ago. The rig count is now back to 2009 lows, when oil was trading at similar prices as today. Meanwhile, the expected post-sanctions influx of Iranian oil to the market hasn’t happened, and we have the potential for production cuts and freezes in the OPEC countries. All of which begs the question: Has oil bottomed?
The 3 Best Ways to Profit From Rekindled US-Cuba Relations – President Obama’s historic trip to Cuba may have finally put to rest the ghost of the Cold War. That should heat up the profits of a trio of U.S. stocks.
Top 5 April Dividend Increases – Dividend increases make a huge difference in your portfolio over time, but you need to make sure you own the right stocks. Wyatt Research analyst Marshall Hargrave uncovered five stocks that are upping their payouts in April and have appealing growth prospects to boot.
Yum China: Tasty Deal or Indigestion for Shareholders? – In October, Yum Brands (NYSE: YUM) said it would spin off Yum China as a separate publicly traded company. Now it says it will sell off a piece of its China business altogether. For many years, the popularity of both Pizza Hut and KFC in China made Yum Brands perhaps the greatest success story of a foreign brand in the Middle Kingdom. But then a combination of marketing miscues, food safety scares, stronger domestic competition and changing Chinese consumer tastes turned Yum’s great success into a major headache.
McDonald’s Invaluable Lesson for Dividend-Growth Investors – McDonald’s shares hit an all-time high this week after announcing a major expansion in Southeast Asia. But longtime investors haven’t always been lovin’ it. In fact, they had to endure nearly three years of disappointing financial results and lousy share-price performance.
Did the Killer Whale Company Kill Its Dividend? – The market rejoiced when SeaWorld Entertainment (NASDAQ: SEAS) announced it will stop breeding killer whales and phase out orca shows. But an angry sea could be on the horizon.
The Lowdown on Chevron’s Down Under LNG Project – Situated along the western coast of Australia, Chevron’s $54 billion Gorgon liquefied natural gas project is perfectly positioned to capitalize on booming demand from Asia. Chevron could use the added boost to its coffers. With West Texas Intermediate crude falling from over $100 per barrel in 2014 to below $30 at its 2016 bottom, Chevron’s stock price has declined from $135 per share to around $90 in two years’ time.
Is This 14% Dividend Yield Finally Worth Buying? – A 14% dividend yield captures income-investor interest. Interest is further piqued by this business development company’s value proposition.
Have a great weekend!