Finding Investable Companies In The Industrial Sector Is Hard To Do (Part 5 of 11) | FAST Graphs

[@mfaraday3872]

Thanks for your videos. I've been through a lot of 'stocks analyst channels', you're the only one left I trust. Greetings from Germany.

[@rosalieroku3818]

Screening + FASTgraphs is the best tool ever. FASTgraphs can't predict the future, But it can explain the past.

[@Wildboy789789]

I think im an industrials investor, after getting to know myself... i like the monopolistic nature, and im leaning twords the growth in aerospace atm

[@jordankendall86]

I noticed that you covered AFN, which is listed in Canada on the TSX. I didn't see an ADR listed online, but if I was to invest in that stock given that I am in the U.S., then how would I do that? What would you suggest?

[@emievil7321]

Chuck great content I have increased my brokerage account by 15K YTD with fastgraphs

[@yaykruser]

up 5k with chucks help :)

[@benjaminberuh6925]

Thanks Chuck! I look forward to the materials, financials, and energy videos.

[@palatinator]

Great Video, Thanks Chuck. Merry X-MAS

[@FASTgraphs]

Thanks, Merry Christmas

[@jeffreycooke949]

Hey Chuck I really like these sector videos! When you get to REITs can you show how FastGraphs works mortgage REITs?

[@willydear4906]

Thanks for the video. I'm a new fastgraphs subscriber. I'm using an android tablet and have a little bit of a hard time selecting points on the graph. I must press with my finger or mouse click a couple of times to get it to select the point of interest. It could be my old eyes or fat fingers but I suspect it will run better on a pc.

[@FASTgraphs]

Yes, it does work better on PC.

[@chuckdiezel7652]

Mr valuation can find solid value even in this sector 😮

[@arturj.1649]

Agree industrial sector is very difficult to invest. But cyclical can be chance expeccialy if you know this. I love havy industry like Caterpillar or union Pacific. Off ourse other are also in my vallet like 3m greetings

[@Dave-yw2wc]

Surprised CMI Cummins wasn't covered. Good growth, good dividend, consistent dividend increases and share buybacks. High ROE, ROIC.

[@johnstewart5221]

Great video! Thoughts on RTX vs the other defense stocks? i.e. LMT GD or NOC?

[@rosalieroku3818]

Excellent survey of the Industrials, thank you. Even if I don't buy anything, I learned a lot. I have a minor confusion with tweaking the P/E ratio and Earnings Yield on the screen. Aren't they simple inverses? If you change one, the other changes. What am I missing?

[@FASTgraphs]

Yes, the earnings yield is the inverse of the P/E ratio. Being able to screen with both just facilitate some fine tuning

[@daniell6303]

I have G, 3m and ST. Found G and ST with fastgraphs a few months ago.

[@LordJon0SRS]

We have Brinks delivery at my work 😅

[@race29dub]

Surprised not to see Cummins on the list but maybe it didn't quite meet the criteria. Owned it for a while and don't plan to sell anytime soon.

[@FASTgraphs]

I am long CMI not quite sure why not make the list. Earnings persistence and score will be my guess

Excellent video Chuck! I almost managed to bottom MMM when I bought about one month ago and I am happy to hold a solid, deep value stock. I find your videos useful and informative, your talk is honest and down to earth, which is great. The only catch is that you click very fast and sometimes it is hard to get a grasp of all your ideas because you talk too fast and in somewhat monotonous way. I would suggest to work some voice techniques.

[@FASTgraphs]

Thanks for the constructive criticism.

[@rosalieroku3818]

I'm from New York, so I appreciate your all- you- can- eat style. Once I get oriented, I find you very easy to follow. I generally watch you on TV, with my laptop running FASTgraphs. I follow along and pause to catch up.

[@rosalieroku3818]

Using FASTgraphs I visually learned on my own that my returns are the sum of 3 values: Earnings Growth Rate Dividend Yield Multiple Expansion (better termed Valuation Increase) And I do the quick math and, of course, the result closely agrees with the FASTgraphs Forecasting Calculator. Then I come across our hero Peter Lynch and his PEGY ratio. That was new to me, though I have known of the PEG ratio. Would it be difficult to offer the PEGY ratio as a Valuation Reference in FASTgraphs? There are so many great tools in FASTgraphs! Just keeps getting better.

[@FASTgraphs]

Thanks for recognizing that FAST Graphs strives to continuously get better. Regarding the PEGY ratio and others, we are working on a dashboard that will include additional ratios. However, keep in mind that as you correctly stated these are valuation references to analyze that reveal valuation. For example, when utilizing our forecasting calculators to estimate the potential future return, the calculation does include the 3 factors that you indicated. Personally, I consider that more comprehensive than simply pointing to a ratio and saying oh it's below 1 above 1 etc. regards, Chuck

[@rosalieroku3818]

@@FASTgraphs Thank you for taking the time to respond. I understand your point. One of the many great benefits of FASTgraphs is the Normal P/E Valuation Reference. As you have explained many times, it visually shows how the market values the stock over any time frame. Quite often it shows puzzling valuations- both inexplicably high and inexplicably low. But that's a visual representation of the vicissitudes of Mr. Market. I don't have to tell you that visual learning is much more powerful than reviewing numbers on a table. I think it would be interesting to see the Normal PEGY the market assigns to a stock under consideration. Another perspective to correlate to price action could be helpful. Thanks for all the effort you put in to the financial education of your subscribers. The time you put in to respond to questions is a great service. I have found your lessons incredibly valuable. Thanks.

[@rosalieroku3818]

@@FASTgraphs And a related point, I always note that when you are using the P/E=G Valuation Reference formula, then the orange line is a PEG=1 line. I'm asking Santa to have a PEGY Valuation Reference for Christmas. 🎅 Thanks for all you do. Merry Christmas and Happy New Year to you and your family.

[@rosalieroku3818]

@@FASTgraphs Well it took me embarrassingly long to realize that I can use one of my favorite tools, the Custom Valuation Reference, to set a PEGY ratio that I calculate manually. Though I won't get the great automatic dynamic recalculations that FASTgraphs offers. Merry Christmas 🎄 Happy New Year. P.S.- Just for portfolio diversification purposes, is there any way to value commodities in a fundamental way? I understand you can with producers of commodities. But I don't see how you could assess an intrinsic value to a commodity. But yet they must have some intrinsic value.

[@fengjikangqiang]

Middleby clientele are all small FnB business, any economic downturn they are the 1st to go down. Genpact is an Indian based outsourcing company that can get obsoleted by AI in the long term

[@cashoption2319]

G uses AI

[@FASTgraphs]

How then would you explain how well they did in 2008 and 2009 relative to most companies ?

[@LaurenceCp]

Thanks again for this series and thank you for showing how the screen was done!!!! Please continue to show this in the upcoming videos! I still can't figure out how to get to the forecast graphs. Chuck was going pretty fast in the video I couldn't catch what he click on to have them show up.

[@FASTgraphs]

The navigations on the left go to "forecasting calculators"

[@johnstewart5221]

does TXN fall into this sector or technology? would love to hear about that. It had a large pull back and now a nice short term recovery

[@FASTgraphs]

It would be in the technology sector, but valuation is too high to meet the criteria of the screen

[@johnstewart5221]

@@FASTgraphs understood, thanks!

[@jkbhalla2386]

Thanks Chuck- using your tool I found a great company AIT that has returned 250 pct in the last years. It has done very well for me! It is little over valed now per Fastgrapha. Please do a video on this great company. Thanks

[@Prachka1]

Bit expensive for fast graph - specially for those that are newly starting and may not have enough cash flow to budget extra… wish I could get it thought …😢

[@jordankendall86]

I wouldn't buy CSGS. My company is migrating away from its software and I don't see that as a good sign.

[@tommyg.3084]

CSG and G are data processing, why do they show up as Industrial?

[@FASTgraphs]

That's a question for Standard & Poor's as they are both considered industrials under GIC's

[@martinithechobit]

Ty yall.

[@justinshearer8180]

I’m buying swk

[@FASTgraphs]

I think that's a good long-term move, with the emphasis on long-term

[@menlubruce580]

chuck, when do you think you will complete all 11 sectors? I am using many of these to guide for 2024 and these videos are helping me alot .. thanks

[@FASTgraphs]

I will be doing 2 more this week and then four the week after New Year's. I will be taking Christmas week off

[@panzerdascal1]

👍

[@AlagosGaming4Life]

Can someone explain the difference between basic and premium for fastgraph, Key features: dont say much like 5 Valuation Metrics, what metrics?. Why cant basic see Financials!?

[@FASTgraphs]

docs.fastgraphs.com/docs/what-are-the-main-differences-between-basic-and-premium

[@dieterfrommunich758]

first, THANK YOU

[@katielowen]

Unfortunately you're second. And when you're second, you're last.😉💯

[@Sokrabiades]

6:15

[@moma8229]

3M is gonna spin off its healthcare unit next year, how is it possible to have an 8% growth if it is gonna lose 20-25% of revenues? Those forecasts are clearly wrong. I really don’t get how these so called analysts can ignore basic well known facts. Thanks for the video.

[@FASTgraphs]

With all due respect you are not thinking through the math correctly. For example, 8% of 100 equals 8. Whereas 8% of 80 equals 6.4. So a company that is by your numbers 20% smaller does not have to generate the same absolute growth to equal an 8% growth rate. However, with that said it is possible that the 7.48% average estimated growth rate is wrong. However, the analyst track record of forecasting MMM's earnings correctly is extremely high. Additionally, there is the reality of share buybacks were a smaller number of shares would make it easier to produce and earnings growth rate. Regards, Chuck

[@moma8229]

@@FASTgraphs Health care is their unit with the best margins by far so I really don't get current forecasts. In 6 months we shall see who was right or wrong since the spin off is planned within the fist semester

[@FASTgraphs]

@@moma8229 It is not about who is right or wrong about MMM. The analyst forecasts are not mine there provided by our data provider FACTSET which aggregates the estimates from leading analysts. The point I made is that a smaller company does not have to generate as much absolute growth in order to accomplish a percentage rate. We don't have to wait 6 months, that is simply a mathematical fact.

[@moma8229]

@@FASTgraphs number of 3m shares stays the same, profit sinks 25% with the spin off and yet eps grows 8% next year? I am not really buying that at all.

[@jkbhalla2386]

Valued not valed

[@ZAGIDI]

Look at these growth industrial stocks with great dividends $WSO, $HII, $HUBB, $GWW, $PH, $LYB, $ROK, $ITW

[@FASTgraphs]

I am familiar with all those, and they are arguably the best of the best in the industrial sector. However, I do not consider any of the investable at this moment because of overvaluation. The only one in your group that is not overvalued currently is LYB, which I consider to cyclical for my taste.

[@ZAGIDI]

@@FASTgraphsyou are spot on because most of them are at their all time high and luckily I got in them about 2 months ago so it worked out well for me. Great video as always.

[@alexzagariya2945]

It’s does not matter which sector…. Slot more important which stock has MORE chance to go up…..😊

[@FASTgraphs]

I am sorry but I do not know what your saying or perhaps asking.

[@alexzagariya2945]

@@FASTgraphs I say that different sectors is does not matter. A lot more important to focus on specific stock with highest possibility to go UP. Does not matter from which sector these stocks will be. Good night : love your videos. They are the best :)

[@FASTgraphs]

@@alexzagariya2945 okay, I sort of get what you're saying. However, with all due respect you're missing the point of this series. It is simply a review of the different sectors illustrating certain attributes that are common in one sector versus another. This is not about picking stocks. It's more about investing education. Furthermore, for the sake of diversification it does matter what sector. A well balanced portfolio can contain companies over several different sectors providing diversification.