1. September 2017 Stock Picks TOP 25 STOCKS September-17 RANK TICKER NAME
RANK
TICKER
NAME
SECTOR
INDUSTRY 1
BABA
Alibaba Group Holding Ltd
09 - Services
Retail (Catalog & Mail Order) 2 FB
Facebook Inc
10 - Technology
Computer Services 3
CELG
Celgene Corporation
08 - Health Care
Biotechnology & Drugs 4 V
Visa Inc
Business Services 5
FDX
FedEx Corporation
11 - Transportation
Air Courier 6
AAPL
Apple Inc.
Communications Equipment 7
DEO
Diageo plc (ADR)
05 - Consumer Non-Cyclical
Beverages (Alcoholic) 8
GOOGL
Alphabet Inc 9
DHI
D.R. Horton, Inc.
02 - Capital Goods
Construction Services 10
WLK
Westlake Chemical Corporation
01 - Basic Materials
Chemicals - Plastics and Rubbers 11
USCR
US Concrete Inc
Construction - Raw Materials 12 EW
Edwards Lifesciences Corp
Medical Equipment & Supplies 13
URI
United Rentals, Inc.
Rental & Leasing 14
AGN
Allergan plc 15 GD
General Dynamics Corporation
Aerospace and Defense 16
AMZN
Amazon.com, Inc. 17
ULTA
Ulta Beauty Inc
Retail (Specialty Non-Apparel) 18 HD
Home Depot Inc
Retail (Home Improvement) 19
DAL
Delta Air Lines, Inc.
Airline 20
DOW
Dow Chemical Co 21
COST
Costco Wholesale Corporation 22
CBS
CBS Corporation
Broadcasting & Cable TV 23 GS
Goldman Sachs Group Inc
07 - Financial
Investment Services 24 C
Citigroup Inc
Regional Banks 25
BAC
Bank of America Corp
As of August 31st, Subject to change.

2. September 2017 Growth Stock Picks
As of August 31st, Subject to change.

3. September 2017 Growth Stock Picks
As of August 31st, Subject to change.

4. September 2017 Growth Stock Picks
As of August 31st, Subject to change.

5. September 2017 Growth Stock Picks
As of August 31st, Subject to change.

6. September 2017 Growth Stock Picks
As of July 28th, Subject to change.

7. Apple Inc. (AAPL)
Apple Inc. designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players to consumers, small and mid-sized businesses, and education, enterprise, and government customers worldwide. The company also sells related software, services, accessories, networking solutions, and third-party digital content and applications. It offers iPhone, a line of smartphones; iPad, a line of multi-purpose tablets; and Mac, a line of desktop and portable personal computers. The company also provides iLife, a consumer-oriented digital lifestyle software application suite; iWork, an integrated productivity suite that helps users create, present, and publish documents, presentations, and spreadsheets; and other application software, such as Final Cut Pro, Logic Pro X, and FileMaker Pro. In addition, it offers Apple TV that connects to consumers' TV and enables them to access digital content directly for streaming high definition video, playing music and games, and viewing photos; Apple Watch, a personal electronic device; and iPod, a line of portable digital music and media players. Further, the company sells Apple-branded and third-party Mac-compatible, and iOS-compatible accessories, such as headphones, displays, storage devices, Beats products, and other connectivity and computing products and supplies. Additionally, it offers iCloud, a cloud service; AppleCare that offers support options for its customers; and Apple Pay, a mobile payment service. The company sells and delivers digital content and applications through the iTunes Store, App Store, Mac App Store, TV App Store, iBooks Store, and Apple Music. It also sells its products through its retail and online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers, and value-added resellers. Apple Inc. was founded in 1977 and is headquartered in Cupertino, California.
Source: FinViz.com, July 2017

8. Apple Inc. (AAPL)
POSITIVES: Apple is on track for a bounce-back year. The Dow component has had a fine 2017 thus far, rallying about 25% in value. And recent results have been solid, justifying, we think, the renewed investor enthusiasm for this large-cap tech name. Apple looks to be gaining share in the premium smartphone segment, which suggests that the iPhone 8 will usher in a very profitable upgrade cycle. There still appear to be plenty of catalysts here. the company should benefit from a booming services business. This segment grew 18% during the March interim and now generates revenues in excess of $7 billion. Moreover, Apple thinks it can double in size by 2020, as App Store sales charge ahead, the Apple Pay digital wallet platform makes inroads with consumers, and new investments in digital content begin to bear fruit. The company, notably, has been investing heavily in original content, from movies to TV shows. And we think it could emerge as a formidable competitor with Netflix and Amazon in the years ahead. All in all, we remain confident that share net will climb at a double-digit average annual clip for the foreseeable future. Possible concerns: The one soft spot has been China, where the iPhone faces stiff competition from several local OEMs, like Oppo, Vivo, and Huawei, that are aggressively marketing high-end devices across the country. Much of the weakness likely stems from currency headwinds, however. Given the short product life cycles of two to four years for most of its devices, competing OEMs will have plenty of chances to lure iOS customers away from Apple's platform and overcome switching costs, especially if Apple were to stumble in any given product refresh cycle. Future U.S. immigration and trade policy could have negative ramifications for Apple, which has significant overseas operations and manufacturing partnerships.
Source: Value Line, Morningstar, July 2017

9. Allergan plc (AGN)
Allergan plc, a specialty pharmaceutical company, develops, manufactures, markets, and distributes medical aesthetics, biosimilar, and over-the-counter pharmaceutical products worldwide. It operates through US Specialized Therapeutics, US General Medicine, and International segments. The company offers a portfolio of products that provide treatment for the central nervous system, gastroenterology, women's health and urology, ophthalmology, neurosciences, medical aesthetics, dermatology, plastic surgery, liver disease, inflammation, metabolic syndromes, and fibrosis, as well as Alzheimer's disease. It is also involved in developing ocular implants that reduce intraocular pressure associated with glaucoma; medical devices for the correction of prominent ears; and intranasal neurostimulation devices, as well as other dry eye products. In addition, the company distributes generic and branded pharmaceutical products primarily to independent and chain pharmacies, nursing homes, mail order pharmacies, hospitals, clinics, and physician offices. Further, it develops a portfolio of breast implants and tissue expanders; and RM-131 (relamorelin), a peptide ghrelin agonist for the treatment of diabetic gastroparesis. The company has licensing agreement with Assembly Biosciences, Inc.; Mimetogen Pharmaceuticals, Inc.; Almirall, S.A; Naurex, Inc.; and Merck & Co. The company was formerly known as Actavis plc and changed its name to Allergan plc in June Allergan plc was founded in 1983 and is headquartered in Dublin, Ireland.
Source: FinViz.com, July 2017

10. Allergan plc (AGN)
POSITIVES: Through acquisitions, Allergan has transformed into a major diversified drug manufacturer with a broad patent-protected portfolio and a healthy drug pipeline. Botox continues to dominate the neuromodulator market with almost 75% market share. Few competitors match Allergan’s product portfolio scope, brand recognition, and loyalty programs in the cosmetic market, and recent therapeutic indications introduce Botox to new areas. Allergan's drug pipeline, including biosimilars, holds potentially large growth opportunities. Possible concerns: Allergan’s future growth depends on the success of products in development, but some high-risk products have faced developmental challenges, such as the anti-VEGF DARPin currently entering Phase III clinical trials. Lower levels of R&D spending compared with peers puts greater pressure on management to supplement growth through acquisitions. Allergan's branded drug franchises in women's health, urology, gastrointestinal, and nervous system markets face high levels of generic competition, which erodes pricing power.
Source: Forbes, Finviz, Morningstar, July 2017

11. Amazon.com Inc. (AMZN)
Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions in North America and internationally. It operates through the North America, International, and Amazon Web Services (AWS) segments. The company sells merchandise and content purchased for resale from vendors, as well as those offered by third-party sellers through retail Websites, such as amazon.com, amazon.ca, amazon.com.mx, amazon.com.au, amazon.com.br, amazon.cn, amazon.fr, amazon.de, amazon.in, amazon.it, amazon.co.jp, amazon.nl, amazon.es, and amazon.co.uk. It also manufactures and sells electronic devices, including kindle e-readers, fire tablets, fire TVs, and echo; and provides Kindle Direct Publishing, an online service that allows independent authors and publishers to make their books available in the Kindle Store. In addition, the company offers programs that enable sellers to sell their products on its Websites, as well as their own branded Websites; and programs that allow authors, musicians, filmmakers, app developers, and others to publish and sell content. Further, it provides compute, storage, database, and other AWS services, as well as fulfillment, publishing, digital content subscriptions, advertising, and co-branded credit card agreements services. Additionally, the company offers Amazon Prime, an annual membership program, which provides free shipping of various items; access to unlimited streaming of movies and TV episodes; and other services. It serves consumers, sellers, developers, enterprises, and content creators. The company was founded in 1994 and is headquartered in Seattle, Washington.
Source: FinViz.com, July 2017

12. Amazon.com Inc. (AMZN)
POSITIVES: Amazon dominates North American online retail with an estimated GMV of approximately $180 billion in With more than half of the world's Internet users coming from developing markets, Amazon has sizable international growth opportunities, including Europe, Japan, and India. Kindle products and complementary devices like Fire TV, Dash, Echo, and Alexa represent intriguing customer acquisition and retention tools that capitalize on the shift to digital media while simultaneously promoting Prime memberships and AWS' various capabilities.
Amazon is the most disruptive force to emerge in ecommerce in several decades, and with its $13.7 billion acquisition of Whole Foods it is poised to further upend traditional brick-and-mortar retail stores. Amazon owns one of the wider economic moats in the consumer sector and is likely to reshape retail, digital media, and enterprise software for years to come.
Possible concerns: Amazon's margin expansion trajectory is likely to be uneven at times, given its global logistics and content investments, new sources of competition, and physical store aspirations. International expansion brings unique challenges such as local e-commerce regulations, infrastructure investments, and incumbent competition in some markets. Certain Amazon Web Services products will face competition from well-capitalized peers like Microsoft and Google, potentially exposing it to more aggressive price competition and longer-term margin pressures.
Source: Morningstar, July 2017

13. Alibaba Group Holding Limited (BABA)
Alibaba Group Holding Limited, through its subsidiaries, operates as an online and mobile commerce company in the People's Republic of China and internationally. The company operates in four segments: Core Commerce, Cloud Computing, Digital Media and Entertainment, and Innovation Initiatives and Others. It operates Taobao Marketplace, a mobile commerce destination; Tmall, a third-party platform for brands and retailers; Rural Taobao program that enables rural residents and businesses to sell agricultural products to urban consumers; Juhuasuan, a sales and marketing platform for flash sales; Alibaba.com, an online wholesale marketplace; Alitrip, an online travel booking platform; 1688.com, an online wholesale marketplace; and AliExpress, a consumer marketplace. The company also provides pay-for-performance and display marketing services through its Alimama marketing technology platform; and Taobao Ad Network and Exchange, a real-time bidding online marketing exchange in China. In addition, it offers cloud computing services, including elastic computing, database, storage and content delivery network, large scale computing, security, and management and application services, as well as big data analytics and a machine learning platform through its Alibaba Cloud Computing platform; Web hosting and domain name registration services; and payment and escrow services, as well as develops and operates mobile Web browsers. The company provides its solutions primarily for businesses. Alibaba Group Holding Limited has strategic collaborations with Driscoll's and Thai Union/Chicken of the Sea to launch their food products to China. The company was founded in 1999 and is based in Hangzhou, the People's Republic of China.
Source: FinViz.com, July 2017

14. Alibaba Group Holding Limited (BABA)
POSITIVES: Alibaba's China marketplaces boasted 454 million active buyers as of March 2017, roughly one third of China’s total population. We expect a long runway of user growth in the coming years. Alibaba stands to benefit from the ongoing structural shift of China's digital commerce market from C2C to B2C, as Tmall can gain significant organic user traffic from Taobao and better monetize transactions. The majority of Chinese online shoppers born in the 1990s consider Taobao as their first online shopping option, implying a long runway of potential lifetime transactions.
Possible concerns: Rapid expansion of other China digital commerce players like JD.com and Vipshop could disrupt Alibaba's growth in specific product categories. Alibaba has invested in businesses outside of China that might not significantly improve its ecosystem. This could divert management's attention from its core digital commerce marketplaces. Despite its dominant position in China, direct expansion into other regions outside of Southeast Asia could be a challenge due to the network effects of established local e-commerce rivals.
Source: Morningstar, July 2017

15. Bank of America Corporation (BAC)
Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. It operates through four segments: Consumer Banking, Global Wealth & Investment Management, Global Banking, and Global Markets. The Consumer Banking segment offers traditional and money market savings accounts, CDs and IRAs, noninterest- and interest-bearing checking accounts, and investment accounts and products, as well as credit and debit cards, residential mortgages and home equity loans, and direct and indirect loans. This segment provides its products and services through approximately 4,600 financial centers, 15,900 ATMs, call centers, and online and mobile platforms. The Global Wealth & Investment Management segment offers investment management, brokerage, banking, and retirement products, as well as wealth management and customized solutions. The Global Banking segment provides lending products and services, including commercial loans, leases, commitment facilities, trade finance, real estate lending, and asset-based lending; treasury solutions, such as treasury management, foreign exchange, and short-term investing options; working capital management solutions; and debt and equity underwriting and distribution, and merger-related and other advisory services. The Global Markets segment offers market-making, financing, securities clearing, settlement, and custody services, as well as risk management, foreign exchange, fixed-income, and mortgage-related products. Bank of America Corporation was founded in 1874 and is based in Charlotte, North Carolina.
Source: FinViz.com, July 2017

16. Bank of America Corporation (BAC)
POSITIVES: Bank of America is poised to succeed as a provider of retail banking and wealth management services on a nationwide scale. CEO Brian Moynihan has slowly repaired years of damage while mostly staying out of the headlines. Many of Bank of America's past problems were a result of poor capital-allocation decisions. The company's size (it is now too big to make material acquisitions) along with increased regulatory scrutiny reduces this risk going forward. Possible concerns: A financial institution of this size and complexity is inherently unmanageable--it's even possible that regulators might decide to break up the company. Bank of America has been cutting expenses for years, and the low-hanging fruit in this realm has been picked. Digital competitors are nipping at the heels of traditional branched banks.
Source: Morningstar, July 2017

17. Citigroup Inc. (C)
Citigroup Inc., a diversified financial services holding company, provides various financial products and services for consumers, corporations, governments, and institutions worldwide. The company operates through two segments, Citicorp and Citi Holdings. The Citicorp segment offers traditional banking services to retail customers through retail banking, commercial banking, Citi-branded cards, and Citi retail services. It also provides various banking, credit card lending, and investment services through a network of local branches, offices, and electronic delivery systems. In addition, this segment provides wholesale banking products and services, including fixed income and equity sales and trading, foreign exchange, prime brokerage, derivative services, equity and fixed income research, corporate lending, investment banking and advisory services, private banking, cash management, trade finance, and securities services to corporate, institutional, public sector, and high-net-worth clients. As of December 31, 2016, it operated 2,649 branches in 19 countries. The Citi Holdings segment provides consumer loans; and portfolio of securities, loans, and other assets. Citigroup Inc. was founded in 1812 and is based in New York, New York.
Source: FinViz.com, July 2017

18. Citigroup Inc. (C)
POSITIVES: Citigroup is leveraged to the rise of Asia, Latin America, and other emerging markets, while its competitors will struggle with lackluster loan demand in the U.S. and Western Europe. Citigroup is recapitalized and refocused under new management--the perfect conditions for a successful turnaround. A shrinking balance sheet, falling expenses, and a lighter regulatory environment provide a perfect combination for capital return over the next five years. Possible concerns: Emerging-market exposure will pull Citigroup down just as the U.S. begins to recover. The culture that led to Citigroup's bailout will not be easy to change. The company may be too big for anyone to manage successfully. Returns on tangible equity continue to fall well below the bank's cost of capital.
Source: Morningstar, July 2017

19. CBS Corporation (CBS)
CBS Corporation operates as a mass media company worldwide. The company operates through four segments: Entertainment, Cable Networks, Publishing, and Local Media. The Entertainment segment distributes a schedule of news and public affairs broadcasts, and sports and entertainment programming; produces, acquires, and/or distributes programming, including series, specials, news, and public affairs; operates online content networks for information and entertainment; produces, acquires, and distributes theatrical motion pictures; and digital streaming services. The Cable Networks segment offers subscription program services, such as original series, theatrical feature films, documentaries, boxing and other sports-related programming, and special events. This segment also operates CBS Sports Network, a 24-hour cable program service that provides college sports and related content; and Smithsonian Networks, which operates a channel featuring cultural, historical, scientific, and educational programs. The Publishing segment publishes and distributes adult and children's consumer books in printed, digital, and audio formats; develops special imprints and publishes titles based on the products of the company, as well as that of third parties; and distributes products for other publishers. This segment also delivers content; and promotes its products on its Websites, social media, and general Internet sites, as well as those related to individual titles. The Local Media segment owns 30 broadcast television stations; and operates local Websites, including content from the company's television stations, and news and sports radio stations. The company was founded in 1986 and is headquartered in New York, New York.
Source: FinViz.com, July 2017

20. CBS Corporation (CBS)
POSITIVES: The CBS television network has consistently generated strong broadcast ratings relative to its peers over the past several years. The success and stability of the network attract advertisers. CBS owns valuable sports rights, including the NFL, the NCAA's March Madness, and college football. This popular programming gives CBS leverage in negotiations with pay TV distributors for retransmission fees and with advertisers interested in the live viewing audience. Quality content is tough to build from scratch, and CBS owns one of the more successful television production studios. Possible concerns: CBS' business model depends on the continued growth of retransmission and reverse compensation fees. Increased cord cutting by consumers and lower ratings could threaten the growth of these fees. If advertisers shift money away from the broadcast networks, profitability at CBS will also fall rapidly because of the high operating leverage of the television business model. Developing hit programs can be unpredictable, especially as CBS is trying to develop more shows internally.
Source: Morningstar, July 2017

21. Celgene Corporation (CELG)
Celgene Corporation discovers, develops, and commercializes therapies to treat cancer and inflammatory diseases worldwide. It offers REVLIMID, an oral immunomodulatory drug for multiple myeloma, myelodysplastic syndromes (MDS), and mantle cell lymphoma; POMALYST/IMNOVID to treat multiple myeloma; OTEZLA, a small-molecule inhibitor of phosphodiesterase 4 for psoriatic arthritis, psoriasis, and ankylosing spondylitis; and ABRAXANE, a solvent-free chemotherapy product to treat breast, non-small cell lung, pancreatic, and gastric cancers. The company's products also include VIDAZA, a pyrimidine nucleoside analog for intermediate-2 and high-risk MDS, chronic myelomonocytic leukemia, and acute myeloid leukemia (AML); THALOMID to treat patients with multiple myeloma and erythema nodosum leprosum; and RITALIN and FOCALIN XR products. Its clinical stage products comprise OTEZLA for use in treating various immune-inflammatory diseases; luspatercept for beta-thalassemia and MDS; CC-486 to treat MDS, AML, and solid tumors; AG-881 for glioma with IDH mutations; LSD1 inhibitor to treat non-hodgkin lymphoma and solid tumors; CC-122 and CC-220 to treat hematological and solid tumor cancers, and inflammation and immunology diseases; and durvalumab, an anti-PDL-1 antibody, for multiple hematological cancers. The company has a strategic collaboration with BeiGene, Ltd. It also has collaborative agreements with Acceleron Pharma, Inc.; Agios Pharmaceuticals, Inc.; Sutro Biopharma, Inc.; bluebird bio, Inc.; FORMA Therapeutics Holdings, LLC; OncoMed Pharmaceuticals, Inc.; NantBioScience, Inc.; AstraZeneca PLC; Lycera Corp.; Juno Therapeutics, Inc.; Nurix Inc.; Jounce Therapeutics, Inc.; and Dragonfly Therapeutics, Inc. Celgene Corporation was founded in 1980 and is headquartered in Summit, New Jersey.
Source: FinViz.com, August 2017

22. Celgene Corporation (CELG)
POSITIVES: Celgene continues to perform within expectations and has continually reaffirmed long-term goals. A forward P/E of approximately 15x combined with a growth rate above 20% is attractive, which equals a PEG ratio below 1x. This is a lower PEG ratio than all other large-cap pharmaceutical stocks. Management recently reaffirmed 2020 Revenue goals of $21 billion, which is almost double from current levels and adjusted diluted EPS is expected to exceed $ These are aggressive goals, but they appear achievable given Celgene's clinical portfolio and pipeline. Consensus Wall Street estimates indicate 14% upside potential in the stock. Possible concerns: Celgene could suffer a few clinical trial failures, yet the company has long-term patent protection on existing blockbuster commercial drugs, so the company is almost guaranteed to see strong growth through 2024.
Source: Seeking Alpha, August 2017

23. Costco Wholesale Corporation (COST)
Costco Wholesale Corporation, together with its subsidiaries, operates membership warehouses. It offers branded and private-label products in a range of merchandise categories. The company provides dry and packaged foods, and groceries; snack foods, candies, alcoholic and nonalcoholic beverages, and cleaning supplies; appliances, electronics, health and beauty aids, hardware, and garden and patio; meat, bakery, deli, and produces; and apparel and small appliances. It also operates gas stations, pharmacies, optical dispensing centers, food courts, and hearing-aid centers; and engages in the travel businesses. In addition, the company provides gold star individual and business membership services. As of August 28, 2016, it operated 715 warehouses, including 501 warehouses in the United States, Washington, District of Columbia, and Puerto Rico; 91 in Canada; 36 in Mexico; 28 in the United Kingdom; 25 in Japan; 12 in Korea; 12 in Taiwan; 8 in Australia; and 2 in Spain. Further, the company sells its products through online. The company was formerly known as Costco Companies, Inc. Costco Wholesale Corporation was founded in 1976 and is based in Issaquah, Washington.
Source: FinViz.com, July 2017

24. Costco Wholesale Corporation (COST)
POSITIVES: Costco sells goods at one of the lowest markups among retailers, which should continue to drive market share gains over time as customers continue to seek out value. Costco has become a one-stop shop for consumers, offering general merchandise, grocery, as well as fuel, which is sold as a loss leader to drive traffic. Annual membership retention is about 90%, which we believe increases visibility into its future cash flows for both the company and investors. Possible concerns: Given its 90 million cardholders today, further penetration of warehouse locations could begin to slow, particularly in the U.S. The majority of the items Costco sells are bulk, which may not resonate as well with untapped consumer segments, particularly as people choose to delay the age at which they have children and opt to live in smaller, urban locations. New club openings in existing markets could lead to cannibalization of sales from older locations. Further, securing suitable real estate options for 140,000-square-foot warehouse clubs can be a challenge in urban areas.
Source: Morningstar, July 2017

25. Delta Air Lines Inc.(DAL)
Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States and internationally. The company operates through two segments, Airline and Refinery. Its route network is centered around a system of hubs, international gateways, and airports in Amsterdam, Atlanta, Boston, Detroit, London-Heathrow, Los Angeles, Minneapolis-St. Paul, New York-LaGuardia, New York-JFK, Paris-Charles de Gaulle, Salt Lake City, Seattle, and Tokyo-Narita. The company sells its tickets through various distribution channels, including delta.com and mobile applications/Web, telephone reservations, online travel agencies, traditional brick and mortar, and other agencies. It also provides aircraft maintenance, repair, and overhaul services; staffing, and professional security and training services, as well as aviation solutions to third parties; vacation packages to third-party consumers; and aircraft charters, and aircraft management and programs. As of February 2, 2017, the company operated a fleet of approximately 800 aircraft. Delta Air Lines, Inc. was founded in 1924 and is headquartered in Atlanta, Georgia.
Source: FinViz.com, July 2017

26. Delta Air Lines Inc. (DAL)
POSITIVES: Delta will extract value out of its international joint ventures, enabling it to access Chinese, Latin American, and European markets more effectively than its peers. Delta’s strategy of operating an older fleet keeps a lid on depreciating expenses and capital expenditures and aligns well with the current era of low fuel prices. Management will continue to beat peers on metrics such as on-time arrivals and completion rate; customers will reward the company by preferring it over network peers and awarding it a PRASM premium.
Possible concerns: Delta’s PRASM premium will be competed away as competitors like JetBlue and Southwest offer premium seating options to customers, network carriers roll out basic economy, and LCCs enter international markets. Delta’s JVs with international airlines will not return the expected benefits, and customers will become increasingly frustrated by the lack of coordination between Delta and its partners. Delta and other U.S. airlines will continue to bid away the profits from lower fuel prices, pushing fares down and depressing Delta's profitability.
Sources: Seeking Alpha, July 2017

27. Diageo plc (ADR)- (DEO)
Diageo plc produces, markets, and sells alcoholic beverages worldwide It offers scotch whiskey, gin, vodka, rum, beer and spirits, Irish cream liqueurs, wine, Raki, tequila, Canadian and American whiskey, Cachaca, and brandy, as well as adult beverages and ready to drink products. The company's premium brands comprise Johnnie Walker, Smirnoff, Captain Morgan, Baileys, Tanqueray, and Guinness. Its reserve brands include Johnnie Walker Blue Label, Johnnie Walker Green Label, Johnnie Walker Gold Label 18 year old, Johnnie Walker Gold Label Reserve, Johnnie Walker Platinum Label 18 year old, John Walker & Sons Collection, Johnnie Walker The Gold Route, Johnnie Walker The Royal Route, and other Johnnie Walker super premium brands; The Singleton, Cardhu, Talisker, Lagavulin, and other malt brands; Buchanan's Special Reserve and Buchanan's Red Seal; Bulleit Bourbon and Bulleit Rye; Tanqueray No. TEN and Tanqueray Malacca Gin; Ciroc and Ketel One vodka; and Don Julio, Zacapa, Bundaberg SDlx, Shui Jing Fang, Jinzu gin, Haig Club whisky, Orphan Barrel whiskey, and DeLeon Tequila. The company was founded in 1886 and is headquartered in London, the United Kingdom.
Source: FinViz.com, July 2017

28. Diageo plc (ADR)- (DEO)
POSITIVES: Diageo is one of the world's largest alcoholic beverages companies. Diageo was formed in 1997 from the merger of Guinness and Grand Metropolitan, a merger which created one of the world's largest producers of spirits. Although the creation of Diageo was relatively recent, many of its brands and their underlying businesses can trace their origins back to the 18th century.
The company has beaten the market in terms of overall growth rate, growth quality and profitability. This is a reasonably good sign that Diageo is a high-quality, relatively defensive business as alcoholic beverages are relatively defensive products because people like to drink, and a recession or two isn't going to stop them. Averaged across an entire country or the entire globe, any reduction in alcohol consumption as a result of economic woes is likely to be small and short-lived.
In the developed western markets, the total value of alcohol consumed is expected to grow in line with population growth (or decline as may be the case in Europe) and income per person. In developing markets such as Latin America and Asia Pacific, demand is expected to grow more quickly, along with the rapid growth of a consumption-oriented middle class which can afford Diageo's products.
One of Diageo's core strengths is the fact that its products do not need to be constantly changed or improved. In fact, their unchanging nature is one of the things that makes them attractive. Diageo's main intangible asset advantage is its brands. These are unique assets that are embedded in the minds of millions (perhaps even billions) of people across the world. Recently Diageo acquired super-premium tequila brand Casamigos in a transaction potentially valued at $1B.
Possible concerns: Although the beverage sector is not particularly prone to disruption or rapid change, one possible source of disruption is startup brands. With the advent of micro-breweries, plus social media and other forms of viral marketing, new drinks can quickly scale up into significant businesses.
Source: Seeking Alpha, July 2017

29. D.R. Horton, Inc. (DHI)
D.R. Horton, Inc. operates as a homebuilding company. It engages in the acquisition and development of land; and construction and sale of homes in 26 states and 78 markets in the United States under the names of D.R. Horton, America's Builder, Express Homes, Emerald Homes, Regent Homes, Crown Communities, and Pacific Ridge Homes. The company constructs and sells single-family detached homes; and attached homes, such as town homes, duplexes, triplexes, and condominiums. It is also involved in the origination and sale of mortgages; and provision of title insurance policies, and examination and closing services. The company primarily serves title insurance agents, homebuyers, and homebuilding customers. D.R. Horton, Inc. was founded in 1978 and is headquartered in Fort Worth, Texas.
Source: FinViz.com, July 2017

30. D.R. Horton, Inc. (DHI)
POSITIVES: Current new home demand is still below the long-run historical average. Continued affordability, tighter labor markets, and looser mortgage eligibility standards will drive stronger housing demand. Demand for entry-level housing will increase as the millennial generation forms households. D.R. Horton's Express Home brand is positioned to capitalize on this under-served market. D.R. Horton has a diversified product portfolio that benefits from multiple demographic tailwinds.
Possible concerns: Anemic wage growth, underemployment, and onerous student debt obligations will continue to deter potential first-time homebuyers. Rising interest rates will reduce home ownership affordability and derail the housing recovery. Constrained land supply and rising labor and material costs will limit D.R. Horton's production and/or profitability on delivered homes.
Source: Morningstar, July 2017

31. The Dow Chemical Company (DOW)
The Dow Chemical Company manufactures and supplies products that are used as raw materials in the manufacture of customer's products and services worldwide. The company's Agricultural Sciences segment provides crop protection and seed/plant biotechnology products, urban pest management solutions, and healthy oils. Its Consumer Solutions segment offers customized materials using technology and chemistries for specialty applications, such as semiconductors and organic light-emitting diodes, adhesives, and foams for use in the transportation industry; cellulosics and other polymers for pharmaceutical formulations and food solutions; and silicone solutions for consumer goods and automotive applications. The company's Infrastructure Solutions segment provides architectural and industrial coatings, construction material ingredients, building insulation products, adhesives, and microbial protection products for the oil and gas industry, telecommunications, and light and water technologies. Its Performance Materials & Chemicals segment offers chlorine and caustic soda; industrial solutions; and isocyanates, polyols, polyurethane systems, and propylene oxide/propylene glycols. The company's Performance Plastics segment provides elastomers, polyolefin plastomers, and ethylene propylene diene monomer elastomers; wire and cable insulation, semiconductive, and jacketing compound solutions, as well as bio-based plasticizers; acrylics, polyethylene, and polyolefin plastomers; and ethylene, propylene, benzene, butadiene, octane, aromatics co-products, and crude c4 products, as well as products for power, steam, and other utilities. It serves packaging, infrastructure, transportation, consumer care, electronics, and agriculture sectors. The Dow Chemical Company has a collaboration agreement with 1QB Information Technologies to develop quantum computing tools for the chemicals and materials science technology spaces. The company was founded in 1897 and is based in Midland, Michigan.
Source: FinViz.com, July 2017

32. The Dow Chemical Company (DOW)
POSITIVES: Dow benefits from greater feedstock flexibility than the average basic chemical producer in North America and Europe, giving it opportunities for added profits in periods of fluctuating input and output prices. Dow's investments in feedstocks at the U.S. Gulf Coast and in the Middle East should boost profitability for its downstream businesses. The merger with DuPont should create meaningful cost synergies.
Possible concerns: A plethora of announced petrochemical projects in the U.S. could eventually lead to oversupply. Lower oil prices should be pressure on Dow's North American-based ethylene operations. As seen in 2009, Dow operates in a cyclical industry that can get pounded by downturns in the global economy. The recent slowdown in GDP growth does not bode well for Dow's near-term prospects.
Sources: Morningstar, July 2017

33. Edwards Lifesciences Corporation (EW)
Edwards Lifesciences Corporation provides products and technologies to treat structural heart disease and critically ill patients worldwide. It offers transcatheter heart valve therapy products comprising transcatheter aortic heart valves and their delivery systems for the nonsurgical replacement of heart valves. The company also provides surgical heart valve therapy products, such as pericardial valves for aortic and mitral replacement, and minimally invasive aortic heart valve system; and tissue heart valves and repair products, which are used to replace or repair a patient's diseased or defective heart valve. In addition, it produces pericardial valves from biologically inert animal tissue; and provides heart valve repair therapies, including annuloplasty rings and systems. Further, the company offers critical care products, such as hemodynamic monitoring systems to measure a patient's heart function in surgical and intensive care settings; pulmonary artery catheters; and Oximetry Central Venous Catheters for continuous measurement of central venous oxygen saturation. Additionally, its critical care products include disposable pressure monitoring devices and closed blood sampling systems to protect patients and clinicians from infection; and peripheral vascular products used to treat endolumenal occlusive disease, such as embolectomy catheters for removing blood clots from peripheral blood vessels. The company distributes its products through direct sales force and independent distributors. Edwards Lifesciences Corporation was founded in 1999 and is headquartered in Irvine, California.
Source: FinViz.com, July 2017

34. Edwards Lifesciences Corporation (EW)
POSITIVES: Edwards' efforts to focus on efficiency and higher-margin products have paid off, as gross margins increased from 47% in 2000 to 73% in Cardiothoracic surgeons are a fairly conservative bunch and like to stick with proven devices and brands. As a pioneer in heart valves, Edwards continues to be seen as the gold standard. Edwards should benefit from an aging population, which experiences problems with heart valves and congestive heart failure with greater frequency. Possible concerns: Edwards' ambitions to diversify into minimally invasive medical technologies place the firm in direct competition with much larger competitors, such as Medtronic and Abbott, who can easily bid up prices for emerging technologies that Edwards couldn't match. Competition from Abbott and Boston Scientific is likely to enter the U.S. market starting in the time frame. If Sapien pricing remains high even after the entrance of new rivals, payers may limit usage of transcatheter valves for the intermediate-risk patients.
Source: Morningstar, July 2017

35. Facebook, Inc. (FB)
Facebook, Inc. provides various products to connect and share through mobile devices, personal computers, and other surfaces worldwide. Its solutions include Facebook Website and mobile application that enables people to connect, share, discover, and communicate each other on mobile devices and personal computers; Instagram, a mobile application that enables people to take photos or videos, customize them with filter effects, and share them with friends and followers in a photo feed or send them directly to friends; Messenger, a messaging application to communicate with people and businesses across platforms and devices; and WhatsApp Messenger, a mobile messaging application. The company also offers Oculus virtual reality technology and content platform, which allow people to enter an immersive and interactive environment to play games, consume content, and connect with others. As of December 31, 2016, it had approximately 1.23 billion daily active users. Facebook, Inc. was founded in 2004 and is headquartered in Menlo Park, California.
Source: FinViz.com, July 2017

36. Facebook, Inc. (FB)
POSITIVES: With more users and usage time than any other social network, Facebook provides the largest audience and the most valuable data for social network online advertising. Facebook’s ad revenue per user is growing, demonstrating the value that advertisers see in working with the firm. The application of AI technology to Facebook’s various offerings, along with the launch of VR products such as the Oculus Rift, will increase user engagement, driving further growth in advertising revenue. Possible concerns: Facebook is currently a one-trick pony and will be affected severely if online advertising no longer grows or if more advertising dollars shift to others like Google or Snapchat. Despite rapid user growth, many of Facebook’s customers may also belong to other social networks, such as Snapchat, so the firm will continually have to fight to capture a user’s time and engagement with Facebook’s properties. Regulations could emerge that limit the application and collection of user and usage data, which could minimize the value of Facebook’s aggregated data.
Source: Morningstar, July 2017

37. FedEx Corporation (FDX)
FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. The company's FedEx Express segment provides various shipping services for the delivery of packages and freight; international trade services specializing in customs brokerage, and ocean and air freight forwarding services; assistance with the customs-trade partnership against terrorism program; and customs clearance services, as well as an information tool that allows customers to track and manage imports. This segment also publishes customs duty and tax information; and offers critical inventory logistics, transportation management, and temperature-controlled transportation services, as well as international express transportation, small-package ground delivery, and freight transportation services. Its FedEx Ground segment provides business and residential money-back guaranteed ground package delivery services; and consolidates and delivers low-weight and less time-sensitive business-to-consumer packages, as well as offers third-party logistics services. The company's FedEx Freight segment offers less-than-truckload freight, and freight-shipping services. As of May 31, 2016, this segment operated approximately 65,000 vehicles and trailers from a network of approximately 370 service centers. Its FedEx Services segment provides sale, marketing, information technology, communication, customer, technical support, billing and collection, and other back-office support services; FedEx Mobile, a suite of solutions to track packages, create shipping labels, view account-specific rate quotes, and access drop-off location information; access to copying and digital printing through retail and Web-based platforms, signs and graphics, professional finishing, computer rentals, and ground shipping and time-definite express shipping services; and packing services, supplies, and boxes. The company was founded in 1971 and is based in Memphis, Tennessee.
Source: FinViz.com, July 2017

38. FedEx Corporation (FDX)
POSITIVES: FedEx's huge air fleet, 50,000 drop boxes, and global operations knit together a massive presence unlikely to be replicated except by its few current competitors. In addition to ground growth, resumption of higher margins in the LTL freight and international express businesses should boost revenue growth and consolidated operating margins, assuming some boost in international volume over current levels. During its four-decade history, FedEx has weathered multiple economic cycles and oil supply crises. While short-term results may suffer, the firm's powerful network is here to stay. Possible concerns: Although critical to growth, a high level of international exposure makes the firm vulnerable to downturns in global trade and political interference. Operating one of the world's largest airlines is a highly capital-intensive endeavor, and air freighter replenishment will demand substantial capital expenditures during the next several years. While fuel surcharges buffer much of the impact of rapid jet fuel and diesel price shocks, FedEx remains highly exposed to the price of crude oil.
Source: Morningstar, July 2017

39. General Dynamics Corporation (GD)
General Dynamics Corporation operates as an aerospace and defense company worldwide. It operates through four business groups: Aerospace; Combat Systems; Information Systems and Technology; and Marine Systems. The Aerospace group designs, develops, manufactures, and outfits business-jet aircraft; provides aircraft services, such as maintenance, repair, aircraft management, charter, fixed-base operational, and staffing services; and performs aircraft completion services for other original equipment manufacturers. The Combat Systems group is involved in the design, development, production, modernization, and sustainment of combat vehicles, weapons systems, and munitions. This group offers wheeled combat and tactical vehicles; main battle tanks and tracked combat vehicles; armaments; and maintenance and logistics support and sustainment services. The Information Systems and Technology group provides technologies, products, and services that support a range of military, federal/civilian, state, local, and commercial customers. This group offers information technology solutions and mission support services; communication, command-and-control, and computer mission systems; and imagery, signals, and multi-intelligence systems for customers in the defense sector, intelligence and homeland security communities, and the United States allies. The Marine Systems group designs, constructs, and repairs surface ships and submarines for the United States Navy and Jones Act ships for commercial customers. This group offers nuclear-powered surface combatants, auxiliary and combat-logistics ships, and commercial product carriers and containerships; and provides design and engineering support services, as well as maintenance, modernization, and lifecycle support services. General Dynamics Corporation was founded in 1899 and is based in Falls Church, Virginia.
Source: FinViz.com, July 2017

40. General Dynamics Corporation (GD)
POSITIVES: Management's focus on margins over market share gains means improved operating performance for the company, which will continue to boost the bottom line. Strong orders from the U.K. and Saudi Arabia will enable a resurgence in sales growth over the coming years in the ground vehicle business. The U.S. defense budget is set for growth, and the Trump administration's apparent focus on shipbuilding and army end strength will benefit General Dynamics. Possible concerns: Information systems, at 30% of sales, has been hit by constrained government budgets and faces significant cost pressures in a highly competitive environment. Business jet demand will weaken and enter a cyclical downturn. In addition, General Dynamics faces a complex manufacturing and commercial transition to the G500 and G600 models. General Dynamics is reliant on a few major programs (G500, G600, Columbus submarines, and LAV for Saudi Arabia) to drive growth. If one or several of these are canceled or face tough market conditions, this would hurt revenue growth and margin expansion.
Source: Morningstar, July 2017

41. Google Inc. (GOOGL)
Alphabet Inc., through its subsidiaries, provides online advertising services in the United States, the United Kingdom, and rest of the world. The company offers performance and brand advertising services. It operates through Google and Other Bets segments. The Google segment includes principal Internet products, such as Search, Ads, Commerce, Maps, YouTube, Google Cloud, Android, Chrome, and Google Play, as well as technical infrastructure and newer efforts, including Virtual Reality. This segment also sells digital contents, apps and cloud offerings, and hardware products. The Other Bets segment includes businesses, such as Access, Calico, CapitalG, GV, Nest, Verily, Waymo, X, and Google Fiber. Alphabet Inc. was founded in 1998 and is headquartered in Mountain View, California.
Source: FinViz.com July 2017

42. Google Inc. (GOOGL)
POSITIVES: As the number of online users and usage increases, so will digital ad spending, of which Google will remain one of the main beneficiaries. Android’s dominant global market share of smartphones leaves Alphabet’s Google well positioned to continue generating top-line growth as search traffic shifts from desktop to mobile. The significant cash generated from the Google search business allows Alphabet to remain focused on innovation and the long-term growth opportunities that new areas present. Possible concerns: There is little revenue diversification within Alphabet, as it remains heavily dependent on Google and the state of the search ad space. Alphabet is allocating too much capital towards high-risk bets, which face a very low probability of generating returns. Google’s dominant position in online search is not sustainable, as more companies and regulatory agencies are contesting the methods through which the company has been extending its leadership.
Source: Morningstar, July 2017

43. Goldman Sachs Group Inc. (GS)
The Goldman Sachs Group, Inc. operates as an investment banking, securities, and investment management company worldwide. It operates through four segments: Investment Banking, Institutional Client Services, Investing & Lending, and Investment Management. The Investment Banking segment provides financial advisory services, including strategic advisory assignments related to mergers and acquisitions, divestitures, corporate defense activities, restructurings, spin-offs, and risk management; and underwriting services, such as debt and equity underwriting of public offerings and private placements of various securities and other financial instruments, as well as derivative transactions with public and private sector clients. The Institutional Client Services segment is involved in client execution activities related to making markets in cash and derivative instruments for interest rate products, credit products, mortgages, currencies, commodities, and equities; and provision of securities services comprising financing, securities lending, and other prime brokerage services, as well as markets in and clears client transactions on primary stock, options, and futures exchanges. The Investing & Lending segment invests in and originates longer-term loans to provide financing to clients; and makes investments in debt securities and loans, public and private equity securities, and infrastructure and real estate entities, as well as provides unsecured loans to individuals through its online platform. The Investment Management segment offers investment management products and services; and wealth advisory services consisting of portfolio management and financial counseling, and brokerage and other transaction services. The company serves corporations, financial institutions, governments, and individuals. The Goldman Sachs Group, Inc. was founded in 1869 and is headquartered in New York, New York.
Source: FinViz.com, July 2017

44. Goldman Sachs Group Inc. (GS)
POSITIVES: More stable investment management and net interest income could cause investors to reassess the company’s earnings quality and increase their willingness to pay a premium for it. The company has a record of success with higher-volume lower-margin businesses, and this capability could prove useful in adapting to over-the-counter derivatives reform and changes in the fixed-income trading landscape. Several of the company's primary U.S. and European competitors have been forced to restructure, which could give Goldman an opportunity to gain market share. Possible concerns: All else equal, lower leverage reduces returns to shareholders. A severe financial shock could still turn market sentiment against the company. As the current U.S. economic recovery period is getting old, a capital markets activity peak may come sooner rather than later.
Source: Morningstar, July 2017

45. The Home Depot, Inc. (HD)
The Home Depot, Inc. operates as a home improvement retailer. It operates The Home Depot stores that sell various building materials, home improvement products, and lawn and garden products, as well as provide installation, home maintenance, and professional service programs to do-it-yourself, do-it-for-me (DIFM), and professional customers. The company offers installation programs that include flooring, cabinets, countertops, water heaters, and sheds; and professional installation in various categories sold through its in-home sales programs, such as roofing, siding, windows, cabinet refacing, furnaces, and central air systems, as well as acts as a contractor to provide installation services to its DIFM customers through third-party installers. It primarily serves home owners; and professional renovators/remodelers, general contractors, handymen, property managers, building service contractors, and specialty tradesmen, such as installers. The company also sells its products through online. It operates through approximately 2,278 stores, including 1,977 in the United States, including the Commonwealth of Puerto Rico, and the territories of the U.S. Virgin Islands and Guam; 182 in Canada; and 119 in Mexico. The Home Depot, Inc. was founded in 1978 and is based in Atlanta, Georgia.
Source: FinViz.com, July 2017

46. The Home Depot, Inc. (HD)
POSITIVES: Home Depot's focus on distribution and merchandising should improve productivity and increase domestic market share as the housing market improves, increasing sales and margins. The company has returned $46 billion to its shareholders through dividends and share buybacks over the past five years (25% of its market cap). The firm has consistently increased its dividend and plans to use excess cash to repurchase shares. The addressable pro market is around $50 billion, and Interline and Home Depot together represent less than 5% share, leaving meaningful upside up for grabs. Possible concerns: Weak consumer spending or an economic downturn could delay home-improvement projects and affect Home Depot's sales. IT and supply chain improvements face implementation risks, which could affect profit growth if peers surpass Home Depot’s capabilities. Limited footprint growth domestically may drive increased competitive pricing pressures between Home Depot and Lowe's, constraining ROIC expansion. Additionally, Amazon’s rumored deal to sell Violet Grey products via the ecommerce giant.
Source: Morningstar, July 2017

47. ULTA Salon, Cosmetics & Fragrance, Inc. (ULTA)
Ulta Beauty, Inc. operates as a beauty retailer in the United States. The company's stores provide cosmetics, fragrance, skincare, haircare, bath and body products, and salon styling tools, as well as others, including nail products and accessories. It offers private label products consisting of Ulta Beauty Collection branded cosmetics, skincare, and bath products. As of March 9, 2017, the company operated 974 retail stores in 48 states and the District of Columbia. Its full-service salon offers hair, skin, and brow services; and provides products through its Website, ulta.com. The company was formerly known as Ulta Salon, Cosmetics & Fragrance, Inc. and changed its name to Ulta Beauty, Inc. in January Ulta Beauty, Inc. was founded in 1990 and is based in Bolingbrook, Illinois.
Source: FinViz.com, July 2017

48. ULTA Salon, Cosmetics & Fragrance, Inc. (ULTA)
POSITIVES: Ulta is a very successful retail concept, delivering sales per square foot of $450 out of a 10,000 square foot store, and 21.7 million Ultamate Rewards loyalty program members. At 949 stores, and adding 100 new stores each year, they are about seven years away from reaching their current stated 1,700 store potential in the US. Ulta is the largest beauty retailer in the United States and the premier beauty destination for cosmetics, fragrance, skin care products, hair care products, and salon services.
Possible concerns: The leading risk factor for Ulta is that the company will lose ground to third-party online sellers like AMZN who recently solidified a expanded partnership with Violet Grey. With a TTM P/E ratio of 46, the market is overlooking the fact that as they approach 1,700 stores, the growth story will be mostly complete, justifying a declining P/E-multiple over time. Their current market cap is $17 billion, which represents a value per current store of $17 million - quite pricey. Per Yahoo Finance, the TTM P/E ratio is 46 and the forward P/E is 34 – both very high. Big department stores are starting to more aggressively discount their cosmetic products. That does create a more promotional cosmetics selling backdrop, and may likely weigh somewhat on either ULTA’s comp growth or margins.
Source: Seeking Alpha, July 2017

49. United Rentals, Inc. (URI)
United Rentals, Inc., through its subsidiaries, operates as an equipment rental company. It operates in two segments, General Rentals; and Trench, Power, and Pump. The General Rentals segment engages in the rental of general construction and industrial equipment, such as backhoes, skid-steer loaders, forklifts, earthmoving equipment, and material handling equipment; aerial work platforms, such as boom lifts and scissor lifts; and general tools and light equipment comprising pressure washers, water pumps, and power tools. This segment serves construction and industrial companies, manufacturers, utilities, municipalities, and homeowners. The Trench, Power, and Pump segment is involved in the rental of specialty construction products, including trench safety equipment, such as trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers, and line testing equipment for underground work; power and HVAC equipment, which consists of portable diesel generators, electrical distribution equipment, and temperature control equipment; and pumps primarily used by energy and petrochemical customers. It serves construction companies involved in infrastructure projects, municipalities, and industrial companies. The company also sells new equipment, such as aerial lifts, reach forklifts, telehandlers, compressors, and generators; contractor supplies, including construction consumables, tools, small equipment, and safety supplies; and parts for equipment that are owned by the company's customers, as well as provides repair and maintenance services. It sells its used equipment through its sales force, brokers, and Website, as well as at auctions and directly to manufacturers. As of January 1, 2017, the company operated 887 rental locations in the United States and Canada. United Rentals, Inc. was founded in 1997 and is headquartered in Stamford, Connecticut.
Source: FinViz.com, August 2017

50. United Rentals, Inc. (URI)
POSITIVES: United Rentals was one of the beneficiaries of the so-called Trump Trade, as investors bet that it would benefit from increased infrastructure spending. It gained 88% from a low of $70.92 on Nov.3 to a high of $ on March 1, but had dropped 20% through last Friday's close. But with construction needed to repair the damage from Harvey, United Rentals could see an uptick in demand for its products.
Last month, United Rentals reported 8.5% higher earnings per share for its second quarter, backed by a 13.5% year-over-year jump in rental revenue. Encouraged by strong ongoing demand for equipment, management upgraded full-year revenue guidance to $6.25 billion-$6.4 billion, representing nearly 10% upside at the midpoint from last year's revenue level. Furthermore, management expects to generate strong free cash flow, to the tune of $825 million-$925 million, this year. Between its strong operational standing and a potential uptick in infrastructure spending in the U.S. in the wake of Trump's signing an executive order to expedite infrastructure-project approvals, United Rentals' stock appears to have solid upside potential. More so because at a trailing P/E of 16, United Rentals is trading at a significant discount to its five-year metric, as well as the industry average.
Possible concerns: The stock has been struggling to maintain momentum, having lost nearly 14% of its value in the past six months. But if United Rentals' recent bumper quarterly numbers are anything to go by, there's every chance the stock could whip up solid returns going forward.
Sources: Barron’s, August 2017
The Motley Fool, August 2017

51. U.S. Concrete, Inc. (USCR)
U.S. Concrete, Inc. produces and sells ready-mixed concrete, aggregates, and concrete-related products and services for the construction industry in the United States. It operates through two segments, Ready-Mixed Concrete and Aggregate Products. The Ready-Mixed Concrete segment engages in the formulation, preparation, and delivery of ready-mixed concrete to customers' job sites; and the provision of various services that include the formulation of mixtures for specific design uses, on-site and lab-based product quality control, and customized delivery programs. The Aggregate Products segment offers crushed stone, sand, and gravel for use in commercial, industrial, and public works projects. The company also engages in the operation of building materials stores; provision of concrete blocks, lime slurry, and Aridus rapid-drying concrete technology; sale of brokered products; hauling and recycled aggregates operation activities; and operation of aggregates distribution terminals, as well as transfer trucks for transporting cement and aggregates. It primarily serves concrete sub-contractors, general contractors, governmental agencies, property owners and developers, architects, engineers, and home builders. As of December 31, 2016, the company operated a fleet of approximately 1,540 owned and leased drum mixer trucks; 125 owned volumetric mixer trucks; and approximately 1,440 other rolling stock and vehicles. U.S. Concrete, Inc. was incorporated in 1997 and is based in Euless, Texas.
Source: FinViz.com, July 2017

52. U.S. Concrete, Inc. (USCR)
POSITIVES: U.S. Concrete’s relatively higher commercial construction exposure positions it well for the still rising improvement in nonresidential construction activity. U.S. Concrete continues to maintain manageable leverage despite a highly acquisitive bolt-on acquisition strategy. U.S. Concrete holds leading market share positions in attractive locations, including Texas, Northern California, and the New York metro area. US Concrete has seen nothing but operational improvement over the past several years. Revenue growth, both inorganic and organic, has been stellar. So has margin expansion. Despite excellent operational results, the company remains relatively cheap compared to slower growing industrials.
Following the election of Donald J. Trump as America's next president, U.S. aggregates and concrete companies have rallied sharply, gaining more than 30% since the election. Concrete is almost entirely consumed near its production sites given low value-to-weight ratios. As a result, increases in infrastructure spending definitely benefit the financial performance of U.S. Concrete. During his campaign, President-elect Donald Trump proposed to spend $1 trillion over a 10-year period to repair roads, bridges, and other infrastructure. In part, Trump hopes to lean on private spending to achieve his goal with $137 billion in tax credits for construction companies who would then borrow on the open market to fund projects with attached revenue streams--a toll road, for example. U.S. infrastructure construction (including transportation, highway and street, sewage and waste disposal, water supply, conservation and development) is set to total about $180 billion in Tacking on an additional $100 billion would translate to a 55% increase in annual spending.
Possible concerns: While the FAST Act provides some funding certainty through the end of the decade, the Highway Trust Fund still lacks the ability to self-fund and will lead to another political battle a few years down the road. U.S. Concrete’s earnings depend on volatile factors beyond management's control, such as U.S. economic performance, government budgets, and credit availability. Roughly 95% of U.S. Concrete’s revenue is concentrated in just three markets, increasing the potential impact of local market issues impacting company-wide profits.
Source: Morningstar, July 2017
E-trade, July 2017
SeekingAlpha, July 2017

53. Visa Inc. (V)
Visa Inc. operates as a payments technology company worldwide. The company facilitates commerce through the transfer of value and information among consumers, merchants, financial institutions, businesses, strategic partners, and government entities. It operates VisaNet, a processing network that enables authorization, clearing, and settlement of payment transactions; and offers fraud protection for account holders and assured payment for merchants. The company also offers gateway services for merchants to accept, process, and reconcile payments; manage fraud; and safeguard payment security online, as well as processing services for participating issuers of visa debit, prepaid, and ATM payment products. In addition, it provides digital products, including Visa Checkout that offers consumers an expedited and secure payment experience for online transactions; and Visa Direct, a push payment product platform, which facilitates payer-initiated transactions that are sent directly to the Visa account of the recipient, as well as Visa token service that replaces the card account numbers from the transaction with a token. Further the company offers corporate (travel) and purchasing card products, as well as value-added services. It provides its services under the Visa, Visa Electron, Interlink, V PAY, and PLUS brands. The company has a strategic partnership agreement with Oman Arab Bank to convert the bank's current electron cards to chip-and-PIN debit cards. Visa Inc. was incorporated in 2007 and is headquartered in San Francisco, California.
Source: FinViz.com, July 2017

54. Visa Inc. (V)
POSITIVES: Visa is king of the hill in the digital payment market and will not be easily toppled. The ability to deal with hundreds of legal and regulatory frameworks around the world is a significant barrier to entry. Visa has an established network and brand and has only to adopt new technologies for its own purposes in order to fend off competition.
Possible concerns: The global financial system is becoming increasingly regulated, and the biggest players will be the first victims. Visa's already large market share, and its relative dependence on U.S. spending and debit cards, may place it at a growth disadvantage. The increasing use of mobile technologies will usher in a new payment paradigm at some point.
Source: Morningstar, July 2017

55. Westlake Chemical Corporation (WLK)
Westlake Chemical Corporation manufactures and markets basic chemicals, vinyls, polymers, and building products. It operates through two segments, Olefins and Vinyls. The Olefins segment offers ethylene, polyethylene, styrene monomer, and various ethylene co-products, as well as sells propylene, crude butadiene, pyrolysis gasoline, and hydrogen. The Vinyls segment provides specialty and commodity PVC, VCM, EDC, chlorine, caustic soda, chlorinated derivative, and ethylene products. This segment also manufactures and sells products fabricated from PVC, including pipe, fittings, profiles, trims, mouldings, fence and decking products, window and door components, and film and sheet products. The company's products are used in various consumer and industrial markets, including flexible and rigid packaging, automotive products, coatings, and residential and commercial construction, as well as other durable and non-durable goods. Westlake Chemical Corporation also offers its products to a range of customers, including chemical processors, plastics fabricators, small construction contractors, municipalities, and supply warehouses primarily in North America and Europe. The company was founded in 1985 and is headquartered in Houston, Texas. Westlake Chemical Corporation is a subsidiary of TTWF LP.
Source: FinViz.com, July 2017

56. Westlake Chemical Corporation (WLK)
POSITIVES: Westlake Chemical lies on the lower end of the ethylene cost curve as a result of its North American operations, which can use low-cost natural gas liquids as feedstock. Unlike some of its competitors, Westlake Chemical has invested mostly in smaller debottlenecking expansions, rather than more-capital-intensive greenfield projects that we expect to generate lower returns. Westlake Chemical should benefit from its exposure to U.S. water supply and sewage construction, where we expect strong growth as a result of years of underinvestment and aging water pipes.
The chemical maker has seen its shares rise roughly 10% year to date. Westlake Chemical’s profits rose around 12% year over year to $138.2 million or $1.06 per share in the first quarter of The bottom line was supported by increased selling prices for key products and contributions of Axiall acquisition. Sales were driven by higher sales volumes for major products and increased selling prices for caustic and North American polyvinyl chloride (“PVC”) resin. Westlake Chemical said that it is seeing strong global demand for its key products. It expects favorable demand trends for all of its major products, including chlor-alkali, to continue through the balance of 2017.
Possible concerns: Years of banner profits will come to an end as lower oil prices and higher feedstock costs lead to margin contraction. Margins will be squeezed as ethane prices rise faster than natural gas prices. Many of Westlake Chemical's plants are running at high operating rates. With relatively little capacity expansion planned, we expect volume growth to be limited.
Source: Yahoo Finance, Morningstar, July 2017

57. Lee Johnson Capital Management uses research and investment information from sources that it deems reliable. This information is not a recommendation to buy or sell, but for illustrative purposes. Please consult your advisor before investing in these or like investments, as not all investments are suitable. Each investor has different goals and objectives.

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