Quick Picks - September 23rd 2020

Hi Seekers,

It is time for our weekly Quick Picks segment.

The first two days of trading we have bounced off last weeks volatility. Plenty of economic and political uncertainty exists, as does overall market overvaluation. I believe short-term pressures remain, which is why I elect to layer into my positions.

In this segment, my goal is to give you a look into some trades I am looking at during the week. As you are already aware, I am a long-term investor, meaning the majority of my positions are buy and hold type positions.

Last week I bought shares of CVS, which are about even since then. Shares of FRT fell unexpectedly and are now trading at a BIG discount.

Let’s look at some stocks I am looking at this week.

#1 Teladoc Health Inc. (TDOC)

The first name I will mention this morning is a name I have been high on for a little while now. I was not one of the earlier investors, but I recently invested at $195/share. I made the purchase after the stock bounced off $185 support levels a few weeks back.

The resistance level was $205 and the stock broke through that resistance yesterday and closed at $215. If the stock closes above the $205 level today, I believe a move higher is in the book.

Long-term, I believe shares of TDOC should move higher to $275 once the Livongo Health acquisition closes. Meeting with your doctor digitally is the future of healthcare and is here to stay even after COVID-19 is behind us.

If the stock can hold the $205/$207 level I fully expect it to re-test the $240 level in the near-term.

Here is a look at the current chart.

Here is a look at what the analysts think.

Argus Price Target: $280; Rated BUY

CFRA Rated BUY

Average Price Target: $240

High Price Target: 282

#2 AbbVie Inc. (ABBV)

For those of you that follow me on Twitter, you are fully aware that ABBV is one of my favorite Dividend Growth stocks.

The company owns the best selling drug on the market in Humira, and is loaded with a strong pipeline of new drugs and others in late stage testing. During the year, ABBV closed on their acquisition of Allergan, which diversifies their portfolio and further adds to the pipeline.

During COVID, many Americans have largely been working from home, but the number of Zoom calls and being in front of a screen still have folks worrying about their looks, which is why I fully believe Botox will continue to be fine in this environment and post-COVID.

The company currently pays a dividend of $4.72, which equates to a dividend yield of 5.3%, well above the five-year average of 3.9%. The stock trades at an earnings multiple of 9.5x, compared to their 5-year average of 13.9x. The P/S is 3.9x, also below five-year average of 4.5x. All these metrics point to an undervalued stock.

The stock currently trades right at support levels of $88, and appears to be a GREAT entry point for the long-term. RSI is at 35 and the stock trades right at 200 day EMA.

Here is a look at the chart.

Here is a look at what the analysts think.

Argus Price Target: $115; Rated BUY

CFRA Rated HOLD

Average Price Target: $110

High Price Target: $127

#3 Alphabet (GOOGL)

Not sure I need to go into what Alphabet does, but the company is one of the major players in Advertisement. Online advertising is expected to continue growing as more and more users look online or mobile, both of which advertisements continue growing.

Facebook and Google are two of the most prominent advertising companies in the United States.

Google is currently under fire from the EU (again) for essentially dominating the space. The company has been fined nearly $10 billion by the European Union.

Alphabet recently traded below $1,441 support levels, but closed above this level yesterday. If the company can hold this level, with the stock trading at an RSI level of 39, which is the lowest RSI reading since late March, I believe the stock will move higher. Mega technology companies has taken a breather of late, but these levels appear to be a quality long-term entry point for this ad giant.

Here is a look at the current chart.

Here is a look at what the analysts think.

Argus Price Target: $1,620; Rated BUY

CFRA Rated STRONG BUY; PT $1,865

Average Price Target: $1,766

High Price Target: $2,000

Thank you for Reading!

These are three names I will be watching closely the rest of the week. All three will be considered for both long positions as well as options. If you have any questions at all on the information above, please do not hesitate to email me.

Have a great week!