{"id":142,"date":"2007-05-07T09:36:37","date_gmt":"2007-05-07T13:36:37","guid":{"rendered":"https:\/\/stockherd.com\/moosepond\/?p=142"},"modified":"2010-02-15T13:08:07","modified_gmt":"2010-02-15T17:08:07","slug":"lowest-par-stock-fds","status":"publish","type":"post","link":"https:\/\/stockherd.com\/moosepond\/2007\/05\/07\/lowest-par-stock-fds\/","title":{"rendered":"Finding Outliers in a Portfolio"},"content":{"rendered":"<p><em><strong>Our lowest PAR, highest P\/E stock is FDS<\/strong><\/em><\/p>\n<p>One of the activities in portfolio management is to look for &#8220;outliers&#8221; in a portfolio.   That is part of the continuous process of improving a portfolio.  Comparing the projected average return, P\/E ratio, projected sales growth, projected revenue growth, and quality metrics for each stock in a portfolio, can help spot outliers.    To borrow an airborne term, at least one stock will be standing in the door, ready to jump.  Outliers make good candidates for sale when a better opportunity comes along.<\/p>\n<p>The <a href=\"http:\/\/www.manifestinvesting.com\/dashboard\/40\">dashboard<\/a> for our portfolio shows the projected average return for each stocks.  <a href=\"https:\/\/stockherd.com\/moosepond\/?p=43\" title=\"FDS\">Factset Research Data<\/a> (FDS) is the outlier, with the lowest projected average return (6%) of all our stocks except ChevronTexaco.   Looking at the <a href=\"http:\/\/spreadsheets.google.com\/pub?key=phu_-OVTxERVTG-L0HDGVNw&amp;output=html&amp;gid=1&amp;single=true\" title=\"Click for Portfolio Summary\">portfolio summary<\/a>,  FDS has a current current P\/E of 34 making it the  highest P\/E stock in the portfolio.<\/p>\n<p>FDS has been one of our winners, +12.3% YTD.   However, its run-up in price has reduced its projected average return (PAR) to about 6%.   (See updated <a href=\"https:\/\/stockherd.com\/moosepond\/files\/ssg\/fds_20070507.pdf\">stock selection guide<\/a>.)  Value Line rates its financial strength B++ and earnings predictability 100. Morningstar rates it &#8220;three stars&#8221; meaning it is fairly priced.<\/p>\n<p>So the dilemma is do we &#8220;let the winner run&#8221; or &#8220;take profits.&#8221;  It is probably a hold at this point.  If the PAR falls any lower, however, it will be candidate for replacement.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Our lowest PAR, highest P\/E stock is FDS One of the activities in portfolio management is to look for &#8220;outliers&#8221; in a portfolio. That is part of the continuous process of improving a portfolio. Comparing the projected average return, P\/E ratio, projected sales growth, projected revenue growth, and quality metrics for each stock in a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_jetpack_memberships_contains_paid_content":false,"_links_to":"","_links_to_target":""},"categories":[52],"tags":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/posts\/142"}],"collection":[{"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/comments?post=142"}],"version-history":[{"count":2,"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/posts\/142\/revisions"}],"predecessor-version":[{"id":434,"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/posts\/142\/revisions\/434"}],"wp:attachment":[{"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/media?parent=142"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/categories?post=142"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/tags?post=142"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}