DL Miley Picks for 2020

I struggled to find 5 top picks for 2020, I was only able to come up with 2:

 

  1.  DR Horton (DHI).  I think this homebuilder, currently at about $53, will reach $86 by year end.  With low rates and a booming economy this is my top pick.  EPS growth over the last 5 years was about 24% and return on equity is about 17%, current P/E is only 12, so I think this stock is undervalued.
  2. LCI Industries (LCII).  This auto component supplier, currently at about $108, is undervalued and could reach about $164 by year end.  It also sports a dividend yield of about 2.4% as a bonus.  EPS growth over the last 5 years was about 23% and return on equity is 18%.  The P/E is a bit high at about 20, but expected EPS growth is 20% so I still think that this stock is undervalued.

For a speculative pick, I still like ROKU, as it is not tied to single streaming supplier – it supports Disney+, Hulu, Netflix, just about every streamer out there.  And they have their own ad-supported Roku Channel.  As I said on traditional value metrics I would not pick them but I bought a small amount of shares back in 2018 at about $47, and the stock is now about $148!  I still think that this stock has room to grow.  

 

All the best, and Happy New Year!

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