WATCH: Stock Picks — 3M and JSE financial 15 index
Jonathan Fisher from PSG Wealth chose 3M as his stock pick of the day, saying: “Ït's a big industrial conglomerate, a global company that is US domiciled with a $124bn market cap. That's a big number but they are involved in industrials, safety and graphics and healthcare. Although they have a high rating and are trading on a price-to-earnings ratio of 20 times, their earnings per share growth of 10% is expected for the next two to three years, and the net profit margins are running at around 15%.
“It is just a solid company; the dividend yields about 2.6%,” Fisher says.
Joseph Busha from JM Busha chose the JSE financial 15 index as his stock pick of the day. “At the moment, shareholders are simply not happy as there are no stocks to pick .... There are going to be short-term pressures on financial stocks so taking a short on the JSE finny should allow you the opportunity to get back into trading. It is sitting at a 16% premium, which is fair value.”
Joseph Busha from JM Busha chose the JSE financial15 index (J212) / R16 498.63 (-0.47%) as his stock pick of the day and Jonathan Fisher from PSG Wealth chose 3M (MMM) / $212.32 (+0.77%)