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Hi ALL,
I am planning to buy following US stocks. Please let me know if these stocks are worth of long term investing ( 10 Years)
* Badger Meter Inc (NYQ: BMI)
* Stryker Corporation (NYQ: SYK)
* Intuitive Surgical Inc (NSQ: ISRG)
* Heico Corporation (NYQ: HEI)
* NetEase Inc (NSQ: NTES)
Stock Analysis:
1. **Badger Meter (BMI)**
EPS Growth: Strong
Water infrastructure is a secular trend.
Smart water meters have low penetration globally.
Recurring software revenue is increasing.
Very high ROIC.
Little debt.
Excellent capital allocation.
BMI has been one of the market's favorite compounders.
2. **Stryker (SYK)**
One of the highest-quality medical device businesses globally.
Advantages:
Aging population
Robotic surgery
Orthopedics
Pricing power
Sticky hospital relationships
Consistent acquisitions
Earnings growth should remain healthy for many years.
**3. Intuitive Surgical (ISRG)**
EPS Engine: Strong
Strengths:
Massive installed base.
Razor-and-blade model.
Switching costs.
Huge recurring instrument revenue.
Strong moat.
Very high margins.
Long runway internationally.
The EPS engine is extraordinary.
4.**HEICO (HEI)**
Aerospace aftermarket.
FAA-approved replacement parts.
High switching costs.
Decentralized acquisition strategy.
Exceptional management.
Strong free cash flow.
Decades of disciplined capital allocation.
EPS growth excellent
HEICO has become one of the most admired industrial companies.
That admiration is reflected in its valuation.
Investors are paying for near-perfect execution.
Investment today: Good, but not obviously attractive.
**5. NetEase (NTES)**
**Pros:**
Gaming cash flows.
Strong franchises.
Large cash balance.
Share buybacks.
Growing cloud music business.
International expansion.
**Risks:**
Chinese regulation.
Slower domestic growth.
Geopolitical discount.
My Understanding:
From the above list, only NetEase (NTES) seems to be reasonably valued so that we can take position today. Rest of the stocks looks over valued. We may have to wait for the right valuation to enter for these stocks.
Please let me know if these stocks are worthy for long term investing