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7investing Lead Advisor Matthew Cochrane’s top stock recommendation in August 2022 is a company with a rock-solid balance sheet, a growing dividend, high margins, and a presence in fast-growing global trends.
As corporations around the world undergo digital transformations, it’s easy to get distracted by hot IPOs or sexier SaaS stocks that are participating in some of these trends. But while this company is exposed to trends such as 5G and the Internet of Things, it also possesses some unique characteristics that help make it immune to rapid technological change.
Not only is 7investing Lead Advisor Matt Cochrane’s Top Stock for August 2022 a growing company, but it also sports a rock-solid balance sheet, a growing dividend, and high margins.
Transcript
You don’t have to get into the ground floor of the latest and hottest IPO to realize market-beating returns in your portfolio. In other words, sometimes boring beats sexy and exciting.
Hi, I’m Matthew Cochrane, lead advisor at 7investing. When investing, I like to look for companies with strong economic moats, or competitive advantages, preferably in growing industries with large market opportunities. While this requires a lot of qualitative work, I don’t think there is anything more important factor than understanding a company’s moat.
My recommendation this month checks all of these boxes. It has several strong economic moats surrounding its diverse and growing streams of revenue. These moats give my recommendation fat margins and a high return on capital, far better than the vast majority of its publicly traded peers in the S&P 500. The company’s management then uses its profits to reward shareholders through investments in organic growth, dividends, and share repurchases.
If you’re interested in my stock pick this month, visit 7investing.com.
I’m Matthew Cochrane, we’re 7investing, and we’re here to empower you to invest in your future.
