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Richard Snow's Top Five Highlight Finance and Healthcare Sectors

May 14, 2014 | About:
Monica Wolfe

Monica Wolfe

130 followers

Richard Snow (Trades, Portfolio) of Snow Capital Management released his first quarter holdings earlier today. These holdings highlight 121 stocks valued at $2.55 billion. The guru added 18 new stocks over the quarter for a quarter-over-quarter turnover of 17%. According to the fund’s Investing Philosophy, they look for companies that are financially strong, but with stock prices that have been depressed due to temporary or intermediate-term difficulties.

The following five companies represent Snow’s five largest portfolio holdings as of the close of the first quarter.

Community Health Systems (CYH)

Richard Snow (Trades, Portfolio)’s largest holding is in Community Health Systems. The guru holds 2,452,485 shares of the company’s stock, representing 3.8% of his total portfolio as well as 2.59% of the company’s shares outstanding.

Snow upped his holdings in Community Health 33.75% over the past quarter by purchasing 618,845 shares of the company’s stock. He bought these shares in the quarterly price range of $35.22 to $43.49, with an estimated average quarterly price of $39.96 per share. Since then the price per share has fallen approximately -5.7%.

Snow’s holding history of CYH as of the first quarter:

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Community Health Systems provides healthcare services through the hospitals that it owns and operates in non-urban and selected urban markets. The company generates revenue primarily by providing a broad range of general hospital healthcare services to patients.

Community Health Systems’ historical revenue and earnings growth:

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The analysis on Community Health reports that the company has shown predictable revenue and earnings growth. It also notes that the company’s price, P/B ratio and P/S ratio are all trading at 1-year lows.

Community Health has a market cap of $4.41 billion. Its shares are currently trading at around $38.25 with a P/E ratio of 25.10, a P/S ratio of 0.30 and a P/B ratio of 1.10. The company had an annual average earnings growth of 19% over the past ten years.

GuruFocus rated Community Health Systems the business predictability rank of 2-star.

JPMorgan Chase (JPM)

The guru’s second largest position is in JPMorgan Chase where he holds on to 1,520,488 shares of the company’s stock. This holding makes up for 3.6% of the guru’s total portfolio holdings as well as 0.04% of the company’s shares outstanding.

Over the past quarter Snow increased his position in JPMorgan 40.77% by purchasing 440,341 shares of the company’s stock. He bought these shares in the quarterly price range of $54.31 to $61.07, with an estimated average quarterly price of $57.79 per share. Since then the price per share is trading down approximately -5.9%.

Snow’s historical holding history:

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JPMorgan Chase is a financial services firm and banking institutions in the United States of America with operations worldwide.

JPMorgan Chase’s historical revenue and net income:

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The analysis on JPMorgan reports that the company’s operating margin is expanding, its P/B ratio is trading at a 1-year low, its P/S ratio is trading at a 5-year high, and over the past three years the company has issued $4.9 billion of debt.

The Peter Lynch Chart suggests that the company is currently undervalued:

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JPMorgan Chase has a market cap of $205.77 billion. Its shares are currently trading at around $54.37 with a P/E ratio of 12.60, a P/S ratio of 2.20 and a P/B ratio of 1.00. The company had an annual average earnings growth of 8.90%.

Teva Pharmaceutical Industries (TEVA)

Snow’s third largest holding is in Teva Pharmaceutical Industries where he holds on to 1,708,890 shares of the company’s stock. This position makes up for 3.5% of his total portfolio as well as 0.20% of the company’s shares outstanding.

Over the past quarter Snow decreased his holdings -13.55% by selling 1,708,890 shares of the company’s stock. He sold these shares around the estimated average quarterly price of $46.22, and since then the price per share has increased approximately 9.7%.

Snow’s historical holding history:

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Teva Pharmaceutical Industries develops, produces and markets generic, branded & OTC medicines. Some of its products are Copaxone, Azilect & Provigil.

Teva Pharmaceutical Industries’ historical revenue and net income:

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The analysis on Teva reports that the company’s revenue per share has slowed down over the past year, its dividend yield is near a 1-year low and its price is close to a 3-year high.

The Peter Lynch Chart suggests that the company is currently overvalued:

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Teva Pharmaceuticals has a market cap of $43.36 billion. Its shares are currently trading at around $50.95 with a P/E ratio of 33.90 and a P/S ratio of 2.10. The company’s dividend yield is at 2.20%, and they have seen an annual average earnings growth of 14.40% over the past ten years.

GuruFocus rated Teva the business predictability rank of 4.5-star.

MetLife (MET)

The guru’s fourth largest holding is in MetLife where he maintains 1,617,399 shares of the company’s stock. This position makes up for 3.4% of his total holdings as well as 0.15% of the company’s shares outstanding.

Over the past quarter Snow upped his holdings a minor 0.81% by purchasing 13,020 shares of the company’s stock. He bought these shares in the quarterly price range of $47.06 to $54.55, with an estimated average quarterly price of $51.57 per share. From the average price, the price per share has dropped roughly -1.4%.

Snow’s holding history as of the close of the first quarter:

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MetLife is a provider of insurance and other financial services to many individuals and institutional customers throughout the US. The company offers life insurance, annuities, property & casualty insurance, and other financial services to individuals, as well as to corporations and other institutions.

MetLife’s historical revenue and net income:

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The analysis on MetLife reports that the company’s revenue per share has been in decline over the past year, its price is near a 5-year high and its asset growth is faster than its revenue growth.

The Peter Lynch Chart suggests that the company is currently overvalued:

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MetLife has a market cap of $57.36 billion. Its shares are currently trading at around $50.96 with a P/E ratio of 17.50, a P/S ratio of 0.90 and a P/B ratio of 0.90. The dividend yield of MetLife is currently at 2.40%.

Kennametal (KMT)

Richard Snow (Trades, Portfolio)’s fifth largest position is in Kennametal where he holds on to 1,872,839 shares of the company’s stock. This position represents 3.3% of his total portfolio as well as 2.41% of the company’s shares outstanding.

Over the past quarter Snow upped his holdings 14.61% by purchasing 238,674 shares of the company’s stock. He bought these shares near the estimated average quarterly price of $45.77 per share, and since then the price per share has increased approximately 2.3%.

Snow’s historical holding history:

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Kennametal is a supplier of tooling, engineered components and advanced materials consumed in production processes. It operates two reportable operating segments consisting of Industrial and Infrastructure.

Kennametal’s historical revenue and earnings growth:

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The analysis on Kennametal reports that the company has issued $830.2 million of debt over the past three years, its price is near a 10-year high and its revenue has slowed down over the past year.

The Peter Lynch Chart suggests that the company is currently overvalued:

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Kennametal has a market cap of $3.66 billion. Its shares are currently trading at around $46.59 with a P/E ratio of 21.30, a P/S ratio of 1.40 and a P/B ratio of 2.00. The company had an annual average earnings growth of 1.40% over the past ten years.

Check out Richard Snow’s complete first quarter holdings here.

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