Parnassus Fund manager Jerome Dodson (Trades, Portfolio) seeks long-term capital appreciation through securities with the following characteristics: wide competitive advantages, good management quality and “relevancy over the long term.”
During the third quarter, Dodson added five new positions: Dentsply Sirona Inc. (XRAY, Financial), Signature Bank (SBNY, Financial), C.H. Robinson Worldwide (CHRW, Financial), Hologic Inc. (HOLX, Financial) and Starbucks Corp. (SBUX, Financial).
Dentsply Sirona
Dodson added 455,000 shares of Dentsply Sirona, a designer of consumable dental products for the professional dental market. The company averaged $59.53 per share during the quarter. With this transaction, the fund manager increased his portfolio 2.69%.
Dentsply Sirona has a low profitability rank of 5 as the company’s profit margins underperform over 75% of global competitors. Despite this, the company still has expanding operating margins and a dividend yield near a five-year high, two positive investing signs.
Signature Bank
Dodson added 210,000 shares of Signature Bank at an average price of $131.57 per share. The guru increased his portfolio 2.66% with this transaction.
The New York regional bank has a profitability rank of 7, suggesting good short-term growth potential. Signature Bank’s operating margin and three-year revenue growth rate ranks higher than 72% and 85% of regional U.S. banks. Additionally, the company’s price-book (P/B) and price-sales (P/S) ratios are near a five-year low, implying good value potential.
C.H. Robinson Worldwide
Dodson added 280,000 shares of C.H. Robinson at an average price of $69.33 per share. The Parnassus fund manager increased his portfolio 2.11% with this transaction.
C.H. Robinson, a major truck logistics company, offers satisfactory financial strength and profitability. Even though the company’s profit margins languish near 10-year lows, the company’s returns on equity and assets outperform over 95% of global competitors.
Hologic
Dodson added 476,556 shares of Hologic, a developer of medical tools for women’s health. The company’s share price averaged $40.49 during the quarter. With this transaction, the guru increased his portfolio 1.73%.
Hologic’s profitability ranks a modest 6 out of 10, suggesting satisfactory growth potential. Although the company has strong margins and returns, Hologic’s three-year revenue growth rate underperforms 58% of global competitors.
Starbucks
Dodson added 268,000 shares of Starbucks, a major coffee brewing company around the world. The company averaged $55.48 during the quarter. With this transaction, Dodson expanded his portfolio 1.42%.
Starbucks has a high profitability of 8 as the company’s margins, returns and three-year revenue growth rates outperform over 88% of global competitors. The company has five positive investing signs, including high dividend yields and relatively low price valuations.
See also
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Disclosure: I do not have any postions in the stocks mentioned.
