Avalon Investment & Advisory recently filed their 13F report for the third quarter of 2022, which ended on 2022-09-30.
The 13F report details which stocks were in a guru’s equity portfolio at the end of the quarter, though investors should note that these filings are limited in scope, containing only a snapshot of long positions in U.S.-listed stocks and American depository receipts as of the quarter’s end. They are not required to include international holdings, short positions or other types of investments. Still, even this limited filing can provide valuable information.
Avalon Advisors, LLC is an investment management firm based out of Houston, Texas. The company was originally established in 2001 by a group of founding partners of whom Willie Thurman Langston and Henry James Lartigue are acting as the CEO and Chairman, respectively. Avalon Advisors has grown from its inception to now operate with 52 total employees of which 34 are investment professionals. The company conducts its research internally, investing in the public equity and fixed income markets within the United States. Avalon Advisors utilizes a global approach, focusing on “securities with attractive fundamentals, solid financials and supportive macro factors, selling at reasonable valuations.” The company invests with a highly diversified approach, allocating its assets most highly in the information technology and finance sectors, each of which, despite being its highest allocated sectors, making up less than a sixth of its total asset allocations. Avalon Advisors also invests in the consumer staples, health care, energy, consumer discretionary, industrials, and utilities and telecommunications sectors, among other sectors to a lesser degree, in order of decreasing allocations, among other sectors to a lesser degree. Avalon Advisors holds its allocations an average of just over 8 quarters, although the firm only holds its top 10 allocations for 2.5 quarters on average. The company, in the most recent quarter, has had a turnover rate of approximately 34%. Avalon Advisors manages over $4.9 billion in total assets under management spread across over 3,400 total accounts, all of which are discretionary accounts except for 645, which makes up $466 million of its managed assets. Both of the company’s total number of accounts and total assets under management have been increasing in recent years with the firm’s total number of accounts growing from under 1,500 five years ago to its current amount and its total assets under management increasing despite some volatility from under $3 billion back in 2010 to its current amount.
As of the latest 13F report, the guru’s equity portfolio contained 287 stocks valued at a total of $3.23Bil. The top holdings were AAPL(2.72%), UNH(2.59%), and CVX(2.31%).
According to GuruFocus data, these were Avalon Investment & Advisory’s top five trades of the quarter.
Chevron Corp
Avalon Investment & Advisory reduced their investment in NYSE:CVX by 235,510 shares. The trade had a 0.96% impact on the equity portfolio. During the quarter, the stock traded for an average price of $152.51.
On 11/01/2022, Chevron Corp traded for a price of $183.75 per share and a market cap of $353.15Bil. The stock has returned 65.57% over the past year.
GuruFocus gives the company a financial strength rating of 8 out of 10 and a profitability rating of 6 out of 10.
In terms of valuation, Chevron Corp has a price-earnings ratio of 10.47, a price-book ratio of 2.23, a price-earnings-to-growth (PEG) ratio of 2.23, a EV-to-Ebitda ratio of 5.54 and a price-sales ratio of 1.59.
The price-to-GF Value ratio is 0.97, earning the stock a GF Value rank of 5.
T-Mobile US Inc
The guru established a new position worth 206,316 shares in NAS:TMUS, giving the stock a 0.86% weight in the equity portfolio. Shares traded for an average price of $140.43 during the quarter.
On 11/01/2022, T-Mobile US Inc traded for a price of $152.03 per share and a market cap of $189.78Bil. The stock has returned 31.66% over the past year.
GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 7 out of 10.
In terms of valuation, T-Mobile US Inc has a price-earnings ratio of 125.03, a price-book ratio of 2.72, a price-earnings-to-growth (PEG) ratio of 13.44, a EV-to-Ebitda ratio of 15.29 and a price-sales ratio of 2.39.
The price-to-GF Value ratio is 1.17, earning the stock a GF Value rank of 3.
AbbVie Inc
Avalon Investment & Advisory reduced their investment in NYSE:ABBV by 192,533 shares. The trade had a 0.83% impact on the equity portfolio. During the quarter, the stock traded for an average price of $143.5.
On 11/01/2022, AbbVie Inc traded for a price of $146.58 per share and a market cap of $259.45Bil. The stock has returned 32.72% over the past year.
GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 10 out of 10.
In terms of valuation, AbbVie Inc has a price-earnings ratio of 19.59, a price-book ratio of 17.70, a price-earnings-to-growth (PEG) ratio of 1.37, a EV-to-Ebitda ratio of 13.99 and a price-sales ratio of 4.53.
The price-to-GF Value ratio is 1.11, earning the stock a GF Value rank of 3.
Charles Schwab Corp
During the quarter, Avalon Investment & Advisory bought 342,055 shares of NYSE:SCHW for a total holding of 350,035. The trade had a 0.76% impact on the equity portfolio. During the quarter, the stock traded for an average price of $69.43.
On 11/01/2022, Charles Schwab Corp traded for a price of $79.485 per share and a market cap of $151.28Bil. The stock has returned -1.62% over the past year.
GuruFocus gives the company a financial strength rating of 3 out of 10 and a profitability rating of 6 out of 10.
In terms of valuation, Charles Schwab Corp has a price-earnings ratio of 24.24, a price-book ratio of 4.29, a price-earnings-to-growth (PEG) ratio of 1.13 and a price-sales ratio of 7.60.
The price-to-GF Value ratio is 1.15, earning the stock a GF Value rank of 3.
Fiserv Inc
The guru established a new position worth 227,862 shares in NAS:FISV, giving the stock a 0.66% weight in the equity portfolio. Shares traded for an average price of $101.91 during the quarter.
On 11/01/2022, Fiserv Inc traded for a price of $103.16 per share and a market cap of $65.34Bil. The stock has returned 0.89% over the past year.
GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 9 out of 10.
In terms of valuation, Fiserv Inc has a price-earnings ratio of 32.26, a price-book ratio of 2.16, a price-earnings-to-growth (PEG) ratio of 2.08, a EV-to-Ebitda ratio of 13.77 and a price-sales ratio of 3.86.
The price-to-GF Value ratio is 0.80, earning the stock a GF Value rank of 9.
Please note, the numbers and facts quoted are as of the writing of this article and may not factor in the latest trading data or company announcements.
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