FNB stock picks analysed – with good results


An analysis by Daily Investor showed that FNB’s stock picks between August 2020 and November 2020 provided investors with a good return.

FNB Stockbroking and Portfolio Management provide regular trading ideas on local and international shares.

As part of its trade ideas, FNB provides a technical analysis of the company, a long-term fundamental view, and consensus expectations.

It also provides the names of the FNB analysts who back the trades, who include Peet Serfontein, Thabiso Mamathuba, Sithembile Bopela, and Pritu Makan.

Instead of just giving the stock pick, FNB provides an upside and a stop-loss to ensure investors do not lose too much money or hold the stock for too long.

Daily Investor analysed FNB’s stock picks and trade ideas from two years ago to see how they performed.

It shows that sixteen of the twenty-nine trade ideas made money, with an average return of 8.8%.

The stop-losses advised by the FNB analysts prevented losing a lot of money on a trade, and the upside on the winning trades made up for the relatively small losses from bad trades.

The best pick was Prudential Financial, an American Fortune 500 company whose subsidiaries provide insurance, retirement planning, investment management, and other products.

It provides products to retail and institutional customers throughout the United States and 40 other countries.

At the time of the trade suggestion, Prudential Financial was trading at $67 a share. It hit its target price of $101, which provided a 50% profit.

Another very profitable trade was Nielsen Holdings, an American firm providing information, data, and market measurement services.

Nielsen operates in over 100 countries and employs approximately 44,000 people worldwide. It is listed on the New York Stock Exchange and is a component of the S&P 500.

At the time of the trade suggestion, Nielsen was trading at $15 a share. It hit its target price of $22, which provided a 43% profit.

FNB’s worst suggestion was 3M, an American multinational company operating in the fields of industry, worker safety, U.S. health care, and consumer goods.

Although it was a losing trade, the loss was limited to 15%, thanks to FNB’s suggested stop loss.

The table below provides an overview of FNB Stockbroking and Portfolio Management’s international trade ideas over three months in 2020.

FNB Trade Ideas
Company Purchase Price Sale Price Price Return
Prudential Financial  67.26 101 50.16%
Nielsen Holdings 15.36 22 43.23%
Compass Group 1230 1600 30.08%
Skechers USA Inc. 29.9 38 27.09%
UPS 115.36 145 25.69%
Teledyne Technologies 320.09 400 24.96%
Motorola Solutions 153.77 190 23.56%
Johnson & Johnson 148.89 182 22.24%
Cboe Global Markets  88.23 103 16.74%
Automatic Data Processing 149.69 171 14.24%
Kraft Heinz Company 31.65 36 13.74%
Anthem Inc.  289.4 329 13.68%
Starbucks 84.47 96 13.65%
SPDR Fund 60.22 68 12.92%
Cigna 220.2 244 10.81%
Ecolab Inc. 198.47 219 10.34%
SPDR Fund 24.23 24 -0.95%
SPDR Gold Shares ETF 178.83 173.5 -2.98%
Becton, Dickinson and Company 234.19 227 -3.07%
CME Group 166.94 161 -3.56%
Verizon 59.57 57 -4.31%
Wallgreens Boots Alliance 36.97 34.5 -6.68%
National Grid  60.04 56 -6.73%
Vertex Pharmaceuticals 273.51 255 -6.77%
Intel 51.19 46 -10.14%
Molson Coors Brewing Company 36.81 33 -10.35%
Tyson Foods 65.21 57 -12.59%
Lockhead Martin 388.96 336 -13.62%
3M Company 172.38 146 -15.30%