Nick Heymann, Co-Group Head of global industrial infrastructure at William Blair & Company, is currently recommending stocks that have been able to avoid the oil and gas downturn and that have minimal foreign exchange headwinds. He says one such company is ADT Corp (ADT).
“They are in home automation with no oil and gas exposure and fairly nominal foreign exchange — about 11% of their sales are in Canada,” Heymann says. “So they have largely been able to dodge two of the biggest challenges facing most diversified industrials this year.”
FOR MORE INFORMATION ON THIS INTERVIEW CLICK HERE.
Heymann also likes ADT because the company is continuing to optimize the performance of its existing business model, which is based on its Pulse home automation installed security systems. ADT is on the cusp of growing its total user base sequentially and generating positive year-over-year free cash flow growth, which Heymann says are the last two key fundamental performance metrics to turn positive for the company.
“The company is well-positioned to be able to participate in what could be an exciting area for significant incremental free cash flow growth, and that’s the do-it-yourself monitored home automation space,” Heymann says. “This is a segment of the market today that represents about 78% of the North American security market, which so far has never been tapped.”
eBay Inc (EBAY) Turns Around Its e-Commerce Business to Improve User Experience and Increase Sales
March 01, 2013
Free Cash Flow Yield Is Key Indicator in Small-Cap Investing
April 25, 2012
Focus on Free Cash Flow Yield In Conservative, Value Investing
May 02, 2012
Activision Blizzard (ATVI) Trades Cheaply While Having Strong Earnings Power and Free Cash Flow
November 09, 2012
Procter & Gamble Co. (PG) Increases Dividends and Earnings with Ample Free Cash Flow
February 21, 2013
