“If commodities come down a little bit, you can look for some margin expansion,” he noted. Another event to look out for is if the U.S. dollar weakens and nudges the cost of exports higher for the company.
Lastly, Peery cited Chevron as an “absolutely” good pick for the long term. He said with its price/earnings ratio of 8.4, shareholders earn roughly $13 a share. He likes the dividend and, as with Republic Services, the shares offer a 2.9 percent yield, roughly equivalent to what shareholders get by investing in long-term U.S. government debt.
“If you believe in 10 years, as we do, that Chevron is going to [get] higher … they’ll give you a great return and, hopefully, capital appreciation as well.”
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Disclosure information was not available for Brian Peery or his company.