Covington Investor Picks Stock for Wall Street Contest
Joe Cotton has had much success in picking stocks.
In 2017, he won second place in the Equity Stock Contest with his pick YY, INc. (YY), which had a 109 percent 1-year return.
The year before, he won the Dividend Stock Contest with his pick, American Midstream Partners (AMID) which had a 1-year return of 118.5 percent.
In 2012, Cotton won the Dick Davis Digest Divided Stock Contest with his pick of Marathon Petroleum (MPC), which had a 1-year return of 97 percent.
That contest was taken over by Wall Street's Best Investments, which is sponsored by Cabot Wealth Management.
This year, he is looking east for his pick.
On Christmas Day last month, Cotton entered the 2019 Equity Contest with his pick of Alibaba Group Holding Ltd. (BABA). Its closing price on December 24 was $131.89. "It is the Amazon.com of China," Cotton said. The company has a market cap of $339 billion and boasts online platforms in retail and wholesale, and is a leader in cloud computing and digital media and entertainment.
Cotton said that earnings estimates for the fiscal year ending on March 29 are $5.21 per share with a price earnings ratio of 25.31. The earnings estimates for the fiscal year ending March 29, 2020 are $6.73 per share with a price earnings ratio of only 19.59.
"The stock was a real bargain at this price and I expect the stock to move up at least 50 percent within the next six months," Cotton said.
Cotton is the publisher of Cotton's Technically Speaking, which is a regular look at stocks. To sign up, email him.