What companies are tomorrow's big winners? In our ongoing series, I'm chatting with Fool analysts and advisors to find out the stocks they're watching. Today, Motley Fool analyst Dan Dzombak shares four companies he loves that are on his watchlist. (For your convenience, you can now create your own version at MyWatchlist.com, your free customized hub to follow the performance and Fool coverage of the companies you care about.)
When he made his way through the Fool's Analyst Development Program, Dan learned many lessons about the brilliance of Warren Buffett and he sought to find companies similar to those in the Oracle's portfolio. Dan landed upon Rocky Mountain Chocolate Factory, which shared a product -- if not quite a business model -- with See's Candy. In fact, founder Frank Crail would have bought a See's franchise if they were available. Today, microcap Rocky Mountain Chocolate offers franchises and is beloved by fudge aficionados and investors alike (49 of 51 players who rated it on Motley Fool CAPS expect it to outperform the market). But as with all four of these companies, Dan's going to watch for a while -- with a P/E of higher than 15, the share price is a little rich for his taste.
As much as Dan admires Costco's business, it pales in comparison to the enthusiasm he has for TransDigm
And Dan finds the position of Philip Morris International
That's exactly why it pays to watch. You can make smarter investing decisions with your own version of My Watchlist, new and free from the Fool. Click below to start following one of the stocks mentioned above:
Roger Friedman doesn't own shares of any companies mentioned, but they're all now on his watchlist. Costco is a Motley Fool Inside Value selection and a Motley Fool Stock Advisor recommendation. Philip Morris International is a Motley Fool Global Gains selection. TransDigm Group is a Motley Fool Hidden Gems recommendation. The Fool owns shares of Altria Group, Costco, and Philip Morris International. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.