D.A. Davidson, an investment bank, has introduced its Best-of-Breed Bison Initiative to identify the highest-quality stocks. The bank rebranded in 2016 and now operates in 30 states, adopting the bison as its logo to symbolize strength and rarity. The bank’s stock-picking approach focuses on criteria such as strong balance sheets, cash flows, high returns on equity, and enduring moats. D.A. Davidson aims to differentiate itself from its competitors, claiming that it is the only broker-dealer to fully embrace a Best-of-Breed investment philosophy. Among its stock picks are Axos Financial, Brunswick, WD-40, Encore Wire, Trex, Jack Henry & Associates, and Nordson.
One of the key factors that makes D.A. Davidson’s stock picks stand out is that they represent recent thinking, as the initiative is a new endeavor. Additionally, some of the companies chosen are small and have limited coverage, which means that investors have the opportunity to invest in lesser-known companies that may have significant growth potential. D.A. Davidson prides itself on its Best-of-Breed investment philosophy and focuses on identifying companies with strong fundamentals and the potential for long-term returns.
Among the seven stock picks highlighted, Axos Financial stands out as a holding company for Axos Bank, which operates online with $19 billion in assets. The bank offers competitive rates and low fees, and its tangible book value has been growing at around 15% annually. Brunswick, known for billiard tables and bowling pins, now specializes in boats and related components. The company has been gaining market share and boasts a substantial presence in the boat and engine industries. WD-40, a well-known brand, has seen its products gain popularity in emerging markets and has successfully expanded its offerings to cater to various customer segments. Encore Wire, Trex, Jack Henry & Associates, and Nordson are also featured on the list.
Overall, D.A. Davidson’s Best-of-Breed Bison Initiative aims to identify high-quality stocks by considering various criteria such as strong balance sheets, cash flows, and enduring moats. By focusing on relatively smaller companies with limited coverage, the investment bank offers investors the opportunity to potentially benefit from the growth of lesser-known companies. The stock picks highlighted in this article include Axos Financial, Brunswick, WD-40, Encore Wire, Trex, Jack Henry & Associates, and Nordson.