The Dow Jones News and Performance Daily
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Category: The Dow Jones Industrial Average (DJIA)
Last updated: 13 January 2021 (23:55) Dow Jones Industrial Average Index Points: 31 060 This page is dedicated to provide updates on the daily performance of the most quoted financial market index in the world, The Dow Jones Industrial Average (DJIA) as well general stock updates of stocks listed on the various major US exchanges
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The Dow Jones Industrial Average® (The Dow®), is a price-weighted measure of 30 U.S. blue-chip companies. The DJIA covers all industries except transportation and utilities. The market cap of the Dow Jones firms amounts to $9.250 trillion as at end of August 2020. "
About the Dow Jones Industrial Average (DJIA)
The Dow Jones Industrial Average® (The Dow®), is a price-weighted measure of 30 U.S. blue-chip companies. The DJIA covers all industries except transportation and utilities. The market cap of the Dow Jones firms amounts to $9.250 trillion as at end of August 2020. The Dow Jones Industrial Average has a trailing PE ratio of 23.14 and the PE is projected (forward PE) is at 23.5 with a indicated dividend yield of 2.57% and a price to book value of 3.96
The Dow Jones Performance Calendar Tracker for Jan 2021
The graphic below shows the daily performance of the Dow Jones Industrial Average (The Dow) on a calendar for the month of January 2021. The index levels used in the calculation of the daily performance of the Dow Jones Industrial Average is obtained from Macrotrends.net
For the month of January 2021 the Dow Jones is up by 1.49%
For the month of January 2021 the Dow Jones is up by 1.49%
Dow Jones Industrial Average Today (14 January 2021)
14 January 2021:
Dow Jones Updates:
(00:11 ET): Dow Jones futures is currently trading up by 0.37%
Website Updates:
We looked at the latest support and resistance levels of Apple (APPL) stock. Below a short extract
Below a summary of the resistance levels, pivot point and the different support levels:
So should the stock of Apple hit $140.98 it might struggle to get past that level and if it does its next resistance levels will be at $149.28. However should the stock of Apple (APPL) decline below the pivot value of $130.50 it will most likely find support at $122.20 and if it falls below that the next support line level is at $111.72 and should it fall below that support for Apple (APPL) stock will be found at $103.42
Read the full article here
Dow Jones Updates:
(00:11 ET): Dow Jones futures is currently trading up by 0.37%
Website Updates:
We looked at the latest support and resistance levels of Apple (APPL) stock. Below a short extract
Below a summary of the resistance levels, pivot point and the different support levels:
- Resistance 3: $159.76
- Resistance 2: $149.28
- Resistance 1: $140.98
- Pivot Point: $130.50
- Support 1: $122.20
- Support 2: $111.72
- Support 3: $103.42
So should the stock of Apple hit $140.98 it might struggle to get past that level and if it does its next resistance levels will be at $149.28. However should the stock of Apple (APPL) decline below the pivot value of $130.50 it will most likely find support at $122.20 and if it falls below that the next support line level is at $111.72 and should it fall below that support for Apple (APPL) stock will be found at $103.42
Read the full article here
Dow Jones and website updates for January 2021
13 January 2021: The Dow Jones ended the day down by -0.03%
Website Updates:
We compared the stock price performance and earnings reports of PriceSmart and BJ Wholesale Club. Two membership wholesale stores. Below a short extract.
Looking at all the fundamental metrics above it is PriceSmart that wins on the Price/Stockholders equity per share metric. It is PriceSmart that wins when it comes to the cash as percentage of stock price. PriceSmart also has the stronger cash position with their cash as percentage of total assets being higher than that of BJ Wholesale (BJ). So of the first three metrics PriceSmart wins all three.
When looking at the PE ratio it is BJ Wholesale that wins as it has the lower PE ratio. BJ Wholesale also wins the Price/Stock valuation ratio as it is trading at further below our stock valuation than the stock of PriceSmart that is trading at closer to our stock valuation.
Therefore all things considered in the battle between BJ Wholesale (BJ) vs PriceSmart (PSMT) we rate the stock of PriceSmart (PSMT) as the winner in the battle of the wholesale member stores. But PriceSmart wins by the narrowest of margins.
Read the full article here
12 January 2021: The Dow Jones ended the day up by 0.19%
11 January 2021: The Dow Jones ended the day down by -0.29%
8 January 2021: The Dow Jones ended the day up by 0.18%
Dow Jones Updates:
(12:49 ET) The Dow Jones is currently trading down by -0.24%
(4:51 ET): Dow Jones futures is currently trading up by 0.17%
7 January 2021: The Dow Jones ended the day up by 0.69%
Dow Jones Updates:
(10::49 ET): The Dow Jones is currently trading up by 1.13%
(7:45 ET): Dow Jones futures is currently trading up by 0.35%
Website Updates:
Yesterday we covered the latest earnings report of Constellation Brands (the owner of Corona Beer and Modelo Beers). Below a short extract
"Our business performance accelerated during the quarter despite ongoing headwinds from the pandemic, as we remain obsessed with meeting the needs of our consumers while staying focused on our long-term growth strategy" - Bill Newlands, CEO and President of Constellation Brands
"The finalization of our Wine and Spirits transactions enhances the financial profile of our business and enables further debt reduction so that we can continue to execute our commitment to return $5 billion in value to shareholders through dividends and share repurchases through fiscal 2023 - Grant Hankinson, Chief Financial Officer
Outlook provided;
●Beer: net sales growth of 7 - 9%; excluding impact of Ballast Point Divestiture, expect to be at the upper-end of the range and including Ballast Point Divestiture, expect to be at the lower-end of the range; operating income growth of 8 - 10%
● Wine and Spirits: reported net sales and operating income decline of 9 - 11% and 16 - 18%, respectively; retained portfolio post wine and spirits divestitures, expected to grow net sales 2 - 4%
● Interest expense: approximately $390 million
● Tax rate: reported approximately 21%, comparable excluding Canopy equity earnings impact approximately 19%
● Weighted average diluted shares outstanding: approximately 195 million; assumes no additional share repurchases for fiscal 2021
● Operating cash flow: $2.5 - $2.7 billion
● Capital expenditures: $800 - $900 million
● Free cash flow: $1.7 - $1.8 billion
Read the full article here
6 January 2021: The Dow Jones ended the day up 1.44%
Dow Jones Updates:
(2:13 ET): The Dow Jones is currently trading up by 0.32%
Website Updates:
In one of our most recent articles we covered the 1st quarter 2021 earnings report of Peloton (PTON)
Q1 FY 2021 earnings report overview:
• Q1 ending Connected Fitness Subscriptions grew 137% to over 1.33 million and paid Digital Subscriptions grew 382% to over 510,000; total Members grew to over 3.6 million
• Q1 total revenue grew 232% to $757.9 million
• Q1 Connected Fitness Subscription Workouts grew 306% to 77.8 million, averaging 20.7 Monthly Workouts per Connected Fitness Subscription, versus 11.7 in the year-ago period
• Q1 Average Net Monthly Connected Fitness Churn was 0.65%; Q1 12-month retention rate was 92%
• Q1 Gross Margin was 43.4%; Connected Fitness Product Gross Margin was 39.4%, Subscription Gross Margin was 58.5%, and Subscription Contribution Margin was 64.1%
• Q1 Net Income was $69.3 million, $0.20 per diluted share; Q1 Adjusted EBITDA was $118.9 million, representing an Adjusted EBITDA Margin of 15.7%
Q2 FY 2021 guidance:
– 1.63 million ending Connected Fitness Subscriptions
– Average Net Monthly Connected Fitness Churn under 0.85%
– $1.0 billion total revenue
– Gross profit margin of approximately 39%
– $70 million Adjusted EBITDA, 7.0% Adjusted EBITDA Margin
Revised full year FY 2021 guidance:
– 2.17 million or more ending Connected Fitness Subscriptions
– Average Net Monthly Connected Fitness Churn under 0.90%
– $3.9 billion or more total revenue
– Gross profit margin of approximately 41%
– $300 million or more Adjusted EBITDA
Read the full article here
5 January 2021: The Dow Jones ended the day up by 0.55%
Dow Jones Updates:
(10:52 ET): The Dow Jones is currently trading down by -0.02%
Website Updates:
In one of our most recent articles we took a more detailed look at Ollie's Bargain Outlet (OLLI). Below a short extract from that article
As of February 1, 2020, we operated 345 stores, averaging approximately 32,500 square feet, across 25 contiguous states in the eastern half of the United States. Our highly flexible real estate approach has proven successful across all vintages, geographic regions, population densities, demographic groups, real estate formats and regardless of any co-tenant. Our business model has resulted in positive financial performance during strong and weak economic cycles. We have successfully opened stores in eight new states since 2015, highlighting the portability of our new store model
Read the full article here
4 January 2021: The Dow Jones ended the day down by -1.25%
Website Updates:
Yesterday we covered the latest stock price performance of some of the major listed banking groups. We looked at the stock performance of Goldman Sachs, Bank of America, Citi and JPMorgan Chase. Below a short extract from that article.
The image below shows the stock price performance of Bank of America (BAC), Goldman Sachs (GS), JPMorgan Chase (JPM), Citigroup (C) over the last 5 years. All of these firms are active in the banking and financial services sector in the USA. And their stock price trends look very similar, but the stock price returns are however very different. The summary below shows the stock price returns of the four mentioned firms over the last 5 years, sorted from best to worst performer
Bank of America (BAC) was the best performer in terms of stock price returns over the last 5 years, just outperforming JPMorgan Chase (JPM) and Citigroup (C) was by far the worst performer in terms of returns provided over the last 5 years.
Read the full article here
Website Updates:
We compared the stock price performance and earnings reports of PriceSmart and BJ Wholesale Club. Two membership wholesale stores. Below a short extract.
Looking at all the fundamental metrics above it is PriceSmart that wins on the Price/Stockholders equity per share metric. It is PriceSmart that wins when it comes to the cash as percentage of stock price. PriceSmart also has the stronger cash position with their cash as percentage of total assets being higher than that of BJ Wholesale (BJ). So of the first three metrics PriceSmart wins all three.
When looking at the PE ratio it is BJ Wholesale that wins as it has the lower PE ratio. BJ Wholesale also wins the Price/Stock valuation ratio as it is trading at further below our stock valuation than the stock of PriceSmart that is trading at closer to our stock valuation.
Therefore all things considered in the battle between BJ Wholesale (BJ) vs PriceSmart (PSMT) we rate the stock of PriceSmart (PSMT) as the winner in the battle of the wholesale member stores. But PriceSmart wins by the narrowest of margins.
Read the full article here
12 January 2021: The Dow Jones ended the day up by 0.19%
11 January 2021: The Dow Jones ended the day down by -0.29%
8 January 2021: The Dow Jones ended the day up by 0.18%
Dow Jones Updates:
(12:49 ET) The Dow Jones is currently trading down by -0.24%
(4:51 ET): Dow Jones futures is currently trading up by 0.17%
7 January 2021: The Dow Jones ended the day up by 0.69%
Dow Jones Updates:
(10::49 ET): The Dow Jones is currently trading up by 1.13%
(7:45 ET): Dow Jones futures is currently trading up by 0.35%
Website Updates:
Yesterday we covered the latest earnings report of Constellation Brands (the owner of Corona Beer and Modelo Beers). Below a short extract
"Our business performance accelerated during the quarter despite ongoing headwinds from the pandemic, as we remain obsessed with meeting the needs of our consumers while staying focused on our long-term growth strategy" - Bill Newlands, CEO and President of Constellation Brands
"The finalization of our Wine and Spirits transactions enhances the financial profile of our business and enables further debt reduction so that we can continue to execute our commitment to return $5 billion in value to shareholders through dividends and share repurchases through fiscal 2023 - Grant Hankinson, Chief Financial Officer
Outlook provided;
●Beer: net sales growth of 7 - 9%; excluding impact of Ballast Point Divestiture, expect to be at the upper-end of the range and including Ballast Point Divestiture, expect to be at the lower-end of the range; operating income growth of 8 - 10%
● Wine and Spirits: reported net sales and operating income decline of 9 - 11% and 16 - 18%, respectively; retained portfolio post wine and spirits divestitures, expected to grow net sales 2 - 4%
● Interest expense: approximately $390 million
● Tax rate: reported approximately 21%, comparable excluding Canopy equity earnings impact approximately 19%
● Weighted average diluted shares outstanding: approximately 195 million; assumes no additional share repurchases for fiscal 2021
● Operating cash flow: $2.5 - $2.7 billion
● Capital expenditures: $800 - $900 million
● Free cash flow: $1.7 - $1.8 billion
Read the full article here
6 January 2021: The Dow Jones ended the day up 1.44%
Dow Jones Updates:
(2:13 ET): The Dow Jones is currently trading up by 0.32%
Website Updates:
In one of our most recent articles we covered the 1st quarter 2021 earnings report of Peloton (PTON)
Q1 FY 2021 earnings report overview:
• Q1 ending Connected Fitness Subscriptions grew 137% to over 1.33 million and paid Digital Subscriptions grew 382% to over 510,000; total Members grew to over 3.6 million
• Q1 total revenue grew 232% to $757.9 million
• Q1 Connected Fitness Subscription Workouts grew 306% to 77.8 million, averaging 20.7 Monthly Workouts per Connected Fitness Subscription, versus 11.7 in the year-ago period
• Q1 Average Net Monthly Connected Fitness Churn was 0.65%; Q1 12-month retention rate was 92%
• Q1 Gross Margin was 43.4%; Connected Fitness Product Gross Margin was 39.4%, Subscription Gross Margin was 58.5%, and Subscription Contribution Margin was 64.1%
• Q1 Net Income was $69.3 million, $0.20 per diluted share; Q1 Adjusted EBITDA was $118.9 million, representing an Adjusted EBITDA Margin of 15.7%
Q2 FY 2021 guidance:
– 1.63 million ending Connected Fitness Subscriptions
– Average Net Monthly Connected Fitness Churn under 0.85%
– $1.0 billion total revenue
– Gross profit margin of approximately 39%
– $70 million Adjusted EBITDA, 7.0% Adjusted EBITDA Margin
Revised full year FY 2021 guidance:
– 2.17 million or more ending Connected Fitness Subscriptions
– Average Net Monthly Connected Fitness Churn under 0.90%
– $3.9 billion or more total revenue
– Gross profit margin of approximately 41%
– $300 million or more Adjusted EBITDA
Read the full article here
5 January 2021: The Dow Jones ended the day up by 0.55%
Dow Jones Updates:
(10:52 ET): The Dow Jones is currently trading down by -0.02%
Website Updates:
In one of our most recent articles we took a more detailed look at Ollie's Bargain Outlet (OLLI). Below a short extract from that article
As of February 1, 2020, we operated 345 stores, averaging approximately 32,500 square feet, across 25 contiguous states in the eastern half of the United States. Our highly flexible real estate approach has proven successful across all vintages, geographic regions, population densities, demographic groups, real estate formats and regardless of any co-tenant. Our business model has resulted in positive financial performance during strong and weak economic cycles. We have successfully opened stores in eight new states since 2015, highlighting the portability of our new store model
Read the full article here
4 January 2021: The Dow Jones ended the day down by -1.25%
Website Updates:
Yesterday we covered the latest stock price performance of some of the major listed banking groups. We looked at the stock performance of Goldman Sachs, Bank of America, Citi and JPMorgan Chase. Below a short extract from that article.
The image below shows the stock price performance of Bank of America (BAC), Goldman Sachs (GS), JPMorgan Chase (JPM), Citigroup (C) over the last 5 years. All of these firms are active in the banking and financial services sector in the USA. And their stock price trends look very similar, but the stock price returns are however very different. The summary below shows the stock price returns of the four mentioned firms over the last 5 years, sorted from best to worst performer
- Bank of America (BAC): 126.9%
- JPMorgan Chase (JPM): 122.7%
- Goldman Sachs (GS): 71.5%
- Citigroup (C): 52.02%
Bank of America (BAC) was the best performer in terms of stock price returns over the last 5 years, just outperforming JPMorgan Chase (JPM) and Citigroup (C) was by far the worst performer in terms of returns provided over the last 5 years.
Read the full article here
The Dow Jones Performance Calendar Tracker for Dec 2020
The graphic below shows the daily performance of the Dow Jones Industrial Average (The Dow) on a calendar for the month of December. The index levels used in the calculation of the daily performance of the Dow Jones Industrial Average is obtained from Macrotrends.net
For the month of December 2020 the Dow Jones is up by 3.59%
For the month of December 2020 the Dow Jones is up by 3.59%
Dow Jones Industrial Average Today (31 December 2020)
The Dow Jones ended the month of December 2020 up by 3.59%
Dow Jones and website updates for December 2020
31 December 2020: The Dow Jones ended the day up by 0.65%
30 December 2020: The Dow Jones ended the day up by 0.24%
29 December 2020: The Dow Jones ended the day down by -0.22%
28 December 2020: The Dow Jones ended the day up by 0.68%
24 December 2020: The Dow Jones ended the day up by 0.28%
23 December 2020: The Dow Jones ended the day up by 0.38%
Dow Jones Updates:
Website Update:
We covered the stock of The Toro Company in more detail. Below an extract of that article in which they discuss the seasonality of their earnings.
Shipments of our Residential segment products, which accounted for 21.1 percent of total consolidated net sales in fiscal 2019, are seasonal, with shipments of lawn and garden products occurring primarily between February and June, depending upon seasonal weather conditions and demand for our products. Shipments of snow thrower products occur primarily between July and January, depending upon preseason demand, in-season snowfalls, and product availability. Opposite seasons in global markets in which we sell our Residential products somewhat moderate this seasonality of our Residential segment product sales.
Seasonality of Professional segment product sales also exists, but is tempered because the selling season in the Southern U.S. and our markets in the Southern hemisphere continue for a longer portion of the year than in Northern regions of the world. Our BOSS snow and ice management business offers a portfolio of counter-seasonal products in our Professional segment with our shipments of snow and ice management equipment occurring primarily between April and December, which can result in variability of shipment volumes depending upon preseason demand, in-season snowfalls, and product availability. Additionally, CMW has historically been less seasonal than certain of our Professional segment businesses primarily due to its strong presence in the Southern U.S. markets and the inherent nature of the underground construction market being less impacted by seasonal factors.
Overall, our worldwide shipment volumes are historically the highest in our fiscal second quarter and retail demand is generally highest in our fiscal third quarter. Typically, our accounts receivable balances increase between January and April as a result of higher shipment volumes and extended payment terms made available to our customers. Accounts receivable balances typically decrease between May and December when payments are received. Our financing requirements are subject to variations due to seasonal changes in working capital levels, which typically increase in the first half of our fiscal year and decrease in the second half of our fiscal year. Seasonal cash requirements of our business are 9 financed from a combination of cash flows from operations, cash on hand, and borrowings under our revolving credit facility, as applicable.
Read the full article here
22 December 2020: The Dow Jones ended the day down by -0.67%
Website Update:
We covered the debut of Tesla as part of the S&P 500. Below a short extract of why we believe the stock of Tesla is horribly overvalued
So why do we believe the stock of Tesla (TSLA) is overvalued?
Well let's start with its Price to Earnings Ratio (PE)
Earnings per share for 3rd quarter 2020: $0.76
Next lets take a look at Tesla's Price/Stockholders equity per share ratio
Stockholders equity in Tesla: $16.03 billion
Lets take a look at the production numbers of Tesla:
3rd quarter 2020 production numbers compared to 2nd quarter of 2019
Model description September 2020 September 2019 Year on year percentage change
So total production numbers increased strongly compared to the same quarter of the previous year which is some good news for Tesla stockholders. But their production numbers will have to increase at least 5 fold for their current stock price levels to be justified.
Come on people. Surely after reading this you will realise that Tesla (TSLA) stock is one big fat bubble that has sucked in a lot of investors all hoping to get rich from the continuing surge in its stock price. These type of people are created by excess cash in markets. And some of the Covid-19 stimulus cheques have found their way into the stock market and definitely into Tesla's stock and has driven up the stock price of Tesla to levels it should definitely not be at
If you currently own Tesla our advice is to get out while you can and take your profits (if you made some). And if you are planning in buying Tesla now, our advice is to rather not. We rate the stock of Tesla (TSLA) as a SELL
Read the full article here
18 December 2020: The Dow Jones ended the day down by -0.41%
Dow Jones Updates:
(0:22 ET): Dow Jones futures are currently trading down by -0.35%
Website Updates:
We covered the latest earnings report of Sanderson Farms. Below a short extract.
So what is Sanderson Farms stock worth based on their 4th quarter 2020 earnings report? Based on their earnings report our valuation model provides a target price (full value price) for Sanderson Farms at $157.50 a stock.
We therefore believe the stock of Sanderson Farms is undervalued at its current price of $139.96
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $157.50, thus a good entry point into Sanderson Farms would be at $141.80 or below.
We expect the stock of Sanderson Farms to kick up from current levels in coming weeks and months to levels closer to our target price (full value price), as their stock is price is undervalued. Since the stock of Sanderson Farms is trading at below our suggested entry point into the stock we rate the stock of Sanderson Farms as buy
Read the full article here
17 December 2020: The Dow Jones ended the day up by 0.49%
Dow Jones Updates:
(1:55 ET): Dow Jones futures are currently trading up by 0.3%
Website Updates:
We covered the latest earnings report of The Toro Company. Below a short extract.
So what is The Toro Company stock worth based on their 4th quarter 2020 earnings report? Based on their earnings report our valuation model provides a target price (full value price) for BrightView at $64.90 a stock.
We therefore believe the stock of The Toro Company is overvalued at its current price of $92.26
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $64.90, thus a good entry point into The Toro Company would be at $58.40 or below.
We expect the stock of The Toro Company to pull back from current levels in coming weeks and months to levels closer to our target price (full value price), as their stock is price is overvalued at its current price. Since the stock of Toro is trading at well above our suggested entry point we rate the stock of Toro as a sell
Read the full article here
16 December 2020: The Dow Jones ended the day down by -0.15%
15 December 2020: The Dow Jones ended the day up by 1.13%
14 December 2020: The Dow Jones ended the day down by -0.62%
Dow Jones Updates:
(03:16 ET): Dow Jones futures are currently trading down up 0.62%
Website Updates:
We covered the latest earnings report of Johnson Outdoors. Below a short extract from that article.
So what is Johnson Outdoors stock worth based on their 4th quarter 2020 earnings report? Based on their earnings report our valuation model provides a target price (full value price) for Johnson Outdoors at $91.20 a stock
We therefore believe the stock of Johnson Outdoors is overvalued at its current price of $95.77
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $91.20, thus a good entry point into Johnson Outdoors would be at $82 or below.
We expect the stock of Johnson Outdoors to pull back slightly from current levels in coming weeks and months to levels closer to our target price (full value price). We rate the stock of Johnson Outdoor as a hold
Read the full article here
10 December 2020: The Dow Jones ended the day down by -0.23%
Dow Jones Updates:
(02:26 ET): Dow Jones futures are currently trading down by - 0.05%
Website Updates:
Yesterday we covered the stock price of Apple (APPL) and why we believe it is overvalued. Below a short extract of that article
Lets take a look at few fundamental metrics which points to reasons why we believe the stock of Apple (APPL) is overvalued.
PE ratio
PE ratio of Apple (APPL) is sitting at 35. So for for every $35 dollars you pay per Apple share, they make $1 profit. So a relatively low yield of around 2.8% on your investment. And that's just the profit they make, they don't pay out all profits in dividend so essentially you get even less out. Put differently if Apple (APPL) were to make the same profits into infinity it would take the group 35 years to make in profits what you are currently paying for the stock.
Stockholders equity per share
The stockholders equity per share for Apple is sitting at $3.78. So Apple is trading at 30.4 times its stockholders equity per share. What is the stockholders equity per share. Well essentially of Apple were to sell all their assets, pay all their debts and liabilities and distribute the rest evenly amongst its shareholders, each shareholder will get $3.78 a stock. So why would one pay $125 a stock when most one would get back if they were to go under, or dissolve etc is $3.78. As mentioned earlier the average price to book value ratio of firms in the S&P 500 is 3.9 times. So Apple (APPL) is trading at 8 times the stockholders equity per share that most firms in the S&P 500 is trading at.
Low Dividend Yield
Apple is currently paying a quarterly dividend of $0.205, which equates to an annual dividend yield of 0.65% based on its current stock price. Hardly shooting the lights out considering the S&P 500's dividend yield is over 2%
Read the full article here
9 December 2020: The Dow Jones ended the day down by -0.35%
Dow Jones Updates:
(07:36 ET): Dow Jones futures are currently trading up by 0.3%
Website Updates:
So what are Thor Industries stock worth based on the release of their latest earnings report and the outlook provided. Based on the earnings reported our valuation models provide a target (full value) price for Thor Industries of $78.20 a stock (up from our 4th quarter 2020 valuation of Thor Industries).
We therefore believe that Thor Industries stock is overvalued at its current price of $95.68 and we would not recommend long term fundamental or value investors buy into the stock of Thor Industries at its current price of $95.68
We usually recommend that long term fundamental or value investors look to enter the stock at least 10% below our target price (full value price), which in this case is $95.68 in this case.
A good entry into the stock of Thor Industries (THO) would therefore be at $70.40 or below.
We expect that stock of Thor Industries to pull back strongly from current levels to levels closer to our target price (full value price) in coming weeks and months. As the stock of Thor Industries is trading at well above our suggested entry point we rate the stock of Thor as a sell
Read the full article here
8 December 2020: The Dow Jones ended the day up by 0.35%
Dow Jones Updates:
(14:11 ET): The Dow Jones is currently trading up by 0.4%
Website Updates:
Earlier we covered the latest earnings report of Casey's (CASY). Below a short extract from that article.
The summary below shows the stock price performance of Casey's General Stores (CASY) vs Kroger Company (KR) vs Dollar General (DG) over the last 5 years. While all three stores are active in the general retail sector in the United States, the stock price trends and returns provided of these stocks are very different over the last 5 years. Below the summary of the three stocks stock returns over the last 5 years:
The stock of Dollar General has easily outperformed that of Kroger and Casey's over the last 5 years. Kroger has been the worst performer of the three stocks over the last 5 years.
Read the full article here
7 December 2020: The Dow Jones ended the day down by -0.49%
Dow Jones Updates:
(1:26 ET): Dow Jones futures are currently trading down by -0.23%
Website Updates:
We compared the latest earnings reports and stock price movements of Kroger (KR) and Dollar General (DG) in order to determine who is best placed to outperform in future. Below a short extract from that article
Price relative to stock valuation
Looking at all the fundamental metrics above it is Kroger that wins on the Price/Stockholders equity per share metric. It is Dollar General that wins when it comes to the cash as percentage of stock price. Dollar General also has the stronger cash position with their cash as percentage of total assets being higher than that of Kroger (KR). So of the first three metrics Dollar General wins two and Kroger wins one.
When looking at the PE ratio it is Kroger that wins as it has the lower PE ratio. Kroger also wins the Price/Stock valuation ratio as it is trading at below our latest stock valuation of the group with it trading at about 35.1% below our latest stock valuation (target price) for the group while Dollar General is trading at 17% above our latest stock valuation (target price) for the group
Therefore all things considered in the battle between Kroger (KR) vs Dollar General (DG) we rate the stock of Kroger (KR) as the narrow winner in the battle of the retailers.
Read the full article here
4 December 2020: The Dow Jones ended the day up 0.83%
Dow Jones Updates:
(1:02 ET): Dow Jones futures are currently trading up by 0.22%
3 December 2020: The Dow Jones ended the day up by 0.29%
Dow Jones Updates:
(1:02 ET): Dow Jones futures are currently trading down by -0.15%
Website Updates:
We covered the latest earnings report of Sportsman's Warehouse (SPWH). Below a short extract from that article.
So what do we value Sportsman's Warehouse stock at based on their latest earnings release and the fiscal guidance provided by the group? Based on Sportsman's Warehouse latest earnings report and their fiscal guidance provided our valuation model provides a target price (full value price) for Sportsman's Warehouse stock at $21.10 a stock. We therefore believe the stock of Sportsman's Warehouse is undervalued at its current price
We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target price which in this case is $21,10 A good entry point into Sportsman's Warehouse stock would therefore be at $19 or below.
Since the stock of Sportsman's Warehouse is trading at below our suggested entry point we rate the stock of Sportsman's Warehouse as a buy
Read the full article here
2 December 2020: The Dow Jones ended the day up b 0.2%
Dow Jones Updates:
(2:24 ET) Dow Jones futures are currently trading up by 0.78%
Website Updates:
We compared the stock performance and earnings reports of Caterpillar and Deere & Co in order to determine which stock is best placed for future growth. Below a short extract from that article
Looking at all the fundamental metrics above it is Caterpillar that wins on the Price/Stockholders equity per share metric. Caterpillar also wins when it comes to the cash as percentage of stock price. Caterpillar (CAT) has the stronger cash position with their cash as percentage of total assets being higher than that of Deere & Co (DE). So of the first three metrics Caterpillar beats Deer & Co on all three
When looking at the PE ratio it is Deere & Co that wins as it has the lower PE ratio. Caterpillar wins the Price/Stock valuation ratio as it is trading at closer to our latest stock valuation of the group with it trading at about 32.4% above our latest stock valuation (target price) for the group while Deere & Co is trading at 45% above our latest stock valuation (target price) for the group
Therefore all things considered in the battle between Caterpillar (CAT) vs Deere & Co (DE) we rate the stock of Caterpillar (CAT) as the clear winner in the battle of the machinery and equipment firms
Read the full article here
1 December 2020: The Dow Jones ended the day up 0.63%
Dow Jones Updates:
(2:24 ET) Dow Jones futures are currently trading up by 0.78%
Website Updates:
Earlier we covered the latest earnings report of Caterpillar (CAT). Below a short extract
So what is Caterpillar's stock worth based on the release of their 3rd quarter 2020 earnings report? Based on Caterpillar's 3rd quarter 2020 earnings report our valuation model provides a target price (full value price) for Caterpillar (CAT) at $131.10 a stock. We therefore believe that the stock of Caterpillar is overvalued.
We usually suggest long term fundamental or value investors look to enter into a stock at least 10% below our target price (full value price) which in this case is $131.10. Therefore we see a good entry point into Caterpillar stock at $118 or below.
We expect the stock of Caterpillar to pull back from its current price to levels closer to our target price in coming weeks and months. Since the stock of Caterpillar is trading at well above our suggested entry point we rate the stock of Caterpillar as a sell
Read the full article here
30 December 2020: The Dow Jones ended the day up by 0.24%
29 December 2020: The Dow Jones ended the day down by -0.22%
28 December 2020: The Dow Jones ended the day up by 0.68%
24 December 2020: The Dow Jones ended the day up by 0.28%
23 December 2020: The Dow Jones ended the day up by 0.38%
Dow Jones Updates:
Website Update:
We covered the stock of The Toro Company in more detail. Below an extract of that article in which they discuss the seasonality of their earnings.
Shipments of our Residential segment products, which accounted for 21.1 percent of total consolidated net sales in fiscal 2019, are seasonal, with shipments of lawn and garden products occurring primarily between February and June, depending upon seasonal weather conditions and demand for our products. Shipments of snow thrower products occur primarily between July and January, depending upon preseason demand, in-season snowfalls, and product availability. Opposite seasons in global markets in which we sell our Residential products somewhat moderate this seasonality of our Residential segment product sales.
Seasonality of Professional segment product sales also exists, but is tempered because the selling season in the Southern U.S. and our markets in the Southern hemisphere continue for a longer portion of the year than in Northern regions of the world. Our BOSS snow and ice management business offers a portfolio of counter-seasonal products in our Professional segment with our shipments of snow and ice management equipment occurring primarily between April and December, which can result in variability of shipment volumes depending upon preseason demand, in-season snowfalls, and product availability. Additionally, CMW has historically been less seasonal than certain of our Professional segment businesses primarily due to its strong presence in the Southern U.S. markets and the inherent nature of the underground construction market being less impacted by seasonal factors.
Overall, our worldwide shipment volumes are historically the highest in our fiscal second quarter and retail demand is generally highest in our fiscal third quarter. Typically, our accounts receivable balances increase between January and April as a result of higher shipment volumes and extended payment terms made available to our customers. Accounts receivable balances typically decrease between May and December when payments are received. Our financing requirements are subject to variations due to seasonal changes in working capital levels, which typically increase in the first half of our fiscal year and decrease in the second half of our fiscal year. Seasonal cash requirements of our business are 9 financed from a combination of cash flows from operations, cash on hand, and borrowings under our revolving credit facility, as applicable.
Read the full article here
22 December 2020: The Dow Jones ended the day down by -0.67%
Website Update:
We covered the debut of Tesla as part of the S&P 500. Below a short extract of why we believe the stock of Tesla is horribly overvalued
So why do we believe the stock of Tesla (TSLA) is overvalued?
Well let's start with its Price to Earnings Ratio (PE)
Earnings per share for 3rd quarter 2020: $0.76
- PE ratio of Tesla: 229
- What this is saying you are paying $229 for every $1 profit Tesla makes. So if you buying Tesla at $422 a stock. Just know for a full year the firm is likely to make $1.8 a stock in profits. So do you honestly believe Tesla is still a good investment? Or that that type of return is a good investment?
Next lets take a look at Tesla's Price/Stockholders equity per share ratio
Stockholders equity in Tesla: $16.03 billion
- Stockholders equity per share in Tesla: $14.60
- Tesla is trading at 28.9 times its stockholders equity per share, which is well outside the expected range of between 2 and 4 times that most firms tend to trade at.
- If Tesla were to sell all their assets, settle all their liabilities and distribute what is left equally amongst its stockholders each stockholder will receive $14.60 a stock. So does the $422 stock price still look like a good investment?
Lets take a look at the production numbers of Tesla:
3rd quarter 2020 production numbers compared to 2nd quarter of 2019
Model description September 2020 September 2019 Year on year percentage change
- Model S/X 16 922 16 318 4%
- Model 3/Y 128 044 79 837 60%
- Total 145 036 96 155 51%
So total production numbers increased strongly compared to the same quarter of the previous year which is some good news for Tesla stockholders. But their production numbers will have to increase at least 5 fold for their current stock price levels to be justified.
Come on people. Surely after reading this you will realise that Tesla (TSLA) stock is one big fat bubble that has sucked in a lot of investors all hoping to get rich from the continuing surge in its stock price. These type of people are created by excess cash in markets. And some of the Covid-19 stimulus cheques have found their way into the stock market and definitely into Tesla's stock and has driven up the stock price of Tesla to levels it should definitely not be at
If you currently own Tesla our advice is to get out while you can and take your profits (if you made some). And if you are planning in buying Tesla now, our advice is to rather not. We rate the stock of Tesla (TSLA) as a SELL
Read the full article here
18 December 2020: The Dow Jones ended the day down by -0.41%
Dow Jones Updates:
(0:22 ET): Dow Jones futures are currently trading down by -0.35%
Website Updates:
We covered the latest earnings report of Sanderson Farms. Below a short extract.
So what is Sanderson Farms stock worth based on their 4th quarter 2020 earnings report? Based on their earnings report our valuation model provides a target price (full value price) for Sanderson Farms at $157.50 a stock.
We therefore believe the stock of Sanderson Farms is undervalued at its current price of $139.96
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $157.50, thus a good entry point into Sanderson Farms would be at $141.80 or below.
We expect the stock of Sanderson Farms to kick up from current levels in coming weeks and months to levels closer to our target price (full value price), as their stock is price is undervalued. Since the stock of Sanderson Farms is trading at below our suggested entry point into the stock we rate the stock of Sanderson Farms as buy
Read the full article here
17 December 2020: The Dow Jones ended the day up by 0.49%
Dow Jones Updates:
(1:55 ET): Dow Jones futures are currently trading up by 0.3%
Website Updates:
We covered the latest earnings report of The Toro Company. Below a short extract.
So what is The Toro Company stock worth based on their 4th quarter 2020 earnings report? Based on their earnings report our valuation model provides a target price (full value price) for BrightView at $64.90 a stock.
We therefore believe the stock of The Toro Company is overvalued at its current price of $92.26
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $64.90, thus a good entry point into The Toro Company would be at $58.40 or below.
We expect the stock of The Toro Company to pull back from current levels in coming weeks and months to levels closer to our target price (full value price), as their stock is price is overvalued at its current price. Since the stock of Toro is trading at well above our suggested entry point we rate the stock of Toro as a sell
Read the full article here
16 December 2020: The Dow Jones ended the day down by -0.15%
15 December 2020: The Dow Jones ended the day up by 1.13%
14 December 2020: The Dow Jones ended the day down by -0.62%
Dow Jones Updates:
(03:16 ET): Dow Jones futures are currently trading down up 0.62%
Website Updates:
We covered the latest earnings report of Johnson Outdoors. Below a short extract from that article.
So what is Johnson Outdoors stock worth based on their 4th quarter 2020 earnings report? Based on their earnings report our valuation model provides a target price (full value price) for Johnson Outdoors at $91.20 a stock
We therefore believe the stock of Johnson Outdoors is overvalued at its current price of $95.77
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $91.20, thus a good entry point into Johnson Outdoors would be at $82 or below.
We expect the stock of Johnson Outdoors to pull back slightly from current levels in coming weeks and months to levels closer to our target price (full value price). We rate the stock of Johnson Outdoor as a hold
Read the full article here
10 December 2020: The Dow Jones ended the day down by -0.23%
Dow Jones Updates:
(02:26 ET): Dow Jones futures are currently trading down by - 0.05%
Website Updates:
Yesterday we covered the stock price of Apple (APPL) and why we believe it is overvalued. Below a short extract of that article
Lets take a look at few fundamental metrics which points to reasons why we believe the stock of Apple (APPL) is overvalued.
PE ratio
PE ratio of Apple (APPL) is sitting at 35. So for for every $35 dollars you pay per Apple share, they make $1 profit. So a relatively low yield of around 2.8% on your investment. And that's just the profit they make, they don't pay out all profits in dividend so essentially you get even less out. Put differently if Apple (APPL) were to make the same profits into infinity it would take the group 35 years to make in profits what you are currently paying for the stock.
Stockholders equity per share
The stockholders equity per share for Apple is sitting at $3.78. So Apple is trading at 30.4 times its stockholders equity per share. What is the stockholders equity per share. Well essentially of Apple were to sell all their assets, pay all their debts and liabilities and distribute the rest evenly amongst its shareholders, each shareholder will get $3.78 a stock. So why would one pay $125 a stock when most one would get back if they were to go under, or dissolve etc is $3.78. As mentioned earlier the average price to book value ratio of firms in the S&P 500 is 3.9 times. So Apple (APPL) is trading at 8 times the stockholders equity per share that most firms in the S&P 500 is trading at.
Low Dividend Yield
Apple is currently paying a quarterly dividend of $0.205, which equates to an annual dividend yield of 0.65% based on its current stock price. Hardly shooting the lights out considering the S&P 500's dividend yield is over 2%
Read the full article here
9 December 2020: The Dow Jones ended the day down by -0.35%
Dow Jones Updates:
(07:36 ET): Dow Jones futures are currently trading up by 0.3%
Website Updates:
So what are Thor Industries stock worth based on the release of their latest earnings report and the outlook provided. Based on the earnings reported our valuation models provide a target (full value) price for Thor Industries of $78.20 a stock (up from our 4th quarter 2020 valuation of Thor Industries).
We therefore believe that Thor Industries stock is overvalued at its current price of $95.68 and we would not recommend long term fundamental or value investors buy into the stock of Thor Industries at its current price of $95.68
We usually recommend that long term fundamental or value investors look to enter the stock at least 10% below our target price (full value price), which in this case is $95.68 in this case.
A good entry into the stock of Thor Industries (THO) would therefore be at $70.40 or below.
We expect that stock of Thor Industries to pull back strongly from current levels to levels closer to our target price (full value price) in coming weeks and months. As the stock of Thor Industries is trading at well above our suggested entry point we rate the stock of Thor as a sell
Read the full article here
8 December 2020: The Dow Jones ended the day up by 0.35%
Dow Jones Updates:
(14:11 ET): The Dow Jones is currently trading up by 0.4%
Website Updates:
Earlier we covered the latest earnings report of Casey's (CASY). Below a short extract from that article.
The summary below shows the stock price performance of Casey's General Stores (CASY) vs Kroger Company (KR) vs Dollar General (DG) over the last 5 years. While all three stores are active in the general retail sector in the United States, the stock price trends and returns provided of these stocks are very different over the last 5 years. Below the summary of the three stocks stock returns over the last 5 years:
- Dollar General (DG): 192.63%
- Casey's General Stores (CASY): 45.7%
- Kroger Company (KR): -24.1%
The stock of Dollar General has easily outperformed that of Kroger and Casey's over the last 5 years. Kroger has been the worst performer of the three stocks over the last 5 years.
Read the full article here
7 December 2020: The Dow Jones ended the day down by -0.49%
Dow Jones Updates:
(1:26 ET): Dow Jones futures are currently trading down by -0.23%
Website Updates:
We compared the latest earnings reports and stock price movements of Kroger (KR) and Dollar General (DG) in order to determine who is best placed to outperform in future. Below a short extract from that article
Price relative to stock valuation
- Price/Stock Valuation ratio for Kroger (KR): 0.649
- Price/Stock Valuation ratio for Dollar General (DG) 1.17
Looking at all the fundamental metrics above it is Kroger that wins on the Price/Stockholders equity per share metric. It is Dollar General that wins when it comes to the cash as percentage of stock price. Dollar General also has the stronger cash position with their cash as percentage of total assets being higher than that of Kroger (KR). So of the first three metrics Dollar General wins two and Kroger wins one.
When looking at the PE ratio it is Kroger that wins as it has the lower PE ratio. Kroger also wins the Price/Stock valuation ratio as it is trading at below our latest stock valuation of the group with it trading at about 35.1% below our latest stock valuation (target price) for the group while Dollar General is trading at 17% above our latest stock valuation (target price) for the group
Therefore all things considered in the battle between Kroger (KR) vs Dollar General (DG) we rate the stock of Kroger (KR) as the narrow winner in the battle of the retailers.
Read the full article here
4 December 2020: The Dow Jones ended the day up 0.83%
Dow Jones Updates:
(1:02 ET): Dow Jones futures are currently trading up by 0.22%
3 December 2020: The Dow Jones ended the day up by 0.29%
Dow Jones Updates:
(1:02 ET): Dow Jones futures are currently trading down by -0.15%
Website Updates:
We covered the latest earnings report of Sportsman's Warehouse (SPWH). Below a short extract from that article.
So what do we value Sportsman's Warehouse stock at based on their latest earnings release and the fiscal guidance provided by the group? Based on Sportsman's Warehouse latest earnings report and their fiscal guidance provided our valuation model provides a target price (full value price) for Sportsman's Warehouse stock at $21.10 a stock. We therefore believe the stock of Sportsman's Warehouse is undervalued at its current price
We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target price which in this case is $21,10 A good entry point into Sportsman's Warehouse stock would therefore be at $19 or below.
Since the stock of Sportsman's Warehouse is trading at below our suggested entry point we rate the stock of Sportsman's Warehouse as a buy
Read the full article here
2 December 2020: The Dow Jones ended the day up b 0.2%
Dow Jones Updates:
(2:24 ET) Dow Jones futures are currently trading up by 0.78%
Website Updates:
We compared the stock performance and earnings reports of Caterpillar and Deere & Co in order to determine which stock is best placed for future growth. Below a short extract from that article
Looking at all the fundamental metrics above it is Caterpillar that wins on the Price/Stockholders equity per share metric. Caterpillar also wins when it comes to the cash as percentage of stock price. Caterpillar (CAT) has the stronger cash position with their cash as percentage of total assets being higher than that of Deere & Co (DE). So of the first three metrics Caterpillar beats Deer & Co on all three
When looking at the PE ratio it is Deere & Co that wins as it has the lower PE ratio. Caterpillar wins the Price/Stock valuation ratio as it is trading at closer to our latest stock valuation of the group with it trading at about 32.4% above our latest stock valuation (target price) for the group while Deere & Co is trading at 45% above our latest stock valuation (target price) for the group
Therefore all things considered in the battle between Caterpillar (CAT) vs Deere & Co (DE) we rate the stock of Caterpillar (CAT) as the clear winner in the battle of the machinery and equipment firms
Read the full article here
1 December 2020: The Dow Jones ended the day up 0.63%
Dow Jones Updates:
(2:24 ET) Dow Jones futures are currently trading up by 0.78%
Website Updates:
Earlier we covered the latest earnings report of Caterpillar (CAT). Below a short extract
So what is Caterpillar's stock worth based on the release of their 3rd quarter 2020 earnings report? Based on Caterpillar's 3rd quarter 2020 earnings report our valuation model provides a target price (full value price) for Caterpillar (CAT) at $131.10 a stock. We therefore believe that the stock of Caterpillar is overvalued.
We usually suggest long term fundamental or value investors look to enter into a stock at least 10% below our target price (full value price) which in this case is $131.10. Therefore we see a good entry point into Caterpillar stock at $118 or below.
We expect the stock of Caterpillar to pull back from its current price to levels closer to our target price in coming weeks and months. Since the stock of Caterpillar is trading at well above our suggested entry point we rate the stock of Caterpillar as a sell
Read the full article here
The Dow Jones Performance Calendar Tracker for Nov 2020
The graphic below shows the daily performance of the Dow Jones Industrial Average (The Dow) on a calendar for the month of November. The index levels used in the calculation of the daily performance of the Dow Jones Industrial Average is obtained from Macrotrends.net
For the month of November 2020 the Dow Jones is up by 11.2%
For the month of November 2020 the Dow Jones is up by 11.2%
Dow Jones and website updates for November 2020
30 November 2020: The Dow Jones ended the day down by -0.91%
Dow Jones Updates:
(4:00 ET) Dow Jones futures are currently trading down by -0.61%
Website Updates:
Earlier we compared the stock performance and earnings reports of American Eagle Outfitters (AEO) and Urban Outfitters (URBN) in order to determine which stock has been the best performer in the past and which one is best placed to outperform in future.
Looking at all the fundamental metrics above Urban Outfitters wins on the Price/Stockholders equity per share metric. Urban Outfitters (URBN) also wins when it comes to the cash as percentage of stock price. American Eagle Outfitters (AEO) has the stronger cash position with their cash as percentage of total assets being higher than that of Urban Outfitters (URBN).
When looking at the PE ratio it is Urban Outfitters once again that wins as it has the lower PE ratio. Urban Outfitters (URBN) is also trading at closer to our latest stock valuation of the group (with it trading at 2.1% discount to our target price) , while American Eagle Outfitters is trading at about 32% above our latest stock valuation (target price) for the group.
Therefore all things considered in the battle between American Eagle Outfitters (EAO) vs Urban Outfitters (URBN) we rate the stock of Urban Outfitters (URBN) as the winner in the battle of the outfitters.
Read the full article here
27 November 2020: The Dow Jones ended the day up by 0.13%
Dow Jones Updates:
(11:08 ET) The Dow Jones is currently trading up by 0.17%
Website Updates:
Earlier we covered the latest earnings report of Urban Outfitters (URBN) . Below a short extract from that article
The image below shows the stock price performance of Urban Outfitters (URBN) vs Buckle Inc (BKE) vs American Eagle Outfitters (AEO) stock over the last 5 years. All of these firms are active in the clothing and accessories sector and their share price performances are pretty similar. The summary below shows their stock price performance over the last 5 years.
The stock of Urban Outfitters has easily outperformed that of American Eagle Outfitters and Buckle over the last 5 years
Read the full article here
26 November 2020: The markets were closed
Dow Jones Updates:
Markets closed
Website Updates:
Earlier we covered the stock performance of Buckle (BKE) and American Eagle Outfitters (AEO) as well as their latest earnings reports in order to determine which of these two clothing and apparel retailers are best placed to outperform in future. Below a short extract from that article
So let's take a look at the fundamentals and the valuation metrics in order to determine which of these two firms offers the most value at their current stock price.
One of our key metrics is the Price to Stockholders equity per share ratio. When looking at this we find the following:
Based on this metric it is a draw between Buckle (BKE) and American Eagle Outfitters (AEO). So what is the stockholders equity per share you ask? Well if a firm sells all assets, pays all its debts ad distributes the rest to its stockholders, the stockholders equity per share shows what each stockholders will get. Thus the higher this ratio the less you will get out per stock compared to what you are paying for it. So for these firms trading at 3.07 times it stockholders equity you will only get 32.5% of its current stock price out of they were to sell all assets, pay all debt and distribute the rest to stockholders.
Next up cash as percentage of stock price:
Next up lets take a look at the percentage cash on the balance sheet makes up of each group's total assets:
So based on the cash position of these two firms when it comes to cash as percentage of stock price Buckle comes off as the winner, while it is another draw when it comes to the Cash as percentage of the total assets. Next lets take a look at the most overused financial ratio around. The Price to Earnings ratio.
Next up the PE ratio of the stock price:
Read the full article here
25 November 2020: The Dow Jones ended the day down -0.58%
Dow Jones Updates:
(7:12 ET): Dow Jones futures are currently trading down by -0.17%
(0:07 ET): Dow Jones futures are currently trading up by 0.25%
Website Updates:
Earlier we covered the stock performance of The Home Depot and Lowe's as well as their latest earnings reports in order to determine which of these two DIY retailers are best placed to outperform in future. Below a short extract from that article
So let's take a look at the fundamentals and the valuation metrics in order to determine which of these two firms offers the most value at their current stock price.
One of our key metrics is the Price to Stockholders equity per share ratio. When looking at this we find the following:
Based on this metric Walmart offers far more value than Target Corp. Most firms tend to trade at a ratio of between 2 and 4 times. The higher this ratio the less value a stock offers. A ratio of 6.5 is implying that buying the stock of Target now means you are paying 6.5 times more for the stock than what the stockholders equity per share is worth. But a high stockholders equity per share ratio is still better than a firm that has a stockholders deficit. So what is the stockholders equity per share you ask? Well if a firm sells all assets, pays all its debts ad distributes the rest to its stockholders, the stockholders equity per share shows what each stockholders will get. Thus the higher this ratio the less you will get out per stock compared to what you are paying for it. So for Target at 6.5 times it stockholders equity you will only get 15.38% of its current stock price out of they were to sell all assets, pay all debt and distribute the rest to stockholders. Walmart is slightly better at 20.4% of current stock price
Next up cash as percentage of stock price:
Next up lets take a look at the percentage cash on the balance sheet makes up of each group's total assets:
So based on the cash position of these two firms Lowe’s (LOW) offers more value as their overall cash position compared to their stock price and their overall assets is far greater than that of The Home Depot (HD).
Next up the PE ratio of the stock price:
Read the full article here
24 November 2020: The Dow Jones ended the day up by 1.54%
Dow Jones Updates:
(10:56 ET): The Dow Jones is trading up by 1.31%
(0:07 ET): Dow Jones futures are currently trading up by 0.92%
Website Updates:
Earlier we covered the latest earnings report of Target Corporation. Below a short extract from that article
Looking at the stock performance of Target (TGT) vs Walmart (WMT) vs Kroger (KR) over the last 5 years. All three firms are active in the retail space in the USA. But looking at the stock price performances of these firms it doesn't look like both of them are active in the same space as their stock price performances are totally different. The summary below shows the stock price performance of these firms over the last 5 years:
The stock of Walmart (WMT) has easily outperformed the stock of Target and Kroger over the last 5 years.
Read the full article here
23 November 2020: The Dow Jones ended the day up by 1.12%
Dow Jones Updates:
(6:07 ET): Dow Jones futures are currently trading up by 0.73%
Website Updates:
Earlier we covered the latest earnings report of BellRing Brands.. Below a short extract from that article
COVID-19 Commentary
BellRing continues to monitor the impact of the COVID-19 pandemic on its business and remains focused on ensuring its ability to safeguard the health of its employees, including their economic health, maintaining the continuity of its supply chain to serve customers and consumers and preserving financial liquidity to mitigate the uncertainty caused by the pandemic.
The convenient nutrition category continues to be negatively impacted by changes in consumer behavior (primarily lower on-the-go consumption) in response to the COVID-19 pandemic. In the fourth quarter of 2020, the liquids and powders sub-categories returned to growth relatively in line with their pre-pandemic growth rates. However, the bar sub-category continues to experience year-over-year declines. International net sales for Dymatize and PowerBar products improved when compared to the third quarter of 2020, but continue to be negatively impacted by changes in consumer behavior as discussed earlier. The trajectory of volume recovery for Dymatize and PowerBar is expected to be impacted by changes in the degree of restrictions on mobility and gathering, including closures of specialty retail stores and gyms.
As of September 30, 2020, BellRing had $48.7 million in cash and cash equivalents and the available borrowing capacity under its revolving credit facility was $170.0 million.
Outlook
For fiscal year 2021, BellRing management expects net sales and Adjusted EBITDA to grow 8%-13% and 5%-10%, respectively, over fiscal year 2020 (resulting in a net sales range of $1.07-$1.12 billion and an Adjusted EBITDA range of $207-$217 million).
BellRing management expects the following:
Read the full article here
20 November 2020: The Dow Jones ended the day down by -0.75%
Dow Jones Updates:
(3:00 ET): Dow Jones futures are currently trading down -0.58%
Website Updates:
Earlier we covered the latest earnings report of Ampco-Pittsburgh a speciality steel fabricator. Below a short extract
So what is Ampco-Pittsburgh stock worth based on their 3rd quarter 2020 earnings report? Based on their earnings report our valuation model provides a target price (full value price) for Ampco-Pittsburgh at $7.20 a stock.
We therefore believe the stock of Ampco-Pittsburgh is undervalued at its current price of $4.12
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $7.20, thus a good entry point into Ampco-Pittsburgh would be at $6.50 or below.
We expect the stock of Ampco-Pittsburgh to kick up from current levels in coming weeks and months to levels closer to our target price (full value price), as their stock is price is undervalued. Since the stock of Ampco-Pittsburgh is trading at well below our suggested entry price we rate their stock as a buy
Read the full article here
19 November 2020: The Dow Jones ended the day up by 0.15%
Dow Jones Updates:
(5:33 ET): Dow Jones futures are currently trading down -0.54%
Website Updates:
Earlier we covered the latest earnings report of The Home Depot (HD), the largest DIY store in the world. Below a short extract
So what is Home Depot stock worth based on their 3rd quarter 2020 earnings report? Based on their earnings report our valuation model provides a target price (full value price) for Home Depot at $204.80 a stock (up very slightly from our 2nd quarter 2020 earnings report review of Home Depot).
We therefore believe the stock of The Home Depot is overvalued at its current price of $272
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $204.80, thus a good entry point into The Home Depot would be at $184.30 or below.
We expect the stock of Home Depot to pull back from current levels in coming weeks and months to levels closer to our target price (full value price), as their stock is price is overvalued and has been for some time and we believe once the spending of stimulus checks at stores such as the Home Depot and Walmart fades their reported earnings and stock prices will decline to reflect these lower sales.19 November 2020:
Read the full article here
18 November 2020: The Dow Jones ended the day down by -1.16%
Dow Jones Updates:
(7:33 ET): Dow Jones futures are currently trading up by 0.48%
Website Updates
We covered the latest earnings report of Whole Earth Brands (a plant based foods supplier). Below a short extract from that article
So based on Whole Earth Brands latest earnings report what do we value Whole Earth Brands stock at? The fact that Whole Earth Brands (FREE) is loss making makes it harder to value the stock. Our base position when a firm is loss making is to use its stockholders equity per share as the base of our valuation. In the case of Whole Earth Brands they stockholders equity per share is $7.58
We therefore believe that the stock of Whole Earth Brands is slightly overvalued. We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price, which in this case is $7.58. A good entry price into Whole Earth Brands would therefore be at $6.80 or below.
We expect the stock of Whole Earth Brands to pull back in coming weeks and months to levels closer to our target price (full value price) in coming weeks and months. Since the stock of Whole Earth Brands is trading at well above our suggested entry point we rate the stock of Whole Earth Brands as a sell
Read the full article here
17 November 2020: The Dow Jones ended the day down by -0.56%
Dow Jones Updates:
(00:03 ET): Dow Jones futures are currently trading down by -0.28%
Website Updates
We covered the latest earnings report of Paloalto. Below a short extract from that article
So based on Paloalto latest earnings report what do we value Paloalto stock at? Based on their earnings reported our valuation model provides a target price (full value price) for Paloalto at $169.20 per stock.
We therefore believe that the stock of Paloalto is overvalued. We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price, which in this case is $169.20 A good entry price into Paloalto would therefore be at $152.30 or below.
We expect the stock of Paloalto to pull back in coming weeks and months to levels closer to our target price (full value price). Since the stock of Paloalto is trading at well above our suggested entry point we rate the stock of Paloalto as a sell
Read the full article here
16 November 2020: The Dow Jones ended the day up by 1.6%
Dow Jones Updates:
(08:43 ET): Dow Jones futures are currently trading up 1.81%
We covered the lastest earnings report of Spectrum Brands. Below a short extract from that article
So based on Spectrum Brands latest earnings report what do we value Spectrum Brands stock at? Based on their earnings reported our valuation model provides a target price (full value price) for Spectrum Brands at $47.30 per stock.
We therefore believe that the stock of Spectrum Brands is slightly overvalued. We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price, which in this case is $47.30. A good entry price into Spectrum Brands would therefore be at $42.60 or below.
We expect the stock of Spectrum Brands to pull back in coming weeks and months to levels closer to our target price (full value price) in coming weeks and months. Since the stock of Spectrum Brands is trading at well above our suggested entry point we rate the stock of Spectrum Brands as a sell
Read the full article here
13 November 2020: The Dow Jones ended the day up by 1.37%
Dow Jones Updates:
(3:54 ET): Dow Jones futures are currently trading up by 0.57%
Website Updates:
We covered the latest earnings report of CMC Materials (CCMP). Below a short extract from that article.
Key Highlights
Total revenue decreased 1.6% in the fourth quarter compared to the same quarter last year as stronger demand in CMP slurries and electronic chemicals as well as higher wood treatment revenue were offset by lower revenue in pipeline performance products and CMP pads. Net income for the quarter was $36.9 million compared to a loss of $20.2 million in the prior year primarily due to the impairment charge the company took for its strategic decision to exit the wood treatment business in the prior year. Adjusted EBITDA was $84.0 million, down 1.5% compared with the prior year. Full year revenue was a record and increased 7.6% compared to the last year primarily due to a full year of revenue from the company's acquisition of KMG Chemicals, Inc. in November of 2018, growth in CMP slurries and higher wood treatment revenue. During the year the company generated $287.3 million in cash flow from operations, and had $257.4 million of cash on hand and $921.4 million in total debt as of the end of the fiscal year.
“I am proud of our performance, delivering another year of record revenue and profitability despite the challenging and unprecedented environment caused by the COVID-19 pandemic, which demonstrates our strong execution and robust businesses. We are most grateful for the overall well-being of our employees, and I would like to thank our global teams for their dedication to driving our record results,” said David Li, President and CEO of CMC Materials. “In fiscal 2021, we expect to see continued strong demand from our semiconductor customers driven by advanced node transitions to support new technologies including 5G, as well as improving fundamentals and demand from our pipeline customers. We also started the year with the rebranding of our company to CMC Materials, which we believe embodies our focus on delivering innovative, high value, specialty materials to our customers globally.”
Read the full article here
12 November 2020: The Dow Jones ended the day down -1.08%
Dow Jones Updates:
(02:31 ET): Dow Jones futures are currently trading down by -0.58%
Website Updates:
We covered the latest earnings report of D.R Horton, one of the biggest home builders in the USA. Below a short extract from that article.
The summary below shows the number of homes closed for D.R Horton for the 3 months ended September 2020
Region Number of homes Value (in $ millions)
Read the full article here
11 November 2020: The Dow Jones ended the day down by -0.08%
Dow Jones Updates:
(02:31 ET): Dow Jones futures are currently trading up by 0.28%
Website Updates:
We covered the latest earnings report of Advance Auto Parts (AAP). Below a short extract from that article.
Never has it been more important for us to put the health and safety of our customers and team members first as COVID-19 continues to impact our communities and ongoing operations. As a result, we continue to adapt and take the steps necessary to prioritize the well-being of our customers and team members" said Tom Greco, President and Chief Executive Officer. "Our third quarter comparable sales growth of 10.2% is the strongest in 15 years, and was led by our DIY Omnichannel performance. Double digit comp sales combined with disciplined cost control resulted in 183 basis points of adjusted operating income margin expansion and a 95% increase in quarterly free cash flow. Industry demand remained strong in the quarter, however our performance is also a testament to the resilience of our team members and independent partners during the COVID-19 pandemic. While we cannot predict the direction of the pandemic from here, we remain laser focused on the execution of our long-term plans. This includes the introduction of our #DieHardisBack marketing campaign on October 18. The energy and excitement surrounding this integrated campaign has driven widespread coverage and recognition not only for DieHard®, but for the Advance and Carquest brands. Including DieHard, we’re building an increasingly differentiated assortment to complement our strong digital presence and a comprehensive suite of fulfillment options including over 6000 conveniently located stores and Advance Same Day™ delivery. We believe that these capabilities, combined with a strong balance sheet and talented team, position us well to continue to drive growth and margin expansion in the years ahead
Read the full article here
10 November 2020:
Dow Jones Updates:
(07:19 ET): Dow Jones futures are currently trading up by 0.87%
(00:02 ET): Dow Jones futures are currently trading down by -0.71%
Website Updates:
We covered the latest earnings report of Starbucks (SBUX). Below a short extract from that article.
So based on Starbucks (SBUX) latest earnings report and their fiscal guidance what do we value the stock of Starbucks at? Based on their 4th quarter 2020 earnings report and their guidance provided our valuation model provides a target price (full value price) for Starbucks (SBUX) at $71.20 a stock. We therefore believe the stock of Starbucks is overvalued
We recommend that long term fundamental and value investors look to enter a stock at least 10% below our target price (full value price) which in this case is $71.20. A good entry point into Starbucks would therefore be at $64.10 or below.
We expect the stock of Starbucks (SBUX) to pull back from current levels to levels closer to our target price (full value price) in coming weeks and months. We therefore rate the stock of Starbucks as a sell.
Read the full article here
9 November 2020: The Dow Jones ended the day up 2.95%
Dow Jones Updates:
(11:25 ET): The Dow Jones is currently trading up by a very strong 3.7%
(08:36 ET): Dow Jones futures are currently trading up by a massive 5.97%
(08:02 ET): Dow Jones futures are currently trading up by 2.67%
(04:12 ET): Dow Jones futures are currently trading up by 1.38%
Website Updates:
We covered the latest earnings report of Discovery Inc, the owner of Discovery Channel and HGTV. Below a short extract.
So based on Discovery Inc’s latest earnings report what do we value Discovery stock at? Based on their earnings reported our valuation model provides a target price (full value price) for Discovery Corporation at $31 per stock
We therefore believe that the stock of Discovery Inc stock is undervalued. We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price, which in this case is $31. A good entry price into Discovery Corporation would therefore be at $27.90 or below.
We expect the stock of Discovery Corporation to kick up from current levels to levels closer to our target price in coming weeks and months as we do believe the group's stock is undervalued.
Since the stock of Discovery Inc is trading at well below our suggested entry point we rate the stock of Discovery Inc as a buy
Read the full article here
6 November 2020: The Dow Jones ended the day down by -0.24%
Dow Jones Updates:
(02:47 ET): Dow Jones futures are currently trading down by -0.42%
Website Updates:
We covered the latest earnings report of Ferrari (RACE), one of the world's most famous brands and premier sports car builder. Below a short extract from that article/
Based on the 3rd quarter 2020 earnings report of Ferrari what do we value the group's stock at? Based on their earnings reported and their outlook our stock valuation model provides a target price (full value price) for Ferrari at $161.50 a stock. We therefore believe the stock of Ferrari is overvalued at its current price.
We usually recommend that long term fundamental and value investors look to enter a stock at least 10% below our target price which in this case is $161.50. A good entry point into the stock of Ferrari (RACE) would therefore be at $145.40 or below.
Since the stock of Ferrari is trading at well above our suggested entry point into the stock we rate the stock of Ferrari as a sell
Read the full article here
5 November 2020: The Dow Jones ended the day up by 1.95%
Dow Jones Updates:
(06:24 ET): Dow Jones futures are currently trading up by 1.17%
(02:47 ET): Dow Jones futures are currently trading up by 0.73%
Website Updates:
We covered the latest earnings report of Clearwater Paper, a manufacturer of tissues, cardboard and other paper related packing products and materials Below a short extract from that article
So what do we value the stock of Clearwater Paper (CLW) at following the release of their 3rd quarter 2020 earnings report. Based on their earnings reported our stock valuation model provides a target price of $72.70 per Clearwater Paper (CLW) stock. We therefore believe the stock of Clearwater Paper is undervalued at its current price.
We usually recommend that long term fundamental and value investors look to enter a stock at least 10% below our target price, which in this case is $72.70. A good entry point would therefore be at $65.40 or below.
Since the stock of Clearwater Paper is trading at well below our suggested entry point we rate their stock as a buy
Read the full article here
4 November 2020: The Dow Jones ended the day up by 1.34%
Dow Jones Updates:
(03:45 ET): Dow Jones futures are currently trading down by -0.27%
Website Updates:
We covered the latest earnings report of Credit Acceptance Corporation, a firm that offers finance plans that allows dealers to sell to consumers regardless of their credit record. Below a short extract.
So based on their 3rd quarter 2020 earnings report what do we value the stock of Credit Acceptance Corporation at? Based on the the earnings reported our stock valuation model provides a target price of $315 per Credit Acceptance Corporation stock. Therefore we rate the stock of Credit Acceptance Corporation as fully valued.
We usually recommend that fundamental long term and value investors look to enter a stock at least 10% below our target price, which in this case is $315 a stock. A good entry point into the stock of Credit Acceptance Corporation would therefore be at $283.50 or below.
We expect the stock of Credit Acceptance Corporation to trade in a narrow range around its current price in coming weeks and months. All things considered we rate the stock of Credit Acceptance Corporation as a hold
Read the full article here
3 November 2020: The Dow Jones ended the day up by 2.06%
Dow Jones Updates:
(11:54 ET): The Dow Jones is currently trading up by 2.29%
(06:29 ET): Dow Jones futures are currently trading up by 1.17%
Website Updates:
We covered the latest earnings report of Estee Lauder, one of the largest beauty products and makeup manufactures in the world. Below a short extract of that article
So based on Estee Lauder (EL) latest earnings report what do we value their stock at? Based on their latest earnings report our valuation model provides a target price of $161.40 a stock. We therefore believe the stock of Estee Lauder is overvalued at its current price.
We usually recommend that investors look to enter a stock at least 10% below our target price which in this case is $161.40. Therefore a good entry point into the stock of Estee Lauder would be at $145 or below.
Since the stock of Estee Lauder is trading at well above our suggested entry price or target price we rate the stock of Estee Lauder as a sell.
Read the full article here
2 November 2020: The Dow Jones ended the day up by 1.6%
Dow Jones Updates:
(11:45 ET): The Dow Jones is currently trading up by 1.51%
(06:29 ET): Dow Jones futures are currently trading up by 1.39%
Website Updates:
We covered the latest earnings report of Honeywell, one of the largest manufacturing firms in the world, and a new addition to the Dow Jones. Below a short extract of that article
So based on the 3rd quarter 2020 earnings report of Honeywell (NYSE: HON) what do we value Honeywell (HON) stock at? Based on their 3rd quarter 2020 earnings report our valuation models provide a target price (full value price) for Honeywell stock at $124.50 a stock. We therefore believe the stock of Honeywell is slightly overvalued.
We usually advise investors to look to enter a stock at least 10% below our target price (full value price) which in this case is $124.50. So a good entry point into Honeywell would be around $112.00. We expect the stock price of Honeywell will pull back to levels closer to our target price (full value price) in coming weeks and months.
Since the stock of Honeywell is trading at well above our suggested entry point we rate the stock as a sell
Read the full article here
Dow Jones Updates:
(4:00 ET) Dow Jones futures are currently trading down by -0.61%
Website Updates:
Earlier we compared the stock performance and earnings reports of American Eagle Outfitters (AEO) and Urban Outfitters (URBN) in order to determine which stock has been the best performer in the past and which one is best placed to outperform in future.
Looking at all the fundamental metrics above Urban Outfitters wins on the Price/Stockholders equity per share metric. Urban Outfitters (URBN) also wins when it comes to the cash as percentage of stock price. American Eagle Outfitters (AEO) has the stronger cash position with their cash as percentage of total assets being higher than that of Urban Outfitters (URBN).
When looking at the PE ratio it is Urban Outfitters once again that wins as it has the lower PE ratio. Urban Outfitters (URBN) is also trading at closer to our latest stock valuation of the group (with it trading at 2.1% discount to our target price) , while American Eagle Outfitters is trading at about 32% above our latest stock valuation (target price) for the group.
Therefore all things considered in the battle between American Eagle Outfitters (EAO) vs Urban Outfitters (URBN) we rate the stock of Urban Outfitters (URBN) as the winner in the battle of the outfitters.
Read the full article here
27 November 2020: The Dow Jones ended the day up by 0.13%
Dow Jones Updates:
(11:08 ET) The Dow Jones is currently trading up by 0.17%
Website Updates:
Earlier we covered the latest earnings report of Urban Outfitters (URBN) . Below a short extract from that article
The image below shows the stock price performance of Urban Outfitters (URBN) vs Buckle Inc (BKE) vs American Eagle Outfitters (AEO) stock over the last 5 years. All of these firms are active in the clothing and accessories sector and their share price performances are pretty similar. The summary below shows their stock price performance over the last 5 years.
- Urban Outfitters (URBN): 26.9%
- American Eagle Outfitter (AEO): 18.9%
- Buckle (BKE): -6.5%
The stock of Urban Outfitters has easily outperformed that of American Eagle Outfitters and Buckle over the last 5 years
Read the full article here
26 November 2020: The markets were closed
Dow Jones Updates:
Markets closed
Website Updates:
Earlier we covered the stock performance of Buckle (BKE) and American Eagle Outfitters (AEO) as well as their latest earnings reports in order to determine which of these two clothing and apparel retailers are best placed to outperform in future. Below a short extract from that article
So let's take a look at the fundamentals and the valuation metrics in order to determine which of these two firms offers the most value at their current stock price.
One of our key metrics is the Price to Stockholders equity per share ratio. When looking at this we find the following:
- Price/Stockholders equity per share for American Eagle Outfitters (AEO): 3.07
- Price/Stockholders equity per share for Buckle (BKE): 3.07
Based on this metric it is a draw between Buckle (BKE) and American Eagle Outfitters (AEO). So what is the stockholders equity per share you ask? Well if a firm sells all assets, pays all its debts ad distributes the rest to its stockholders, the stockholders equity per share shows what each stockholders will get. Thus the higher this ratio the less you will get out per stock compared to what you are paying for it. So for these firms trading at 3.07 times it stockholders equity you will only get 32.5% of its current stock price out of they were to sell all assets, pay all debt and distribute the rest to stockholders.
Next up cash as percentage of stock price:
- Cash as percentage of stock price for American Eagle Outfitters (HD): 21.1%
- Cash as percentage of stock price for Buckle (BKE) : 24.4%
Next up lets take a look at the percentage cash on the balance sheet makes up of each group's total assets:
- Cash as percentage of stock price for American Eagle Outfitters (AEO) : 36.9%
- Cash as percentage of stock price for Buckle (BKE): 36.9%
So based on the cash position of these two firms when it comes to cash as percentage of stock price Buckle comes off as the winner, while it is another draw when it comes to the Cash as percentage of the total assets. Next lets take a look at the most overused financial ratio around. The Price to Earnings ratio.
Next up the PE ratio of the stock price:
- PE ratio for American Eagle Outfitters (EAO): 13.9
- PE ratio for Buckle (BKE) : 12.4
Read the full article here
25 November 2020: The Dow Jones ended the day down -0.58%
Dow Jones Updates:
(7:12 ET): Dow Jones futures are currently trading down by -0.17%
(0:07 ET): Dow Jones futures are currently trading up by 0.25%
Website Updates:
Earlier we covered the stock performance of The Home Depot and Lowe's as well as their latest earnings reports in order to determine which of these two DIY retailers are best placed to outperform in future. Below a short extract from that article
So let's take a look at the fundamentals and the valuation metrics in order to determine which of these two firms offers the most value at their current stock price.
One of our key metrics is the Price to Stockholders equity per share ratio. When looking at this we find the following:
- Price/Stockholders equity per share for The Home Depot (HD): 4.9
- Price/Stockholders equity per share for Lowe’s (LOW): 6.5
Based on this metric Walmart offers far more value than Target Corp. Most firms tend to trade at a ratio of between 2 and 4 times. The higher this ratio the less value a stock offers. A ratio of 6.5 is implying that buying the stock of Target now means you are paying 6.5 times more for the stock than what the stockholders equity per share is worth. But a high stockholders equity per share ratio is still better than a firm that has a stockholders deficit. So what is the stockholders equity per share you ask? Well if a firm sells all assets, pays all its debts ad distributes the rest to its stockholders, the stockholders equity per share shows what each stockholders will get. Thus the higher this ratio the less you will get out per stock compared to what you are paying for it. So for Target at 6.5 times it stockholders equity you will only get 15.38% of its current stock price out of they were to sell all assets, pay all debt and distribute the rest to stockholders. Walmart is slightly better at 20.4% of current stock price
Next up cash as percentage of stock price:
- Cash as percentage of stock price for The Home Depot (HD): 3.3%
- Cash as percentage of stock price for Lowe’s (LOW) : 6.8%
Next up lets take a look at the percentage cash on the balance sheet makes up of each group's total assets:
- Cash as percentage of stock price for The Home Depot (HD) : 5.7%
- Cash as percentage of stock price for Lowe’s (LOW): 11.8%
So based on the cash position of these two firms Lowe’s (LOW) offers more value as their overall cash position compared to their stock price and their overall assets is far greater than that of The Home Depot (HD).
Next up the PE ratio of the stock price:
- PE ratio for The Home Depot (HD): 20.1
- PE ratio for Lowe’s (LOW) : 21.9
Read the full article here
24 November 2020: The Dow Jones ended the day up by 1.54%
Dow Jones Updates:
(10:56 ET): The Dow Jones is trading up by 1.31%
(0:07 ET): Dow Jones futures are currently trading up by 0.92%
Website Updates:
Earlier we covered the latest earnings report of Target Corporation. Below a short extract from that article
Looking at the stock performance of Target (TGT) vs Walmart (WMT) vs Kroger (KR) over the last 5 years. All three firms are active in the retail space in the USA. But looking at the stock price performances of these firms it doesn't look like both of them are active in the same space as their stock price performances are totally different. The summary below shows the stock price performance of these firms over the last 5 years:
- Walmart (WMT): 154.7%
- Target (TGT): 136%
- Kroger (KR): -22.6%
The stock of Walmart (WMT) has easily outperformed the stock of Target and Kroger over the last 5 years.
Read the full article here
23 November 2020: The Dow Jones ended the day up by 1.12%
Dow Jones Updates:
(6:07 ET): Dow Jones futures are currently trading up by 0.73%
Website Updates:
Earlier we covered the latest earnings report of BellRing Brands.. Below a short extract from that article
COVID-19 Commentary
BellRing continues to monitor the impact of the COVID-19 pandemic on its business and remains focused on ensuring its ability to safeguard the health of its employees, including their economic health, maintaining the continuity of its supply chain to serve customers and consumers and preserving financial liquidity to mitigate the uncertainty caused by the pandemic.
The convenient nutrition category continues to be negatively impacted by changes in consumer behavior (primarily lower on-the-go consumption) in response to the COVID-19 pandemic. In the fourth quarter of 2020, the liquids and powders sub-categories returned to growth relatively in line with their pre-pandemic growth rates. However, the bar sub-category continues to experience year-over-year declines. International net sales for Dymatize and PowerBar products improved when compared to the third quarter of 2020, but continue to be negatively impacted by changes in consumer behavior as discussed earlier. The trajectory of volume recovery for Dymatize and PowerBar is expected to be impacted by changes in the degree of restrictions on mobility and gathering, including closures of specialty retail stores and gyms.
As of September 30, 2020, BellRing had $48.7 million in cash and cash equivalents and the available borrowing capacity under its revolving credit facility was $170.0 million.
Outlook
For fiscal year 2021, BellRing management expects net sales and Adjusted EBITDA to grow 8%-13% and 5%-10%, respectively, over fiscal year 2020 (resulting in a net sales range of $1.07-$1.12 billion and an Adjusted EBITDA range of $207-$217 million).
BellRing management expects the following:
- Net sales growth to be high single digits in the first half of 2021 and mid teens in the second half of 2021;
- Adjusted EBITDA growth to occur entirely in the second half of 2021, resulting from the timing of material and logistics cost increases, as well as incremental investments in brand building; and
- Quarterly Adjusted EBITDA pacing in the first half of 2021 to be similar to 2020.
Read the full article here
20 November 2020: The Dow Jones ended the day down by -0.75%
Dow Jones Updates:
(3:00 ET): Dow Jones futures are currently trading down -0.58%
Website Updates:
Earlier we covered the latest earnings report of Ampco-Pittsburgh a speciality steel fabricator. Below a short extract
So what is Ampco-Pittsburgh stock worth based on their 3rd quarter 2020 earnings report? Based on their earnings report our valuation model provides a target price (full value price) for Ampco-Pittsburgh at $7.20 a stock.
We therefore believe the stock of Ampco-Pittsburgh is undervalued at its current price of $4.12
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $7.20, thus a good entry point into Ampco-Pittsburgh would be at $6.50 or below.
We expect the stock of Ampco-Pittsburgh to kick up from current levels in coming weeks and months to levels closer to our target price (full value price), as their stock is price is undervalued. Since the stock of Ampco-Pittsburgh is trading at well below our suggested entry price we rate their stock as a buy
Read the full article here
19 November 2020: The Dow Jones ended the day up by 0.15%
Dow Jones Updates:
(5:33 ET): Dow Jones futures are currently trading down -0.54%
Website Updates:
Earlier we covered the latest earnings report of The Home Depot (HD), the largest DIY store in the world. Below a short extract
So what is Home Depot stock worth based on their 3rd quarter 2020 earnings report? Based on their earnings report our valuation model provides a target price (full value price) for Home Depot at $204.80 a stock (up very slightly from our 2nd quarter 2020 earnings report review of Home Depot).
We therefore believe the stock of The Home Depot is overvalued at its current price of $272
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $204.80, thus a good entry point into The Home Depot would be at $184.30 or below.
We expect the stock of Home Depot to pull back from current levels in coming weeks and months to levels closer to our target price (full value price), as their stock is price is overvalued and has been for some time and we believe once the spending of stimulus checks at stores such as the Home Depot and Walmart fades their reported earnings and stock prices will decline to reflect these lower sales.19 November 2020:
Read the full article here
18 November 2020: The Dow Jones ended the day down by -1.16%
Dow Jones Updates:
(7:33 ET): Dow Jones futures are currently trading up by 0.48%
Website Updates
We covered the latest earnings report of Whole Earth Brands (a plant based foods supplier). Below a short extract from that article
So based on Whole Earth Brands latest earnings report what do we value Whole Earth Brands stock at? The fact that Whole Earth Brands (FREE) is loss making makes it harder to value the stock. Our base position when a firm is loss making is to use its stockholders equity per share as the base of our valuation. In the case of Whole Earth Brands they stockholders equity per share is $7.58
We therefore believe that the stock of Whole Earth Brands is slightly overvalued. We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price, which in this case is $7.58. A good entry price into Whole Earth Brands would therefore be at $6.80 or below.
We expect the stock of Whole Earth Brands to pull back in coming weeks and months to levels closer to our target price (full value price) in coming weeks and months. Since the stock of Whole Earth Brands is trading at well above our suggested entry point we rate the stock of Whole Earth Brands as a sell
Read the full article here
17 November 2020: The Dow Jones ended the day down by -0.56%
Dow Jones Updates:
(00:03 ET): Dow Jones futures are currently trading down by -0.28%
Website Updates
We covered the latest earnings report of Paloalto. Below a short extract from that article
So based on Paloalto latest earnings report what do we value Paloalto stock at? Based on their earnings reported our valuation model provides a target price (full value price) for Paloalto at $169.20 per stock.
We therefore believe that the stock of Paloalto is overvalued. We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price, which in this case is $169.20 A good entry price into Paloalto would therefore be at $152.30 or below.
We expect the stock of Paloalto to pull back in coming weeks and months to levels closer to our target price (full value price). Since the stock of Paloalto is trading at well above our suggested entry point we rate the stock of Paloalto as a sell
Read the full article here
16 November 2020: The Dow Jones ended the day up by 1.6%
Dow Jones Updates:
(08:43 ET): Dow Jones futures are currently trading up 1.81%
We covered the lastest earnings report of Spectrum Brands. Below a short extract from that article
So based on Spectrum Brands latest earnings report what do we value Spectrum Brands stock at? Based on their earnings reported our valuation model provides a target price (full value price) for Spectrum Brands at $47.30 per stock.
We therefore believe that the stock of Spectrum Brands is slightly overvalued. We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price, which in this case is $47.30. A good entry price into Spectrum Brands would therefore be at $42.60 or below.
We expect the stock of Spectrum Brands to pull back in coming weeks and months to levels closer to our target price (full value price) in coming weeks and months. Since the stock of Spectrum Brands is trading at well above our suggested entry point we rate the stock of Spectrum Brands as a sell
Read the full article here
13 November 2020: The Dow Jones ended the day up by 1.37%
Dow Jones Updates:
(3:54 ET): Dow Jones futures are currently trading up by 0.57%
Website Updates:
We covered the latest earnings report of CMC Materials (CCMP). Below a short extract from that article.
Key Highlights
Total revenue decreased 1.6% in the fourth quarter compared to the same quarter last year as stronger demand in CMP slurries and electronic chemicals as well as higher wood treatment revenue were offset by lower revenue in pipeline performance products and CMP pads. Net income for the quarter was $36.9 million compared to a loss of $20.2 million in the prior year primarily due to the impairment charge the company took for its strategic decision to exit the wood treatment business in the prior year. Adjusted EBITDA was $84.0 million, down 1.5% compared with the prior year. Full year revenue was a record and increased 7.6% compared to the last year primarily due to a full year of revenue from the company's acquisition of KMG Chemicals, Inc. in November of 2018, growth in CMP slurries and higher wood treatment revenue. During the year the company generated $287.3 million in cash flow from operations, and had $257.4 million of cash on hand and $921.4 million in total debt as of the end of the fiscal year.
“I am proud of our performance, delivering another year of record revenue and profitability despite the challenging and unprecedented environment caused by the COVID-19 pandemic, which demonstrates our strong execution and robust businesses. We are most grateful for the overall well-being of our employees, and I would like to thank our global teams for their dedication to driving our record results,” said David Li, President and CEO of CMC Materials. “In fiscal 2021, we expect to see continued strong demand from our semiconductor customers driven by advanced node transitions to support new technologies including 5G, as well as improving fundamentals and demand from our pipeline customers. We also started the year with the rebranding of our company to CMC Materials, which we believe embodies our focus on delivering innovative, high value, specialty materials to our customers globally.”
Read the full article here
12 November 2020: The Dow Jones ended the day down -1.08%
Dow Jones Updates:
(02:31 ET): Dow Jones futures are currently trading down by -0.58%
Website Updates:
We covered the latest earnings report of D.R Horton, one of the biggest home builders in the USA. Below a short extract from that article.
The summary below shows the number of homes closed for D.R Horton for the 3 months ended September 2020
Region Number of homes Value (in $ millions)
- East............................................................................................ 3,228 1,013
- Midwest..................................................................................... 1,496 549.3
- Southeast ................................................................................... 7,835 2,248
- South Central............................................................................. 6,731 1,751
- Southwest .................................................................................. 1,554 466.3
- West........................................................................................... 2,882 1.268
- Total....................................................................................... 23 726 7,298.4
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11 November 2020: The Dow Jones ended the day down by -0.08%
Dow Jones Updates:
(02:31 ET): Dow Jones futures are currently trading up by 0.28%
Website Updates:
We covered the latest earnings report of Advance Auto Parts (AAP). Below a short extract from that article.
Never has it been more important for us to put the health and safety of our customers and team members first as COVID-19 continues to impact our communities and ongoing operations. As a result, we continue to adapt and take the steps necessary to prioritize the well-being of our customers and team members" said Tom Greco, President and Chief Executive Officer. "Our third quarter comparable sales growth of 10.2% is the strongest in 15 years, and was led by our DIY Omnichannel performance. Double digit comp sales combined with disciplined cost control resulted in 183 basis points of adjusted operating income margin expansion and a 95% increase in quarterly free cash flow. Industry demand remained strong in the quarter, however our performance is also a testament to the resilience of our team members and independent partners during the COVID-19 pandemic. While we cannot predict the direction of the pandemic from here, we remain laser focused on the execution of our long-term plans. This includes the introduction of our #DieHardisBack marketing campaign on October 18. The energy and excitement surrounding this integrated campaign has driven widespread coverage and recognition not only for DieHard®, but for the Advance and Carquest brands. Including DieHard, we’re building an increasingly differentiated assortment to complement our strong digital presence and a comprehensive suite of fulfillment options including over 6000 conveniently located stores and Advance Same Day™ delivery. We believe that these capabilities, combined with a strong balance sheet and talented team, position us well to continue to drive growth and margin expansion in the years ahead
Read the full article here
10 November 2020:
Dow Jones Updates:
(07:19 ET): Dow Jones futures are currently trading up by 0.87%
(00:02 ET): Dow Jones futures are currently trading down by -0.71%
Website Updates:
We covered the latest earnings report of Starbucks (SBUX). Below a short extract from that article.
So based on Starbucks (SBUX) latest earnings report and their fiscal guidance what do we value the stock of Starbucks at? Based on their 4th quarter 2020 earnings report and their guidance provided our valuation model provides a target price (full value price) for Starbucks (SBUX) at $71.20 a stock. We therefore believe the stock of Starbucks is overvalued
We recommend that long term fundamental and value investors look to enter a stock at least 10% below our target price (full value price) which in this case is $71.20. A good entry point into Starbucks would therefore be at $64.10 or below.
We expect the stock of Starbucks (SBUX) to pull back from current levels to levels closer to our target price (full value price) in coming weeks and months. We therefore rate the stock of Starbucks as a sell.
Read the full article here
9 November 2020: The Dow Jones ended the day up 2.95%
Dow Jones Updates:
(11:25 ET): The Dow Jones is currently trading up by a very strong 3.7%
(08:36 ET): Dow Jones futures are currently trading up by a massive 5.97%
(08:02 ET): Dow Jones futures are currently trading up by 2.67%
(04:12 ET): Dow Jones futures are currently trading up by 1.38%
Website Updates:
We covered the latest earnings report of Discovery Inc, the owner of Discovery Channel and HGTV. Below a short extract.
So based on Discovery Inc’s latest earnings report what do we value Discovery stock at? Based on their earnings reported our valuation model provides a target price (full value price) for Discovery Corporation at $31 per stock
We therefore believe that the stock of Discovery Inc stock is undervalued. We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price, which in this case is $31. A good entry price into Discovery Corporation would therefore be at $27.90 or below.
We expect the stock of Discovery Corporation to kick up from current levels to levels closer to our target price in coming weeks and months as we do believe the group's stock is undervalued.
Since the stock of Discovery Inc is trading at well below our suggested entry point we rate the stock of Discovery Inc as a buy
Read the full article here
6 November 2020: The Dow Jones ended the day down by -0.24%
Dow Jones Updates:
(02:47 ET): Dow Jones futures are currently trading down by -0.42%
Website Updates:
We covered the latest earnings report of Ferrari (RACE), one of the world's most famous brands and premier sports car builder. Below a short extract from that article/
Based on the 3rd quarter 2020 earnings report of Ferrari what do we value the group's stock at? Based on their earnings reported and their outlook our stock valuation model provides a target price (full value price) for Ferrari at $161.50 a stock. We therefore believe the stock of Ferrari is overvalued at its current price.
We usually recommend that long term fundamental and value investors look to enter a stock at least 10% below our target price which in this case is $161.50. A good entry point into the stock of Ferrari (RACE) would therefore be at $145.40 or below.
Since the stock of Ferrari is trading at well above our suggested entry point into the stock we rate the stock of Ferrari as a sell
Read the full article here
5 November 2020: The Dow Jones ended the day up by 1.95%
Dow Jones Updates:
(06:24 ET): Dow Jones futures are currently trading up by 1.17%
(02:47 ET): Dow Jones futures are currently trading up by 0.73%
Website Updates:
We covered the latest earnings report of Clearwater Paper, a manufacturer of tissues, cardboard and other paper related packing products and materials Below a short extract from that article
So what do we value the stock of Clearwater Paper (CLW) at following the release of their 3rd quarter 2020 earnings report. Based on their earnings reported our stock valuation model provides a target price of $72.70 per Clearwater Paper (CLW) stock. We therefore believe the stock of Clearwater Paper is undervalued at its current price.
We usually recommend that long term fundamental and value investors look to enter a stock at least 10% below our target price, which in this case is $72.70. A good entry point would therefore be at $65.40 or below.
Since the stock of Clearwater Paper is trading at well below our suggested entry point we rate their stock as a buy
Read the full article here
4 November 2020: The Dow Jones ended the day up by 1.34%
Dow Jones Updates:
(03:45 ET): Dow Jones futures are currently trading down by -0.27%
Website Updates:
We covered the latest earnings report of Credit Acceptance Corporation, a firm that offers finance plans that allows dealers to sell to consumers regardless of their credit record. Below a short extract.
So based on their 3rd quarter 2020 earnings report what do we value the stock of Credit Acceptance Corporation at? Based on the the earnings reported our stock valuation model provides a target price of $315 per Credit Acceptance Corporation stock. Therefore we rate the stock of Credit Acceptance Corporation as fully valued.
We usually recommend that fundamental long term and value investors look to enter a stock at least 10% below our target price, which in this case is $315 a stock. A good entry point into the stock of Credit Acceptance Corporation would therefore be at $283.50 or below.
We expect the stock of Credit Acceptance Corporation to trade in a narrow range around its current price in coming weeks and months. All things considered we rate the stock of Credit Acceptance Corporation as a hold
Read the full article here
3 November 2020: The Dow Jones ended the day up by 2.06%
Dow Jones Updates:
(11:54 ET): The Dow Jones is currently trading up by 2.29%
(06:29 ET): Dow Jones futures are currently trading up by 1.17%
Website Updates:
We covered the latest earnings report of Estee Lauder, one of the largest beauty products and makeup manufactures in the world. Below a short extract of that article
So based on Estee Lauder (EL) latest earnings report what do we value their stock at? Based on their latest earnings report our valuation model provides a target price of $161.40 a stock. We therefore believe the stock of Estee Lauder is overvalued at its current price.
We usually recommend that investors look to enter a stock at least 10% below our target price which in this case is $161.40. Therefore a good entry point into the stock of Estee Lauder would be at $145 or below.
Since the stock of Estee Lauder is trading at well above our suggested entry price or target price we rate the stock of Estee Lauder as a sell.
Read the full article here
2 November 2020: The Dow Jones ended the day up by 1.6%
Dow Jones Updates:
(11:45 ET): The Dow Jones is currently trading up by 1.51%
(06:29 ET): Dow Jones futures are currently trading up by 1.39%
Website Updates:
We covered the latest earnings report of Honeywell, one of the largest manufacturing firms in the world, and a new addition to the Dow Jones. Below a short extract of that article
So based on the 3rd quarter 2020 earnings report of Honeywell (NYSE: HON) what do we value Honeywell (HON) stock at? Based on their 3rd quarter 2020 earnings report our valuation models provide a target price (full value price) for Honeywell stock at $124.50 a stock. We therefore believe the stock of Honeywell is slightly overvalued.
We usually advise investors to look to enter a stock at least 10% below our target price (full value price) which in this case is $124.50. So a good entry point into Honeywell would be around $112.00. We expect the stock price of Honeywell will pull back to levels closer to our target price (full value price) in coming weeks and months.
Since the stock of Honeywell is trading at well above our suggested entry point we rate the stock as a sell
Read the full article here
The Dow Jones Performance Calendar Tracker for Oct 2020
The graphic below shows the daily performance of the Dow Jones Industrial Average (The Dow) on a calendar for the month of September. The index levels used in the calculation of the daily performance of the Dow Jones Industrial Average is obtained from Macrotrends.net
For the month of October 2020 the Dow Jones is down by -3.77%
For the month of October 2020 the Dow Jones is down by -3.77%
Dow Jones and website updates for October 2020
30 October 2020: The Dow Jones ended the day down by -0.59%
Dow Jones Updates:
(9:31 ET): The Dow Jones is currently trading down by -0.63%
(2:50 ET): Dow Jones futures are currently trading down by -1.98%
Website Updates:
We covered the latest earnings release from Apple (APPL). The group reported a 8% decline in net income compared to the same quarter of the previous year. Below a short extract from that article
So what do we value Apple's stock at after the release of their 4th quarter 2020 earnings report? Following Apple's 4th quarter 2020 earnings report our valuation model provides a target price (full value price) for Apple at $68.90 a stock (up slightly from our 2nd quarter 2019 earnings report valuation of Apple. Note this valuation was done prior to the Apple stock split). We therefore believe that the stock of Apple is overvalued.
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $68.90. Therefore we believe a good entry point into Apple stock is at $62 or below. We expect the stock of Apple to pull back from current levels to levels closer to our target price (full value price) in coming weeks and moths as we believe it is significantly overvalued at this point in time.
Since the stock of Apple is trading at well above our target (full value) price and our suggested entry price we will go against almost all market commentators and punters and rate Apple as a sell
Read the full article here
29 October 2020: The Dow Jones ended the day up by 0.52%
Dow Jones Updates:
(2:50 ET): Dow Jones futures are currently trading up by 1.36%
Website Updates:
We covered the latest earnings report of Norfolk Southern (SC)
Next is the stock price performance of Norfolk Southern (NSC) vs Union Pacific (UNP) vs Kansas City Southern (KSU) over last 5 years. The summary below shows the stock price returns of the freight rail firms below below (sorted from best to worst performer)
So looking at the performance of the three freight train operators Norfolk Southern just managed to outperform Union Pacific over the last 5 years, while they both easily outperformed the stock of Kansas City Southern. But in saying that all three freight rail stocks have provided investors with very healthy returns.
Read the full article here
28 October 2020: The Dow ended the day -3.43%
Dow Jones Updates:
(09:21 ET): Dow Jones futures are currently trading down -2.23%
(03:18 ET): Dow Jones futures are currently trading down -0.52%
Website Updates:
Yesterday we covered the latest earnings report of JetBlue. As part of that article we compared the stock price performance of JetBlue to Southwest, American Airlines and United Airlines. Below a short extract from that article
The image below shows the stock price performance of JetBlue (JBLU) vs Southwest (LUV) vs American (AAL) vs United (UAL) over the last 3 years. The summary below shows the stock price returns of the various airlines below (sorted from best to worst performers)
So looking at the performance of these four airliners, while they all made significant losses, Southwest (LUV) was the best performer while American (AAL) the worst performer. JetBlue came in second from last in this comparison with their stock declining a significant 53.12% over the last 3 years
Read the full article here
27 October 2020: The Dow Jones ended the day down -0.8%
Dow Jones Updates:
(12:12 ET): Dow Jones is currently trading down by -0.17%
(01:42 ET): Dow Jones futures are currently trading up by 0.24%
Website Updates:
Yesterday we covered the latest earnings report of American Express (AXP). Below a short extract from that article
So what is American Express stock worth based on the release of their latest earnings report? Based on American Express' latest earnings report our valuation models provide a target price (full value) price of American Express stock at $127.70 a stock. Therefore we believe the stock of American Express is undervalued at its current price of $100.98
We usually recommend that long term fundamental or value investors look to enter the stock at 10% below our target price (full value price) which in this case is $127.80, so a good entry point into American Express' stock would be at $115 or below.
We expect the stock of American Express to tick up in coming weeks and months to levels closer to our target price (full value price). Since the stock of American Express is trading at well below our suggested entry price we rate the stock of American Express a buy
Read the full article here
26 October 2020: The Dow Jones ended the day down by -2.29%
Dow Jones Updates:
(08:00 ET): Dow Jones futures are currently trading don by -0.97%
Website Updates:
We covered the latest earnings report of Southwest Airlines, one of the better performing airline stocks in recent months. Below a short extract of that article
So what is Southwest Airlines stock worth based on the release of their latest earnings report? Based on the earnings report and fiscal guidance provided by Southwest Airlines our our valuation models provide a target price (full value price) for Southwest Airlines stock at $51.70 a stock. We therefore believe that the stock of Southwest Airlines is undervalued
We usually suggest that long term and fundamental investors get in at least 10% below our target price (full value price) which in this case is $51.70. Therefore we believe a good entry point into Southwest Airlines stock is at $46.50 or below. We expect the stock price of Southwest Airlines to increase to levels to closer to our target price in coming weeks and months.
Since the stock of Southwest Airlines is trading at well below our suggested entry price we rate the stock as a buy
Read the full article here
23 October 2020: The Dow ended the day down -0.1%
Dow Jones Updates:
(04:34 ET): Dow Jones futures are currently trading up by 31%
Website Updates
Yesterday we covered the latest investor update by Tesla (TSLA). Below a short extract from that article
Quick facts about Tesla:
3rd quarter 2020 production numbers compared to 2nd quarter of 2019
Model description September 2020 September 2019 Year on year percentage change
Outlook provided by Tesla
Volume : We have the capacity installed to produce and deliver 500,000 vehicles this year. While achieving this goal has become more difficult, delivering half a million vehicles in 2020 remains our target. Achieving this target depends primarily on quarter over quarter increases in Model Y and Shanghai production, as well as further improvements in logistics and delivery efficiency at higher volume levels
Cash Flow: We should have sufficient liquidity to fund our product roadmap, long-term capacity expansion plans and other expenses
Profit: For the trailing 12 months, we achieved an operating margin of 6.3%. We expect our operating margin will continue to grow over time, ultimately reaching industry-leading levels with capacity expansion and localization plans underway
Product: We are currently building Model Y capacity at Gigafactory Shanghai, Gigafactory Berlin and Gigafactory Texas, and remain on track to start deliveries from each location in 2021. Tesla Semi deliveries will also begin in 2021. We continue to significantly invest in our product roadmap.
Read the full article here
22 October 2020: The Dow Jones ended the day up by 0.54%
Dow Jones Updates:
(00:48 ET): Dow Jones futures are currently trading down by -0.73%
Website Updates
Yesterday we covered the latest earnings report of Netflix (NFLX). Below a short extract of that article
So based on the earnings report of Netflix (NASDAQ: NFLX) what do we value Netflix (NFLX) stock at? Based on the earnings report and the increased competition our valuation models sets a target (full value) price on Netflix of $391.40. (up slightly from our 2nd quarter 2020 Netflix earnings report valuation). Based on our target price (full value price) we believe the stock of Netflix is overvalued.
We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price) which in this case is $391.40 We therefore believe a good entry point into Netflix is $352.30 or below. Since the stock of Netflix is well above our recommended entry point we would not recommend buying into Netflix right now as we believe there is still a lot of hope and fairytales and butterflies built into their future earnings expectations with the group trading at a PE ratio of over 80
We therefore rate the stock of Netflix (NFLX) as a SELL
Read the full article here
21 October 2020: The Dow Jones ended the day down by -0.35%
Dow Jones Updates:
(09:22 ET): Dow Jones futures are currently trading down by 0.06%
(08:00 ET): Dow Jones futures are currently trading down by -0.05%
(01:00 ET): Dow Jones futures are currently trading up by 0.61%
Website Updates:
We covered the latest earnings report of NVR, one of the largest homebuilders in the USA. Below a short extract of that article
So based on NVR Inc (NYSE; NVR) latest earnings report what do we value the group's stock at? Based on their earnings report our valuation models provides a target (full value) price for the stock of NVR Inc at $4 190. We therefore believe that the stock of NVR is overvalued
We usually recommend that long term or fundamental investors enter into a stock at least 10% below our target price (full value price), which in this case is $4 190, We therefore see a good entry point into the stock of NVR at $3 771. Since the stock of NVR is trading well above our suggested entry point we would not advise investors to buy into the stock of NVR at this point in time. We expect the stock of NVR to pull back from current levels to levels closer to our target price (full value price) in coming weeks and months.
Read the full article here
20 October 2020: The Dow ended the day up by 0.4%
Dow Jones Updates:
(13:43 ET): The Dow Jones is currently trading up by 1.26%
(01:00 ET): Dow Jones futures are currently trading up by 0.23%
Website Updates:
We covered the latest earnings report from Kansas City Southern. Below a short extract
So what do we value Kansas City Southern (KSU) stock at based on their latest earnings report? Based on their 3rd quarter 2020 earnings report our valuation model provides a target price (full value price) for Kansas City Southern at $156.40 a stock. We therefore believe the stock of Kansas City Southern (KSU) is overvalued at its current price.
We usually recommend that long term and fundamental investors look to enter a stock at least 10% below our target price, which in this case is $156.40. A good entry point would therefore be at $140.80. Since the stock of Kansas City Southern (KSU) is trading at well above our suggested entry price we rate the stock of Kansas City Southern as a sell.
Read the full article here
19 October 2020: The Dow Jones ended the day down by -1.44%
Dow Jones Updates:
(12:02 ET): The Dow Jones is currently trading down by -0.36%
(08:43 ET): Dow Jones futures are currently trading up by 0.60%
(01:22 ET): Dow Jones futures are currently trading up by 0.65%
Website Updates:
In our latest battle of the banks we compared some of the biggest financial institutions. Below a short extract from that article
One of our key metrics is the Price to Stockholders equity per share ratio. When looking at this we find the following:
Based on this metric CitiGroup offers far more value than Bank of America, JPMorgan and Goldman Sachs. Most firms tend to trade at a ratio of between 2 and 4 times. While all these firms are trading at well below the expected range its Citi who is trading at the lowest and based on this metric offers the most value.
Next up cash as percentage of stock price:
Next up lets take a look at the percentage cash on the balance sheet makes up of each group's total assets:
Looking at the cash position of the four firms Goldman Sachs has the strongest cash position (as a percentage of their total assets). The cash per share gives an indication of if investors were to buy the stock now, how much of that stock price is made up by cash on their balance sheet. In this case its also Goldman Sachs that comes out on top with almost 204% of their current stock price being made up by cash.
Lastly the overused but still useful metric, the Price to Earnings Ratio (PE):
So Citigroup has the lowest PE and Bank of America by far the highest.
So all things considered if we have to choose between all of these financial service provider firms based on their current stock price, their latest earnings reported and stock price performance provided over the last 5 years, we rate the stock of Goldman Sachs as the Winner as its PE is middle of the road of these firms, it has the strongest cash position of the four firms and its Price/Stockholders equity is middle of the road. And in uncertain economic times we tend to favour those with the strongest cash positions as it provides a greater buffer to ride out difficult times. We therefore rate Goldman Sachs as the WINNER
Read the full article here
16 October 2020: The Dow Jones ended the day up by 0.39%
Dow Jones Updates:
(07:01 ET): Dow Jones is currently trading up by 0.96%
(01:01 ET): Dow Jones futures are currently trading down by -0.13%
Website Updates:
We covered the latest earnings report from Bank of America (BAC). Below a short extract from that article
So what is Bank of America stock worth based on the release of their 3rd quarter 2020 earnings report? Based on Bank of America's latest earnings report our valuation models provide a target price (full value price) for Bank of America stock at $27.40 a stock. We therefore believe that the stock of Bank of America is slightly undervalued at its current price of $23.62
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $27.40. Therefore we believe a good entry point into Bank of America stock is at $24.70 or below. We expect the stock of Bank of America to increase to levels closer to our target price (full value price) in coming weeks and months.
Since the stock of Bank of America (BAC) is trading at well below our suggested entry point we rate the stock of Bank of America as a buy
Read the full article here
15 October 2020: -0.07%
Dow Jones Updates:
(12:00 ET): The Dow Jones is currently trading down by -0.39%
(04:17 ET): Dow Jones futures are currently trading down by -0.58%
Website Updates:
We covered the latest earnings report from Goldman Sachs (GS). Below a short extract from that article
So what is Goldman Sachs (GS) stock worth based on their latest earnings report? Based on the earnings reported our valuation model provides a target price for Goldman Sachs at $266 a stock. We therefore believe the stock of Goldman Sachs is undervalued at its current price.
We usually recommend that long term and fundamental investors look to enter a stock at least 10% below our target price, which is $266. We therefore recommend a good entry price into the stock of Goldman Sachs to be at $239.40 or below.
Since the stock of Goldman Sachs is trading at well below our suggested entry point into the stock we rate the stock of Goldman Sachs as a buy
Read the full article here
14 October 2020: The Dow Jones ended the day down by -0.58%
Dow Jones Updates:
(09:54 ET): The Dow Jones is currently trading up by 0.36%
(03:54 ET): Dow Jones futures are currently trading up by 0.18%
Website Updates:
We covered the latest earnings report from JPMorgan (JPM). Below a short extract from that article
So what is JP Morgan Chase stock worth based on the release of their latest earnings report? Based on JP Morgan Chase latest earnings report our valuation models provide a target price (full value price) for JP Morgan Chase stock at $129.10 a stock (up slightly from our 2nd quarter 2020 earnings report valuation of JP Morgan Chase). We therefore believe that the stock of JP Morgan Chase is undervalued at its current price of around $11.78.
We usually suggest that long term and fundamental investors get in at least 10% below our target price (full value price) which in this case is $129.10 Therefore we believe a good entry point into JP Morgan Chase's stock is at $116.20 or below.
We expect the stock of JP Morgan Chase to surge once world economies starts reopening after the Covid-19 pandemic eases.
Read the full article here
13 October 2020: The Dow Jones ended the day down by -0.55%
Dow Jones Updates:
(02:47 ET): Dow Jones futures are currently trading up by 0.86%
Website Updates:
We covered the 3rd quarter comparable sales from McDonald's (MCD). Below a short extract from that article
CHICAGO, Oct. 8, 2020 /PRNewswire/ -- "Our third quarter performance demonstrates the underlying resilience of the McDonald's brand. Our unique strengths, including our unrivaled drive-thru presence around the world, advanced delivery and digital capabilities, and marketing scale have become even more important during the pandemic. Our prior investments in these areas position us to further our competitive advantage and enable restaurant crew to continue to safely provide customers our great tasting food," said McDonald's President and Chief Executive Officer Chris Kempczinski. "Today's dividend increase reflects our strong financial position and represents continued confidence in our ability to drive profitable growth and long-term shareholder value while still investing in our people and the business."
Region 3Q 2020 3Q2019
Read the full article here
12 October 2020: The Dow Jones ended the day up by 0.88%
Dow Jones Updates:
(12:00 ET): The Dow Jones is currently trading up by 0.86%
(08:45 ET): Dow Jones futures are currently trading up by 0.22%
(01:32 ET): Dow Jones futures are currently trading up by 0.24%
Website Updates:
We covered the latest earnings report of Helen of Troy, the owner of brands such as Drybar, OXO and Braun.
So what is Helen of Troy's stock worth based on the release of their latest earnings report? Based on the group's latest earnings and their outlook provided our valuation model provides a target (full value) price at $179.80 a Helen of Troy stock. We therefore believe that the stock of Helen of Troy is overvalued.
We usually suggest long term fundamental or value investors look to enter into a stock at least 10% below our target (full value) price which in this case is $179.80. Thus we see a good entry point into Helen of Troy's stock at $161.80 or below. We believe that Helen of Troy's stock will pull back in coming weeks and months to levels closer to our target price (full value price).
Since the stock of Helen of Troy (HELE) is trading at well above our suggested entry point we rate the stock of HELE as a sell
Read the full article here
9 October 2020: The Dow Jones ended the day up by 0.57%
Dow Jones Updates:
(03:03 ET): Dow Jones futures are currently trading up by 0.23%
Website Updates:
Yesterday we covered the latest earnings report of Domino's Pizza (DPZ). Below a short extract
So what is Domino's Pizza (NYSE: DPZ) stock worth based on the release of their 3rd quarter 2020 earnings report? Based on Domino's Pizza's 2nd quarter 2020 earnings report our valuation model provides a target price (full value price) at $217.70 a stock. We therefore believe that the stock is overvalued.
We usually suggest long term fundamental or value investors look to enter into a stock at least 10% below our target price (full value price) which in this case is $217.70. Thus we see a good entry point into Domino's stock at $195.90 or below. We believe that Domino's stock will pull back in coming weeks and months to levels closer to our target price (full value price).
We therefore rate Domino's Pizza (DP) as a sell
Read the full article here
8 October 2020: The Dow Jones ended the day up by 0.43%
Dow Jones Updates:
(09:48 ET): The Dow Jones is currently trading up by 0.25%
(03:24 ET): Dow Jones futures are currently trading up by 0.70%
Website Updates:
Yesterday we covered the latest sales reported by 3M.
ST. PAUL, Minn.--(BUSINESS WIRE)-- 3M (NYSE: MMM) today reported sales information for the month of August 2020. Total sales for August increased 2 percent year-on-year to $2.7 billion. Organic local-currency sales (which includes organic volume impacts and selling price changes) declined 2 percent while acquisitions, net of divestitures, and foreign currency translation increased sales year-on-year by 3 percent and 1 percent, respectively.
Total sales increased 23 percent in Health Care, 6 percent in Safety and Industrial, and 3 percent in Consumer, while Transportation and Electronics declined 11 percent. Organic local-currency sales increased 6 percent in Health Care, 5 percent in Safety and Industrial, and 2 percent in Consumer, while Transportation and Electronics declined 11 percent.
On a geographic basis, total sales increased 7 percent in EMEA (Europe, Middle East and Africa), and 4 percent in the Americas, while Asia Pacific declined 2 percent. Organic local-currency sales were flat in both the Americas (including the U.S. up 1 percent) and EMEA, while Asia Pacific declined 5 percent (including China up 6 percent and Japan down 15 percent).
Sales for August 2020 were impacted by one fewer business day – 21 days this year versus 22 days last year – or minus 5 percent year-on-year. Because the company will have one additional business day in September 2020 versus September 2019, there will be no year-on-year business day impact on the third-quarter 2020.
While significant global economic uncertainty remains due to the COVID-19 pandemic, the company estimates, with one month left in the quarter, its sales to be in the range of $8.2 to $8.3 billion for the third-quarter. Given the current economic uncertainty, 3M will continue its monthly reporting of sales information through the end of the year to provide transparency on its ongoing business performance.
Read the full article here
7 October 2020: The Dow Jones ended the day up by 1.91%
Dow Jones Updates:
(12:00 ET): Dow Jones is currently trading up by 1.58%
(00:07 ET): Dow Jones futures are currently trading up by 0.21%
Website Updates:
Yesterday we covered the latest earnings report of Jack in the Box (JACK). Below a short extract
So what is Jack in a Box stock worth based on their 3rd quarter 2020 earnings report? Based on their earnings report our valuation model provides a target price (full value price) for Jack in the Box at $78.20 a stock.
But based on their earnings and their share buy back programs we believe the stock of Jack in the Box is slightly overvalued
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target (full value) price, which in this case is $78.20, thus a good entry point into Jack in the Box would be at $70.40 or below.
We expect the stock of Jack in the Box to pull back slightly from current levels in coming weeks and months to levels closer to our target price (full value price). We therefore rate the stock of Jack in the Box as a hold
Read the full article here
6 October 2020: The Dow Jones ended the day down by -1.34%
Dow Jones Updates:
(12:52 ET): The Dow Jones is currently trading up by 0.15%
(06:25 ET): Dow Jones futures are currently trading down by -0.04%
(00:07 ET): Dow Jones futures are currently trading up by 0.21%
Website Updates:
Yesterday we covered the latest earnings report of the largest seller of RV's in the world. Thor Industries. Below a short extract
So what is Thor Industries stock worth based on the release of their latest earnings report and the outlook provided. Based on the earnings reported our valuation models provide a target (full value) price for Thor Industries of $69.70 a stock (up from our 3rd quarter valuation of Thor Industries).
We therefore believe that Thor Industries stock is overvalued at its current price of $99.92 and we would not recommend long term fundamental or value investors buy into the stock of Thor Industries at its current price of $99.92
We usually recommend that long term fundamental or value investors look to enter the stock at least 10% below our target (full value) price, which in this case is $69.70 in this case. A good entry into the stock of Thor Industries (THO) would therefore be at $62.70 or below. We expect that stock of Thor Industries to pull back strongly from current levels to levels closer to our target (full value) price in coming weeks and months.
Read the full article here
5 October 2020: The Dow Jones ended the day up by 1.68%
Dow Jones Updates:
(13:00 ET): The Dow Jones is currently trading up by 1.31%
(4:42 ET): Dow Jones futures are currently trading up by 0.78%
Website Updates:
We covered the latest sales data reported by pizza franchise group Papa Johns
LOUISVILLE, Ky.--(BUSINESS WIRE)--Sep. 29, 2020-- Papa John’s International, Inc. (NASDAQ: PZZA) today provided preliminary estimated comparable sales information for the month of September and the third quarter fiscal period. In light of the uncertainty related to the pandemic, the company has continued to provide this information on a monthly basis.
President & CEO Rob Lynch said, “Six consecutive months of double-digit comparable sales growth were made possible by the hard work of Papa John’s team members and franchisees during the global pandemic. We remain confident that our innovation pipeline, marketing and technology platforms, and strong operations will continue to support strong results during, and after, the pandemic.”
Preliminary Estimated Comparable Sales for September 2020 Fiscal Period and Third Quarter
Preliminary estimated comparable sales information for the five weeks and the fiscal quarter ended September 27, 2020, relative to the same periods in the prior year are as follows
August 24, 2020 to September 27, 2020 Three months ended September 27, 2020
Comparable sales growth (a)
Domestic company-owned restaurants 14.3% 18.2%
North America franchised restaurants 19.7% 25.5%
System-wide North America restaurants 18.4% 23.8%
System-wide international restaurants (b) 23.3% 20.6%
Read the full article here
2 October 2020: The Dow ended the day down by -0.48%
Dow Jones Updates:
(08:24 ET): Dow Jones futures are currently trading down by -1.21%
(02:24 ET): Dow Jones futures are currently trading down by -1.59%
Website Updates:
We covered the latest earnings report from PepsiCo (PEP). Below a short extract from that article
So what is PepsiCo (NASDAQ: PEP) stock worth based on the release of their latest earnings report and fiscal guidance provide? Based on their earnings report and the guidance provided our valuation models provide a target (full value) price for PepsiCo of $139.90 a stock. We therefore believe that the stock is close to being fully valued.
We usually suggest long term investors look to enter a stock at least 10% below our target (full value) price which in this case is $139.90. So a good entry point into PepsiCo stock would be at $125.90 or below. We therefore rate the stock of PepsiCo (PEP) as a hold.
Read the full article here
1 October 2020: The Dow Jones ended the day up by 0.13%
Dow Jones Updates:
(12:03 ET): The Dow Jones is currently trading up by 0.25%
(9:03 ET): Dow Jones futures are currently trading up by 0.83%
(03:41 ET): Dow Jones futures are currently trading up by 0.71%
Website Updates:
We covered the recent stock price history of American Airlines (AAL) and compared it to some of its peers. Below a short extract of this article
The stock price performance of American Airlines (AAL), Delta Airlines (DAL) and Southwest Airlines (LUV) over the last 5 years. As can be seen from the image below airline stocks took a massive hit at the start of 2020 as the Covid-19 pandemic hit international and domestic travel hard. The summary shows the stock price performance of the three airlines (sorted from best to worst performer):
From the above it is clear that Southwest Airlines (LUV) stock has been by far the best performer and the worst performer of the three airlines being American Airlines.
Read the full article here
Dow Jones Updates:
(9:31 ET): The Dow Jones is currently trading down by -0.63%
(2:50 ET): Dow Jones futures are currently trading down by -1.98%
Website Updates:
We covered the latest earnings release from Apple (APPL). The group reported a 8% decline in net income compared to the same quarter of the previous year. Below a short extract from that article
So what do we value Apple's stock at after the release of their 4th quarter 2020 earnings report? Following Apple's 4th quarter 2020 earnings report our valuation model provides a target price (full value price) for Apple at $68.90 a stock (up slightly from our 2nd quarter 2019 earnings report valuation of Apple. Note this valuation was done prior to the Apple stock split). We therefore believe that the stock of Apple is overvalued.
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $68.90. Therefore we believe a good entry point into Apple stock is at $62 or below. We expect the stock of Apple to pull back from current levels to levels closer to our target price (full value price) in coming weeks and moths as we believe it is significantly overvalued at this point in time.
Since the stock of Apple is trading at well above our target (full value) price and our suggested entry price we will go against almost all market commentators and punters and rate Apple as a sell
Read the full article here
29 October 2020: The Dow Jones ended the day up by 0.52%
Dow Jones Updates:
(2:50 ET): Dow Jones futures are currently trading up by 1.36%
Website Updates:
We covered the latest earnings report of Norfolk Southern (SC)
Next is the stock price performance of Norfolk Southern (NSC) vs Union Pacific (UNP) vs Kansas City Southern (KSU) over last 5 years. The summary below shows the stock price returns of the freight rail firms below below (sorted from best to worst performer)
- Norfolk Southern (NSC): 108.51%
- Union Pacific: 107.8%
- Kansas City Southern: 91.5%
So looking at the performance of the three freight train operators Norfolk Southern just managed to outperform Union Pacific over the last 5 years, while they both easily outperformed the stock of Kansas City Southern. But in saying that all three freight rail stocks have provided investors with very healthy returns.
Read the full article here
28 October 2020: The Dow ended the day -3.43%
Dow Jones Updates:
(09:21 ET): Dow Jones futures are currently trading down -2.23%
(03:18 ET): Dow Jones futures are currently trading down -0.52%
Website Updates:
Yesterday we covered the latest earnings report of JetBlue. As part of that article we compared the stock price performance of JetBlue to Southwest, American Airlines and United Airlines. Below a short extract from that article
The image below shows the stock price performance of JetBlue (JBLU) vs Southwest (LUV) vs American (AAL) vs United (UAL) over the last 3 years. The summary below shows the stock price returns of the various airlines below (sorted from best to worst performers)
- Southwest Airlines (LUV): -13.43%
- United Airlines (UAL): -39.23%
- JetBlue (JBLU): -53.12%
- American Airlines (AAL): -72.50%
So looking at the performance of these four airliners, while they all made significant losses, Southwest (LUV) was the best performer while American (AAL) the worst performer. JetBlue came in second from last in this comparison with their stock declining a significant 53.12% over the last 3 years
Read the full article here
27 October 2020: The Dow Jones ended the day down -0.8%
Dow Jones Updates:
(12:12 ET): Dow Jones is currently trading down by -0.17%
(01:42 ET): Dow Jones futures are currently trading up by 0.24%
Website Updates:
Yesterday we covered the latest earnings report of American Express (AXP). Below a short extract from that article
So what is American Express stock worth based on the release of their latest earnings report? Based on American Express' latest earnings report our valuation models provide a target price (full value) price of American Express stock at $127.70 a stock. Therefore we believe the stock of American Express is undervalued at its current price of $100.98
We usually recommend that long term fundamental or value investors look to enter the stock at 10% below our target price (full value price) which in this case is $127.80, so a good entry point into American Express' stock would be at $115 or below.
We expect the stock of American Express to tick up in coming weeks and months to levels closer to our target price (full value price). Since the stock of American Express is trading at well below our suggested entry price we rate the stock of American Express a buy
Read the full article here
26 October 2020: The Dow Jones ended the day down by -2.29%
Dow Jones Updates:
(08:00 ET): Dow Jones futures are currently trading don by -0.97%
Website Updates:
We covered the latest earnings report of Southwest Airlines, one of the better performing airline stocks in recent months. Below a short extract of that article
So what is Southwest Airlines stock worth based on the release of their latest earnings report? Based on the earnings report and fiscal guidance provided by Southwest Airlines our our valuation models provide a target price (full value price) for Southwest Airlines stock at $51.70 a stock. We therefore believe that the stock of Southwest Airlines is undervalued
We usually suggest that long term and fundamental investors get in at least 10% below our target price (full value price) which in this case is $51.70. Therefore we believe a good entry point into Southwest Airlines stock is at $46.50 or below. We expect the stock price of Southwest Airlines to increase to levels to closer to our target price in coming weeks and months.
Since the stock of Southwest Airlines is trading at well below our suggested entry price we rate the stock as a buy
Read the full article here
23 October 2020: The Dow ended the day down -0.1%
Dow Jones Updates:
(04:34 ET): Dow Jones futures are currently trading up by 31%
Website Updates
Yesterday we covered the latest investor update by Tesla (TSLA). Below a short extract from that article
Quick facts about Tesla:
- Tesla is listed on the Nasdaq under share code ticker: TSLA
- Tesla has 48 817 employees
- Revenue for 3Q 2020: $8.74 billion
- Net income for 3Q 2020: $874 million
- Shares in issue: 1.1 billion
- Operating margin: 9.2%
- Cash and cash equivalents: $14.531 billion
- Cash per share: $13.10
- Cash and equivalents as percentage of Tesla market capital: 3.1%
3rd quarter 2020 production numbers compared to 2nd quarter of 2019
Model description September 2020 September 2019 Year on year percentage change
- Model S/X 16 922 16 318 4%
- Model 3/Y 128 044 79 837 60%
- Total 145 036 96 155 51%
Outlook provided by Tesla
Volume : We have the capacity installed to produce and deliver 500,000 vehicles this year. While achieving this goal has become more difficult, delivering half a million vehicles in 2020 remains our target. Achieving this target depends primarily on quarter over quarter increases in Model Y and Shanghai production, as well as further improvements in logistics and delivery efficiency at higher volume levels
Cash Flow: We should have sufficient liquidity to fund our product roadmap, long-term capacity expansion plans and other expenses
Profit: For the trailing 12 months, we achieved an operating margin of 6.3%. We expect our operating margin will continue to grow over time, ultimately reaching industry-leading levels with capacity expansion and localization plans underway
Product: We are currently building Model Y capacity at Gigafactory Shanghai, Gigafactory Berlin and Gigafactory Texas, and remain on track to start deliveries from each location in 2021. Tesla Semi deliveries will also begin in 2021. We continue to significantly invest in our product roadmap.
Read the full article here
22 October 2020: The Dow Jones ended the day up by 0.54%
Dow Jones Updates:
(00:48 ET): Dow Jones futures are currently trading down by -0.73%
Website Updates
Yesterday we covered the latest earnings report of Netflix (NFLX). Below a short extract of that article
So based on the earnings report of Netflix (NASDAQ: NFLX) what do we value Netflix (NFLX) stock at? Based on the earnings report and the increased competition our valuation models sets a target (full value) price on Netflix of $391.40. (up slightly from our 2nd quarter 2020 Netflix earnings report valuation). Based on our target price (full value price) we believe the stock of Netflix is overvalued.
We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price) which in this case is $391.40 We therefore believe a good entry point into Netflix is $352.30 or below. Since the stock of Netflix is well above our recommended entry point we would not recommend buying into Netflix right now as we believe there is still a lot of hope and fairytales and butterflies built into their future earnings expectations with the group trading at a PE ratio of over 80
We therefore rate the stock of Netflix (NFLX) as a SELL
Read the full article here
21 October 2020: The Dow Jones ended the day down by -0.35%
Dow Jones Updates:
(09:22 ET): Dow Jones futures are currently trading down by 0.06%
(08:00 ET): Dow Jones futures are currently trading down by -0.05%
(01:00 ET): Dow Jones futures are currently trading up by 0.61%
Website Updates:
We covered the latest earnings report of NVR, one of the largest homebuilders in the USA. Below a short extract of that article
So based on NVR Inc (NYSE; NVR) latest earnings report what do we value the group's stock at? Based on their earnings report our valuation models provides a target (full value) price for the stock of NVR Inc at $4 190. We therefore believe that the stock of NVR is overvalued
We usually recommend that long term or fundamental investors enter into a stock at least 10% below our target price (full value price), which in this case is $4 190, We therefore see a good entry point into the stock of NVR at $3 771. Since the stock of NVR is trading well above our suggested entry point we would not advise investors to buy into the stock of NVR at this point in time. We expect the stock of NVR to pull back from current levels to levels closer to our target price (full value price) in coming weeks and months.
Read the full article here
20 October 2020: The Dow ended the day up by 0.4%
Dow Jones Updates:
(13:43 ET): The Dow Jones is currently trading up by 1.26%
(01:00 ET): Dow Jones futures are currently trading up by 0.23%
Website Updates:
We covered the latest earnings report from Kansas City Southern. Below a short extract
So what do we value Kansas City Southern (KSU) stock at based on their latest earnings report? Based on their 3rd quarter 2020 earnings report our valuation model provides a target price (full value price) for Kansas City Southern at $156.40 a stock. We therefore believe the stock of Kansas City Southern (KSU) is overvalued at its current price.
We usually recommend that long term and fundamental investors look to enter a stock at least 10% below our target price, which in this case is $156.40. A good entry point would therefore be at $140.80. Since the stock of Kansas City Southern (KSU) is trading at well above our suggested entry price we rate the stock of Kansas City Southern as a sell.
Read the full article here
19 October 2020: The Dow Jones ended the day down by -1.44%
Dow Jones Updates:
(12:02 ET): The Dow Jones is currently trading down by -0.36%
(08:43 ET): Dow Jones futures are currently trading up by 0.60%
(01:22 ET): Dow Jones futures are currently trading up by 0.65%
Website Updates:
In our latest battle of the banks we compared some of the biggest financial institutions. Below a short extract from that article
One of our key metrics is the Price to Stockholders equity per share ratio. When looking at this we find the following:
- Price/Stockholders equity per share for CitiGroup: 0.47
- Price/Stockholders equity per share for JP Morgan : 1.1
- Price/Stockholders equity per share for Bank of America: 0.77
- Price/Stockholders equity per share for Goldman Sachs : 0.82
Based on this metric CitiGroup offers far more value than Bank of America, JPMorgan and Goldman Sachs. Most firms tend to trade at a ratio of between 2 and 4 times. While all these firms are trading at well below the expected range its Citi who is trading at the lowest and based on this metric offers the most value.
Next up cash as percentage of stock price:
- Cash as percentage of stock price for CitiGroup: 27.1%
- Cash as percentage of stock price for JP Morgan : 6.7%
- Cash as percentage of stock price for Bank of America: 15.9%
- Cash as percentage of stock price for Goldman Sachs: 204%
Next up lets take a look at the percentage cash on the balance sheet makes up of each group's total assets:
- Cash as percentage of stock price for CitiGroup: 1.13%
- Cash as percentage of stock price for JP Morgan : 0.64%
- Cash as percentage of stock price for Bank of America: 1.2%
- Cash as percentage of stock price for Goldman Sachs: 13.5%
Looking at the cash position of the four firms Goldman Sachs has the strongest cash position (as a percentage of their total assets). The cash per share gives an indication of if investors were to buy the stock now, how much of that stock price is made up by cash on their balance sheet. In this case its also Goldman Sachs that comes out on top with almost 204% of their current stock price being made up by cash.
Lastly the overused but still useful metric, the Price to Earnings Ratio (PE):
- PE for CitiGroup: 7.8
- PE for JP Morgan : 9.2
- PE for Bank of America: 13.9
- PE for Goldman Sachs: 9.8
So Citigroup has the lowest PE and Bank of America by far the highest.
So all things considered if we have to choose between all of these financial service provider firms based on their current stock price, their latest earnings reported and stock price performance provided over the last 5 years, we rate the stock of Goldman Sachs as the Winner as its PE is middle of the road of these firms, it has the strongest cash position of the four firms and its Price/Stockholders equity is middle of the road. And in uncertain economic times we tend to favour those with the strongest cash positions as it provides a greater buffer to ride out difficult times. We therefore rate Goldman Sachs as the WINNER
Read the full article here
16 October 2020: The Dow Jones ended the day up by 0.39%
Dow Jones Updates:
(07:01 ET): Dow Jones is currently trading up by 0.96%
(01:01 ET): Dow Jones futures are currently trading down by -0.13%
Website Updates:
We covered the latest earnings report from Bank of America (BAC). Below a short extract from that article
So what is Bank of America stock worth based on the release of their 3rd quarter 2020 earnings report? Based on Bank of America's latest earnings report our valuation models provide a target price (full value price) for Bank of America stock at $27.40 a stock. We therefore believe that the stock of Bank of America is slightly undervalued at its current price of $23.62
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $27.40. Therefore we believe a good entry point into Bank of America stock is at $24.70 or below. We expect the stock of Bank of America to increase to levels closer to our target price (full value price) in coming weeks and months.
Since the stock of Bank of America (BAC) is trading at well below our suggested entry point we rate the stock of Bank of America as a buy
Read the full article here
15 October 2020: -0.07%
Dow Jones Updates:
(12:00 ET): The Dow Jones is currently trading down by -0.39%
(04:17 ET): Dow Jones futures are currently trading down by -0.58%
Website Updates:
We covered the latest earnings report from Goldman Sachs (GS). Below a short extract from that article
So what is Goldman Sachs (GS) stock worth based on their latest earnings report? Based on the earnings reported our valuation model provides a target price for Goldman Sachs at $266 a stock. We therefore believe the stock of Goldman Sachs is undervalued at its current price.
We usually recommend that long term and fundamental investors look to enter a stock at least 10% below our target price, which is $266. We therefore recommend a good entry price into the stock of Goldman Sachs to be at $239.40 or below.
Since the stock of Goldman Sachs is trading at well below our suggested entry point into the stock we rate the stock of Goldman Sachs as a buy
Read the full article here
14 October 2020: The Dow Jones ended the day down by -0.58%
Dow Jones Updates:
(09:54 ET): The Dow Jones is currently trading up by 0.36%
(03:54 ET): Dow Jones futures are currently trading up by 0.18%
Website Updates:
We covered the latest earnings report from JPMorgan (JPM). Below a short extract from that article
So what is JP Morgan Chase stock worth based on the release of their latest earnings report? Based on JP Morgan Chase latest earnings report our valuation models provide a target price (full value price) for JP Morgan Chase stock at $129.10 a stock (up slightly from our 2nd quarter 2020 earnings report valuation of JP Morgan Chase). We therefore believe that the stock of JP Morgan Chase is undervalued at its current price of around $11.78.
We usually suggest that long term and fundamental investors get in at least 10% below our target price (full value price) which in this case is $129.10 Therefore we believe a good entry point into JP Morgan Chase's stock is at $116.20 or below.
We expect the stock of JP Morgan Chase to surge once world economies starts reopening after the Covid-19 pandemic eases.
Read the full article here
13 October 2020: The Dow Jones ended the day down by -0.55%
Dow Jones Updates:
(02:47 ET): Dow Jones futures are currently trading up by 0.86%
Website Updates:
We covered the 3rd quarter comparable sales from McDonald's (MCD). Below a short extract from that article
CHICAGO, Oct. 8, 2020 /PRNewswire/ -- "Our third quarter performance demonstrates the underlying resilience of the McDonald's brand. Our unique strengths, including our unrivaled drive-thru presence around the world, advanced delivery and digital capabilities, and marketing scale have become even more important during the pandemic. Our prior investments in these areas position us to further our competitive advantage and enable restaurant crew to continue to safely provide customers our great tasting food," said McDonald's President and Chief Executive Officer Chris Kempczinski. "Today's dividend increase reflects our strong financial position and represents continued confidence in our ability to drive profitable growth and long-term shareholder value while still investing in our people and the business."
Region 3Q 2020 3Q2019
- U.S. 4.6% 4.8%
- International Operated Markets -4.4% 5.6%
- International Developmental Licensed Markets & Corporate -10.1% 8.1%
- Total -2.2% 5.9%
Read the full article here
12 October 2020: The Dow Jones ended the day up by 0.88%
Dow Jones Updates:
(12:00 ET): The Dow Jones is currently trading up by 0.86%
(08:45 ET): Dow Jones futures are currently trading up by 0.22%
(01:32 ET): Dow Jones futures are currently trading up by 0.24%
Website Updates:
We covered the latest earnings report of Helen of Troy, the owner of brands such as Drybar, OXO and Braun.
So what is Helen of Troy's stock worth based on the release of their latest earnings report? Based on the group's latest earnings and their outlook provided our valuation model provides a target (full value) price at $179.80 a Helen of Troy stock. We therefore believe that the stock of Helen of Troy is overvalued.
We usually suggest long term fundamental or value investors look to enter into a stock at least 10% below our target (full value) price which in this case is $179.80. Thus we see a good entry point into Helen of Troy's stock at $161.80 or below. We believe that Helen of Troy's stock will pull back in coming weeks and months to levels closer to our target price (full value price).
Since the stock of Helen of Troy (HELE) is trading at well above our suggested entry point we rate the stock of HELE as a sell
Read the full article here
9 October 2020: The Dow Jones ended the day up by 0.57%
Dow Jones Updates:
(03:03 ET): Dow Jones futures are currently trading up by 0.23%
Website Updates:
Yesterday we covered the latest earnings report of Domino's Pizza (DPZ). Below a short extract
So what is Domino's Pizza (NYSE: DPZ) stock worth based on the release of their 3rd quarter 2020 earnings report? Based on Domino's Pizza's 2nd quarter 2020 earnings report our valuation model provides a target price (full value price) at $217.70 a stock. We therefore believe that the stock is overvalued.
We usually suggest long term fundamental or value investors look to enter into a stock at least 10% below our target price (full value price) which in this case is $217.70. Thus we see a good entry point into Domino's stock at $195.90 or below. We believe that Domino's stock will pull back in coming weeks and months to levels closer to our target price (full value price).
We therefore rate Domino's Pizza (DP) as a sell
Read the full article here
8 October 2020: The Dow Jones ended the day up by 0.43%
Dow Jones Updates:
(09:48 ET): The Dow Jones is currently trading up by 0.25%
(03:24 ET): Dow Jones futures are currently trading up by 0.70%
Website Updates:
Yesterday we covered the latest sales reported by 3M.
ST. PAUL, Minn.--(BUSINESS WIRE)-- 3M (NYSE: MMM) today reported sales information for the month of August 2020. Total sales for August increased 2 percent year-on-year to $2.7 billion. Organic local-currency sales (which includes organic volume impacts and selling price changes) declined 2 percent while acquisitions, net of divestitures, and foreign currency translation increased sales year-on-year by 3 percent and 1 percent, respectively.
Total sales increased 23 percent in Health Care, 6 percent in Safety and Industrial, and 3 percent in Consumer, while Transportation and Electronics declined 11 percent. Organic local-currency sales increased 6 percent in Health Care, 5 percent in Safety and Industrial, and 2 percent in Consumer, while Transportation and Electronics declined 11 percent.
On a geographic basis, total sales increased 7 percent in EMEA (Europe, Middle East and Africa), and 4 percent in the Americas, while Asia Pacific declined 2 percent. Organic local-currency sales were flat in both the Americas (including the U.S. up 1 percent) and EMEA, while Asia Pacific declined 5 percent (including China up 6 percent and Japan down 15 percent).
Sales for August 2020 were impacted by one fewer business day – 21 days this year versus 22 days last year – or minus 5 percent year-on-year. Because the company will have one additional business day in September 2020 versus September 2019, there will be no year-on-year business day impact on the third-quarter 2020.
While significant global economic uncertainty remains due to the COVID-19 pandemic, the company estimates, with one month left in the quarter, its sales to be in the range of $8.2 to $8.3 billion for the third-quarter. Given the current economic uncertainty, 3M will continue its monthly reporting of sales information through the end of the year to provide transparency on its ongoing business performance.
Read the full article here
7 October 2020: The Dow Jones ended the day up by 1.91%
Dow Jones Updates:
(12:00 ET): Dow Jones is currently trading up by 1.58%
(00:07 ET): Dow Jones futures are currently trading up by 0.21%
Website Updates:
Yesterday we covered the latest earnings report of Jack in the Box (JACK). Below a short extract
So what is Jack in a Box stock worth based on their 3rd quarter 2020 earnings report? Based on their earnings report our valuation model provides a target price (full value price) for Jack in the Box at $78.20 a stock.
But based on their earnings and their share buy back programs we believe the stock of Jack in the Box is slightly overvalued
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target (full value) price, which in this case is $78.20, thus a good entry point into Jack in the Box would be at $70.40 or below.
We expect the stock of Jack in the Box to pull back slightly from current levels in coming weeks and months to levels closer to our target price (full value price). We therefore rate the stock of Jack in the Box as a hold
Read the full article here
6 October 2020: The Dow Jones ended the day down by -1.34%
Dow Jones Updates:
(12:52 ET): The Dow Jones is currently trading up by 0.15%
(06:25 ET): Dow Jones futures are currently trading down by -0.04%
(00:07 ET): Dow Jones futures are currently trading up by 0.21%
Website Updates:
Yesterday we covered the latest earnings report of the largest seller of RV's in the world. Thor Industries. Below a short extract
So what is Thor Industries stock worth based on the release of their latest earnings report and the outlook provided. Based on the earnings reported our valuation models provide a target (full value) price for Thor Industries of $69.70 a stock (up from our 3rd quarter valuation of Thor Industries).
We therefore believe that Thor Industries stock is overvalued at its current price of $99.92 and we would not recommend long term fundamental or value investors buy into the stock of Thor Industries at its current price of $99.92
We usually recommend that long term fundamental or value investors look to enter the stock at least 10% below our target (full value) price, which in this case is $69.70 in this case. A good entry into the stock of Thor Industries (THO) would therefore be at $62.70 or below. We expect that stock of Thor Industries to pull back strongly from current levels to levels closer to our target (full value) price in coming weeks and months.
Read the full article here
5 October 2020: The Dow Jones ended the day up by 1.68%
Dow Jones Updates:
(13:00 ET): The Dow Jones is currently trading up by 1.31%
(4:42 ET): Dow Jones futures are currently trading up by 0.78%
Website Updates:
We covered the latest sales data reported by pizza franchise group Papa Johns
LOUISVILLE, Ky.--(BUSINESS WIRE)--Sep. 29, 2020-- Papa John’s International, Inc. (NASDAQ: PZZA) today provided preliminary estimated comparable sales information for the month of September and the third quarter fiscal period. In light of the uncertainty related to the pandemic, the company has continued to provide this information on a monthly basis.
President & CEO Rob Lynch said, “Six consecutive months of double-digit comparable sales growth were made possible by the hard work of Papa John’s team members and franchisees during the global pandemic. We remain confident that our innovation pipeline, marketing and technology platforms, and strong operations will continue to support strong results during, and after, the pandemic.”
Preliminary Estimated Comparable Sales for September 2020 Fiscal Period and Third Quarter
Preliminary estimated comparable sales information for the five weeks and the fiscal quarter ended September 27, 2020, relative to the same periods in the prior year are as follows
August 24, 2020 to September 27, 2020 Three months ended September 27, 2020
Comparable sales growth (a)
Domestic company-owned restaurants 14.3% 18.2%
North America franchised restaurants 19.7% 25.5%
System-wide North America restaurants 18.4% 23.8%
System-wide international restaurants (b) 23.3% 20.6%
Read the full article here
2 October 2020: The Dow ended the day down by -0.48%
Dow Jones Updates:
(08:24 ET): Dow Jones futures are currently trading down by -1.21%
(02:24 ET): Dow Jones futures are currently trading down by -1.59%
Website Updates:
We covered the latest earnings report from PepsiCo (PEP). Below a short extract from that article
So what is PepsiCo (NASDAQ: PEP) stock worth based on the release of their latest earnings report and fiscal guidance provide? Based on their earnings report and the guidance provided our valuation models provide a target (full value) price for PepsiCo of $139.90 a stock. We therefore believe that the stock is close to being fully valued.
We usually suggest long term investors look to enter a stock at least 10% below our target (full value) price which in this case is $139.90. So a good entry point into PepsiCo stock would be at $125.90 or below. We therefore rate the stock of PepsiCo (PEP) as a hold.
Read the full article here
1 October 2020: The Dow Jones ended the day up by 0.13%
Dow Jones Updates:
(12:03 ET): The Dow Jones is currently trading up by 0.25%
(9:03 ET): Dow Jones futures are currently trading up by 0.83%
(03:41 ET): Dow Jones futures are currently trading up by 0.71%
Website Updates:
We covered the recent stock price history of American Airlines (AAL) and compared it to some of its peers. Below a short extract of this article
The stock price performance of American Airlines (AAL), Delta Airlines (DAL) and Southwest Airlines (LUV) over the last 5 years. As can be seen from the image below airline stocks took a massive hit at the start of 2020 as the Covid-19 pandemic hit international and domestic travel hard. The summary shows the stock price performance of the three airlines (sorted from best to worst performer):
- Southwest Airlines: -17.5%
- Delta Airlines: -39.9%
- American Airlines: -73.6%
From the above it is clear that Southwest Airlines (LUV) stock has been by far the best performer and the worst performer of the three airlines being American Airlines.
Read the full article here
The Dow Jones Performance Calendar Tracker for Sep 2020
The graphic below shows the daily performance of the Dow Jones Industrial Average (The Dow) on a calendar for the month of September. The index levels used in the calculation of the daily performance of the Dow Jones Industrial Average is obtained from Macrotrends.net
For the months of September 2020 the Dow Jones is down by -1.54%
For the months of September 2020 the Dow Jones is down by -1.54%
Dow Jones and website updates for September 2020
30 September 2020: The Dow Jones ended the day up by 1.2%
Dow Jones Updates:
(11:54 ET): The Dow Jones is currently trading up by 1.59%
(10:00 ET): The Dow Jones is currently trading up by 1.05%
(9:00 ET): The Dow Jones futures are currently trading down by -0.20%
(2:20 ET): The Dow Jones futures are currently trading down by -1.17%
Website Updates:
We covered the latest earnings report of McCormick (MKC). Below a short extract
Fiscal Year 2020 Financial Outlook
McCormick previously withdrew its fiscal 2020 guidance on March 31, 2020. While recognizing the operating environment continues to evolve and there remains a degree of uncertainty about the pace and shape of the COVID-19 recovery, the company believes the shift in consumer demand to at home consumption will continue. The company expects it will drive growth in this dynamic environment as evidenced by its strong year-to-date fiscal 2020 performance and its momentum entering its fourth quarter. With McCormick's increased visibility to the balance of its fiscal year, the company is resuming guidance.
In 2020, the company expects to grow sales compared to 2019 at the upper end of a 4% to 5% range, which in constant currency is a 5% to 6% projected growth rate. This increase consists entirely of organic growth and reflects growth driven by new products, brand marketing and expanded distribution as well the net impact of the consumer shift in demand as a result of COVID-19 and the consumer's sustained preference for cooking at home. Sales growth is also expected to include the impact of pricing at the beginning of the year, which in conjunction with cost savings, is expected to offset an anticipated mid-single digit inflationary pressure.
Operating income in 2020 is expected to grow from 6% to 7% from $958 million of operating income in 2019. The company projects COVID-19 related costs as well as a higher level of incentive compensation consistent with the company's commitment to a pay-for-performance philosophy across the organization will reduce growth in operating income. Special charges of approximately $7 million are currently projected for 2020 that relate to previously announced organization and streamlining actions. Excluding the impact of special charges in 2020 and 2019, adjusted operating income is expected to increase from 4% to 5%, which in constant currency is 5% to 6%, from adjusted operating income of $979 million in 2019.
McCormick projects 2020 earnings per share to be in the range of $5.60 to $5.68 compared to $5.24 of earnings per share in 2019. Excluding an estimated $0.04 impact of special charges in 2020, the company projects 2020 adjusted earnings per share to be in the range of $5.64 to $5.72 which is an expected increase of 5% to 7%, or in constant currency 6% to 8%.
Read the full article here
29 September 2020: The Dow Jones ended the day down by -0.48%
Dow Jones Updates:
(12:24 ET): The Dow Jones is currently trading down by -0.73%
(2:20 ET): The Dow Jones futures are currently trading up by 0.26%
Website Updates:
We covered the recent stock price history of United Airlines (UAL). Below a short extract of that article
The image below shows the stock price performance of United Airlines (UAL), Southwest Airlines (LUV) and Delta Airlines (DAL) over the last 5 years. So while the image above showed that it has not been a good time for United Airlines. The image below shows the performance of United against its peers. The summary below shows the stock price returns of the three airlines over the last 5 years, sorted from best to worst performer
So of the three airlines the stock of United Airlines have been the worst performer over the last 5 years while the stock of Southwest Airlines (LUV) has been the best performer
Read the full article here
28 September 2020: The Dow Jones ended the day up by 1.51%
Dow Jones Updates:
(12:09 ET): The Dow Jones is currently trading up by 1.78%
(4:00 ET): The Dow Jones futures are currently trading up by 0.90%
Website Updates:
We covered the latest earnings report of restaurant group, Darden whose brands include Olive Garden and LongHorn steakhouse. Below a short extract.
So based on the earnings report of Darden Restaurants (NYSE:DRI) and the latest earnings guidance provided what do we value Darden Restaurants (DRI) stock at? Based on the earnings reported by the group our valuation model provides a target (full value) price for Darden Restaurants at $84.20 a stock (up slightly from our last earnings report valuation of Darden). We therefore believe the stock of Darden Restaurants is overvalued
We usually suggest long term fundamental and value investors look to enter the stock at least 10% below our target price, which in this case is $84.20 Therefore we believe a good entry point into the stock would be at $75.80 or below
We expect that the stock of Darden to pull back slightly from its current price to levels closer to our target price in coming weeks and months
Read the full article here
25 September 2020: The Dow Jones ended the day up by 1.34%
Dow Jones Updates:
(11:00 ET): The Dow Jones is currently trading up 0.13%
(8:30 ET): The Dow Jones futures are currently trading down by -0.53%
(3:00 ET): The Dow Jones futures are currently trading up by 0.34%
Website Updates:
We covered the latest earnings release from Costco (COST). Below a short extract from that article
So what is Costco Wholesale (NASDAQ: COST) stock worth based on the release of their latest earnings report? Based on their earnings report and the guidance provided our valuation models provide a target (full value) price for Costco of $246.80 a stock. We therefore believe that the stock of Costco Wholesale is overvalued at its current price of $347
We usually suggest long term investors look to enter a stock at least 10% below our target (full value) price which in this case is $246.80. So a good entry point into Costco stock would be at $222 or below. We expect the stock of Costco Wholesale to pull back from current levels to levels closer to our target price (full value price) in coming weeks and months as
Since the stock of Costco is trading at well above our suggested entry point and our full value price we rate the stock of Costco as avoid.
Read the full article here
24 September 2020: The Dow ended the day up by 0.2%
Dow Jones Updates:
(12:00 ET): The Dow Jones is currently trading up by 0.33%
Website Updates:
We covered the stock of O'Reilly's in more detail. Below a short extract from this article.
O’Reilly is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States (“U.S.”), selling our products to both do-it-yourself (“DIY”) and professional service provider customers, our “dual market strategy.” The business was founded in 1957 by Charles F. O’Reilly and his son, Charles H. “Chub’’ O’Reilly, Sr., and initially operated from a single store in Springfield, Missouri. Our common stock has traded on The NASDAQ Global Select Market under the symbol “ORLY” since April 22, 1993. After the close of business on November 29, 2019, we completed the acquisition of Mayoreo de Autopartes y Aceites, S.A. de C.V. (“Mayasa”), a specialty retailer of automotive aftermarket parts headquartered in Guadalajara, Jalisco, Mexico pursuant to a stock purchase agreement. At the time of the acquisition, Mayasa operated six distribution centers, 21 Orma Autopartes stores and served over 2,000 independent jobber locations in 28 Mexican states. At December 31, 2019, we operated 5,439 stores in 47 states in the United States and 21 stores in Mexico.
Our stores carry an extensive product line, including
Our stores offer many enhanced services and programs to our customers, such as
Read the full article here
23 September 2020: The Dow Jones ended the day down by -1.92%
Dow Jones Updates:
(01:00 ET): Dow Jones futures are currently trading up by 0.41%
Website Updates:
We covered the latest earnings report of Autozone. Below a short extract of that article
So based on the earnings report of AutoZone (NYSE: AZO) and the latest earnings guidance provided what do we value AutoZone (AZO) stock at? Based on their latest earnings report our target (full value) price for AutoZone at $1140 a stock. We therefore believe the stock of AutoZone is fully valued at its current price
We usually suggest long term fundamental and value investors look to enter the stock at least 10% below our target price, which in this case is $1140 Therefore we believe the a good entry point into the stock is below $1026. We believe the stock of AutoZone will trade in a narrow range around our target price in coming weeks and months.
Read the full article here
22 September 2020: The Dow Jones ended the day up by 0.54%
Dow Jones Updates:
(7:46 ET): Dow Jones futures are currently trading down by -0.14%
Website Updates:
Earlier we compared the performance of the Dow Jones, Nasdaq and S&P500 on a chart over various time periods. Below a short extract from that article
There is one thing that markets do not like. And that is uncertainty. Currently there is a lot of uncertainty in the markets, from the worries about Covid-19 and when a vaccine will become available, uncertainty about potential further fiscal stimulus to try and relieve some of the financial strain on consumers that was brought about by the Covid-19 pandemic. And then one of the biggest worries in the markets right now is the political uncertainty leading up to the elections in about 40 odd days. The only certainty right now is uncertainty. And since markets don't like uncertainty. Expect markets to move up and down in wild swings in coming months.
Read the full article here
21 September 2020: The Dow ended the day down -1.84%
Dow Jones Updates:
(12:04 ET): The Dow Jones is currently trading down by -2.89%
(06:17 ET): Dow Jones futures are currently trading down by -1.93%
(04:10 ET): Dow Jones futures are currently trading down by -1.57%
Website Updates:
Earlier today we covered the latest earnings report from Adobe (ADBE). Below a short extract
Third Quarter Fiscal Year 2020 Financial Highlights
Read the full article here
17 September 2020: The Dow Jones ended the day down by -0.47%
Dow Jones Updates:
(12:47 ET): The Dow Jones is currently trading down by -1.04%
(04:45 ET): Dow Jones futures are currently trading down by -0.92%
Website updates:
Yesterday we covered the listing of cloud computing giant Snowflake. Below a short extract
Snowflake's founders started from scratch and built a data platform that would harness the immense power of the cloud. Thousands of customers around the world now mobilize their data in ways previously unimaginable with Snowflake's cloud data platform — a solution for data warehousing, data lakes, data engineering, data science, data application development, and data exchange. Snowflake provides the near-unlimited scale, concurrency, and performance our customers in a variety of industries want, while delivering a single data experience that spans multiple clouds and geographies. But our founder's vision didn't stop there. Our cloud data platform is also the engine that drives the Data Cloud — the global ecosystem where thousands of organizations have seamless and governed access to explore, share, and unlock the potential of data.
Read the full article here
16 September 2020: The Dow Jones ended the day up by 0.13%
Dow Jones Updates:
(12:35 ET): The Dow is currently trading up by 0.83%
(10:55 ET): The Dow is currently trading up by 0.38%
(08:53 ET): Dow Jones futures are currently trading up by 0.28%
(02:40 ET): Dow Jones futures are currently trading up by 0.06%
Website Updates:
We covered the latest earnings report of Cracker Barrel. Below a short extract from that earnings report review. So based on the 4th quarter 2020 earnings report of Cracker Barrel (NASDAQ: CBRL) and what do we value Cracker Barrel (CBRL) stock at? Based on the earnings reported and the fact that the group is now loss making and that they withdrew their fiscal guidance our valuation model provides a target price (full value price) for Cracker Barrel at $145.70 a stock (up slightly from our 3rd quarter 2020 earnings report valuation of Cracker Barrel).
We therefore believe that Cracker Barrel is undervalued at its current price of $133.42
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price) which in this case is $145.70. So a good entry point into Cracker Barrel would be around $131.10. We expect the stock of Cracker Barrel to kick up in coming weeks and months as the various states starts opening up after the covid-19 pandemic.
Read the full article here
15 September 2020: The Dow Jones ended up by 0.01%
Dow Jones Updates:
(09:49 ET): The Dow is currently up by 0.44%
(3:56 ET): Dow Jones futures are currently trading up by 0.38%
Website Updates:
We covered the news regarding Nvidia buying Arm from SoftBank. Below a short extract from that article
“NVIDIA is the perfect partner for Arm,” said Masayoshi Son, chairman and CEO of SBG. “Since acquiring Arm, we have honored our commitments and invested heavily in people, technology and R&D, thereby expanding the business into new areas with high growth potential. Joining forces with a world leader in technology innovation creates new and exciting opportunities for Arm. This is a compelling combination that projects Arm, Cambridge and the U.K. to the forefront of some of the most exciting technological innovations of our time and is why SoftBank is excited to invest in Arm’s long-term success as a major shareholder in NVIDIA. We look forward to supporting the continued success of the combined business.”
“Arm and NVIDIA share a vision and passion that ubiquitous, energy-efficient computing will help address the world’s most pressing issues from climate change to healthcare, from agriculture to education,” said Simon Segars, CEO of Arm. “Delivering on this vision requires new approaches to hardware and software and a long-term commitment to research and development. By bringing together the technical strengths of our two companies we can accelerate our progress and create new solutions that will enable a global ecosystem of innovators. My management team and I are excited to be joining NVIDIA so we can write this next chapter together.”
Read the full article here
14 September 2020: The Dow Jones ended the day up 1.18%
Dow Jones Updates:
(12:15 ET): The Dow Jones is currently trading up by 1.35%
(9:45 ET): Dow Jones is currently trading up by 0.87%
(1:50 ET): Dow Jones futures are currently trading up by 1.04%
Website Updates:
We covered the latest earnings release of one of the world's biggest retailers, Kroger Company (KR). Below a short extract from that article
So what are The Kroger Company stock worth considering their latest earnings release? Based on their earnings released our valuation models set a target (full value) price for The Kroger Company of $43.60 a stock (up from our 1st quarter 2020 earnings report valuation of Kroger) . We therefore believe Kroger Company stock is undervalued.
We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target price which in this case is $43.60, a good entry point into the stock of Kroger Company would therefore be at $39.20 or below.
We expect that the stock of Kroger Company will kick upwards from its current price to levels closer to our target price/ full value price in coming weeks and months. Since the stock of Kroger is trading at well below our suggested entry point we rate the stock of Kroger (KR) as a buy.
Read the full article here
11 September 2020: The Dow ended the day up 0.48%
Dow Jones Updates:
(03:42 ET): Dow Jones futures are currently trading up by 0.66%
Website Updates:
We covered the latest earnings report of Lululemon (LULU) earlier today. Below a short extract
Based on Lululemon's 2nd quarter 2020 earnings report from Lululemon what do we value their stock at? Based on Lululemon's earnings reported our valuation model provides a target price (full value price) of $162.60 a Lululemon stock (up slightly from our 1st quarter 2020 earnings report valuation of Lululemon).
We therefore believe that the stock of Lululemon is overvalued. We usually recommend that long term fundamental and value investors look to enter a stock at least 10% below our target price which in this case is $162.60. A good entry point into Lululemon would therefore be at $146.40 or below. Since the stock of Lululemon is trading at well above our target price we rate the stock of Lululemon as avoid.
We expect it to pull back strongly from current levels to levels closer to our target price in coming weeks and months.
Read the full article here
10 September 2020: The Dow Jones ended the day down -1.45%
Dow Jones Updates:
Website Updates:
We covered the latest earnings report of Norwegian Cruise Line Holdings (NCLH)
Based on Norwegian Cruise Line Holdings latest earnings reports what do we value their stock at? Based on the earnings reported and the fact that the group is currently loss making and will be into the foreseeable future we value Norwegian Cruise Line Holdings stock at $39.20 a stock. Sure they in a tough spot now. But travel will recover, they will operate again and the good times will be back.
We therefore believe that stock of Norwegian Cruise Line Holdings is undervalued.
We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target price which in this case is $39.20. We therefore believe a good entry point into the stock of Norwegian Cruise Line Holdings is at $35.30 or below.
Since the stock of Norwegian Cruise Line Holdings is trading at well below our recommended entry point into the stock we rate the stock of Norwegian Cruise Line Holdings as a buy. But this call is only for investors willing to sit on the stock for a prolonged period and wait for the Coronavirus to pass, which could be a while. But we believe the strong drop in Norwegian Cruise Line Holdings stock in recent weeks has created a good buying opportunity for those looking for quality assets at depressed prices.
Read the full article here
9 September 2020: The Dow ended the day up by 1.6%
Dow Jones Updates:
Website Updates:
Earlier we compared the performance of the Nasdaq to that of the S&P500 and the Dow Jones over time. Below a short extract from that article
So while the Nasdaq has been under performing the Dow Jones and the S&P500 over the very recent past. It has still easily outperformed the Dow Jones and the S&P500 over the last year, 5 years and 10 year period. Over the last 10 years the Nasdaq has provided a return of 352.4%, the S&P 500 has provided 184.8% and the Dow Jones 153.3%. So basically the Nasdaq has provided over double the returns of the Dow Jones over the last 10 years. So while over the shorter term the tech heavy Nasdaq is declining faster than the Dow Jones and the S&P500 it has easily outperformed them due to the very fact that it is tech heavy as tech stocks has had a very good decade.
Read the full article here
8 September 2020: The Dow Jones ended the day down by -2.25%
Dow Jones Updates:
(13:00 ET): Dow Jones is currently trading down by -1.4%
(09:49 ET): Dow Jones is currently trading down by -2.04%
(08:24 ET): Dow Jones futures are currently trading down by -0.54%
(02:33 ET): Dow Jones futures are currently trading up by 1.03%
Website Updates:
We covered the latest earnings report of Broadcom (AVGO) yesterday. Below a short extract from that article
So based on Broadcom's latest earnings report what do we value their stock at? Based on their 3rd quarter 2020 earnings report our valuation model provides a target price of $345.60 per Broadcom (AVGO) stock. We therefore believe that the stock of Broadcom is fully valued at its current price
We usually recommend that long term and value investors look to enter a stock at least 10% below our target price. A good entry into the stock of Broadcom would therefore be at $311 or below.
Since the stock of Broadcom is trading at very close to our target price we rate the stock of Broadcom (AVGO) as a hold
Read the full article here
4 September 2020: The Dow ended the day down by -0.56%
Dow Jones Updates:
(8:36 ET): Dow Jones futures are currently trading up by 0.18%
(4:41 ET): Dow Jones futures are currently trading up by 0.51%
Website Updates:
We covered the latest press release by GrubHub and Just Eat Takeaway.com regarding the merger of the two firms and regulatory approval being granted. Below a short extract:
Just Eat Takeaway.com and Grubhub announced that the Committee on Foreign Investment in the United States ("CFIUS") has concluded its review of the Transaction under Section 721 of the Defense Production Act of 1950 and has determined that there are no unresolved national security concerns with respect to the Transaction. As previously disclosed on 2 July 2020, the United Kingdom Competition and Markets Authority (the "CMA") indicated in a response to a briefing paper submitted by Just Eat Takeaway.com in relation to the Transaction that it had no further questions, and on 7 July 2020, the U.S. Federal Trade Commission granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, with respect to the Transaction. Therefore, all regulatory approvals required for the completion of the Transaction have now been obtained.
Additionally, on 4 September 2020, Just Eat Takeaway.com and Grubhub announced the entry into an amendment to the Merger Agreement to extend the long stop date under the Merger Agreement from 10 June 2021 to 31 December 2021. The amendment provides additional certainty for the parties regarding the timing of the necessary steps to completion, including the registration of Just Eat Takeaway.com ordinary and American depositary shares in the U.S. under the Securities Act of 1933.
Read the full article here
3 September 2020: The Dow ended the day down by -2.78%
Dow Jones Updates:
(15:15 ET): All three major US market indices sink significantly. The S&P 500 is currently down by -4.1%, The Dow Jones is down by -3.2% and the Nasdaq is the worst performer with it being down by -5.45%
(15:06 ET): The Dow Jones is currently trading down by a very strong -3.23% and we cannot say that we are surprised. We have stated on multiple occasions we believe that the markets are heavily overvalued and a strong pull back is required for the longer term health of the markets, as pull backs rids the market of speculators and risk takers
Website Updates:
Earlier today we covered what we believe to 5 heavily overvalued stocks.
They are Tesla, Apple, Amazon, Domino's Pizza and Boston Beer Company
Read the full article here
2 September 2020: The Dow ended the day up by 1.59%
Dow Jones Updates:
(8:07 ET): Dow futures are currently trading up by 0.52%
Website Updates:
We covered the latest earnings report by At Home (HOME). Below a short extract from that article
So what do we value At Home (HOME) stock at following their 2nd quarter 2021 earnings release? Based on their latest earnings report our stock valuation models place a target price (full value price) on At Home Group of $17.70. So we do believe the stock is overvalued at its current price
We usually recommend that long term and fundamental investors look to enter a stock at least 10% below our target price. So a good entry point into the stock of At Home (HOME) would therefore be at $15.90 or below
We expect the stock to pull back from its current levels in coming weeks and months, especially considering the strong run it had recently. We therefore rate their stock as a sell.
Read the full article here.
1 September: The Dow ended the day up by 0.76%
Dow Jones Updates:
(13: 00 ET): The Dow is currently trading up by 0.25%
(02:00 ET): Dow Jones futures are currently trading up slightly by 0.08%
Website Updates:
Below reasons why we believe the stock of Tesla is overvalued.
Well let's start with its Price to Earnings Ratio (PE)
Earnings per share for 2nd quarter 2020: $0.50
Next lets take a look at Tesla's Price/Stockholders equity per share ratio
Stockholders equity in Tesla: $9.855 billion
Lets take a look at the production numbers of Tesla:
Model description June 2020 June 2019 Year on year percentage change
So total production numbers declined by -5% compared to the same quarter of the previous year, yet the group's stock price surges to new all time highs?
Come on people. Surely after reading this you will realise that Tesla (TSLA) stock is one big fat bubble that has sucked in a lot of investors all hoping to get rich from the continuing surge in its stock price. These type of people are created by excess cash in markets. And some of the Covid-19 stimulus cheques have found their way into the stock market and definitely into Tesla's stock and has driven up the stock price of Tesla to levels it should definitely not be at
If you currently own Tesla our advice is to get out while you can and take your profits (if you made some). And if you are planning in buying Tesla now, our advice is to rather not. We rate the stock of Tesla (TSLA) as a SELL
Read the full article here
Dow Jones Updates:
(11:54 ET): The Dow Jones is currently trading up by 1.59%
(10:00 ET): The Dow Jones is currently trading up by 1.05%
(9:00 ET): The Dow Jones futures are currently trading down by -0.20%
(2:20 ET): The Dow Jones futures are currently trading down by -1.17%
Website Updates:
We covered the latest earnings report of McCormick (MKC). Below a short extract
Fiscal Year 2020 Financial Outlook
McCormick previously withdrew its fiscal 2020 guidance on March 31, 2020. While recognizing the operating environment continues to evolve and there remains a degree of uncertainty about the pace and shape of the COVID-19 recovery, the company believes the shift in consumer demand to at home consumption will continue. The company expects it will drive growth in this dynamic environment as evidenced by its strong year-to-date fiscal 2020 performance and its momentum entering its fourth quarter. With McCormick's increased visibility to the balance of its fiscal year, the company is resuming guidance.
In 2020, the company expects to grow sales compared to 2019 at the upper end of a 4% to 5% range, which in constant currency is a 5% to 6% projected growth rate. This increase consists entirely of organic growth and reflects growth driven by new products, brand marketing and expanded distribution as well the net impact of the consumer shift in demand as a result of COVID-19 and the consumer's sustained preference for cooking at home. Sales growth is also expected to include the impact of pricing at the beginning of the year, which in conjunction with cost savings, is expected to offset an anticipated mid-single digit inflationary pressure.
Operating income in 2020 is expected to grow from 6% to 7% from $958 million of operating income in 2019. The company projects COVID-19 related costs as well as a higher level of incentive compensation consistent with the company's commitment to a pay-for-performance philosophy across the organization will reduce growth in operating income. Special charges of approximately $7 million are currently projected for 2020 that relate to previously announced organization and streamlining actions. Excluding the impact of special charges in 2020 and 2019, adjusted operating income is expected to increase from 4% to 5%, which in constant currency is 5% to 6%, from adjusted operating income of $979 million in 2019.
McCormick projects 2020 earnings per share to be in the range of $5.60 to $5.68 compared to $5.24 of earnings per share in 2019. Excluding an estimated $0.04 impact of special charges in 2020, the company projects 2020 adjusted earnings per share to be in the range of $5.64 to $5.72 which is an expected increase of 5% to 7%, or in constant currency 6% to 8%.
Read the full article here
29 September 2020: The Dow Jones ended the day down by -0.48%
Dow Jones Updates:
(12:24 ET): The Dow Jones is currently trading down by -0.73%
(2:20 ET): The Dow Jones futures are currently trading up by 0.26%
Website Updates:
We covered the recent stock price history of United Airlines (UAL). Below a short extract of that article
The image below shows the stock price performance of United Airlines (UAL), Southwest Airlines (LUV) and Delta Airlines (DAL) over the last 5 years. So while the image above showed that it has not been a good time for United Airlines. The image below shows the performance of United against its peers. The summary below shows the stock price returns of the three airlines over the last 5 years, sorted from best to worst performer
- Southwest Airlines (LUV): -16.45%
- Delta Airlines (DAL): -38.9%
- United Airlines (UAL): -41.1%
So of the three airlines the stock of United Airlines have been the worst performer over the last 5 years while the stock of Southwest Airlines (LUV) has been the best performer
Read the full article here
28 September 2020: The Dow Jones ended the day up by 1.51%
Dow Jones Updates:
(12:09 ET): The Dow Jones is currently trading up by 1.78%
(4:00 ET): The Dow Jones futures are currently trading up by 0.90%
Website Updates:
We covered the latest earnings report of restaurant group, Darden whose brands include Olive Garden and LongHorn steakhouse. Below a short extract.
So based on the earnings report of Darden Restaurants (NYSE:DRI) and the latest earnings guidance provided what do we value Darden Restaurants (DRI) stock at? Based on the earnings reported by the group our valuation model provides a target (full value) price for Darden Restaurants at $84.20 a stock (up slightly from our last earnings report valuation of Darden). We therefore believe the stock of Darden Restaurants is overvalued
We usually suggest long term fundamental and value investors look to enter the stock at least 10% below our target price, which in this case is $84.20 Therefore we believe a good entry point into the stock would be at $75.80 or below
We expect that the stock of Darden to pull back slightly from its current price to levels closer to our target price in coming weeks and months
Read the full article here
25 September 2020: The Dow Jones ended the day up by 1.34%
Dow Jones Updates:
(11:00 ET): The Dow Jones is currently trading up 0.13%
(8:30 ET): The Dow Jones futures are currently trading down by -0.53%
(3:00 ET): The Dow Jones futures are currently trading up by 0.34%
Website Updates:
We covered the latest earnings release from Costco (COST). Below a short extract from that article
So what is Costco Wholesale (NASDAQ: COST) stock worth based on the release of their latest earnings report? Based on their earnings report and the guidance provided our valuation models provide a target (full value) price for Costco of $246.80 a stock. We therefore believe that the stock of Costco Wholesale is overvalued at its current price of $347
We usually suggest long term investors look to enter a stock at least 10% below our target (full value) price which in this case is $246.80. So a good entry point into Costco stock would be at $222 or below. We expect the stock of Costco Wholesale to pull back from current levels to levels closer to our target price (full value price) in coming weeks and months as
Since the stock of Costco is trading at well above our suggested entry point and our full value price we rate the stock of Costco as avoid.
Read the full article here
24 September 2020: The Dow ended the day up by 0.2%
Dow Jones Updates:
(12:00 ET): The Dow Jones is currently trading up by 0.33%
Website Updates:
We covered the stock of O'Reilly's in more detail. Below a short extract from this article.
O’Reilly is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States (“U.S.”), selling our products to both do-it-yourself (“DIY”) and professional service provider customers, our “dual market strategy.” The business was founded in 1957 by Charles F. O’Reilly and his son, Charles H. “Chub’’ O’Reilly, Sr., and initially operated from a single store in Springfield, Missouri. Our common stock has traded on The NASDAQ Global Select Market under the symbol “ORLY” since April 22, 1993. After the close of business on November 29, 2019, we completed the acquisition of Mayoreo de Autopartes y Aceites, S.A. de C.V. (“Mayasa”), a specialty retailer of automotive aftermarket parts headquartered in Guadalajara, Jalisco, Mexico pursuant to a stock purchase agreement. At the time of the acquisition, Mayasa operated six distribution centers, 21 Orma Autopartes stores and served over 2,000 independent jobber locations in 28 Mexican states. At December 31, 2019, we operated 5,439 stores in 47 states in the United States and 21 stores in Mexico.
Our stores carry an extensive product line, including
- new and remanufactured automotive hard parts and maintenance items, such as alternators, batteries, brake system components, belts, chassis parts, driveline parts, engine parts, fuel pumps, hoses, starters, temperature control, water pumps, antifreeze, appearance products, engine additives, filters, fluids, lighting, oil and wiper blades; and
- accessories, such as floor mats, seat covers and truck accessories.
Our stores offer many enhanced services and programs to our customers, such as
- battery diagnostic testing;
- battery, wiper and bulb replacement;
- check engine light code extraction, where allowed by law;
- custom hydraulic hoses;
- drum and rotor resurfacing;
- electrical and module testing;
- loaner tool program;
- machine shops;
- professional paint shop mixing and related materials; and
- use oil, oil filter and battery recycling
Read the full article here
23 September 2020: The Dow Jones ended the day down by -1.92%
Dow Jones Updates:
(01:00 ET): Dow Jones futures are currently trading up by 0.41%
Website Updates:
We covered the latest earnings report of Autozone. Below a short extract of that article
So based on the earnings report of AutoZone (NYSE: AZO) and the latest earnings guidance provided what do we value AutoZone (AZO) stock at? Based on their latest earnings report our target (full value) price for AutoZone at $1140 a stock. We therefore believe the stock of AutoZone is fully valued at its current price
We usually suggest long term fundamental and value investors look to enter the stock at least 10% below our target price, which in this case is $1140 Therefore we believe the a good entry point into the stock is below $1026. We believe the stock of AutoZone will trade in a narrow range around our target price in coming weeks and months.
Read the full article here
22 September 2020: The Dow Jones ended the day up by 0.54%
Dow Jones Updates:
(7:46 ET): Dow Jones futures are currently trading down by -0.14%
Website Updates:
Earlier we compared the performance of the Dow Jones, Nasdaq and S&P500 on a chart over various time periods. Below a short extract from that article
There is one thing that markets do not like. And that is uncertainty. Currently there is a lot of uncertainty in the markets, from the worries about Covid-19 and when a vaccine will become available, uncertainty about potential further fiscal stimulus to try and relieve some of the financial strain on consumers that was brought about by the Covid-19 pandemic. And then one of the biggest worries in the markets right now is the political uncertainty leading up to the elections in about 40 odd days. The only certainty right now is uncertainty. And since markets don't like uncertainty. Expect markets to move up and down in wild swings in coming months.
Read the full article here
21 September 2020: The Dow ended the day down -1.84%
Dow Jones Updates:
(12:04 ET): The Dow Jones is currently trading down by -2.89%
(06:17 ET): Dow Jones futures are currently trading down by -1.93%
(04:10 ET): Dow Jones futures are currently trading down by -1.57%
Website Updates:
Earlier today we covered the latest earnings report from Adobe (ADBE). Below a short extract
Third Quarter Fiscal Year 2020 Financial Highlights
- Adobe achieved record quarterly revenue of $3.23 billion in its third quarter of fiscal year 2020, which represents 14 percent year-over-year growth. Diluted earnings per share was $1.97 on a GAAP basis, representing 22 percent year-over-year growth, and $2.57 on a non-GAAP basis, representing 25 percent year-over-year growth.
- Digital Media segment revenue was $2.34 billion, which represents 19 percent year-over-year growth. Creative revenue grew to $1.96 billion, representing 19 percent year-over-year growth. Document Cloud revenue was $375 million, representing 22 percent year-over-year growth.
- Digital Media Annualized Recurring Revenue (“ARR”) increased $458 million quarter-over-quarter to $9.63 billion exiting the quarter, representing 24 percent year-over-year growth on a constant-currency basis. Creative ARR grew to $8.29 billion, and Document Cloud ARR grew to $1.34 billion.
- Digital Experience segment revenue was $838 million. Digital Experience subscription revenue was $729 million, representing 7 percent year-over-year growth. Digital Experience subscription revenue, excluding Advertising Cloud revenue, grew 14 percent year-over-year.
- GAAP operating income in the third quarter was $1.07 billion, and non-GAAP operating income was $1.40 billion. GAAP net income was $955 million, and non-GAAP net income was $1.25 billion.
- Cash flows from operations were a record $1.44 billion.
- Remaining Performance Obligation (“RPO”) exiting the quarter was $10.34 billion, representing 18 percent year-over-year growth.
- Adobe repurchased approximately 1.5 million shares during the quarter.
Read the full article here
17 September 2020: The Dow Jones ended the day down by -0.47%
Dow Jones Updates:
(12:47 ET): The Dow Jones is currently trading down by -1.04%
(04:45 ET): Dow Jones futures are currently trading down by -0.92%
Website updates:
Yesterday we covered the listing of cloud computing giant Snowflake. Below a short extract
Snowflake's founders started from scratch and built a data platform that would harness the immense power of the cloud. Thousands of customers around the world now mobilize their data in ways previously unimaginable with Snowflake's cloud data platform — a solution for data warehousing, data lakes, data engineering, data science, data application development, and data exchange. Snowflake provides the near-unlimited scale, concurrency, and performance our customers in a variety of industries want, while delivering a single data experience that spans multiple clouds and geographies. But our founder's vision didn't stop there. Our cloud data platform is also the engine that drives the Data Cloud — the global ecosystem where thousands of organizations have seamless and governed access to explore, share, and unlock the potential of data.
Read the full article here
16 September 2020: The Dow Jones ended the day up by 0.13%
Dow Jones Updates:
(12:35 ET): The Dow is currently trading up by 0.83%
(10:55 ET): The Dow is currently trading up by 0.38%
(08:53 ET): Dow Jones futures are currently trading up by 0.28%
(02:40 ET): Dow Jones futures are currently trading up by 0.06%
Website Updates:
We covered the latest earnings report of Cracker Barrel. Below a short extract from that earnings report review. So based on the 4th quarter 2020 earnings report of Cracker Barrel (NASDAQ: CBRL) and what do we value Cracker Barrel (CBRL) stock at? Based on the earnings reported and the fact that the group is now loss making and that they withdrew their fiscal guidance our valuation model provides a target price (full value price) for Cracker Barrel at $145.70 a stock (up slightly from our 3rd quarter 2020 earnings report valuation of Cracker Barrel).
We therefore believe that Cracker Barrel is undervalued at its current price of $133.42
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price) which in this case is $145.70. So a good entry point into Cracker Barrel would be around $131.10. We expect the stock of Cracker Barrel to kick up in coming weeks and months as the various states starts opening up after the covid-19 pandemic.
Read the full article here
15 September 2020: The Dow Jones ended up by 0.01%
Dow Jones Updates:
(09:49 ET): The Dow is currently up by 0.44%
(3:56 ET): Dow Jones futures are currently trading up by 0.38%
Website Updates:
We covered the news regarding Nvidia buying Arm from SoftBank. Below a short extract from that article
“NVIDIA is the perfect partner for Arm,” said Masayoshi Son, chairman and CEO of SBG. “Since acquiring Arm, we have honored our commitments and invested heavily in people, technology and R&D, thereby expanding the business into new areas with high growth potential. Joining forces with a world leader in technology innovation creates new and exciting opportunities for Arm. This is a compelling combination that projects Arm, Cambridge and the U.K. to the forefront of some of the most exciting technological innovations of our time and is why SoftBank is excited to invest in Arm’s long-term success as a major shareholder in NVIDIA. We look forward to supporting the continued success of the combined business.”
“Arm and NVIDIA share a vision and passion that ubiquitous, energy-efficient computing will help address the world’s most pressing issues from climate change to healthcare, from agriculture to education,” said Simon Segars, CEO of Arm. “Delivering on this vision requires new approaches to hardware and software and a long-term commitment to research and development. By bringing together the technical strengths of our two companies we can accelerate our progress and create new solutions that will enable a global ecosystem of innovators. My management team and I are excited to be joining NVIDIA so we can write this next chapter together.”
Read the full article here
14 September 2020: The Dow Jones ended the day up 1.18%
Dow Jones Updates:
(12:15 ET): The Dow Jones is currently trading up by 1.35%
(9:45 ET): Dow Jones is currently trading up by 0.87%
(1:50 ET): Dow Jones futures are currently trading up by 1.04%
Website Updates:
We covered the latest earnings release of one of the world's biggest retailers, Kroger Company (KR). Below a short extract from that article
So what are The Kroger Company stock worth considering their latest earnings release? Based on their earnings released our valuation models set a target (full value) price for The Kroger Company of $43.60 a stock (up from our 1st quarter 2020 earnings report valuation of Kroger) . We therefore believe Kroger Company stock is undervalued.
We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target price which in this case is $43.60, a good entry point into the stock of Kroger Company would therefore be at $39.20 or below.
We expect that the stock of Kroger Company will kick upwards from its current price to levels closer to our target price/ full value price in coming weeks and months. Since the stock of Kroger is trading at well below our suggested entry point we rate the stock of Kroger (KR) as a buy.
Read the full article here
11 September 2020: The Dow ended the day up 0.48%
Dow Jones Updates:
(03:42 ET): Dow Jones futures are currently trading up by 0.66%
Website Updates:
We covered the latest earnings report of Lululemon (LULU) earlier today. Below a short extract
Based on Lululemon's 2nd quarter 2020 earnings report from Lululemon what do we value their stock at? Based on Lululemon's earnings reported our valuation model provides a target price (full value price) of $162.60 a Lululemon stock (up slightly from our 1st quarter 2020 earnings report valuation of Lululemon).
We therefore believe that the stock of Lululemon is overvalued. We usually recommend that long term fundamental and value investors look to enter a stock at least 10% below our target price which in this case is $162.60. A good entry point into Lululemon would therefore be at $146.40 or below. Since the stock of Lululemon is trading at well above our target price we rate the stock of Lululemon as avoid.
We expect it to pull back strongly from current levels to levels closer to our target price in coming weeks and months.
Read the full article here
10 September 2020: The Dow Jones ended the day down -1.45%
Dow Jones Updates:
- (08:06 ET): Dow Jones futures are currently trading down by -0.47%
- (0:34 ET): Dow Jones futures are currently trading down by -0.26%
Website Updates:
We covered the latest earnings report of Norwegian Cruise Line Holdings (NCLH)
Based on Norwegian Cruise Line Holdings latest earnings reports what do we value their stock at? Based on the earnings reported and the fact that the group is currently loss making and will be into the foreseeable future we value Norwegian Cruise Line Holdings stock at $39.20 a stock. Sure they in a tough spot now. But travel will recover, they will operate again and the good times will be back.
We therefore believe that stock of Norwegian Cruise Line Holdings is undervalued.
We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target price which in this case is $39.20. We therefore believe a good entry point into the stock of Norwegian Cruise Line Holdings is at $35.30 or below.
Since the stock of Norwegian Cruise Line Holdings is trading at well below our recommended entry point into the stock we rate the stock of Norwegian Cruise Line Holdings as a buy. But this call is only for investors willing to sit on the stock for a prolonged period and wait for the Coronavirus to pass, which could be a while. But we believe the strong drop in Norwegian Cruise Line Holdings stock in recent weeks has created a good buying opportunity for those looking for quality assets at depressed prices.
Read the full article here
9 September 2020: The Dow ended the day up by 1.6%
Dow Jones Updates:
- (8:15 ET): Dow Jones futures are currently trading up by 0.37%
- (01:04 ET): Dow Jones futures are currently trading up by 0.08%
Website Updates:
Earlier we compared the performance of the Nasdaq to that of the S&P500 and the Dow Jones over time. Below a short extract from that article
So while the Nasdaq has been under performing the Dow Jones and the S&P500 over the very recent past. It has still easily outperformed the Dow Jones and the S&P500 over the last year, 5 years and 10 year period. Over the last 10 years the Nasdaq has provided a return of 352.4%, the S&P 500 has provided 184.8% and the Dow Jones 153.3%. So basically the Nasdaq has provided over double the returns of the Dow Jones over the last 10 years. So while over the shorter term the tech heavy Nasdaq is declining faster than the Dow Jones and the S&P500 it has easily outperformed them due to the very fact that it is tech heavy as tech stocks has had a very good decade.
Read the full article here
8 September 2020: The Dow Jones ended the day down by -2.25%
Dow Jones Updates:
(13:00 ET): Dow Jones is currently trading down by -1.4%
(09:49 ET): Dow Jones is currently trading down by -2.04%
(08:24 ET): Dow Jones futures are currently trading down by -0.54%
(02:33 ET): Dow Jones futures are currently trading up by 1.03%
Website Updates:
We covered the latest earnings report of Broadcom (AVGO) yesterday. Below a short extract from that article
So based on Broadcom's latest earnings report what do we value their stock at? Based on their 3rd quarter 2020 earnings report our valuation model provides a target price of $345.60 per Broadcom (AVGO) stock. We therefore believe that the stock of Broadcom is fully valued at its current price
We usually recommend that long term and value investors look to enter a stock at least 10% below our target price. A good entry into the stock of Broadcom would therefore be at $311 or below.
Since the stock of Broadcom is trading at very close to our target price we rate the stock of Broadcom (AVGO) as a hold
Read the full article here
4 September 2020: The Dow ended the day down by -0.56%
Dow Jones Updates:
(8:36 ET): Dow Jones futures are currently trading up by 0.18%
(4:41 ET): Dow Jones futures are currently trading up by 0.51%
Website Updates:
We covered the latest press release by GrubHub and Just Eat Takeaway.com regarding the merger of the two firms and regulatory approval being granted. Below a short extract:
Just Eat Takeaway.com and Grubhub announced that the Committee on Foreign Investment in the United States ("CFIUS") has concluded its review of the Transaction under Section 721 of the Defense Production Act of 1950 and has determined that there are no unresolved national security concerns with respect to the Transaction. As previously disclosed on 2 July 2020, the United Kingdom Competition and Markets Authority (the "CMA") indicated in a response to a briefing paper submitted by Just Eat Takeaway.com in relation to the Transaction that it had no further questions, and on 7 July 2020, the U.S. Federal Trade Commission granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, with respect to the Transaction. Therefore, all regulatory approvals required for the completion of the Transaction have now been obtained.
Additionally, on 4 September 2020, Just Eat Takeaway.com and Grubhub announced the entry into an amendment to the Merger Agreement to extend the long stop date under the Merger Agreement from 10 June 2021 to 31 December 2021. The amendment provides additional certainty for the parties regarding the timing of the necessary steps to completion, including the registration of Just Eat Takeaway.com ordinary and American depositary shares in the U.S. under the Securities Act of 1933.
Read the full article here
3 September 2020: The Dow ended the day down by -2.78%
Dow Jones Updates:
(15:15 ET): All three major US market indices sink significantly. The S&P 500 is currently down by -4.1%, The Dow Jones is down by -3.2% and the Nasdaq is the worst performer with it being down by -5.45%
(15:06 ET): The Dow Jones is currently trading down by a very strong -3.23% and we cannot say that we are surprised. We have stated on multiple occasions we believe that the markets are heavily overvalued and a strong pull back is required for the longer term health of the markets, as pull backs rids the market of speculators and risk takers
Website Updates:
Earlier today we covered what we believe to 5 heavily overvalued stocks.
They are Tesla, Apple, Amazon, Domino's Pizza and Boston Beer Company
Read the full article here
2 September 2020: The Dow ended the day up by 1.59%
Dow Jones Updates:
(8:07 ET): Dow futures are currently trading up by 0.52%
Website Updates:
We covered the latest earnings report by At Home (HOME). Below a short extract from that article
So what do we value At Home (HOME) stock at following their 2nd quarter 2021 earnings release? Based on their latest earnings report our stock valuation models place a target price (full value price) on At Home Group of $17.70. So we do believe the stock is overvalued at its current price
We usually recommend that long term and fundamental investors look to enter a stock at least 10% below our target price. So a good entry point into the stock of At Home (HOME) would therefore be at $15.90 or below
We expect the stock to pull back from its current levels in coming weeks and months, especially considering the strong run it had recently. We therefore rate their stock as a sell.
Read the full article here.
1 September: The Dow ended the day up by 0.76%
Dow Jones Updates:
(13: 00 ET): The Dow is currently trading up by 0.25%
(02:00 ET): Dow Jones futures are currently trading up slightly by 0.08%
Website Updates:
Below reasons why we believe the stock of Tesla is overvalued.
Well let's start with its Price to Earnings Ratio (PE)
Earnings per share for 2nd quarter 2020: $0.50
- PE ratio of Tesla: 1000
- What this is saying you are paying $1000 for every $1 profit Tesla makes. So if you buying Tesla at $2000 a stock. Just know for a full year the firm is likely to make $2 a stock in profits. So do you honestly believe Tesla is still a good investment? Or that that type of return is a good investment?
Next lets take a look at Tesla's Price/Stockholders equity per share ratio
Stockholders equity in Tesla: $9.855 billion
- Stockholders equity per share in Tesla: $47.60 ($9.52 after the 5 to 1 stock split)
- Tesla is trading at 52.3 times its stockholders equity per share, which is well outside the expected range of between 2 and 4 times that most firms tend to trade at.
- If Tesla were to sell all their assets, settle all their liabilities and distribute what is left equally amongst its stockholders each stockholder will receive $9.52 a stock. So does the $498.32 stock price still look like a good investment?
Lets take a look at the production numbers of Tesla:
Model description June 2020 June 2019 Year on year percentage change
- Model S/X 6 326 14 517 - 56%
- Model 3/Y 75 946 72 531 5%
- Total 82 272 87 048 -5%
So total production numbers declined by -5% compared to the same quarter of the previous year, yet the group's stock price surges to new all time highs?
Come on people. Surely after reading this you will realise that Tesla (TSLA) stock is one big fat bubble that has sucked in a lot of investors all hoping to get rich from the continuing surge in its stock price. These type of people are created by excess cash in markets. And some of the Covid-19 stimulus cheques have found their way into the stock market and definitely into Tesla's stock and has driven up the stock price of Tesla to levels it should definitely not be at
If you currently own Tesla our advice is to get out while you can and take your profits (if you made some). And if you are planning in buying Tesla now, our advice is to rather not. We rate the stock of Tesla (TSLA) as a SELL
Read the full article here
The Dow Jones Performance Calendar Tracker for Aug 2020
The graphic below shows the daily performance of the Dow Jones Industrial Average (The Dow) on a calendar for the month of August 2020. The index levels used in the calculation of the daily performance of the Dow Jones Industrial Average is obtained from Macrotrends.net
So during August 2020 the Dow was up by 7.66%.
So during August 2020 the Dow was up by 7.66%.
31 August 2020: The Dow Jones ended the last trading day of August down -0.78%
Dow Jones Updates:
(7:52 ET): Dow Jones futures are currently trading down by 0.21%
Website Updates:
We compared the stock of BJ's Wholesale Club to that of Big Lots in order to determine which one is best placed to provide investors with superior returns over the next couple of years. Below a short extract of the article.
So let's take a look at the fundamentals and the valuation metrics in order to determine which of these two firms offers the most value at their current stock price.
One of our key metrics is the Price to Stockholders equity per share ratio. When looking at this we find the following:
Most firms tend to trade at a ratio of between 2 and 4 times its stockholders equity per share. The higher this ratio the less value a stock offers, and the lower this value the more value a stock offers. At a ratio of 1.51 for Big Lots is actually pretty low. However a stockholders deficit shows that a company's assets is less than its liabilities. And this is the case for BJ's Wholesale Club. So if they sell all their assets they wont be able to pay all their liabilities. So if they are liquidated debt holders will get any cash left and stockholders will get nothing
Next up cash as percentage of stock price:
Next up lets take a look at the percentage cash on the balance sheet makes up of each group's total assets:
Next up the PE ratio of the stock price:
Price relative to our valuation:
So BJ's Wholesale Club has a stockholders deficit, and Big Lots has a relatively low price/stockholders equity per share ratio. BJ's Wholesale is trading a higher PE ratio than Big Lots. For the cash as percentage of total assets Big Lots (BIG) cash makes up a far greater portion of their total assets than that of BJ's Wholesale Club. BJ's Wholesale Club is trading at a premium to our stock price valuation while Big Lots is trading at a discount to our latest valuation of the group.. Based on current stock prices, BJ's Wholesale is overvalued by almost 8% while Big Lots is undervalued by 13.1%.
Based on all the above if we have to buy one of these two retail giants we rate the stock of Big Lots (BIG) hands down as the WINNER in the battle between BJ's Wholesale stock vs Big Lots.
Read the full article
28 August 2020: The Dow Jones ended the day up by 0.57%
Dow Jones Updates:
(04:00 ET): Dow Jones futures are currently trading up by 0.26%
Website Updates:
We covered the latest earnings release of luxury home builder Toll Brothers (TOL). Below a short extract from that article
Douglas C. Yearley, Jr., chairman and chief executive officer, stated: “We are very pleased with our overall performance in our third quarter, including revenues of $1.63 billion, net income of $114.8 million and backlog of $6.09 billion. Our adjusted gross margin of 21.9% in the quarter improved sequentially compared to 21.0% in the fiscal 2020 second quarter due to a shift in mix of deliveries and solid execution by our teams in the field. SG&A as a percentage of home sales revenue improved to 9.9% in the quarter from 10.6% in the prior year period, reflecting cost efficiencies initiated in our second quarter. “Our third quarter net signed contracts were our highest third quarter ever in both units and dollars, and our contracts per community, at 8.5, were the highest third quarter in fifteen years. This strength has continued into August.
We attribute the surge in demand to a number of factors, including historically low interest rates, a continued undersupply of homes, and consumers focused more than ever on the importance of home. “With our well-located land holdings in twenty-four states and our strategic focus on expanding our geographic footprint, product lines and price points, we are well-positioned to take advantage of the resurgent housing market.”
Read the full article here
27 August 2020: The Dow ended the day up by 0.57%
Dow Jones Updates:
(06:17 ET): Dow Jones futures are currently trading down by -0.28%
(03:51 ET): Dow Jones futures are currently trading down by -0.2%
Website Updates:
The list below (sorted alphabetically) shows the newest list of Dow Jones Industrial Average constituents effective from the end of August 2020: The new additions highlighted in green:
The three constituents that were dropped:
Read the full article here
26 August 2020: The Dow Jones ended the day up by 0.3%
Dow Jones Updates:
(0:14 ET): Dow Jones futures are currently trading down by -0.12%
Website Updates:
Yesterday we looked at another stock bubble forming, and this time its in the stock price of Overstock (OSTK). Below a short extract of that article
Overview of Overstock's latest earnings
Read the full article here
25 August 2020: The Dow Jones ended the day down by -0.21%
Dow Jones Updates:
(6:29 ET): Dow Jones futures are currently trading down -0.53%
Website Updates:
Read the full article here
24 August: The Dow ended the day up by 1.35%
Dow Jones Updates:
(14:01 ET): The Dow Jones is currently trading up by 0.95%
(03:50 ET): Dow Jones Futures are currently trading up by 0.58%
Website Updates:
We covered the latest earnings report of NIO, a Chinese Electric Vehicle Manufacturer
The data below refers to their 2nd quarter 2020 earnings report:
Deliveries of vehicles were 10,331 in the second quarter of 2020, including 8,068 ES6s and 2,263 ES8s, compared with 3,553 vehicles delivered in the second quarter of 2019 and 3,838 vehicles delivered in the first quarter of 2020.
Read the full article here
21 August 2020: The Dow ended the day up by 0.68%
Dow Jones updates:
(01:22 ET): Dow Jones futures are currently trading down by 0.29%
Website updates:
We take a look at the massive surge in Tesla's stock price and provide reasons why we believe the stock is horribly overvalued Below a short extract from that article
Well lets start with its Price to Earnings Ratio (PE)
Earnings per share for 2nd quarter 2020: $0.50
Next lets take a look at Tesla's Price/Stockholders equity per share ratio
Stockholders equity in Tesla: $9.855 billion
Lets take a look at the production numbers of Tesla:
Model description June 2020 June 2019 Year on year percentage change
So total production numbers declined by -5% compared to the same quarter of the previous year, yet the group's stock price surges to new all time highs?
Come on people. Surely after reading this you will realise that Tesla (TSLA) stock is one big fat bubble that has sucked in a lot of investors all hoping to get rich from the continuing surge in its stock price. These type of people are created by excess cash in markets. And some of the Covid-19 stimulus cheques have found their way into the stock market and definitely into Tesla's stock and has driven up the stock price of Tesla to levels it should definitely not be at
If you currently own Tesla our advice is to get out while you can and take your profits (if you made some). And if you are planning in buying Tesla now, our advice is to rather not. We rate the stock of Tesla (TSLA) as a SELL
Read the full article here
20 August 2020: The Dow ended the day up by 0.17%
Dow Jones updates:
(01:38 ET): Dow Jones futures are currently trading down by -0.54%
Website updates:
We covered the latest earnings report of the 8th biggest retailer in the USA, Target Corporation (TGT). Below a short extract.
So what do we value Target Corporation's stock at based on their 4th quarter 2019 earnings report and their fiscal guidance provided? Based on Target Corporation's earnings report and the fiscal guidance provided our valuation model provides a target (full value) price for Target Corporation' stock at $130 (up from our 1st quarter 2020 earnings valuation of Target Corporation) We therefore believe the stock of Target Corporation's is overvalued at its current price of $154.22
We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price) which in this case is $130. A good entry point into Target would therefore be at $117 or below. We therefore expect the stock of Target to pull back from current levels to levels closer to our target price in coming weeks and months as we believe the stock price rally has gone to far.
Read the full article here
19 August 2020: The Dow ended the day down by -0.31%
Dow Jones updates:
(13:07 ET): Dow Jones futures are currently trading up by 0.19%
(09:07 ET): Dow Jones futures are currently trading up by 0.08%
(01:38 ET): Dow Jones futures are currently trading down by -0.14%
Website updates:
We covered the latest earnings report of the world's largest DIY store. The Home Depot. Below a short extract
So what is Home Depot stock worth based on their 2nd quarter 2020 earnings report? Based on their earnings report our valuation model provides a target price (full value price) for Home Depot at $203.70 a stock (up from our 1st quarter 2020 earnings report review of Home Depot).
We therefore believe the stock of The Home Depot is overvalued at its current price of $285
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target (full value) price, which in this case is $203.70, thus a good entry point into The Home Depot would be at $183.30 or below.
We expect the stock of Home Depot to pull back from current levels in coming weeks and months to levels closer to our target price (full value price), as their stock is price is overvalued and has been for some time and we believe once the spending of stimulus checks at stores such as the Home Depot and Walmart fades their reported earnings and stock prices will decline to reflect these lower sales.
Read the full article here
And we also covered the latest earnings release of Lowe's, The Home Depot's biggest rival. Below a short extract from that article
So what do we value Lowe's at based on their 2nd quarter 2020 earnings report? Based on Lowe's earnings report our valuation model provides a target price (full value price) for Lowe's stock at $149.60 (up from our 1st quarter 2020 earnings review of Lowe's). We therefore believe the stock of Lowe's is overvalued at its stock price of $157.91
We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price) which in this case is $149.60. A good entry point into Lowe's would therefore be at $134.60 or below. We expect the stock of Lowe's to trade in a narrow range around our target price (full value price) in coming weeks and months.
Read the full article here
18 August 2020: The Dow Jones ended the day down -0.24%
Dow Jones updates:
(09:38 ET): Dow Jones is currently trading at 0.05%
Website updates:
We covered the latest earnings report of Walmart. Below a short extract of this article.
So what do we believe Walmart stock is worth after their latest earnings report and their fiscal guidance provided? Based on their very strong 2nd quarter 2021 earnings report our valuation model provides a target price (full value price) for Walmart stock at $145.10 a stock .
We therefore believe the stock of Walmart is slightly undervalued at its current price.
We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target (full value) price which in this case is $145.10. A good entry point into Walmart would therefore be at $130.60 or below. We expect the stock of Walmart (WMT) to kick up from its current levels to levels closer to our target price (full value price) in coming weeks and months.
Read the full article here
17 August 2020: The Dow Jones ended the day down by -0.31%
Dow Jones updates:
(12:00 ET) The Dow Jones is currently trading down by -0.27%
(1:23 ET): Dow Jones futures are currently trading down up by 0.37%
Website updates:
Yesterday we covered Cracker Barrel Old Country Store announcement that they will be updating their menu. Below an extract from that article
Guests will find these new dishes featured across three menu categories – Home Cooked Classics Starting at $7.99, Down Home Daily Dinners Under $10 and Cracker Barrel Favorites:
Read the full article here
14 August 2020: The Dow Jones ended the day up by 0.12%
Dow Jones updates:
(2:00 ET): Dow Jones futures are currently trading down up by 0.22%
Website updates:
Yesterday we compared the stock of Domino's Pizza to that of Papa Johns in our battle of the pizza franchise stocks
So let's take a look at the fundamentals and the valuation metrics in order to determine which of these two firms offers the most value at their current stock price.
One of our key metrics is the Price to Stockholders equity per share ratio. When looking at this we find the following:
Most firms tend to trade at a ratio of between 2 and 4 times its stockholders equity per share. The higher this ratio the less value a stock offers. However a stockholders deficit shows that a company's assets is less than its liabilities. And this is the case for both Domino's Pizza and Papa Johns.
Next up cash as percentage of stock price:
Next up lets take a look at the percentage cash on the balance sheet makes up of each group's total assets:
Next up the PE ratio of the stock price:
Price relative to our valuation:
Neither of the two companies has stockholders equity, as both are trading at stockholders deficits. Domino's Pizza is in the better cash position than Papa Johns based on the their cash as percentage of total assets percentage. And it is also trading at lower PE ratio than that of Papa Johns but it is trading at further away from our stock price target than what Papa Johns is. And it is for this reasons that we rate the stock of Papa Johns as the winner.
Read the full article here
13 August 2020: The Dow ended the day down by -0.29%
Dow Jones updates:
(15:03 ET): The Dow Jones is currently trading down by -0.62%
(12:10 ET): The Dow Jones is currently trading down by -0.18%
(1:30 ET): Dow Jones futures are currently trading down by -0.04%
Website updates:
Yesterday we looked at the market capital of the 10 biggest stocks listed on the NASDAQ. Below a short extract from that article
Market Capital of the 10 largest Nasdaq listed firms (including Microsoft (MSFT), Apple (APPL), Cisco (CSCO) and Intel which is part of the Dow Jones), sorted from the biggest to the 10th biggest
So the top 10 stocks listed on the Nasdaq (including those included in the Dow Jones Industrial Average) total market capital amounts to $7.81 trillion, or about 97.8% of the total market capital of the Dow Jones Industrial Average (which is 30 stocks).
Read the full article here
12 August 2020: The Dow Jones ended the day up by 1.05%
Dow Jones updates:
(14:03 ET): The Dow Jones is currently trading 1%
(07:00 ET): Dow Jones futures are currently trading up by 0.95%
(0:56 ET): Dow Jones futures are currently trading up by 0.21%
Website updates:
Earlier we covered the latest earnings report of Grocery Outlet a retailer with a market cap of over $4 billion and whose sales topped $800 million for their latest report quarter.
So what do we value Grocery Outlet at based on their 2nd quarter 2020 earnings report a? Based on the latest earnings report from Grocery Outlet our valuation model provides a target price (full value price) for Grocery Outlet stock at $36.70 a stock. We therefore believe the stock of Grocery Outlet is overvalued
We usually recommend that long term fundamental or value investors look to enter a stock at at least 10% below our target price, which in this case is $36.70. So we would suggest looking to enter into the stock of Grocery Outlet at $33 or below.
We expect the stock of Grocery Outlet to pull back from its current price to levels closer to our target price in coming weeks and months.
Read the full article here
11 August 2020: The Dow Jones ended the day down by -0.38%
Dow Jones updates:
(14:27 ET): The Dow Jones is currently trading up by 1.1%
(1:46 ET): Dow Jones futures are currently trading up by 0.37%
Website updates:
Earlier we covered the latest earnings report of Royal Caribbean Group, formerly known as Royal Caribbean Cruises. Below a short extract
So what do we value Royal Caribbean Group at based on their 2nd quarter 2020 earnings report and the fact that made a significant loss during 1Q 2020? Based on their earnings report and the fact that they are loss making we have decided to value RCL at their stockholders equity per share which is $42.80 a stock. We therefore believe the stock of Royal Caribbean Group is slightly overvalued
We usually recommend that long term fundamental or value investors look to enter a stock at at least 10% below our target price, which in this case is $48.92, so we would suggest looking to enter into the stock of Royal Caribbean Group at $38.50 or below.
We expect the stock of Royal Caribbean Group to pull back slightly from its current price to levels closer to our target price in coming weeks and months.
Read the full article here
10 August 2020: The Dow ended the day up by 1.3%
Dow Jones Updates:
(13:57 ET) The Dow Jones is currently trading up by 1.01%
(4:45 ET): Dow Jones futures are currently trading up by 0.41%
(1:14 ET): Dow Jones futures are currently trading up by 0.33%
Website Updates:
Yesterday we covered the latest earnings report of general home retailer, Conn's (CONN). Below a short extract from that article
So based on Conn's 1st quarter 2021 earnings report what do we value their stock at? It is always hard to value a loss making firm. In the case where a firm is loss making we tend to use the stockholders equity per share as the base of our valuation. And Conn's stockholders equity per share is currently sitting at $17.20. And this is what we will value the group's stock at.
We therefore believe the stock of Conn's is undervalued. Also keep in mind if you buy the stock at $11.03, 90% of that price is made up by cash on the balance sheet. So the rest of the business is purchased for the oter $2 per stock.
We expect the stock of Conn's to rise sharply as the impact of Covid-19 eases.
Read the full article here
7 August: The Dow Jones ended the day up by 0.17%
Dow Jones Updates:
(06:55 ET): Dow Jones futures are currently trading down at -0.22%
(01:00 ET): Dow Jones futures are currently trading down at -0.36%
Website Updates:
Yesterday we looked at the stockholders equity per share of Berkshire Hathaway (BRKA). The summary below shows the stockholders equity and stockholders equity per share of Berkshire Hathaway (BRKA) for December 2019 and March 2020. Over the period the stockholders equity of Berkshire Hathaway declined by -12.4%
March 2020 December 2019
Total shareholders’ equity: $375.235 billion $428.563 billion
Total stockholders equity per share: $231 626 $261 438
Read the full article here
6 August 2020: The Dow Jones ended the day higher by 0.68%
Dow Jones updates:
(01:11 ET): Dow futures are currently trading up by 0.16%
Website updates:
Yesterday we asked whether its a good time to buy the stock of Apple (APPL)
Is this a good time to buy the stock of Apple (APPL)? The short simple answer to this question is absolutely.. NOT. Its overvalued and if you buying into the stock now you run the risk of significant losses should the stock price correction takes place to bring it back to more realistic valuations.
Read the full article here
5 August 2020: The Dow Jones ended the day up by 1.39%
Dow Jones updates:
(11:28ET): The Dow is currently trading up by 1.24%
(06:44 ET): Dow futures are currently trading up by 0.72%
(01:27 ET): Dow futures are currently trading up by 0.12%
Website updates:
Yesterday we covered the market capital of the 10 biggest stocks on the NASDAQ and compared it to the total market capital of the Dow Jones. Below an extract of the article.
Market Capital of the 10 largest Nasdaq listed firms (including Microsoft (MSFT), Apple (APPL), Cisco (CSCO) and Intel which is part of the Dow Jones)
So the top 10 stocks listed on the Nasdaq (including those included in the Dow Jones Industrial Average) total market capital amounts to $7.96 trillion, or about 98.8% of the total market capital of the Dow Jones Industrial Average (which is 30 stocks).
This just shows how the tech heavy Nasdaq is growing and becoming ever more important in the world of financial markets. Who knows, over time perhaps the Nasdaq will replace the Dow Jones as the most quoted and used major market index.
Read the full article here
4 August: The Dow ended the day up by 0.62%
Dow Jones Updates:
(15:09 ET): The Dow Jones is currently trading up by 0.35%
(06:47 ET): Dow Jones futures are currently trading down by -0.18%
(0:27 ET): Dow Jones futures are currently trading up by 0.03%
Website Updates:
We covered the latest earnings report of Dunkin' Brands. Below a short extract of that article
So what do we value Dunkin' Brands stock at after the release of their 2nd quarter 2020 earnings report? Based on Dunkin' Brands earnings report our valuation models provides a target price (full value price) of Dunkin' Brands at $46.10 a stock. We therefore believe that the stock of Dunkin' Brands is overvalued.
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $46.10 therefore we believe a good entry point into Dunkin' Brands stock is at $41.50 or below. We expect the stock of Dunkin' Brands to pull back from current levels to levels closer to our target price (full value price) in coming weeks and moths as we believe it is significantly overvalued at this point in time.
We therefore rate Dunkin' Brands as a sell
Read the full article here
3 August: The Dow Jones ended the day up by 0.89%
Dow Jones Updates:
(13:08 ET): The Dow Jones is currently trading up by 0.85%
(0:27 ET): Dow Jones futures are currently trading down by -0.21%
Website Updates:
Apple (APPL) vs Amazon (AMZN) vs Alphabet (GOOGL). Who comes out on top?
One of our key metrics is the Price to Stockholders equity per share ratio. When looking at this we find the following:
Based on this metric Alphabet offers far more value than Amazon and Apple. Most firms tend to trade at a ratio of between 2 and 4 times its stockholders equity per share. What it shows that if a firm was to be liquited now, all assets sold, liabilities paid and the rest paid out to stockholders, that amount is expressed as a ratio to the stock price.
Next up cash as percentage of stock price:
Next up lets take a look at the percentage cash on the balance sheet makes up of each group's total assets:
PE ratio:
Apple has the lowest PE ratio and Amazon by far the highest
Price/Valuation ratio: This ratio is the current stock price divided by our latest valuation price for each stock
So based on this Alphabet offers the most value right now, but its still almost 20% more than our target price, while Amazon is trading at more than double our valuation price and Apple roughly 71% our valuation price.
Read the full article here
Yesterday we covered the latest earnings report of Alphabet (GOOGL). Below a short extract of that article
So what do we value Alphabet at based on their latest earnings report, their earnings per share, cash generated from their operations and the group's future prospects. Based on Alphabet's latest earnings report our valuation model provides a target price (full value price) at $1240.20 a Alphabet stock (up slightly from our 1st quarter 2020 earnings report valuation of Alphabet). We therefore believe the stock of Alphabet is overvalued
We usually recommend that long term fundamental or value investors look to enter a stock at at least 10% below our target price, which in this case is $1240.20 so we would suggest looking to buy Alphabet at around $1116 a stock. Since the stock of Alphabet (GOOGL) is trading at well above our suggested entry point into the stock we will go against popular market and pundits opinions and rate the stock of Alphabet as a sell
Read the full article here
Dow Jones Updates:
(7:52 ET): Dow Jones futures are currently trading down by 0.21%
Website Updates:
We compared the stock of BJ's Wholesale Club to that of Big Lots in order to determine which one is best placed to provide investors with superior returns over the next couple of years. Below a short extract of the article.
So let's take a look at the fundamentals and the valuation metrics in order to determine which of these two firms offers the most value at their current stock price.
One of our key metrics is the Price to Stockholders equity per share ratio. When looking at this we find the following:
- Price/Stockholders equity per share for BJ's Wholesale Club (BJ): Stockholders deficit so this ratio cannot be calculated
- Price/Stockholders equity per share for Big Lots (BIG): 1.51
Most firms tend to trade at a ratio of between 2 and 4 times its stockholders equity per share. The higher this ratio the less value a stock offers, and the lower this value the more value a stock offers. At a ratio of 1.51 for Big Lots is actually pretty low. However a stockholders deficit shows that a company's assets is less than its liabilities. And this is the case for BJ's Wholesale Club. So if they sell all their assets they wont be able to pay all their liabilities. So if they are liquidated debt holders will get any cash left and stockholders will get nothing
Next up cash as percentage of stock price:
- Cash as percentage of stock price for BJ's Wholesale Club (BJ): 2.6%
- Cash as percentage of stock price for Big Lots (BIG): 44.9%
Next up lets take a look at the percentage cash on the balance sheet makes up of each group's total assets:
- Cash as percentage of stock price for BJ's Wholesale Club (BJ): 3.2%
- Cash as percentage of stock price for Big Lots (BIG): 21.5%
Next up the PE ratio of the stock price:
- PE ratio of BJ's Wholesale Club (BJ): 15.8
- PE ratio for Big Lots (BIG) : 7
Price relative to our valuation:
- BJ's Wholesale Club (BJ): 7.8% overvalued based on our latest stock valuation
- Big Lots (BIG): 13.1% undervalued based on our latest stock valuation
So BJ's Wholesale Club has a stockholders deficit, and Big Lots has a relatively low price/stockholders equity per share ratio. BJ's Wholesale is trading a higher PE ratio than Big Lots. For the cash as percentage of total assets Big Lots (BIG) cash makes up a far greater portion of their total assets than that of BJ's Wholesale Club. BJ's Wholesale Club is trading at a premium to our stock price valuation while Big Lots is trading at a discount to our latest valuation of the group.. Based on current stock prices, BJ's Wholesale is overvalued by almost 8% while Big Lots is undervalued by 13.1%.
Based on all the above if we have to buy one of these two retail giants we rate the stock of Big Lots (BIG) hands down as the WINNER in the battle between BJ's Wholesale stock vs Big Lots.
Read the full article
28 August 2020: The Dow Jones ended the day up by 0.57%
Dow Jones Updates:
(04:00 ET): Dow Jones futures are currently trading up by 0.26%
Website Updates:
We covered the latest earnings release of luxury home builder Toll Brothers (TOL). Below a short extract from that article
Douglas C. Yearley, Jr., chairman and chief executive officer, stated: “We are very pleased with our overall performance in our third quarter, including revenues of $1.63 billion, net income of $114.8 million and backlog of $6.09 billion. Our adjusted gross margin of 21.9% in the quarter improved sequentially compared to 21.0% in the fiscal 2020 second quarter due to a shift in mix of deliveries and solid execution by our teams in the field. SG&A as a percentage of home sales revenue improved to 9.9% in the quarter from 10.6% in the prior year period, reflecting cost efficiencies initiated in our second quarter. “Our third quarter net signed contracts were our highest third quarter ever in both units and dollars, and our contracts per community, at 8.5, were the highest third quarter in fifteen years. This strength has continued into August.
We attribute the surge in demand to a number of factors, including historically low interest rates, a continued undersupply of homes, and consumers focused more than ever on the importance of home. “With our well-located land holdings in twenty-four states and our strategic focus on expanding our geographic footprint, product lines and price points, we are well-positioned to take advantage of the resurgent housing market.”
Read the full article here
27 August 2020: The Dow ended the day up by 0.57%
Dow Jones Updates:
(06:17 ET): Dow Jones futures are currently trading down by -0.28%
(03:51 ET): Dow Jones futures are currently trading down by -0.2%
Website Updates:
The list below (sorted alphabetically) shows the newest list of Dow Jones Industrial Average constituents effective from the end of August 2020: The new additions highlighted in green:
- 3M Co.
- American Express Co.
- Amgen
- Apple Inc
- Boeing Co.
- Caterpillar Inc.
- Chevron Corp.
- Cisco Systems, Inc.
- Coca-Cola Co
- Dow Inc
- Goldman Sachs Group, Inc.
- Home Depot, Inc.
- Honeywell
- IBM
- Intel Corp.
- Johnson & Johnson
- JPMorgan Chase & Co.
- McDonald's Corp
- Merck & Co Inc
- Microsoft Corporation
- Nike, Inc. - Class B Shares
- Procter & Gamble Co.
- Salesforce
- Travelers Companies Inc.
- Unitedhealth Group Inc
- Verizon Communications Inc
- Visa Inc - Class A Shares
- Walgreens Boots Alliance Inc
- Walmart Inc
The three constituents that were dropped:
- Exxon
- Pfizer
- Raytheon
Read the full article here
26 August 2020: The Dow Jones ended the day up by 0.3%
Dow Jones Updates:
(0:14 ET): Dow Jones futures are currently trading down by -0.12%
Website Updates:
Yesterday we looked at another stock bubble forming, and this time its in the stock price of Overstock (OSTK). Below a short extract of that article
Overview of Overstock's latest earnings
- Total net revenue was $783 million, an increase of 109% year over year
- Gross profit was $180 million or 23.0% of total net revenue, an improvement of 321 basis points year over year
- Net income attributable to stockholders of Overstock.com, Inc. was $36 million, an improvement of $61 million year over year
- Diluted earnings per share was $0.84, an improvement of $1.53 year over year
- PE ratio of 119.8
- So investors are paying $119.8 for every $1 in profits that Overstock makes. That's a yield of 0.84% on your investment. Not exactly the greatest yield out there.
- Adjusted EBITDA (non-GAAP) was $42 million, an improvement of $55 million year over year
- YTD net cash provided by operating activities was $170 million, an improvement of $236 million year over year
- YTD free cash flow (non-GAAP) improved $237 million year over year
- At the end of the second quarter, cash and cash equivalents totaled $319 million
- Cash per share: $7.87
- Cash makes up 6.5% of Overstock's stock price
- Stockholders equity in Overstock: $203.348 million
- Stockholders equity per share: $5
- So Overstock is trading at 23.9 times its stockholders equity per share. This is well outside the expected range of between 2 and 4 times that most firms tend.
- If Overstock were to sell all its assets, pay all its liabilities and distribute what is left evenly amongst stockholders you will get $5 a stock. So why on earth would you pay $119 per stock?
Read the full article here
25 August 2020: The Dow Jones ended the day down by -0.21%
Dow Jones Updates:
(6:29 ET): Dow Jones futures are currently trading down -0.53%
Website Updates:
- Total net revenue was $783 million, an increase of 109% year over year
- Gross profit was $180 million or 23.0% of total net revenue, an improvement of 321 basis points year over year
- Net income attributable to stockholders of Overstock.com, Inc. was $36 million, an improvement of $61 million year over year
- Diluted earnings per share was $0.84, an improvement of $1.53 year over year
- PE ratio of 119.8
- So investors are paying $119.8 for every $1 in profits that Overstock makes. That's a yield of 0.84% on your investment. Not exactly the greatest yield out there.
- Adjusted EBITDA (non-GAAP) was $42 million, an improvement of $55 million year over year
- YTD net cash provided by operating activities was $170 million, an improvement of $236 million year over year
- YTD free cash flow (non-GAAP) improved $237 million year over year
- At the end of the second quarter, cash and cash equivalents totaled $319 million
- Cash per share: $7.87
- Cash makes up 6.5% of Overstock's stock price
- Stockholders equity in Overstock: $203.348 million
- Stockholders equity per share: $5
- So Overstock is trading at 23.9 times its stockholders equity per share. This is well outside the expected range of between 2 and 4 times that most firms tend.
- If Overstock were to sell all its assets, pay all its liabilities and distribute what is left evenly amongst stockholders you will get $5 a stock. So why on earth would you pay $119 per stock?
- For some perspective the average price to book ratio of firms in the S&P 500 is 3.7 times
Read the full article here
24 August: The Dow ended the day up by 1.35%
Dow Jones Updates:
(14:01 ET): The Dow Jones is currently trading up by 0.95%
(03:50 ET): Dow Jones Futures are currently trading up by 0.58%
Website Updates:
We covered the latest earnings report of NIO, a Chinese Electric Vehicle Manufacturer
The data below refers to their 2nd quarter 2020 earnings report:
- Vehicle Sales in US $ : 493.4 million
- Vehicle Margin: 9.7%
- Gross profit: $44.3 million
- Net loss: -$166.5 million
- Net loss per share: -$0.16
Deliveries of vehicles were 10,331 in the second quarter of 2020, including 8,068 ES6s and 2,263 ES8s, compared with 3,553 vehicles delivered in the second quarter of 2019 and 3,838 vehicles delivered in the first quarter of 2020.
Read the full article here
21 August 2020: The Dow ended the day up by 0.68%
Dow Jones updates:
(01:22 ET): Dow Jones futures are currently trading down by 0.29%
Website updates:
We take a look at the massive surge in Tesla's stock price and provide reasons why we believe the stock is horribly overvalued Below a short extract from that article
Well lets start with its Price to Earnings Ratio (PE)
Earnings per share for 2nd quarter 2020: $0.50
- PE ratio of Tesla: 1000
- What this is saying you are paying $1000 for every $1 profit Tesla makes. So if you buying Tesla at $2000 a stock. Just know for a full year the firm is likely to make $2 a stock in profits. So do you honestly believe Tesla is still a good investment? Or that that type of return is a good investment?
Next lets take a look at Tesla's Price/Stockholders equity per share ratio
Stockholders equity in Tesla: $9.855 billion
- Stockholders equity per share in Tesla: $47.60
- Tesla is trading at 42 times its stockholders equity per share, which is well outside the expected range of between 2 and 4 times that most firms tend to trade at.
- If Tesla were to sell all their assets, settle all their liabilities and distribute what is left equally amongst its stockholders each stockholder will receive $47.60 a stock. So does the $2000 stock price still look like a good investment?
Lets take a look at the production numbers of Tesla:
Model description June 2020 June 2019 Year on year percentage change
- Model S/X 6 326 14 517 - 56%
- Model 3/Y 75 946 72 531 5%
- Total 82 272 87 048 -5%
So total production numbers declined by -5% compared to the same quarter of the previous year, yet the group's stock price surges to new all time highs?
Come on people. Surely after reading this you will realise that Tesla (TSLA) stock is one big fat bubble that has sucked in a lot of investors all hoping to get rich from the continuing surge in its stock price. These type of people are created by excess cash in markets. And some of the Covid-19 stimulus cheques have found their way into the stock market and definitely into Tesla's stock and has driven up the stock price of Tesla to levels it should definitely not be at
If you currently own Tesla our advice is to get out while you can and take your profits (if you made some). And if you are planning in buying Tesla now, our advice is to rather not. We rate the stock of Tesla (TSLA) as a SELL
Read the full article here
20 August 2020: The Dow ended the day up by 0.17%
Dow Jones updates:
(01:38 ET): Dow Jones futures are currently trading down by -0.54%
Website updates:
We covered the latest earnings report of the 8th biggest retailer in the USA, Target Corporation (TGT). Below a short extract.
So what do we value Target Corporation's stock at based on their 4th quarter 2019 earnings report and their fiscal guidance provided? Based on Target Corporation's earnings report and the fiscal guidance provided our valuation model provides a target (full value) price for Target Corporation' stock at $130 (up from our 1st quarter 2020 earnings valuation of Target Corporation) We therefore believe the stock of Target Corporation's is overvalued at its current price of $154.22
We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price) which in this case is $130. A good entry point into Target would therefore be at $117 or below. We therefore expect the stock of Target to pull back from current levels to levels closer to our target price in coming weeks and months as we believe the stock price rally has gone to far.
Read the full article here
19 August 2020: The Dow ended the day down by -0.31%
Dow Jones updates:
(13:07 ET): Dow Jones futures are currently trading up by 0.19%
(09:07 ET): Dow Jones futures are currently trading up by 0.08%
(01:38 ET): Dow Jones futures are currently trading down by -0.14%
Website updates:
We covered the latest earnings report of the world's largest DIY store. The Home Depot. Below a short extract
So what is Home Depot stock worth based on their 2nd quarter 2020 earnings report? Based on their earnings report our valuation model provides a target price (full value price) for Home Depot at $203.70 a stock (up from our 1st quarter 2020 earnings report review of Home Depot).
We therefore believe the stock of The Home Depot is overvalued at its current price of $285
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target (full value) price, which in this case is $203.70, thus a good entry point into The Home Depot would be at $183.30 or below.
We expect the stock of Home Depot to pull back from current levels in coming weeks and months to levels closer to our target price (full value price), as their stock is price is overvalued and has been for some time and we believe once the spending of stimulus checks at stores such as the Home Depot and Walmart fades their reported earnings and stock prices will decline to reflect these lower sales.
Read the full article here
And we also covered the latest earnings release of Lowe's, The Home Depot's biggest rival. Below a short extract from that article
So what do we value Lowe's at based on their 2nd quarter 2020 earnings report? Based on Lowe's earnings report our valuation model provides a target price (full value price) for Lowe's stock at $149.60 (up from our 1st quarter 2020 earnings review of Lowe's). We therefore believe the stock of Lowe's is overvalued at its stock price of $157.91
We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price) which in this case is $149.60. A good entry point into Lowe's would therefore be at $134.60 or below. We expect the stock of Lowe's to trade in a narrow range around our target price (full value price) in coming weeks and months.
Read the full article here
18 August 2020: The Dow Jones ended the day down -0.24%
Dow Jones updates:
(09:38 ET): Dow Jones is currently trading at 0.05%
Website updates:
We covered the latest earnings report of Walmart. Below a short extract of this article.
So what do we believe Walmart stock is worth after their latest earnings report and their fiscal guidance provided? Based on their very strong 2nd quarter 2021 earnings report our valuation model provides a target price (full value price) for Walmart stock at $145.10 a stock .
We therefore believe the stock of Walmart is slightly undervalued at its current price.
We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target (full value) price which in this case is $145.10. A good entry point into Walmart would therefore be at $130.60 or below. We expect the stock of Walmart (WMT) to kick up from its current levels to levels closer to our target price (full value price) in coming weeks and months.
Read the full article here
17 August 2020: The Dow Jones ended the day down by -0.31%
Dow Jones updates:
(12:00 ET) The Dow Jones is currently trading down by -0.27%
(1:23 ET): Dow Jones futures are currently trading down up by 0.37%
Website updates:
Yesterday we covered Cracker Barrel Old Country Store announcement that they will be updating their menu. Below an extract from that article
Guests will find these new dishes featured across three menu categories – Home Cooked Classics Starting at $7.99, Down Home Daily Dinners Under $10 and Cracker Barrel Favorites:
- Home Cooked Classics include the Maple Bacon Grilled Chicken, complete with two grilled chicken breasts topped with sweet n' smoky maple glaze, bacon and melted cheese, plus choice of two country sides, and buttermilk biscuits or corn muffins.
- Down Home Daily Dinners offer a different meal each day of the week with Saturdays featuring the Country Fried Pork Chops, two crispy hand-breaded fried pork chops smothered in roasted pan gravy, plus choice of two country sides; and Sundays spotlighting the Pot Roast Supper, an oven-braised beef roast with red potatoes, carrots, onions, celery and tomatoes in a savory beef broth – plus, each daily dinner includes a choice of buttermilk biscuits or corn muffins.
- Cracker Barrel Favorites pay homage to Cracker Barrel's signature, craveable dishes highlighted by the introduction of the Barrel-Cut Sugar Ham, a generous portion of Cracker Barrel's extra thick-sliced bone-in Sugar Ham steak, served with choice of three country sides, and buttermilk biscuits or corn muffins.
Read the full article here
14 August 2020: The Dow Jones ended the day up by 0.12%
Dow Jones updates:
(2:00 ET): Dow Jones futures are currently trading down up by 0.22%
Website updates:
Yesterday we compared the stock of Domino's Pizza to that of Papa Johns in our battle of the pizza franchise stocks
So let's take a look at the fundamentals and the valuation metrics in order to determine which of these two firms offers the most value at their current stock price.
One of our key metrics is the Price to Stockholders equity per share ratio. When looking at this we find the following:
- Price/Stockholders equity per share for Papa Johns (PZZA): Stockholders deficit so this ratio cannot be calculated
- Price/Stockholders equity per share for Domino's Pizza (DPZ): Stockholders deficit so this ratio cannot be calculated
Most firms tend to trade at a ratio of between 2 and 4 times its stockholders equity per share. The higher this ratio the less value a stock offers. However a stockholders deficit shows that a company's assets is less than its liabilities. And this is the case for both Domino's Pizza and Papa Johns.
Next up cash as percentage of stock price:
- Cash as percentage of stock price for Papa Johns: 2.5%
- Cash as percentage of stock price for Domino's Pizza (DPZ): 1.53%
Next up lets take a look at the percentage cash on the balance sheet makes up of each group's total assets:
- Cash as percentage of stock price for Papa Johns (PZZA): 5.1%
- Cash as percentage of stock price for Domino's Pizza (DPZ): 15.7%
Next up the PE ratio of the stock price:
- PE ratio for Papa Johns: 48.3
- PE ratio for Domino's Pizza : 34
Price relative to our valuation:
- Papa Johns (PZZA): 41.8% overvalued based on our latest stock valuation
- Domino's Pizza (DPZ): 89.5% overvalued based on our latest stock valuation
Neither of the two companies has stockholders equity, as both are trading at stockholders deficits. Domino's Pizza is in the better cash position than Papa Johns based on the their cash as percentage of total assets percentage. And it is also trading at lower PE ratio than that of Papa Johns but it is trading at further away from our stock price target than what Papa Johns is. And it is for this reasons that we rate the stock of Papa Johns as the winner.
Read the full article here
13 August 2020: The Dow ended the day down by -0.29%
Dow Jones updates:
(15:03 ET): The Dow Jones is currently trading down by -0.62%
(12:10 ET): The Dow Jones is currently trading down by -0.18%
(1:30 ET): Dow Jones futures are currently trading down by -0.04%
Website updates:
Yesterday we looked at the market capital of the 10 biggest stocks listed on the NASDAQ. Below a short extract from that article
Market Capital of the 10 largest Nasdaq listed firms (including Microsoft (MSFT), Apple (APPL), Cisco (CSCO) and Intel which is part of the Dow Jones), sorted from the biggest to the 10th biggest
- Apple (APPL): $1.87 trillion
- Microsoft (MSFT): $1.54 trillion
- Amazon (AMZN): $1.54 trillion
- Alphabet (GOOGL): $1.01 trillion
- Facebook (FB): $729.7billion
- Nvidia (NVDA): $266.9 billion
- Paypal (PYPL): $221.8 billion
- Netflix (NFLX): $209.5billion
- Adobe (ADBE): $208.8 billion
- Intel (INTC): $204.9 billion
So the top 10 stocks listed on the Nasdaq (including those included in the Dow Jones Industrial Average) total market capital amounts to $7.81 trillion, or about 97.8% of the total market capital of the Dow Jones Industrial Average (which is 30 stocks).
Read the full article here
12 August 2020: The Dow Jones ended the day up by 1.05%
Dow Jones updates:
(14:03 ET): The Dow Jones is currently trading 1%
(07:00 ET): Dow Jones futures are currently trading up by 0.95%
(0:56 ET): Dow Jones futures are currently trading up by 0.21%
Website updates:
Earlier we covered the latest earnings report of Grocery Outlet a retailer with a market cap of over $4 billion and whose sales topped $800 million for their latest report quarter.
So what do we value Grocery Outlet at based on their 2nd quarter 2020 earnings report a? Based on the latest earnings report from Grocery Outlet our valuation model provides a target price (full value price) for Grocery Outlet stock at $36.70 a stock. We therefore believe the stock of Grocery Outlet is overvalued
We usually recommend that long term fundamental or value investors look to enter a stock at at least 10% below our target price, which in this case is $36.70. So we would suggest looking to enter into the stock of Grocery Outlet at $33 or below.
We expect the stock of Grocery Outlet to pull back from its current price to levels closer to our target price in coming weeks and months.
Read the full article here
11 August 2020: The Dow Jones ended the day down by -0.38%
Dow Jones updates:
(14:27 ET): The Dow Jones is currently trading up by 1.1%
(1:46 ET): Dow Jones futures are currently trading up by 0.37%
Website updates:
Earlier we covered the latest earnings report of Royal Caribbean Group, formerly known as Royal Caribbean Cruises. Below a short extract
So what do we value Royal Caribbean Group at based on their 2nd quarter 2020 earnings report and the fact that made a significant loss during 1Q 2020? Based on their earnings report and the fact that they are loss making we have decided to value RCL at their stockholders equity per share which is $42.80 a stock. We therefore believe the stock of Royal Caribbean Group is slightly overvalued
We usually recommend that long term fundamental or value investors look to enter a stock at at least 10% below our target price, which in this case is $48.92, so we would suggest looking to enter into the stock of Royal Caribbean Group at $38.50 or below.
We expect the stock of Royal Caribbean Group to pull back slightly from its current price to levels closer to our target price in coming weeks and months.
Read the full article here
10 August 2020: The Dow ended the day up by 1.3%
Dow Jones Updates:
(13:57 ET) The Dow Jones is currently trading up by 1.01%
(4:45 ET): Dow Jones futures are currently trading up by 0.41%
(1:14 ET): Dow Jones futures are currently trading up by 0.33%
Website Updates:
Yesterday we covered the latest earnings report of general home retailer, Conn's (CONN). Below a short extract from that article
So based on Conn's 1st quarter 2021 earnings report what do we value their stock at? It is always hard to value a loss making firm. In the case where a firm is loss making we tend to use the stockholders equity per share as the base of our valuation. And Conn's stockholders equity per share is currently sitting at $17.20. And this is what we will value the group's stock at.
We therefore believe the stock of Conn's is undervalued. Also keep in mind if you buy the stock at $11.03, 90% of that price is made up by cash on the balance sheet. So the rest of the business is purchased for the oter $2 per stock.
We expect the stock of Conn's to rise sharply as the impact of Covid-19 eases.
Read the full article here
7 August: The Dow Jones ended the day up by 0.17%
Dow Jones Updates:
(06:55 ET): Dow Jones futures are currently trading down at -0.22%
(01:00 ET): Dow Jones futures are currently trading down at -0.36%
Website Updates:
Yesterday we looked at the stockholders equity per share of Berkshire Hathaway (BRKA). The summary below shows the stockholders equity and stockholders equity per share of Berkshire Hathaway (BRKA) for December 2019 and March 2020. Over the period the stockholders equity of Berkshire Hathaway declined by -12.4%
March 2020 December 2019
Total shareholders’ equity: $375.235 billion $428.563 billion
Total stockholders equity per share: $231 626 $261 438
Read the full article here
6 August 2020: The Dow Jones ended the day higher by 0.68%
Dow Jones updates:
(01:11 ET): Dow futures are currently trading up by 0.16%
Website updates:
Yesterday we asked whether its a good time to buy the stock of Apple (APPL)
Is this a good time to buy the stock of Apple (APPL)? The short simple answer to this question is absolutely.. NOT. Its overvalued and if you buying into the stock now you run the risk of significant losses should the stock price correction takes place to bring it back to more realistic valuations.
Read the full article here
5 August 2020: The Dow Jones ended the day up by 1.39%
Dow Jones updates:
(11:28ET): The Dow is currently trading up by 1.24%
(06:44 ET): Dow futures are currently trading up by 0.72%
(01:27 ET): Dow futures are currently trading up by 0.12%
Website updates:
Yesterday we covered the market capital of the 10 biggest stocks on the NASDAQ and compared it to the total market capital of the Dow Jones. Below an extract of the article.
Market Capital of the 10 largest Nasdaq listed firms (including Microsoft (MSFT), Apple (APPL), Cisco (CSCO) and Intel which is part of the Dow Jones)
- Apple: $1.89 trillion
- Microsoft: $1.64 trillion
- Amazon: $1.56 trillion
- Alphabet: $1.01 trillion
- Facebook: $718.4 billion
- Nvidia: $270.9 billion
- Paypal: $231.4 billion
- Netflix: $219.9 billion
- Adobe: $214.9 billion
- Intel: $205.4 billion
So the top 10 stocks listed on the Nasdaq (including those included in the Dow Jones Industrial Average) total market capital amounts to $7.96 trillion, or about 98.8% of the total market capital of the Dow Jones Industrial Average (which is 30 stocks).
This just shows how the tech heavy Nasdaq is growing and becoming ever more important in the world of financial markets. Who knows, over time perhaps the Nasdaq will replace the Dow Jones as the most quoted and used major market index.
Read the full article here
4 August: The Dow ended the day up by 0.62%
Dow Jones Updates:
(15:09 ET): The Dow Jones is currently trading up by 0.35%
(06:47 ET): Dow Jones futures are currently trading down by -0.18%
(0:27 ET): Dow Jones futures are currently trading up by 0.03%
Website Updates:
We covered the latest earnings report of Dunkin' Brands. Below a short extract of that article
So what do we value Dunkin' Brands stock at after the release of their 2nd quarter 2020 earnings report? Based on Dunkin' Brands earnings report our valuation models provides a target price (full value price) of Dunkin' Brands at $46.10 a stock. We therefore believe that the stock of Dunkin' Brands is overvalued.
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $46.10 therefore we believe a good entry point into Dunkin' Brands stock is at $41.50 or below. We expect the stock of Dunkin' Brands to pull back from current levels to levels closer to our target price (full value price) in coming weeks and moths as we believe it is significantly overvalued at this point in time.
We therefore rate Dunkin' Brands as a sell
Read the full article here
3 August: The Dow Jones ended the day up by 0.89%
Dow Jones Updates:
(13:08 ET): The Dow Jones is currently trading up by 0.85%
(0:27 ET): Dow Jones futures are currently trading down by -0.21%
Website Updates:
Apple (APPL) vs Amazon (AMZN) vs Alphabet (GOOGL). Who comes out on top?
One of our key metrics is the Price to Stockholders equity per share ratio. When looking at this we find the following:
- Price/Stockholders equity per share for Alphabet: 5.05
- Price/Stockholders equity per share for Amazon : 21.2
- Price/Stockholders equity per share for Apple : 23.2
Based on this metric Alphabet offers far more value than Amazon and Apple. Most firms tend to trade at a ratio of between 2 and 4 times its stockholders equity per share. What it shows that if a firm was to be liquited now, all assets sold, liabilities paid and the rest paid out to stockholders, that amount is expressed as a ratio to the stock price.
Next up cash as percentage of stock price:
- Cash as percentage of stock price for Alphabet: 1.7%
- Cash as percentage of stock price for Amazon: 2.4%
- Cash as percentage of stock price for Apple: 1.9%
Next up lets take a look at the percentage cash on the balance sheet makes up of each group's total assets:
- Cash as percentage of stock price for Alphabet: 6.4%
- Cash as percentage of stock price for Amazon: 16.02%
- Cash as percentage of stock price for Apple: 10.5%
PE ratio:
- PE ratio of Alphabet: 35.6
- PE ratio of Amazon: 76.3
- PE ratio of Apple: 28.2
Apple has the lowest PE ratio and Amazon by far the highest
Price/Valuation ratio: This ratio is the current stock price divided by our latest valuation price for each stock
- Price/Valuation ratio of Alphabet: 1.19
- Price/Valuation ratio of Amazon: 2.13
- Price/Valuation ratio of Apple: 1.71
So based on this Alphabet offers the most value right now, but its still almost 20% more than our target price, while Amazon is trading at more than double our valuation price and Apple roughly 71% our valuation price.
Read the full article here
Yesterday we covered the latest earnings report of Alphabet (GOOGL). Below a short extract of that article
So what do we value Alphabet at based on their latest earnings report, their earnings per share, cash generated from their operations and the group's future prospects. Based on Alphabet's latest earnings report our valuation model provides a target price (full value price) at $1240.20 a Alphabet stock (up slightly from our 1st quarter 2020 earnings report valuation of Alphabet). We therefore believe the stock of Alphabet is overvalued
We usually recommend that long term fundamental or value investors look to enter a stock at at least 10% below our target price, which in this case is $1240.20 so we would suggest looking to buy Alphabet at around $1116 a stock. Since the stock of Alphabet (GOOGL) is trading at well above our suggested entry point into the stock we will go against popular market and pundits opinions and rate the stock of Alphabet as a sell
Read the full article here
The Dow Jones Performance Calendar Tracker for July 2020
The graphic below shows the daily performance of the Dow Jones Industrial Average (The Dow) on a calendar for the month of July 2020. The index levels used in the calculation of the daily performance of the Dow Jones Industrial Average is obtained from Macrotrends.net
So 30 days into the month of July 2020 and the Dow Jones is up by 2.55%
So 30 days into the month of July 2020 and the Dow Jones is up by 2.55%
Dow Jones Updates: The Dow Jones ended the last trading day of July up by 0.44%
Website Updates:
So what do we value Apple's stock at after the release of their 3rd quarter 2020 earnings report? Following Apple's 3rd quarter 2020 earnings report our valuation model provides a target price (full value price) for Apple at $247.90 a stock (up slightly from our 2nd quarter 2019 earnings report valuation of Apple). We therefore believe that the stock of Apple is overvalued.
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $247.90. Therefore we believe a good entry point into Apple stock is at $223.10 or below. We expect the stock of Apple to pull back from current levels to levels closer to our target price (full value price) in coming weeks and moths as we believe it is significantly overvalued at this point in time.
Since the stock of Apple is trading at well above our target (full value) price and our suggested entry price we will go against almost all market commentators and punters and rate Apple as a sell
Read the full article her
30 July 2020: The Dow Jones ended the day down by -0.85%
Dow Jones Updates:
Website Updates:
Yesterday we covered the latest earnings report of Starbucks (SBUX) for the 3Q of their 2020 fiscal year
So based on Norfolk Southern 2nd quarter 2020 earnings report what do we value Norfolk Southern stock at? Based on Norfolk Southern earnings reported our valuation model provides a target price (full value price) for Norfolk Southern at $157.20 per stock
We therefore believe that the stock of Norfolk Southern stock is overvalued. We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price, which in this case is $157.20. A good entry price into Norfolk Southern stock would therefore be at $141.50 or below.
Since the stock of Norfolk Southern is trading at well above our suggested entry price we rate the stock of Norfolk Southern (NSC) as a sell
Read the full article here
29 July 2020: The Dow Jones ended the day up by 0.61%
Dow Jones Updates:
Website Updates:
Yesterday we covered the latest earnings report of Starbucks (SBUX) for the 3Q of their 2020 fiscal year
So based on Starbucks (SBUX) latest earnings report and their fiscal guidance what do we value the stock of Starbucks at? Based on their 3rd quarter 2020 earnings report and their guidance provided our valuation model provides a target price (full value price) for Starbucks (SBUX) at $59.90 a stock. We therefore believe the stock of Starbucks is overvalued
We recommend that long term fundamental and value investors look to enter a stock at least 10% below our target price (full value price) which in this case is $59.90. A good entry point into Starbucks would therefore be at $53.90 or below.
We expect the stock of Starbucks (SBUX) to pull back from current levels to levels closer to our target price (full value price) in coming weeks and months. We therefore rate the stock of Starbucks as a sell.
28 July 2020: The Dow Jones ended the day down -0.77%
Dow Jones Updates:
Website Updates:
Over the weekend we compared the performance of the Nasdaq to the Dow Jones and S&P 500 over various time periods. Below a short extract from that article.
So what is BJ's Restaurants stock worth based on the release of their latest earnings report? Based on the earnings report provided by BJ's Restaurants our our valuation models provide a target price (full value price) for BJ's Restaurants (BJRI) stock at $29.80 a stock. We therefore believe that the stock of BJ's Restaurants is undervalued.
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $29.80. Therefore we believe a good entry point into BJ's Restaurants stock is at $26.80 or below. We expect the stock price of BJ's Restaurants to kick up from current levels to levels closer to our target price price (full value price) in coming weeks and months.
Read the full article here
27 July 2020: The Dow Jones ended the day up by 0.43%
Dow Jones Updates:
Website Updates:
Over the weekend we compared the performance of the Nasdaq to the Dow Jones and S&P 500 over various time periods. Below a short extract from that article.
So over the last week the Nasdaq was the worst performer of the major US indices. So what does the returns over the last month look like?
Below the returns of the main market indices over the last month (24 June to 24 July 2020, sorted from best performer to worst performer)
So what about the returns over the last year?
Below the returns of the main market indices over the last year (24 July 2019 to 24 July 2020), sorted from best performer to worst performer)
Read the full article here
24 July 2020: The Dow Jones ended the day down -0.68%
Dow Jones Updates:
Website Updates:
We covered the latest earnings report of three of the major airlines in the USA, that included Southwest Airlines (LUV), American Airlines (AAL) and Delta Airlines (DAL) and compared the three's stock performance and earnings report against one another. Below a short extract of that article
Lets look at the horrible declines reported in revenues by the three airline groups (compared to the same quarter of the previous year):
Daily cash burn rate:
So taking all of the above into consideration which one of these airline stocks is set to outperform its peers in coming years due to its better financial position and their current stock price? Based on all the above we rate the stock of Southwest as the WINNER, as their revenues declined the least, they have the best Price/Stockholders equity ratio and their cash position (cash as percentage of total assets) is by far the strongest, making them the least likely to borrow money or issue stock to raise money to stay afloat during the Covid-19 pandemic. And their cash burn rate is the lowest, granted they are the smallest of the three airlines we looked at in this article
Read the full article here
23 July 2020: The Dow Jones ended the day down by -1.31%
Dow Jones Updates:
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We covered the latest earnings report of Chipotle (CMG). Below a short extract from that article
So based on Chipotle's 2nd quarter 2020 earnings report what do value Chipotle Mexican Grill shares at? And is there value in the stock considering the strong run the stock price had over the last two years? Based on the earnings report our valuation model provides a target price (full value price) for Chipotle at $427.80 a stock (up from our 1st quarter 2020 earnings valuation of Chipotle). We therefore believe the stock of Chipotle is overvalued.
We usually recommend that investors look to enter a stock at least 10% below our target price which in this case s $412.80. A good entry point into the stock of Chipotle would therefore be at $371.50 or below. Since the stock of Chipotle is trading at well above our full value price we rate the stock of Chipotle as a sell
Read the full article here
22 July 2020: The Dow Jones ended the day, 22 July 2020 up by 0.62%
Dow Jones Updates:
Website Updates:
We covered the latest earnings report of Philip Morris. Below a short extract from that article
So what is Philip Morris stock worth based on the release of their 2nd quarter 2020 earnings report ? Based on Philip Morris latest earnings report our valuation models provide a target price (full value price) of Philip Morris stock at $80 a stock. Based on our target price (full value price) we believe the stock of Philip Morris is close to being fully valued
We usually recommend that long term fundamental or value investors look to enter the stock at 10% below our target price (full value price) which in this case is $80, so a good entry point into Philip Morris' stock would be at $72 or below. We expect the stock of Philip Morris (PM) to trade in a narrow range around its current price in coming weeks and months.
Read the full article here
21 July 2020: The Dow Jones ended the 21 July 2020 up by 0.6%
Dow Jones Updates:
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We covered the latest earnings report of Cal-Maine Foods. Below a short extract from that article
So what is Cal-Maine Foods (NASDAQ: CALM) stock worth based on the release of their 4th quarter and full fiscal 2020 earnings report? .Based on the earnings reported and their current financial position we value the stock of Cal-Maine
All things consider our valuation models provide a target price (full value price) for Cal-Maine Foods (CALM) at $34.40 a stock. We therefore believe that Cal-Maine Foods (CALM) stock is overvalued at this point in time.
We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target price, which in this case is $34.40. We therefore believe a good entry point into Cal-Maine stock would be at $31 or below. Based on all the above we expect the stock price of Cal-Maine Foods to pull back to closer to our target price in coming weeks and months and we rate the stock as Cal-Maine as avoid.
Read the full article here
20 July 2020: The Dow Jones ended the day pretty flat with it being up by 0.03%
Dow Jones Updates:
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Towards the end of last week we covered the latest earnings report of Netflix. Below a short extract of that article
So based on the earnings report of Netflix (NASDAQ: NFLX) what do we value Netflix (NFLX) stock at? Based on the earnings report and the increased competition our valuation models sets a target (full value) price on Netflix of $386.20. (up strongly from our 1st quarter 2020 Netflix earnings report valuation). Based on our target price (full value price) we believe the stock of Netflix is overvalued.
We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price) which in this case is $386.20 We therefore believe a good entry point into Netflix is $347.60 or below. Since the stock of Netflix is well above our recommended entry point we would not recommend buying into Netflix right now as we believe there is still a lot of hope and fairytales and butterflies built into their future earnings expectations with the group trading at a PE ratio of over 83.
We therefore rate the stock of Netflix (NFLX) as a SELL
Read the full article here
16 July 2020: The Dow Jones ended the day down by -0.5%
Dow Jones Updates:
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We covered the latest earnings release of of JP Morgan Chase (JPM), Bank of New York Mellon (BK) and CitiGroup (C) and then compared the banks against one another in our Battle of the Banks article. Below a short extract of that article
One of our key metrics is the Price to Stockholders equity per share ratio. When looking at this we find the following:
Based on this metric CitiGroup offers far more value than Bank of New York Mellon or JP Morgan. Most firms tend to trade at a ratio of between 2 and 4 times. While all these firms are trading at well below the expected range its Citi who is trading at the lowest and based on this metric offers the most value.
Next up cash as percentage of stock price:
Next up lets take a look at the percentage cash on the balance sheet makes up of each group's total assets:
Looking at the cash position of the three banks Bank of New York Mellon has the strongest cash position (as a percentage of their total assets). The cash per share gives an indication of if investors were to buy the stock now, how much of that stock price is made up by cash on their balance sheet. In this case its CitiGroup that comes out on top with almost 22% of their current stock price being made up by cash.
Lastly the overused but still useful metric, the Price to Earnings Ratio (PE):
So BNY has the lowest PE and CitiGroup by far the highest. So all things considered if we have to choose between these three banking stocks and buy on right now based on their latest earnings reported and current stock price levels we will go for Bank of New York Mellon (BK). Therefore in our battle of the banks we declare Bank of New York Mellon as the WINNER
Read the full article here
15 July 2020: The Dow ended the 15th of July 2020 up by 0.83%
Dow Jones Updates:
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We covered the latest earnings release of of JP Morgan Chase (JPM). Below a short extract of that article
So what is JP Morgan Chase stock worth based on the release of their latest earnings report? Based on JP Morgan Chase latest earnings report our valuation models provide a target (full value) price for JP Morgan Chase stock at $127.70 a stock (down from our 1st quarter 2020 earnings report valuation of JP Morgan Chase). We therefore believe that the stock of JP Morgan Chase is undervalued at its current price of around $98. The sharp sell off in world markets and JP Morgan's stock price in recent months has provided investors with a good long term buying opportunity.
We usually suggest that long term and fundamental investors get in at least 10% below our target price (full value price) which in this case is $127.70 Therefore we believe a good entry point into JP Morgan Chase's stock is at $114.90 or below.
We expect the stock of JP Morgan Chase to surge once world economies starts reopening after the Covid-19 pandemic eases.
Read the full article here
14 July 2020: The Dow Jones ended the day, 14 July up by 2.13%
Dow Jones Updates:
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We covered the latest earnings release of of PepsiCo. Below a short extract of that article
So what is PepsiCo (NASDAQ: PEP) stock worth based on the release of their latest earnings report and fiscal guidance provide? Based on their earnings report and the guidance provided our valuation models provide a target (full value) price for PepsiCo of $138.70 a stock. We therefore believe that the stock is close to being fully valued.
We usually suggest long term investors look to enter a stock at least 10% below our target (full value) price which in this case is $138.70. So a good entry point into PepsiCo stock would be at $124.80 or below. We therefore rate the stock of PepsiCo (PEP) as a hold.
Read the full article here
13 July 2020:
Dow Jones Updates: The Dow Jones ended the day, 13 July up by 0.05%
Website Updates:
So what is Kohl's stock worth based on their 1st quarter 2020 earnings report? Based on their earnings report our valuation model provides a target price (full value price) for Kohl's at $57.60 a stock. We therefore believe the stock of Kohl's is undervalued
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target (full value) price, which in this case is $57.60 thus a good entry point into Kohl's would be at $51.90 or below.
We expect the stock of Kohl's stock price to recover in coming weeks and months as the Covid-19 pandemic subsides to levels closer to our target price (full value price). Since the stock of Kohl's is trading at well below our suggested entry point we rate the stock of Kohl's as a Buy
Read the full article here
10 July 2020: The Dow Jones ended the day 10 July up by 1.44%
Dow Jones Updates:
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We covered the latest earnings report from Helen of Troy, owner of brands such as OXO, Braun and Hydro Flask
So what is Helen of Troy's stock worth based on the release of their latest earnings report? Based on the group's latest earnings and their outlook provided our valuation model provides a target (full value) price at $174.10 a Helen of Troy stock. We therefore believe that the stock of Helen of Troy is overvalued.
We usually suggest long term fundamental or value investors look to enter into a stock at least 10% below our target (full value) price which in this case is $174.10. Thus we see a good entry point into Helen of Troy's stock at $156.70 or below. We believe that Helen of Troy's stock will pull back in coming weeks and months to levels closer to our target price (full value price).
Since the stock of Helen of Troy (HELE) is trading at well above our suggested entry point we rate the stock of HELE as a sell
Read the full article here
9 July 2020: The Dow Jones ended the 9th of July down by -1.39%
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We covered the latest earnings report of Urban Outfitters. A clothing and apparel brand with operations in the USA and Europe
So what is Bed Bath and Beyond (NASDAQ: BBBY) stock worth based on the release of their latest earnings report? It is always hard to value a loss making company, and we either use cash generated per share as a proxy for earnings or our standard fall back position is using the stockholders equity per share as a base valuation. We therefore value Bed Bath and Beyond at $11.81 a stock. We therefore believe that the stock is undervalued.
We usually suggest long term investors look to enter a stock at least 10% below our target (full value) price which in this case is $11.81. So a good entry point into Bed Bath and Beyond's stock would be at $10.62 or below. Since the stock of Bed Bath and Beyond is trading close to our suggested entry point we rate the stock of BBBY as a Hold
Read the full article
7 July 2020:
Dow Jones Updates: The Dow Jones ended the 6th of July down by -1.51%
Website Updates:
So what is D.R Horton (NYSE:DHI) stock worth based on the release of their latest earnings report and the fiscal guidance provided for their 2020 fiscal year? Based on the earnings reported and the guidance provided our valuation model provides a target (full value) price for D.R Horton at $73.20 a stock (up slightly from our 1st quarter 2020 earnings report valuation of D.R Horton). We therefore believe that the stock is undervalued.
We usually suggest long term fundamental or value investors look to enter a stock at least 10% below our target (full value) price which in this case is $73.20. A good entry point into D.R Horton would therefore be at $65.90 or below. Since the stock of D.R Horton is trading at well below our suggested entry point into the group's stock we rate the stock of D.R Horton as a buy
Read the full article here
6 July 2020: The Dow Jones ended the day, 6 July 2020 up by 1.78%
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We looked at the performance of the major US stock market indices over the last 10 years. Below a short extract from that article
The summary below shows the returns of the major US stock market indices (Sorted from best to worst performer)
Read the full article here
2 July 2020:
Dow Jones Updates: The Dow Jones ended the day, 2 July 2020 up by 0.36%
Website updates:
We covered the latest earnings report of Constellation Brands, owner of Corona and Modelo Beers.
So what is Constellation Brands (NYSE: STZ) stock worth based on the release of their latest earnings report and fiscal guidance provide? Based on their earnings report and the guidance provided our valuation model provides a target price (full value price) for Constellation Brands of $203.20 a stock (down slightly from our 4th quarter 2020 earnings report valuation of Constellation Brands). We therefore believe that the stock is undervalued at its price of $185.88
We usually suggest long term investors look to enter a stock at least 10% below our target (full value) price which in this case is $203.20. So a good entry point into Constellation Brands stock would be at $182.90 or below.
We expect the stock of Constellation brands to kick up from current levels to levels closer to our target price in coming weeks and months.
Read the full article here
1 July 2020:
Dow Jones Updates: The Dow Jones ended the day, 1 July 2020 down by -0.3%
Website updates:
Yesterday we did a battle of the sit down restaurant stocks and compared the stock of Cracker Barrel (CBRL) to that of Darden Restaurants. Below a short extract of that article
One of our key metrics is the Price to Stockholders equity per share ratio. When looking at this we find the following for both stocks:
Based on this metric Darden offers far more value than Cracker Barrel. Most firms tend to trade at a ratio of between 2 and 4 times. Cracker Barrel is trading at well above the expected range and Darden is trading at just inside the expected range. Next up cash as percentage of stock price. Cash per share makes up just over 14% of Cracker Barrel's stock price while Darden's cash makes up 6.2% of their stock price. Total cash as percentage of total assets is as follows. Cash makes up 16.2% of Cracker Barrels' total assets while Darden's cash makes up around 7% of their total assets. So it does look like Cracker Barrel is better placed to ride out difficult times as is currently being experienced during Covid-19
We therefore believe at their respective prices, the stock of Cracker Barrel offers a better long term investment value than that of Darden Restaurants. Therefore in the battle of the sit down restaurants if we have to pick between Cracker Barrel and Darden Restaurants, we rate Cracker Barrel as the Winner.
Read the full article here
- (11:07 ET): The Dow Jones is currently trading down by -0.53%
- (01:15 ET): Dow Jones futures are currently trading up by 0.11%
Website Updates:
So what do we value Apple's stock at after the release of their 3rd quarter 2020 earnings report? Following Apple's 3rd quarter 2020 earnings report our valuation model provides a target price (full value price) for Apple at $247.90 a stock (up slightly from our 2nd quarter 2019 earnings report valuation of Apple). We therefore believe that the stock of Apple is overvalued.
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $247.90. Therefore we believe a good entry point into Apple stock is at $223.10 or below. We expect the stock of Apple to pull back from current levels to levels closer to our target price (full value price) in coming weeks and moths as we believe it is significantly overvalued at this point in time.
Since the stock of Apple is trading at well above our target (full value) price and our suggested entry price we will go against almost all market commentators and punters and rate Apple as a sell
Read the full article her
30 July 2020: The Dow Jones ended the day down by -0.85%
Dow Jones Updates:
- (15:35 ET): Dow Jones is currently trading down -0.79%
- (12:05 ET): Dow Jones is currently trading down -1.20%
- (09:33 ET): Dow Jones is currently trading down by -1.09%
- (01:22 ET): Dow Jones futures are currently trading down by -0.16%
Website Updates:
Yesterday we covered the latest earnings report of Starbucks (SBUX) for the 3Q of their 2020 fiscal year
So based on Norfolk Southern 2nd quarter 2020 earnings report what do we value Norfolk Southern stock at? Based on Norfolk Southern earnings reported our valuation model provides a target price (full value price) for Norfolk Southern at $157.20 per stock
We therefore believe that the stock of Norfolk Southern stock is overvalued. We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price, which in this case is $157.20. A good entry price into Norfolk Southern stock would therefore be at $141.50 or below.
Since the stock of Norfolk Southern is trading at well above our suggested entry price we rate the stock of Norfolk Southern (NSC) as a sell
Read the full article here
29 July 2020: The Dow Jones ended the day up by 0.61%
Dow Jones Updates:
- (13:02 ET): Dow Jones is currently trading up by 0.35%
- (04:18 ET): Dow Jones futures are currently trading down by -0.14%
Website Updates:
Yesterday we covered the latest earnings report of Starbucks (SBUX) for the 3Q of their 2020 fiscal year
So based on Starbucks (SBUX) latest earnings report and their fiscal guidance what do we value the stock of Starbucks at? Based on their 3rd quarter 2020 earnings report and their guidance provided our valuation model provides a target price (full value price) for Starbucks (SBUX) at $59.90 a stock. We therefore believe the stock of Starbucks is overvalued
We recommend that long term fundamental and value investors look to enter a stock at least 10% below our target price (full value price) which in this case is $59.90. A good entry point into Starbucks would therefore be at $53.90 or below.
We expect the stock of Starbucks (SBUX) to pull back from current levels to levels closer to our target price (full value price) in coming weeks and months. We therefore rate the stock of Starbucks as a sell.
28 July 2020: The Dow Jones ended the day down -0.77%
Dow Jones Updates:
- (14:47 ET): Dow Jones is currently trading down by -0.22%
- (11:45 ET): Dow Jones is currently trading down by -0.64%
- (07:44ET): Dow Jones futures are currently trading down by -0.65%
- (07:09ET): Dow Jones futures are currently trading up by 0.03%
- (01:09ET): Dow Jones futures are currently trading up by 0.34%
Website Updates:
Over the weekend we compared the performance of the Nasdaq to the Dow Jones and S&P 500 over various time periods. Below a short extract from that article.
So what is BJ's Restaurants stock worth based on the release of their latest earnings report? Based on the earnings report provided by BJ's Restaurants our our valuation models provide a target price (full value price) for BJ's Restaurants (BJRI) stock at $29.80 a stock. We therefore believe that the stock of BJ's Restaurants is undervalued.
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $29.80. Therefore we believe a good entry point into BJ's Restaurants stock is at $26.80 or below. We expect the stock price of BJ's Restaurants to kick up from current levels to levels closer to our target price price (full value price) in coming weeks and months.
Read the full article here
27 July 2020: The Dow Jones ended the day up by 0.43%
Dow Jones Updates:
- (12:26 ET): Dow Jones is currently trading up by 0.34%
- (09:07 ET): Dow Jones futures are currently trading up by 0.27%
- (04:52 ET): Dow Jones futures are currently trading up by 0.41%
Website Updates:
Over the weekend we compared the performance of the Nasdaq to the Dow Jones and S&P 500 over various time periods. Below a short extract from that article.
So over the last week the Nasdaq was the worst performer of the major US indices. So what does the returns over the last month look like?
Below the returns of the main market indices over the last month (24 June to 24 July 2020, sorted from best performer to worst performer)
- S&P 500: 6.85%
- Nasdaq: 6.21%
- Dow Jones: 5.81%
So what about the returns over the last year?
Below the returns of the main market indices over the last year (24 July 2019 to 24 July 2020), sorted from best performer to worst performer)
- Nasdaq: 29.53%
- S&P 500: 9.65%
- Dow Jones: -0.06%
Read the full article here
24 July 2020: The Dow Jones ended the day down -0.68%
Dow Jones Updates:
- (10:50 ET): The Dow Jones is currently trading down by -0.34%
- (07:30 ET): Dow Jones futures are currently trading down by -0.26%
- (03:44 ET): Dow Jones futures are currently trading down by -0.95%
Website Updates:
We covered the latest earnings report of three of the major airlines in the USA, that included Southwest Airlines (LUV), American Airlines (AAL) and Delta Airlines (DAL) and compared the three's stock performance and earnings report against one another. Below a short extract of that article
Lets look at the horrible declines reported in revenues by the three airline groups (compared to the same quarter of the previous year):
- Cash as percentage of total assets for Southwest Airlines (LUV): -82.9%
- Cash as percentage of total assets for Delta Airlines (DAL): -88%
- Cash as percentage of total assets for American Airlines (AAL): -86.4%
Daily cash burn rate:
- Cash as percentage of total assets for Southwest Airlines (LUV): $13 million
- Cash as percentage of total assets for Delta Airlines (DAL): $27 million
- Cash as percentage of total assets for American Airlines (AAL): $30 million
So taking all of the above into consideration which one of these airline stocks is set to outperform its peers in coming years due to its better financial position and their current stock price? Based on all the above we rate the stock of Southwest as the WINNER, as their revenues declined the least, they have the best Price/Stockholders equity ratio and their cash position (cash as percentage of total assets) is by far the strongest, making them the least likely to borrow money or issue stock to raise money to stay afloat during the Covid-19 pandemic. And their cash burn rate is the lowest, granted they are the smallest of the three airlines we looked at in this article
Read the full article here
23 July 2020: The Dow Jones ended the day down by -1.31%
Dow Jones Updates:
- (14:07 ET): Dow Jones is currently trading down by -1.22%
- (12:02 ET): Dow Jones is currently trading down by -0.37%
- (09:02 ET): Dow Jones futures are currently trading down by -0.06%
- (04:27 ET): Dow Jones futures are currently trading up by 0.49%
Website Updates:
We covered the latest earnings report of Chipotle (CMG). Below a short extract from that article
So based on Chipotle's 2nd quarter 2020 earnings report what do value Chipotle Mexican Grill shares at? And is there value in the stock considering the strong run the stock price had over the last two years? Based on the earnings report our valuation model provides a target price (full value price) for Chipotle at $427.80 a stock (up from our 1st quarter 2020 earnings valuation of Chipotle). We therefore believe the stock of Chipotle is overvalued.
We usually recommend that investors look to enter a stock at least 10% below our target price which in this case s $412.80. A good entry point into the stock of Chipotle would therefore be at $371.50 or below. Since the stock of Chipotle is trading at well above our full value price we rate the stock of Chipotle as a sell
Read the full article here
22 July 2020: The Dow Jones ended the day, 22 July 2020 up by 0.62%
Dow Jones Updates:
- (12:20 ET): Dow Jones is currently trading up by 0.33%
- (06:52 ET): Dow Jones futures are currently trading down by -0.37%
- (01:27 ET): Dow Jones futures are currently trading up by 0.07%
Website Updates:
We covered the latest earnings report of Philip Morris. Below a short extract from that article
So what is Philip Morris stock worth based on the release of their 2nd quarter 2020 earnings report ? Based on Philip Morris latest earnings report our valuation models provide a target price (full value price) of Philip Morris stock at $80 a stock. Based on our target price (full value price) we believe the stock of Philip Morris is close to being fully valued
We usually recommend that long term fundamental or value investors look to enter the stock at 10% below our target price (full value price) which in this case is $80, so a good entry point into Philip Morris' stock would be at $72 or below. We expect the stock of Philip Morris (PM) to trade in a narrow range around its current price in coming weeks and months.
Read the full article here
21 July 2020: The Dow Jones ended the 21 July 2020 up by 0.6%
Dow Jones Updates:
- (14:40 ET): The Dow Jones is currently trading up by 1.02%
- (11:44 ET): The Dow Jones is currently trading up by 1.28%
- (05:24 ET): Dow Jones futures are currently trading up by 0.65%
Website Updates:
We covered the latest earnings report of Cal-Maine Foods. Below a short extract from that article
So what is Cal-Maine Foods (NASDAQ: CALM) stock worth based on the release of their 4th quarter and full fiscal 2020 earnings report? .Based on the earnings reported and their current financial position we value the stock of Cal-Maine
All things consider our valuation models provide a target price (full value price) for Cal-Maine Foods (CALM) at $34.40 a stock. We therefore believe that Cal-Maine Foods (CALM) stock is overvalued at this point in time.
We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target price, which in this case is $34.40. We therefore believe a good entry point into Cal-Maine stock would be at $31 or below. Based on all the above we expect the stock price of Cal-Maine Foods to pull back to closer to our target price in coming weeks and months and we rate the stock as Cal-Maine as avoid.
Read the full article here
20 July 2020: The Dow Jones ended the day pretty flat with it being up by 0.03%
Dow Jones Updates:
- (11:50 ET): The Dow Jones is currently trading down by -0.1%
- (08:00 ET): Dow Jones futures are currently trading down by -0.06%
- (04:35 ET): Dow Jones futures are currently trading down by -0.48%
Website Updates:
Towards the end of last week we covered the latest earnings report of Netflix. Below a short extract of that article
So based on the earnings report of Netflix (NASDAQ: NFLX) what do we value Netflix (NFLX) stock at? Based on the earnings report and the increased competition our valuation models sets a target (full value) price on Netflix of $386.20. (up strongly from our 1st quarter 2020 Netflix earnings report valuation). Based on our target price (full value price) we believe the stock of Netflix is overvalued.
We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price) which in this case is $386.20 We therefore believe a good entry point into Netflix is $347.60 or below. Since the stock of Netflix is well above our recommended entry point we would not recommend buying into Netflix right now as we believe there is still a lot of hope and fairytales and butterflies built into their future earnings expectations with the group trading at a PE ratio of over 83.
We therefore rate the stock of Netflix (NFLX) as a SELL
Read the full article here
16 July 2020: The Dow Jones ended the day down by -0.5%
Dow Jones Updates:
- (11:51 ET): Dow Jones is currently down by -0.46% so a mildly negative day
- (6:35 ET): Dow Jones futures are currently trading down by -0.56%. Signaling that markets will probably open on a relatively negative note
Website Updates:
We covered the latest earnings release of of JP Morgan Chase (JPM), Bank of New York Mellon (BK) and CitiGroup (C) and then compared the banks against one another in our Battle of the Banks article. Below a short extract of that article
One of our key metrics is the Price to Stockholders equity per share ratio. When looking at this we find the following:
- Price/Stockholders equity per share for CitiGroup: 0.602
- Price/Stockholders equity per share for JP Morgan : 1.11
- Price/Stockholders equity per share for Bank of New York Mellon: 0.73
Based on this metric CitiGroup offers far more value than Bank of New York Mellon or JP Morgan. Most firms tend to trade at a ratio of between 2 and 4 times. While all these firms are trading at well below the expected range its Citi who is trading at the lowest and based on this metric offers the most value.
Next up cash as percentage of stock price:
- Cash as percentage of stock price for CitiGroup: 21.8%
- Cash as percentage of stock price for JP Morgan : 6.7%
- Cash as percentage of stock price for Bank of New York Mellon: 14.8%
Next up lets take a look at the percentage cash on the balance sheet makes up of each group's total assets:
- Cash as percentage of stock price for CitiGroup: 1.05%
- Cash as percentage of stock price for JP Morgan : 0.64%
- Cash as percentage of stock price for Bank of New York Mellon: 1.1%
Looking at the cash position of the three banks Bank of New York Mellon has the strongest cash position (as a percentage of their total assets). The cash per share gives an indication of if investors were to buy the stock now, how much of that stock price is made up by cash on their balance sheet. In this case its CitiGroup that comes out on top with almost 22% of their current stock price being made up by cash.
Lastly the overused but still useful metric, the Price to Earnings Ratio (PE):
- PE for CitiGroup: 25.2
- PE for JP Morgan : 17.8
- PE for Bank of New York Mellon: 8.9
So BNY has the lowest PE and CitiGroup by far the highest. So all things considered if we have to choose between these three banking stocks and buy on right now based on their latest earnings reported and current stock price levels we will go for Bank of New York Mellon (BK). Therefore in our battle of the banks we declare Bank of New York Mellon as the WINNER
Read the full article here
15 July 2020: The Dow ended the 15th of July 2020 up by 0.83%
Dow Jones Updates:
- (14:41 ET): Dow Jones is currently trading up by 0.80%.
- (12:00 ET): Dow Jones is currently trading up by 0.55%.
- (09:00 ET): Dow Jones futures are currently trading up by 2.04%. Signaling that markets will open on a very positive note
- (3:52 ET): Dow Jones futures are currently trading up by 0.92%. Signaling that markets will probably open on a relatively positive note
Website Updates:
We covered the latest earnings release of of JP Morgan Chase (JPM). Below a short extract of that article
So what is JP Morgan Chase stock worth based on the release of their latest earnings report? Based on JP Morgan Chase latest earnings report our valuation models provide a target (full value) price for JP Morgan Chase stock at $127.70 a stock (down from our 1st quarter 2020 earnings report valuation of JP Morgan Chase). We therefore believe that the stock of JP Morgan Chase is undervalued at its current price of around $98. The sharp sell off in world markets and JP Morgan's stock price in recent months has provided investors with a good long term buying opportunity.
We usually suggest that long term and fundamental investors get in at least 10% below our target price (full value price) which in this case is $127.70 Therefore we believe a good entry point into JP Morgan Chase's stock is at $114.90 or below.
We expect the stock of JP Morgan Chase to surge once world economies starts reopening after the Covid-19 pandemic eases.
Read the full article here
14 July 2020: The Dow Jones ended the day, 14 July up by 2.13%
Dow Jones Updates:
- (15:41 ET): Dow Jones is currently trading up by 1.87%.
- (11:49 ET): Dow Jones is currently trading up by 1.13%.
- (9:39ET): Dow Jones is currently trading up by 0.05%.
- (7:29ET): Dow Jones futures are currently trading up by 0.44%.
- (1:09 ET): Dow Jones futures are currently trading up by 0.63%. Signaling that markets will probably open on a relatively positive note
Website Updates:
We covered the latest earnings release of of PepsiCo. Below a short extract of that article
So what is PepsiCo (NASDAQ: PEP) stock worth based on the release of their latest earnings report and fiscal guidance provide? Based on their earnings report and the guidance provided our valuation models provide a target (full value) price for PepsiCo of $138.70 a stock. We therefore believe that the stock is close to being fully valued.
We usually suggest long term investors look to enter a stock at least 10% below our target (full value) price which in this case is $138.70. So a good entry point into PepsiCo stock would be at $124.80 or below. We therefore rate the stock of PepsiCo (PEP) as a hold.
Read the full article here
13 July 2020:
Dow Jones Updates: The Dow Jones ended the day, 13 July up by 0.05%
- (12:10 ET): The Dow Jones is currently trading up by 1.51%.
- (07:47 ET): The Dow Jones futures are currently up by 0.81%.
- (3:02 ET): Dow Jones futures are currently trading down by 0.63%. Signaling that markets will probably open on a relatively negative note
Website Updates:
So what is Kohl's stock worth based on their 1st quarter 2020 earnings report? Based on their earnings report our valuation model provides a target price (full value price) for Kohl's at $57.60 a stock. We therefore believe the stock of Kohl's is undervalued
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target (full value) price, which in this case is $57.60 thus a good entry point into Kohl's would be at $51.90 or below.
We expect the stock of Kohl's stock price to recover in coming weeks and months as the Covid-19 pandemic subsides to levels closer to our target price (full value price). Since the stock of Kohl's is trading at well below our suggested entry point we rate the stock of Kohl's as a Buy
Read the full article here
10 July 2020: The Dow Jones ended the day 10 July up by 1.44%
Dow Jones Updates:
- (12;03): The Dow Jones is currently trading up by 0.87%. A pretty positive day for the Dow
- (08:00 ET): Dow Jones futures are currently trading down by -0.48%.
- (1:41 ET): Dow Jones futures are currently trading down by -0.70%. Signaling that markets will probably open on a relatively negative note
Website Updates:
We covered the latest earnings report from Helen of Troy, owner of brands such as OXO, Braun and Hydro Flask
So what is Helen of Troy's stock worth based on the release of their latest earnings report? Based on the group's latest earnings and their outlook provided our valuation model provides a target (full value) price at $174.10 a Helen of Troy stock. We therefore believe that the stock of Helen of Troy is overvalued.
We usually suggest long term fundamental or value investors look to enter into a stock at least 10% below our target (full value) price which in this case is $174.10. Thus we see a good entry point into Helen of Troy's stock at $156.70 or below. We believe that Helen of Troy's stock will pull back in coming weeks and months to levels closer to our target price (full value price).
Since the stock of Helen of Troy (HELE) is trading at well above our suggested entry point we rate the stock of HELE as a sell
Read the full article here
9 July 2020: The Dow Jones ended the 9th of July down by -1.39%
Dow Jones Updates:
- (14:25 ET): The Dow Jones is currently trading down by -1.22%
- (9:51 ET): The Dow Jones is currently trading down by -0.52%
- (7:44 ET): Dow Jones futures are currently trading lower by -0.12%
- (4:51 ET): Dow Jones futures are currently trading down by -0.14%. Signaling that markets will probably open on a slightly negative note
Website Updates:
We covered the latest earnings report of Urban Outfitters. A clothing and apparel brand with operations in the USA and Europe
So what is Bed Bath and Beyond (NASDAQ: BBBY) stock worth based on the release of their latest earnings report? It is always hard to value a loss making company, and we either use cash generated per share as a proxy for earnings or our standard fall back position is using the stockholders equity per share as a base valuation. We therefore value Bed Bath and Beyond at $11.81 a stock. We therefore believe that the stock is undervalued.
We usually suggest long term investors look to enter a stock at least 10% below our target (full value) price which in this case is $11.81. So a good entry point into Bed Bath and Beyond's stock would be at $10.62 or below. Since the stock of Bed Bath and Beyond is trading close to our suggested entry point we rate the stock of BBBY as a Hold
Read the full article
7 July 2020:
Dow Jones Updates: The Dow Jones ended the 6th of July down by -1.51%
- (13:34 ET): Dow Jones futures are currently down by -0.95%
- (7:58 ET): Dow Jones futures are currently down by -0.72%
- (6:25 ET): The Dow Jones futures are currently trading down by -1.00%
Website Updates:
So what is D.R Horton (NYSE:DHI) stock worth based on the release of their latest earnings report and the fiscal guidance provided for their 2020 fiscal year? Based on the earnings reported and the guidance provided our valuation model provides a target (full value) price for D.R Horton at $73.20 a stock (up slightly from our 1st quarter 2020 earnings report valuation of D.R Horton). We therefore believe that the stock is undervalued.
We usually suggest long term fundamental or value investors look to enter a stock at least 10% below our target (full value) price which in this case is $73.20. A good entry point into D.R Horton would therefore be at $65.90 or below. Since the stock of D.R Horton is trading at well below our suggested entry point into the group's stock we rate the stock of D.R Horton as a buy
Read the full article here
6 July 2020: The Dow Jones ended the day, 6 July 2020 up by 1.78%
Dow Jones Updates:
- (15:25 ET): The Dow Jones is currently trading up by 1.39%
- (8:42 ET): The Dow Jones is currently trading up by 1.24%
- (8:41 ET): The Dow Jones futures are currently up by 1.5% signaling a strong open can be expected at the start of the trading day.
- (04:01 ET): The Dow Jones futures are currently up 1.81%
Website updates:
We looked at the performance of the major US stock market indices over the last 10 years. Below a short extract from that article
The summary below shows the returns of the major US stock market indices (Sorted from best to worst performer)
- Nasdaq: 325.65%
- S&P500: 167.65%
- Dow Jones Industrial Average: 137.89%
Read the full article here
2 July 2020:
Dow Jones Updates: The Dow Jones ended the day, 2 July 2020 up by 0.36%
- (13:08): The Dow Jones is currently trading up by 0.93%
- (08:38 ET): Dow Jones futures are currently up by 1.59%
- (06:38 ET): Dow Jones futures are currently up by 0.82%
- (05:00 ET): The Dow Jones futures are currently up strongly by 1.06%
- (02:01 ET): The Dow Jones futures are currently down by 0.11%
Website updates:
We covered the latest earnings report of Constellation Brands, owner of Corona and Modelo Beers.
So what is Constellation Brands (NYSE: STZ) stock worth based on the release of their latest earnings report and fiscal guidance provide? Based on their earnings report and the guidance provided our valuation model provides a target price (full value price) for Constellation Brands of $203.20 a stock (down slightly from our 4th quarter 2020 earnings report valuation of Constellation Brands). We therefore believe that the stock is undervalued at its price of $185.88
We usually suggest long term investors look to enter a stock at least 10% below our target (full value) price which in this case is $203.20. So a good entry point into Constellation Brands stock would be at $182.90 or below.
We expect the stock of Constellation brands to kick up from current levels to levels closer to our target price in coming weeks and months.
Read the full article here
1 July 2020:
Dow Jones Updates: The Dow Jones ended the day, 1 July 2020 down by -0.3%
- (10:17 ET): The Dow Jones Industrial Average is training in the green right now, with the DJIA being up by 0.5%
- (08:48 ET): Dow Jones Industrial Average futures are currently down by -0.46% so it looks like it will open in negative territory later today
- (08:07 ET): The Dow Jones futures are currently down by -0.01%
Website updates:
Yesterday we did a battle of the sit down restaurant stocks and compared the stock of Cracker Barrel (CBRL) to that of Darden Restaurants. Below a short extract of that article
One of our key metrics is the Price to Stockholders equity per share ratio. When looking at this we find the following for both stocks:
- Price/Stockholders equity per share for Cracker Barrel (CBRL) :6.62
- Price/Stockholders equity per share for Darden Restaurants: 3.96
Based on this metric Darden offers far more value than Cracker Barrel. Most firms tend to trade at a ratio of between 2 and 4 times. Cracker Barrel is trading at well above the expected range and Darden is trading at just inside the expected range. Next up cash as percentage of stock price. Cash per share makes up just over 14% of Cracker Barrel's stock price while Darden's cash makes up 6.2% of their stock price. Total cash as percentage of total assets is as follows. Cash makes up 16.2% of Cracker Barrels' total assets while Darden's cash makes up around 7% of their total assets. So it does look like Cracker Barrel is better placed to ride out difficult times as is currently being experienced during Covid-19
We therefore believe at their respective prices, the stock of Cracker Barrel offers a better long term investment value than that of Darden Restaurants. Therefore in the battle of the sit down restaurants if we have to pick between Cracker Barrel and Darden Restaurants, we rate Cracker Barrel as the Winner.
Read the full article here
The Dow Jones Performance Calendar Tracker for June 2020
The graphic below shows the daily performance of the Dow Jones Industrial Average (The Dow) on a calendar for the month of June 2020. The index levels used in the calculation of the daily performance of the Dow Jones Industrial Average is obtained from Macrotrends.net
As at end of June, DJIA increased by 2.16% for the month of June 2020
As at end of June, DJIA increased by 2.16% for the month of June 2020
Market news and website updates during June 2020
Dow Jones Updates: The Dow Jones ended the day, 30 June 2020 up by 0.85%
Website updates:
So if one had to buy one of these airlines stock right now, which one would it be? Does United Airlines offer the most value as its stock has fallen further than Delta and Southwest over the last 3 years? Or is there an underlying reason why United has underperformed compared to Southwest and Delta? One of our first comparison metrics is the Price to stockholders equity per share ratio. What is the stockholders equity per share? Well if a firm decides to sell all their assets, pay all liabilities and distribute the rest to stockholders that is stockholder equity per share. So expressing that as a ratio to the price one gets a feel of how over/undervalued a stock is. Below the Price to Stockholder Equity per share ratio of the three airlines:
So Southwest Airlines is trading at almost double their stockholders equity per share, Delta about 30% above their stockholders equity per share and United Airlines 7% below their stockholders equity per share. So based on this one would say that United is the cheapest and Southwest the most expensive. Looking at price to earnings ratios wont help much now as they are all current loss making and not generating any earnings to calculate a price to earnings ratio. Cash on the balance sheet is another indication of value and how easily the company can ride out the current tough business environment.
Looking at the cash per share and the percentage it makes up of its current stock price
So again United Airlines comes out on top when looking at the cash per share expressed as a percentage of their stock price. While Southwest has far less cash per share on their balance sheet compared to the other two airlines it is a far smaller airline with a daily cash burn rate that is a lot lower than the two larger airlines. So from a balance sheet perspective they are far better placed to deal with the impact of the Covid-19 pandemic on the air travel industry. And Southwest is far more nibble due to their size to change their operations and business strategy due to the Covid-19 pandemic and its for these reasons we pick Southwest Airlines (LUV) as our Winner in the airline fly off battle
Read the full article here
Dow Jones Updates: The Dow Jones ended the day, 29 June 2020 up by 2.32%
Website updates:
In our continued stock battles we pitted two brewers against one another in Constellation Brands (owner of Corona Beer) and Boston Beer Company (owner of Samuel Adams and Dogfish Head). Below an extract from that article.
One of our key metrics is the Price to stockholders equity per share ratio. When looking at this we find the following for both stocks:
Based on this metric Constellation Brands offers far more value than Boston Beer Company. Most firms tend to trade at a ratio of between 2 and 4 times. Boston is trading at well above the expected range and Constellation Brands is trading well within the expected range. The PE ratio of Constellation Brands is 22.1 compared to Boston Beer Company's PE ratio of 61.6
We therefore believe at their respective prices, the stock of Constellation Brands offers far better long term investment value than that of Boston Beer Company. Especially considering the strong stock performance of Boston Beer Company over the last three years. We do feel that Boston Beer Company's stock has run far ahead of its future earnings potential.
Therefore in the battle of the brewers if we have to pick we pick Constellation Brands as our Winner
Read the full article here
26 June 2020: The Dow Jones ended the day, 26 June 2020 down by -2.82%. We do believe the Dow Jones (DJIA) has a lot more downside to come. as its current lofty valuations does not fully take into account the impact of the Covid-19 pandemic on the US economy and economies across the world
Dow Jones Updates
Website Updates
Earlier we covered the latest earnings report of Nike Inc (NKE). Below a short extract from that article
So what do we value one of the worlds biggest clothing and apparel brands stock at following their 4th quarter 2020 earnings report? Based on Nike's latest earnings report for the 4th quarter of their 2020 fiscal year what is our target price (full value price) of Nike Inc. stock?
Based on their latest earnings report our valuation models provides a target price (full value price) for Nike Inc at $58.40 a stock. We therefore believe Nike Inc stock is currently overvalued and we would not recommend long term fundamental and value investors buy into the stock at its current price. We usually suggest looking to buy at least 10% below our target price which in this case is $58.40. We therefore believe a good entry point into the stock of Nike Inc stock is at $52.60 or below.
We expect the stock of Nike to pull back from current levels to levels closer to our target price (full value price) in coming weeks and months. And while the sell off sparked by Coronavirus fears has seen the stock of Nike pull back strongly, we believe the stock has some significant downside risk to it.
Read the full article here
25 June 2020: The Dow Jones ended the day, 25 June 2020 up by 1.18%.
Dow Jones Updates
Website updates
In our continued stock comparison page we had the battle of the Brewers. We compared Boston Beer Company (SAM) against Molson Coors (TAP). Below an extract of that article.
So if one had to buy one of these two brewers now which one is the better buy? Does Molson Coors provide a better buying opportunity due to its stock price declines compared to the sharp increase in the stock price of Boston Beer Company, or is the underlying fundamentals of Boston Beer Company just so much better than that of Molson Coors?
One of our key metrics is the Price to stockholders equity per share ratio. When looking at this we find the following for both stocks:
Based on this metric Molson Coors offers far more value than Boston Beer Company. Most firms tend to trade at a ratio of between 2 and 4 times. Boston is trading at well above the expected range and Molson Coors trading at well below the expected range.
Read the full article here
24 June 2020: The Dow Jones ended the day, 24 June 2020 down by -2.72%. So the Dow has seen a significant decline today and we believe that there is a lot more pain to come for investors. We cannot see the markets holding on to current levels considering the devastating impact the Covid-19 pandemic is having on economies across the world.
Earlier today we looked at the stock of Mcdonalds and compared it against that of Chipotle in our battle of the quick service restaurants. Below an extract of that article.
So if one had to buy one of these two quick service restaurant brands which one would it be? Which one is most likely to offer superior stock price returns based on their current stock price and their financial results. Chipotle has some stockholders equity, around $60 a stock, this while Mcdonalds is sitting with a stockholders deficit of close to -$9.3 billion. Chipotle has the far higher PE ratio of the two stocks. Mcdonalds dividend yield is also stronger and their stock price has run up far less than that of Chipotle over the last 3 years. Mcdonalds also has a far greater global reach and brand name and therefore if we have to decide between Mcdonalds (MCD) or Chipotle (CMG) now.. We would pick Mcdonalds as our winner.
Read the full article here
- (13:15 ET): The Down Jones is currently down by -0.2%
- (10:39 ET): The Dow Jones is currently down by -0.19%
- (4:37 ET): Dow Jones Industrial Average futures are up by 0.19% indicating that the Dow will likely open on a slightly positive note
Website updates:
So if one had to buy one of these airlines stock right now, which one would it be? Does United Airlines offer the most value as its stock has fallen further than Delta and Southwest over the last 3 years? Or is there an underlying reason why United has underperformed compared to Southwest and Delta? One of our first comparison metrics is the Price to stockholders equity per share ratio. What is the stockholders equity per share? Well if a firm decides to sell all their assets, pay all liabilities and distribute the rest to stockholders that is stockholder equity per share. So expressing that as a ratio to the price one gets a feel of how over/undervalued a stock is. Below the Price to Stockholder Equity per share ratio of the three airlines:
- Southwest Airlines: 1.98
- Delta Airlines: 1.27
- United Airlines: 0.93
So Southwest Airlines is trading at almost double their stockholders equity per share, Delta about 30% above their stockholders equity per share and United Airlines 7% below their stockholders equity per share. So based on this one would say that United is the cheapest and Southwest the most expensive. Looking at price to earnings ratios wont help much now as they are all current loss making and not generating any earnings to calculate a price to earnings ratio. Cash on the balance sheet is another indication of value and how easily the company can ride out the current tough business environment.
Looking at the cash per share and the percentage it makes up of its current stock price
- Southwest Airlines: $7.65 (21.8%)
- Delta Airlines: $9.36 (32.7%)
- United Airlines: $13.84 (39.2%)
So again United Airlines comes out on top when looking at the cash per share expressed as a percentage of their stock price. While Southwest has far less cash per share on their balance sheet compared to the other two airlines it is a far smaller airline with a daily cash burn rate that is a lot lower than the two larger airlines. So from a balance sheet perspective they are far better placed to deal with the impact of the Covid-19 pandemic on the air travel industry. And Southwest is far more nibble due to their size to change their operations and business strategy due to the Covid-19 pandemic and its for these reasons we pick Southwest Airlines (LUV) as our Winner in the airline fly off battle
Read the full article here
Dow Jones Updates: The Dow Jones ended the day, 29 June 2020 up by 2.32%
- (13:10 ET); Dow Jones Industrial Average is currently trading up by 1.79%
- (10:41 ET): Dow Jones Industrial Average opened in the green and is currently up a strong 1.62%
- (4:05 ET): Dow Jones Industrial Average futures are up by 0.42% indicating that the Dow will likely open on a slightly positive note
Website updates:
In our continued stock battles we pitted two brewers against one another in Constellation Brands (owner of Corona Beer) and Boston Beer Company (owner of Samuel Adams and Dogfish Head). Below an extract from that article.
One of our key metrics is the Price to stockholders equity per share ratio. When looking at this we find the following for both stocks:
- Price/Stockholders equity per share for Boston Beer Company (SAM) : 9.1
- Price/Stockholders equity per share for Constellation Brands (STZ): 2.22
Based on this metric Constellation Brands offers far more value than Boston Beer Company. Most firms tend to trade at a ratio of between 2 and 4 times. Boston is trading at well above the expected range and Constellation Brands is trading well within the expected range. The PE ratio of Constellation Brands is 22.1 compared to Boston Beer Company's PE ratio of 61.6
We therefore believe at their respective prices, the stock of Constellation Brands offers far better long term investment value than that of Boston Beer Company. Especially considering the strong stock performance of Boston Beer Company over the last three years. We do feel that Boston Beer Company's stock has run far ahead of its future earnings potential.
Therefore in the battle of the brewers if we have to pick we pick Constellation Brands as our Winner
Read the full article here
26 June 2020: The Dow Jones ended the day, 26 June 2020 down by -2.82%. We do believe the Dow Jones (DJIA) has a lot more downside to come. as its current lofty valuations does not fully take into account the impact of the Covid-19 pandemic on the US economy and economies across the world
Dow Jones Updates
- (13:35 ET): Dow Jones Industrial Average (DJIA) is currently down strongly by -2.2% with about 2 and a half hours of trading left. So it looks like the Dow Jones will close on a negative note for the 2nd Friday in a row.
- (06:47): Dow Jones futures are currently down by -0.23% indicating a slightly negative open can be expected at the start of the trading day for the Dow Jones
Website Updates
Earlier we covered the latest earnings report of Nike Inc (NKE). Below a short extract from that article
So what do we value one of the worlds biggest clothing and apparel brands stock at following their 4th quarter 2020 earnings report? Based on Nike's latest earnings report for the 4th quarter of their 2020 fiscal year what is our target price (full value price) of Nike Inc. stock?
Based on their latest earnings report our valuation models provides a target price (full value price) for Nike Inc at $58.40 a stock. We therefore believe Nike Inc stock is currently overvalued and we would not recommend long term fundamental and value investors buy into the stock at its current price. We usually suggest looking to buy at least 10% below our target price which in this case is $58.40. We therefore believe a good entry point into the stock of Nike Inc stock is at $52.60 or below.
We expect the stock of Nike to pull back from current levels to levels closer to our target price (full value price) in coming weeks and months. And while the sell off sparked by Coronavirus fears has seen the stock of Nike pull back strongly, we believe the stock has some significant downside risk to it.
Read the full article here
25 June 2020: The Dow Jones ended the day, 25 June 2020 up by 1.18%.
Dow Jones Updates
- (13:38): The Dow Jones Industrial Average is up by 0.30% for the day, as at the time of writing. But we still believe the Dow and rest of the markets is set for significant declines due to the impact of Covid-19. We dont believe current market valuations is taking the full impact of Covid-19 into account.
- (10:11): The Dow Jones Industrial Average has been open for trade for about 40 minutes and its down slightly at -0.12%
- (01:02); The Dow Jones Industrial Average (DJIA) futures are currently down -0.72%. So while the negative trend the Dow ended on yesterday continued today?
Website updates
In our continued stock comparison page we had the battle of the Brewers. We compared Boston Beer Company (SAM) against Molson Coors (TAP). Below an extract of that article.
So if one had to buy one of these two brewers now which one is the better buy? Does Molson Coors provide a better buying opportunity due to its stock price declines compared to the sharp increase in the stock price of Boston Beer Company, or is the underlying fundamentals of Boston Beer Company just so much better than that of Molson Coors?
One of our key metrics is the Price to stockholders equity per share ratio. When looking at this we find the following for both stocks:
- Price/Stockholders equity per share for Boston Beer Company (SAM) : 8.67
- Price/Stockholders equity per share for Molson Coors (TAP) : 0.61
Based on this metric Molson Coors offers far more value than Boston Beer Company. Most firms tend to trade at a ratio of between 2 and 4 times. Boston is trading at well above the expected range and Molson Coors trading at well below the expected range.
Read the full article here
24 June 2020: The Dow Jones ended the day, 24 June 2020 down by -2.72%. So the Dow has seen a significant decline today and we believe that there is a lot more pain to come for investors. We cannot see the markets holding on to current levels considering the devastating impact the Covid-19 pandemic is having on economies across the world.
- (10:13 ET); The Dow Jones is down significantly in the first 40 minutes of trade today, with the index trading down almost -1.6%
- (03:58 ET): Dow Jones futures are currently down -0.4% so it looks like the US markets are heading for a negative open, and this will be in line with the current negative markets in Europe
Earlier today we looked at the stock of Mcdonalds and compared it against that of Chipotle in our battle of the quick service restaurants. Below an extract of that article.
So if one had to buy one of these two quick service restaurant brands which one would it be? Which one is most likely to offer superior stock price returns based on their current stock price and their financial results. Chipotle has some stockholders equity, around $60 a stock, this while Mcdonalds is sitting with a stockholders deficit of close to -$9.3 billion. Chipotle has the far higher PE ratio of the two stocks. Mcdonalds dividend yield is also stronger and their stock price has run up far less than that of Chipotle over the last 3 years. Mcdonalds also has a far greater global reach and brand name and therefore if we have to decide between Mcdonalds (MCD) or Chipotle (CMG) now.. We would pick Mcdonalds as our winner.
Read the full article here
23 June 2020: The Dow Jones ended the day, 23 June 2020 up by 0.5%
22 June 2020: The Dow Jones ended the day, 22 June 2020 up by 0.59%
(9:37ET) The Dow Jones Industrial Average opened up in negative territory and its currently down by -0.7% 8 minutes into the trading day. Also 10 of the 11 major S&P 500 indices are currently in the red
(8: 47 ET) The Dow Jones Industrial Average futures are currently trading up by 0.69%. So while its off the highs reached earlier it's still in positive territory
(3:40 ET) The Dow Jones Industrial Average futures are currently trading up by 0.78%. So it looks like the Dow Jones is heading for a positive open today
We also covered the latest earnings report of Zoom (ZM) and here is short extract of that article. So based on Zoom's latest earnings report and their outlook provided what do we value Zoom stock at? Considering their latest earnings report and the outlook provided our valuation model provides a target price (full value price) of $153 per Zoom stock.
Even so we believe the stock of Zoom is overvalued at its current price of $251.77. We usually recommend that fundamental or long term value investors look to enter a stock at least 10% below our target price (full value price) which in this case is $153. We therefore believe a good entry point into the stock of Zoom would be at $137.70 or below.
Since the stock of Zoom is trading at well above our recommended entry point we rate their stock as a SELL
19 June 2020: The Dow Jones ended the day down by -0.8%
(9:29 ET) The Dow Jones Industrial Average futures are currently trading up by 1.7% just before the open of the trading day
(7:30 ET) The Dow Jones Industrial Average futures are currently trading up by 0.89% two hours before the open of the trading day
(2:18 ET) The Dow Jones Industrial Average futures are currently trading up by 0.79% following two days of modest declines
18 June 2020: The Dow Jones Industrial Average (DJIA) ended the day, 18 June 2020 down by -0.15%
(9:36 ET) The Dow opened lower and is currently trading at -0.94% in the red
(06:55 ET) -Dow Futures are currently down by about 0.15% showing the Dow should open up slightly lower today.
Earlier today we covered the latest earnings report of Kroger Co's latest earnings report. Below a short extract from that article
So what are The Kroger Company stock worth considering their latest earnings release? Based on the earnings released and the outlook provided our valuation models set a target (full value) price for The Kroger Company of $38.70 a stock (up slightly from our 4th quarter 2019 earnings report valuation of Kroger) . We therefore believe Kroger Company stock is undervalued. We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target price which in this case is $38.70,a good entry point into the stock of Kroger Company would therefore be at $34.80 or below. We expect that the stock of Kroger Company will kick upwards from its current price to levels closer to our target price/ full value price in coming weeks and months. Since the stock of Kroger is trading at well below our suggested entry point we rate the stock of Kroger (KR) as a buy.
Read the full Kroger Co 1st quarter 2020 earnings review here
17 June 2020: (15:30 ET) - And back down the Dow Jones went again, with the DJIA ending the day down by -0.65%
(13:10 ET) - And back up we go again, as the FED Chair speaks via live webcasts the Dow has entered positive territory again and us now up 0.2%
(10:34 ET) -The DJIA is currently down by -0.4% for the day after opening modestly in the green at the start of the trading day.
(9:30 ET) -Dow Futures are currently up about 0.2% showing the Dow should open up slightly higher today.
Read the full More About Target Corporation (TGT) here
The Dow Jones Industrial Average (DJIA) ended the day, 17 June 2020 down by -0.65%
16 June 2020: 16 June 2020: The Dow Jones Industrial Average (DJIA) is up strongly so far today, with it being up 2.04% at the time of writing (15:34 ET). A stock to watch is Tesla (TLSA) with the stock edging ever closer to the $1000 a stock mark. Will it get there? And is the stock's recent run overdone?
15 June 2020: With the Dow futures being overwhelmingly negative to start off the day, the Dow has managed to reverse its early losses and is now trading solidly in the green for the the day. The volatility in world financial markets continue.
Earlier today we covered Microsoft (MSFT) as part of our continued "More About" series
Read the full More About Microsoft article here
The Dow Jones Industrial Average (DJIA) ended the day, 15 June 2020 up by 0.62%
- (9:38 ET) The Dow Jones Industrial Average opened up on a positive note and is currently trading up 0.83%
- (7:04 ET) The Dow Jones Industrial Average futures are currently trading up by 0.96%. So it looks like the DJIA is heading for a positive open on 23 June 2020
- (0:44 ET) The Dow Jones Industrial Average futures are currently trading up by 0.15%
22 June 2020: The Dow Jones ended the day, 22 June 2020 up by 0.59%
(9:37ET) The Dow Jones Industrial Average opened up in negative territory and its currently down by -0.7% 8 minutes into the trading day. Also 10 of the 11 major S&P 500 indices are currently in the red
(8: 47 ET) The Dow Jones Industrial Average futures are currently trading up by 0.69%. So while its off the highs reached earlier it's still in positive territory
(3:40 ET) The Dow Jones Industrial Average futures are currently trading up by 0.78%. So it looks like the Dow Jones is heading for a positive open today
We also covered the latest earnings report of Zoom (ZM) and here is short extract of that article. So based on Zoom's latest earnings report and their outlook provided what do we value Zoom stock at? Considering their latest earnings report and the outlook provided our valuation model provides a target price (full value price) of $153 per Zoom stock.
Even so we believe the stock of Zoom is overvalued at its current price of $251.77. We usually recommend that fundamental or long term value investors look to enter a stock at least 10% below our target price (full value price) which in this case is $153. We therefore believe a good entry point into the stock of Zoom would be at $137.70 or below.
Since the stock of Zoom is trading at well above our recommended entry point we rate their stock as a SELL
19 June 2020: The Dow Jones ended the day down by -0.8%
(9:29 ET) The Dow Jones Industrial Average futures are currently trading up by 1.7% just before the open of the trading day
(7:30 ET) The Dow Jones Industrial Average futures are currently trading up by 0.89% two hours before the open of the trading day
(2:18 ET) The Dow Jones Industrial Average futures are currently trading up by 0.79% following two days of modest declines
18 June 2020: The Dow Jones Industrial Average (DJIA) ended the day, 18 June 2020 down by -0.15%
(9:36 ET) The Dow opened lower and is currently trading at -0.94% in the red
(06:55 ET) -Dow Futures are currently down by about 0.15% showing the Dow should open up slightly lower today.
Earlier today we covered the latest earnings report of Kroger Co's latest earnings report. Below a short extract from that article
So what are The Kroger Company stock worth considering their latest earnings release? Based on the earnings released and the outlook provided our valuation models set a target (full value) price for The Kroger Company of $38.70 a stock (up slightly from our 4th quarter 2019 earnings report valuation of Kroger) . We therefore believe Kroger Company stock is undervalued. We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target price which in this case is $38.70,a good entry point into the stock of Kroger Company would therefore be at $34.80 or below. We expect that the stock of Kroger Company will kick upwards from its current price to levels closer to our target price/ full value price in coming weeks and months. Since the stock of Kroger is trading at well below our suggested entry point we rate the stock of Kroger (KR) as a buy.
Read the full Kroger Co 1st quarter 2020 earnings review here
17 June 2020: (15:30 ET) - And back down the Dow Jones went again, with the DJIA ending the day down by -0.65%
(13:10 ET) - And back up we go again, as the FED Chair speaks via live webcasts the Dow has entered positive territory again and us now up 0.2%
(10:34 ET) -The DJIA is currently down by -0.4% for the day after opening modestly in the green at the start of the trading day.
(9:30 ET) -Dow Futures are currently up about 0.2% showing the Dow should open up slightly higher today.
- Target Corporation is listed on the New York Stock Exchange under share code ticker: TGT
- Target Corporation (TGT) market capital: $59.6 billion (as at 17 June 2020)
- Total number of Target outlets: 1,868
- Square footage of all Target outlets: 240 516 000
- Total revenues for Target Corporation during 2019: $78.11 billion
- Total profits for Target Corporation during 2019: $3.281 billion
- Earnings per TGT share in 2019: $6.42
- Dividend per TGT share in 2019: $2.42
- Number of Target Corporation shares outstanding: 515.6 million
- Cash on balance sheet: $2.577 billion
- Stockholders equity: $11.833 billion
- Stockholders equity per share in Target Corporation: $22.94
Read the full More About Target Corporation (TGT) here
The Dow Jones Industrial Average (DJIA) ended the day, 17 June 2020 down by -0.65%
16 June 2020: 16 June 2020: The Dow Jones Industrial Average (DJIA) is up strongly so far today, with it being up 2.04% at the time of writing (15:34 ET). A stock to watch is Tesla (TLSA) with the stock edging ever closer to the $1000 a stock mark. Will it get there? And is the stock's recent run overdone?
15 June 2020: With the Dow futures being overwhelmingly negative to start off the day, the Dow has managed to reverse its early losses and is now trading solidly in the green for the the day. The volatility in world financial markets continue.
Earlier today we covered Microsoft (MSFT) as part of our continued "More About" series
- Microsoft is listed on the NASDAQ under share code ticker: MSFT
- Microsoft market capital: $1.43 trillion (as at 12 June 2020)
- Number of employees of Microsoft: 144 000
- Revenues in 2019: $125.8 billion
- Earnings per share in 2019: $5.06
- Shares in issue: 7.75 billion
- Dividends paid during 2019: $1.84
- Cash on balance sheet: $11.356 billion
- Stockholders equity: $102.3 billion
- Stockholders equity per share: $13.20
- So Microsoft is trading at 12 times its stockholders equity per share which is well outside the expected range of between 2 and 4 times that most firms tend to trade at
Read the full More About Microsoft article here
The Dow Jones Industrial Average (DJIA) ended the day, 15 June 2020 up by 0.62%
12 June 2020: So the DJIA ended the day up by 1.9% after US market indices suffered its biggest declines in 12 weeks yesterday 11 June 2020.
Earlier today in our continued series on "More About" we focused on More about Alphabet (GOOGL), the parent company of Google and YouTube
Read the full article here
11 June 2020: On the 28th of May 2020 we said that something about the Dow Jones Industrial Average (DJIA) performance doesn't add up. And it looks like the market is finally waking up to this, as the Dow saw two days of relatively small declines (just over -1%) yesterday and the day before, but on 11 June 2020 the Dow took a very serious knock with it being down -6.9% for the day so far. Read our warning 28 May 2020 here
We dont believe the sell off is done just yet. We expect the Dow Jones, the Nasdaq and the S&P500 to pull back a lot more, as the full impact of the Covid-19 pandemic has not filtered through all world economies and companies yet.
The Dow Jones (DJIA) declined by a massive -6.9% on 11 June 2020
11 June 2020: In our continued series on "More About" we focused on More about Burlington Stores (BURL). Below a few quick facts about Burlington Stores
Read the full article here
The Dow Jones (DJIA) declined by -1.04% on 10 June 2020
10 June 2020: Yesterday we covered the latest earnings report from Brown-Forman (owner of brands such as Jack Daniels and Woodford Reserve). Below a short extract from that article
Based on the Brown-Forman's 4th quarter 2020 earnings report what do we value the group's stock at? Based on their earnings reported our valuation model prices a target price (full value price) for Brown-Forman stock at $64.20 a stock.
We therefore believe the stock of Brown-Forman is overvalued.
We usually recommend that long term and value investors look to enter a stock at least 10% below our target price (full value price) which in this case is $64.20, a good entry point would therefore be at $57.80 or below. We expect the stock of Brown-Forman to pull back slightly from its current price to levels closer to our target price (full value price) in coming weeks and months.
Read the full article here
The Dow Jones (DJIA) declined by -1.09% on 9 June 2020
9 June 2020: In our continued series on "More About" we focused on More about Kroger Company (KR). Below a few quick facts about Kroger Company
Read the full More About Kroger Company here
The Dow Jones (DJIA) increased sharply by 1.7% on 8 June 2020
7 June 2020: In our continued series on "More About" we focused on More about Royal Caribbean. Below a few quick facts about Royal Caribbean
Read the full More about Royal Caribbean Article here
The Dow Jones increased sharply on Friday with it increasing by 3.15% on 5 June 2020
4 June 2020: The Dow Jones basically closed flat with it increasing by just 0.05% for 4 June 2020
3 June 2020: Yesterday we covered the latest earnings report from Campbell Soup Company. Below an extract from that article
So based on Campbell Soup Company' 3rd quarter 2020 earnings report what do we value Campbell Soup Company's stock at? Based on Campbell Soup Company's latest earnings report and fiscal guidance provided (which they raised) our valuation model provides a target price (full value price) for Campbell's Soup Company stock $46.70 (up from our last valuation of Campbell Soup Company).
We therefore believe the stock of Campbell Soup company is slightly overvalued.
We usually recommend that long term and fundamental investors look to enter a stock at least 10% below our target price, which in this case is $46.70. A good entry point into the stock of Campbell Soup Company would therefore be at $42 or below.
We expect the stock of Campbell's to pull back slightly to levels closer to our target price in coming weeks and months.
Read the full Campbell Soup Company earnings review here
The Dow Jones (DJIA) increased by 2.05% on 3 June 2020
2 June 2020: In our continued series on "More About" we focused on More Shake Shack. Below a few quick facts about Shake Shack
Read the full More About Shake Shack article here
The Dow Jones (DJIA) increased by 1.04% on 2 June 2020
Earlier today in our continued series on "More About" we focused on More about Alphabet (GOOGL), the parent company of Google and YouTube
- Alphabet is listed on the Nasdaq under share code ticker: GOOGL
- Alphabet market capital: $957.3 billion (as at 12 June 2020)
- Revenues in 2019: $161.857 billion
- Earnings per share in 2019: $49.16
- Shares in issue: 346.342 million
- Cash on balance sheet: $16.7 billion
- Goodwill : $17.888 billion (Goodwill is an indication of the value of brand names etc)
- Stockholders equity per share: $201.422 billion
- Stockholders equity per Alphabet shares: $580
- So Alphabet is trading at 2.4 times its stockholders equity per share
- Average price to book value of firms in the S&P 500 is 3.7
Read the full article here
11 June 2020: On the 28th of May 2020 we said that something about the Dow Jones Industrial Average (DJIA) performance doesn't add up. And it looks like the market is finally waking up to this, as the Dow saw two days of relatively small declines (just over -1%) yesterday and the day before, but on 11 June 2020 the Dow took a very serious knock with it being down -6.9% for the day so far. Read our warning 28 May 2020 here
We dont believe the sell off is done just yet. We expect the Dow Jones, the Nasdaq and the S&P500 to pull back a lot more, as the full impact of the Covid-19 pandemic has not filtered through all world economies and companies yet.
The Dow Jones (DJIA) declined by a massive -6.9% on 11 June 2020
11 June 2020: In our continued series on "More About" we focused on More about Burlington Stores (BURL). Below a few quick facts about Burlington Stores
- Burlington Stores is listed on the New York Stock Exchange under share code ticker: BURL
- Burlington Stores market capital: $14.23 billion (as at 10 June 2020)
- Number of employees of Burlington Stores: 47 000
- Number of stores: 727
- Gross square footage (in thousands) 47,449
- Selling square footage (in thousands) 31,997
- Net sales in fiscal 2019: $7.27 billion
- Earnings per share in fiscal 2019: $6.21
- Shares in issue; 67.3 million
- Stockholders equity in Burlington Stores: $528.149 million
- Stockholders equity per share: $7.84
Read the full article here
The Dow Jones (DJIA) declined by -1.04% on 10 June 2020
10 June 2020: Yesterday we covered the latest earnings report from Brown-Forman (owner of brands such as Jack Daniels and Woodford Reserve). Below a short extract from that article
Based on the Brown-Forman's 4th quarter 2020 earnings report what do we value the group's stock at? Based on their earnings reported our valuation model prices a target price (full value price) for Brown-Forman stock at $64.20 a stock.
We therefore believe the stock of Brown-Forman is overvalued.
We usually recommend that long term and value investors look to enter a stock at least 10% below our target price (full value price) which in this case is $64.20, a good entry point would therefore be at $57.80 or below. We expect the stock of Brown-Forman to pull back slightly from its current price to levels closer to our target price (full value price) in coming weeks and months.
Read the full article here
The Dow Jones (DJIA) declined by -1.09% on 9 June 2020
9 June 2020: In our continued series on "More About" we focused on More about Kroger Company (KR). Below a few quick facts about Kroger Company
- Kroger Company is listed on the New York Stock Exchange under share code ticker: KR
- Number of employees of Kroger Company: 435 000
- Number of Kroger Company stores: 2 757
- 2270 of the stores had pharmacies
- 1567 had fuel centres
- Revenue of Kroger in 2019: $122.2 billion
- Earnings per Kroger share in 2019: $2.04
- Shares in issue: 805 million
- Cash on balance sheet: $399 million
- Stockholders equity in Kroger Company: $8.573 billion
- Stockholders equity per share in Kroger: $10.64
Read the full More About Kroger Company here
The Dow Jones (DJIA) increased sharply by 1.7% on 8 June 2020
7 June 2020: In our continued series on "More About" we focused on More about Royal Caribbean. Below a few quick facts about Royal Caribbean
- Royal Caribbean Cruises is listed on the New York Stock Exchange under share code ticker: RCL
- Together, our Global Brands and our Partner Brands operate a combined total of 61 ship
- Royal Caribbean Cruises had the capacity of approximately 141,570 berths (per year) as of December 31, 2019
- Passengers Carried: 6,553,865
- Passenger Cruise Days: 44,803,953
- Revenues in 2019: $10.95 billion
- Earnings per Royal Caribbean Cruises share in 2019: $8.95
- Dividends per Royal Caribbean Cruises share: $2.96
Read the full More about Royal Caribbean Article here
The Dow Jones increased sharply on Friday with it increasing by 3.15% on 5 June 2020
4 June 2020: The Dow Jones basically closed flat with it increasing by just 0.05% for 4 June 2020
3 June 2020: Yesterday we covered the latest earnings report from Campbell Soup Company. Below an extract from that article
So based on Campbell Soup Company' 3rd quarter 2020 earnings report what do we value Campbell Soup Company's stock at? Based on Campbell Soup Company's latest earnings report and fiscal guidance provided (which they raised) our valuation model provides a target price (full value price) for Campbell's Soup Company stock $46.70 (up from our last valuation of Campbell Soup Company).
We therefore believe the stock of Campbell Soup company is slightly overvalued.
We usually recommend that long term and fundamental investors look to enter a stock at least 10% below our target price, which in this case is $46.70. A good entry point into the stock of Campbell Soup Company would therefore be at $42 or below.
We expect the stock of Campbell's to pull back slightly to levels closer to our target price in coming weeks and months.
Read the full Campbell Soup Company earnings review here
The Dow Jones (DJIA) increased by 2.05% on 3 June 2020
2 June 2020: In our continued series on "More About" we focused on More Shake Shack. Below a few quick facts about Shake Shack
- Shake Shack is listed on the New York Stock Exchange under share code ticker: SHAK
- Shake Shack has 7 603 employees
- Shacks located in the Northeast and the New York City metropolitan area comprises approximately 44% of the total domestic company-operated Shacks as of December 25, 2019
- Shake Shack has 275 outlets
- Of the 275 Shake Shack Outlets 90 is outside the USA
- Shake Shack sales for 2019 fiscal year: $574.625 million
- Earnings per share for fiscal 2019: $0.61
- Shares in issue: 34.422 million
- Cash and equivalents on their balance sheet: $37.099 million
- Stockholders equity in Shake Shack: $321.985 million
Read the full More About Shake Shack article here
The Dow Jones (DJIA) increased by 1.04% on 2 June 2020
1 June 2020: In our continued series on "More About" we focused on More About Boston Beer Company yesterday. Below a few quick facts about Boston Beer Company
Read the full More About Boston Beer Company article here
The Dow Jones (DJIA) increased by 0.36% on 1 June 2020
- Boston Beer Company is listed on the New York Stock Exchange under share code ticker: SAM
- Owns Samuel Adams
- Owns Dogfish Head
- Owns Twisted Tea
- Sales for 2019 fiscal year: $1.249 billion
- 2 128 employees as at end December 2019
- Earnings per share of Boston Beer Company: $9.16
- Shares in issue: 11.908 million
- Number of stockholders: 8 477
- Number of barrels sold: 5 307
- Net revenue per barrel: $235.51
- Stockholders equity in Boston Beer Company: $735.636 million
Read the full More About Boston Beer Company article here
The Dow Jones (DJIA) increased by 0.36% on 1 June 2020
The Dow Jones Performance Calendar Tracker for May 2020
The graphic below shows the daily performance of the Dow Jones Industrial Average (The Dow) on a calendar for the month of May 2020. The index levels used in the calculation of the daily performance of the Dow Jones Industrial Average is obtained from Macrotrends.net
28 May 2020: In our continued series on "More About" we focused on More About Caterpillar yesterday. Below a few quick facts about Caterpillar
Read the full More About Caterpillar here
The Dow Jones (DJIA) decreased by-0.58% on 28 May 2020
27 May 2020: In our continued series on "More About" we focused on More About Walmart yesterday. Below a few quick facts about Walmart
Read the full More About Walmart here
The Dow Jones (DJIA) increased by 2.213% on 27 May 2020
26 May 2020: We started a new series on our website in which we look at details of various companies that might not be readily available or published on a regular basis. Below an extract of our More About Home Depot article
The data below refers to the full fiscal 2019:
Read our More About The Home Depot article here
The Dow Jones (DJIA) increased by 2.17% on 26 May 2020
25 May 2020: While the markets may be closed for Memorial Day that doesn't mean we stop covering the markets and stocks having reported earnings recently. We covered Decker Brands recently and their President and Chief Executive Officer Dave Powers, said the following. "We expect fiscal year 2021 results to be impacted depending on the duration and severity of the COVID-19 pandemic, but our in-demand brands, omni-channel capabilities, and healthy balance sheet position us well to weather this challenging environment." Read the full review of Decker Brands here.
The Dow Jones (DJIA) will not move today, 25 May 2020 as markets are closed for Memorial Day.
22 May 2020: Two very well known stocks reported earnings today. They are Deere Company and Footlocker. What follows is a short extract from their respective results. Deere and Company Chairman and Chief Executive Officer John C. May said the following "John Deere’s foremost priority in confronting the coronavirus crisis has been to safeguard the health and well-being of employees while fulfilling its obligation as an essential business serving customers throughout the world". Read the full Deere and Company earnings review here
Next and extract from Foot Lockers latest earnings. "Against the backdrop of the pandemic and our global store closures, our team has focused intently on controlling what we can in order to protect our business. We have taken full advantage of the investments we have made in technology in recent years in order to stay connected with our customers and serve them online, worked aggressively to protect our financial position and flexibility, and taken actions to ensure we are well positioned to drive our business forward," said Richard Johnson, Chairman and Chief Executive Officer, Read the full Foot Locker earnings review here
The Dow Jones ended the day (22 May 2020) basically flat with it declining a mere -0.04%
21 May 2020: Best Buy (BBY) released earnings yesterday and the market did not like what it reported. The stock of Best Buy declined by -4.32% as the stay at home orders and lockdowns saw far less sales on a store like for like basis. Corrie Barry,CEO of Best Buy said the following. “In the middle of Q1, we shifted all our stores to a curbside-only operating model and were able to retain approximately 81% of last year’s sales during the last six weeks of the quarter, even though not a single customer set foot in our stores,” Read the full Best Buy earnings report review here.
BJ's Wholesale club reported results yesterday too and Lee Delaney, President and Chief Executive Officer of BJ's Wholesale Club had to following to say While the coronavirus pandemic increased demand for our services, our team's hard work and the capabilities we have built over the last four years have enabled us to thrive and deliver very strong merchandise comparable sales." Read the full BJ's Wholesale Club review here
The Dow Jones ended the day (21 May 2020) down by -0.41 %
20 May 2020: Royal Caribbean, Target and Lowe's all reported earnings yesterday. Lowe's impressed more than The Home Depot did the other day. While Target revenue increased sharply and was driven by online sales the cost of implementing and executing all their online sales saw a sharp increase in Target's cost of sales, which created some margin pressure for Target. Royal Caribbean Cruises reported losses for the quarter of $1.4 billion as the voluntary pause on their cruises due to the Covid-19 pandemic hit their earrings.
The Dow Jones ended the day (20 May 2020) up by 1.52 %
19 May 2020: Today we covered the latest earnings report of The Home Depot, the world's largest DIY store. And they had the following to say in their latest earnings report. "As the COVID-19 pandemic evolved, we anchored to the core values of our Company by focusing on two key priorities: working to ensure the safety and well-being of our associates and customers, and providing our customers and communities with essential products." Read the full article here
The Dow Jones ended the day (19 May 2020) down by -1.59 %
17 May 2020: We covered one of our personal favourite stock's 2nd quarter 2020 earnings report. The stock is Stitch Fix (SFIX). An online styling and clothing and accessories store with more than 3.5 million active users. They said the following in their latest earnings report. "This quarter, we are excited to expand our new direct buy offerings to even more clients. As we continue to evolve our personalization capabilities we're confident in our ability to capture additional market share". Read the full article here
The Dow Jones ended the day (18 May 2020) up by 3.85%
8 May 2020: One of the biggest players in the tourism and accommodation industry, Booking Holdings (BKNG) reported 1Q 2020 earnings which included some of the impact of the Covid-19 pandemic. The following extract is from their results. "The COVID-19 pandemic has profoundly impacted our Company and the entire travel industry. We have taken immediate steps to stabilize the Company by reducing costs and bolstering our liquidity position" said Glenn Fogel, Chief Executive Officer of Booking Holdings"
The Dow Jones ended the day (8 May 2020) up by 1.91%
- Caterpillar is listed on the New York Stock Exchange (NYSE) under share code ticker: CAT
- Shareholders of record at the end of 2019 totaled 25,985, compared with 26,938 at the end of 2018.
- Sales and revenue in 2019 fiscal year: $53.8 billion
- Sales percentage inside of the USA: 42%
- Sales percentage outside of the USA: 58%
- Earnings per share: $10.74
- Dividend declare: $3.95
- Total assets: $78.453 billion
- Average number of employees: 103 400
Read the full More About Caterpillar here
The Dow Jones (DJIA) decreased by-0.58% on 28 May 2020
27 May 2020: In our continued series on "More About" we focused on More About Walmart yesterday. Below a few quick facts about Walmart
- Walmart is listed on the New York Stock Exchange (NYSE) under share code ticker: WMT
- Walmart market capital: $347 billion
- Revenues of $524 billion for 2020 fiscal year
- Earnings per share: $5.19
- Dividends per share: $2.12
- Cash and equivalents on their balance sheet: $9.465 billion
- Walmart has 2.2 million employees world wide
- Walmart has 1.5 million employees in the U.S
- Walmart has 11 501 retail outlets across the globe
- Walmart has 4 756 Walmart branded stores in the U.S
- Walmart has 599 Sam's Club stores in the U.S
Read the full More About Walmart here
The Dow Jones (DJIA) increased by 2.213% on 27 May 2020
26 May 2020: We started a new series on our website in which we look at details of various companies that might not be readily available or published on a regular basis. Below an extract of our More About Home Depot article
- The Home Depot is listed on the New York Stock Exchange under stock code ticker: HD
- Total revenues for 2019 fiscal year : $110.225 billion
- Number of Home Depot Stores: 2 291
- Average Home Depot store size: 104 000 square feet plus an average of 24 000 square feet for the outdoor and garden section
The data below refers to the full fiscal 2019:
- Comparable sales increase: 3.5%
- Comparable customer transactions increase: 1.1%
- Comparable average ticket increase:2.5%
- Customer transactions (in millions): 1,616.0
- Average ticket: $ 67.30
- Sales per retail square foot: $454.82
- Diluted earnings per share $ 10.25
Read our More About The Home Depot article here
The Dow Jones (DJIA) increased by 2.17% on 26 May 2020
25 May 2020: While the markets may be closed for Memorial Day that doesn't mean we stop covering the markets and stocks having reported earnings recently. We covered Decker Brands recently and their President and Chief Executive Officer Dave Powers, said the following. "We expect fiscal year 2021 results to be impacted depending on the duration and severity of the COVID-19 pandemic, but our in-demand brands, omni-channel capabilities, and healthy balance sheet position us well to weather this challenging environment." Read the full review of Decker Brands here.
The Dow Jones (DJIA) will not move today, 25 May 2020 as markets are closed for Memorial Day.
22 May 2020: Two very well known stocks reported earnings today. They are Deere Company and Footlocker. What follows is a short extract from their respective results. Deere and Company Chairman and Chief Executive Officer John C. May said the following "John Deere’s foremost priority in confronting the coronavirus crisis has been to safeguard the health and well-being of employees while fulfilling its obligation as an essential business serving customers throughout the world". Read the full Deere and Company earnings review here
Next and extract from Foot Lockers latest earnings. "Against the backdrop of the pandemic and our global store closures, our team has focused intently on controlling what we can in order to protect our business. We have taken full advantage of the investments we have made in technology in recent years in order to stay connected with our customers and serve them online, worked aggressively to protect our financial position and flexibility, and taken actions to ensure we are well positioned to drive our business forward," said Richard Johnson, Chairman and Chief Executive Officer, Read the full Foot Locker earnings review here
The Dow Jones ended the day (22 May 2020) basically flat with it declining a mere -0.04%
21 May 2020: Best Buy (BBY) released earnings yesterday and the market did not like what it reported. The stock of Best Buy declined by -4.32% as the stay at home orders and lockdowns saw far less sales on a store like for like basis. Corrie Barry,CEO of Best Buy said the following. “In the middle of Q1, we shifted all our stores to a curbside-only operating model and were able to retain approximately 81% of last year’s sales during the last six weeks of the quarter, even though not a single customer set foot in our stores,” Read the full Best Buy earnings report review here.
BJ's Wholesale club reported results yesterday too and Lee Delaney, President and Chief Executive Officer of BJ's Wholesale Club had to following to say While the coronavirus pandemic increased demand for our services, our team's hard work and the capabilities we have built over the last four years have enabled us to thrive and deliver very strong merchandise comparable sales." Read the full BJ's Wholesale Club review here
The Dow Jones ended the day (21 May 2020) down by -0.41 %
20 May 2020: Royal Caribbean, Target and Lowe's all reported earnings yesterday. Lowe's impressed more than The Home Depot did the other day. While Target revenue increased sharply and was driven by online sales the cost of implementing and executing all their online sales saw a sharp increase in Target's cost of sales, which created some margin pressure for Target. Royal Caribbean Cruises reported losses for the quarter of $1.4 billion as the voluntary pause on their cruises due to the Covid-19 pandemic hit their earrings.
The Dow Jones ended the day (20 May 2020) up by 1.52 %
19 May 2020: Today we covered the latest earnings report of The Home Depot, the world's largest DIY store. And they had the following to say in their latest earnings report. "As the COVID-19 pandemic evolved, we anchored to the core values of our Company by focusing on two key priorities: working to ensure the safety and well-being of our associates and customers, and providing our customers and communities with essential products." Read the full article here
The Dow Jones ended the day (19 May 2020) down by -1.59 %
17 May 2020: We covered one of our personal favourite stock's 2nd quarter 2020 earnings report. The stock is Stitch Fix (SFIX). An online styling and clothing and accessories store with more than 3.5 million active users. They said the following in their latest earnings report. "This quarter, we are excited to expand our new direct buy offerings to even more clients. As we continue to evolve our personalization capabilities we're confident in our ability to capture additional market share". Read the full article here
The Dow Jones ended the day (18 May 2020) up by 3.85%
8 May 2020: One of the biggest players in the tourism and accommodation industry, Booking Holdings (BKNG) reported 1Q 2020 earnings which included some of the impact of the Covid-19 pandemic. The following extract is from their results. "The COVID-19 pandemic has profoundly impacted our Company and the entire travel industry. We have taken immediate steps to stabilize the Company by reducing costs and bolstering our liquidity position" said Glenn Fogel, Chief Executive Officer of Booking Holdings"
The Dow Jones ended the day (8 May 2020) up by 1.91%