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Category: Dow Jones Industrial Average (DJIA)
Last updated: 1 August 2020 (0:51 ET) This page takes a look at the performance of the Dow Jones Industrial Average (DJIA) for the month of July 2020 on a calendar. Its been a pretty wild ride so far during July 2020. Tesla close to record highs, Apple (APPL) hits new record high, US GDP declined by almost -33% and the FED promising more buying and second wave coronavirus fears.
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The index covers all industries except transportation and utilities. The market cap of the Dow Jones firms amounts to $8.058 trillion as at end of June 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 $8.058 trillion as at end of June 2020. The Dow Jones Industrial Average has a trailing PE ratio of 21.36 and the PE is projected (forward PE) is at 23.46 with a indicated dividend yield of 2.66% and a price to book value of 3.87
Dow Jones Industrial Average (DJIA) performance during 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
The Dow Jones ended up by 2.55% for the month of July 2020
The Dow Jones ended up by 2.55% for the month of July 2020
Market news and website updates during July 2020
31 July 2020:
Dow Jones Updates: The Dow ended the last trading day of July 2020 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.
Read the full article here
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 -1.31%
Dow Jones Updates:
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:
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:
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:
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
17 July 2020: The Dow Jones ended the day, 17 July down by -0.23%
Dow Jones Updates:
Website Updates:
Yesterday we covered the latest earnings report from Domino's Pizza. Below an extract from the Domino's Pizza earnings review
So what is Domino's Pizza (NYSE: DPZ) stock worth based on the release of their 2nd 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 $209.40 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 $209.40. Thus we see a good entry point into Domino's stock at $188.50 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).
Read the full article here
16 July 2020: The Dow Jones ended the day down by -0.5%
Dow Jones Updates:
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:
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:
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:
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: The Dow Jones ended the day 13 July up by 0.05%
Dow Jones Updates:
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:
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:
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
8 July 2020:
Dow Jones Updates:
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 Urban Outfitters stock worth based on their 1st quarter 2021 earnings report? Based on Urban Outfitters latest earnings report our valuation model provides a target price (full value price) for Urban Outfitters at $26.40 a stock. We therefore believe the stock of Urban Outfitters is undervalued
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 $26.40, thus a good entry point into Urban Outfitters would be at $23.80 or below.
We expect the stock of Urban Outfitters to recover from the significant drop in its stock price due to the Covid-19 pandemic as states and economies across the world starts opening up again following Covid related lockdowns and stay at home orders.
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%
Dow Jones Updates:
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)
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:
Website updates:
Earlier today we covered the latest earnings report of logistics giant FedEx. Below a short extract of that article.
So based on FedEx (FDX) latest earnings report and their outlook provided what do we value FedEx's stock at? Based on their latest earnings and the outlook provided by the group our target price (full value price) for FedEx at $162.10 a stock (up slightly from our 1Q 2020 earnings report review of FedEx). We therefore believe the stock of FedEx is undervalued
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 $162.10 Therefore we believe the a good entry point into the stock is below $145.90. We expect the stock of FedEx to kick up in coming weeks and months to levels closer to our target price.
Read the full article here
Dow Jones Updates: The Dow ended the last trading day of July 2020 up by 0.44%
- (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.
Read the full article here
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:
- (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 -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
17 July 2020: The Dow Jones ended the day, 17 July down by -0.23%
Dow Jones Updates:
- (11:15 ET): Dow Jones is currently trading down by -0.08%
- (06:38 ET): Dow Jones futures are currently trading up by 0.28%
- (04:41 ET): Dow Jones futures are currently trading up by 0.06%
Website Updates:
Yesterday we covered the latest earnings report from Domino's Pizza. Below an extract from the Domino's Pizza earnings review
So what is Domino's Pizza (NYSE: DPZ) stock worth based on the release of their 2nd 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 $209.40 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 $209.40. Thus we see a good entry point into Domino's stock at $188.50 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).
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: The Dow Jones ended the day 13 July up by 0.05%
Dow Jones Updates:
- (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
8 July 2020:
Dow Jones Updates:
- (14:06 ET): Dow Jones is currently trading down by -0.05%
- (9:51 ET): Dow Jones is currently trading up by 0.74%
- (7:07 ET): Dow Jones futures are currently trading flat. Signaling that markets will open close to where it closed yesterday
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 Urban Outfitters stock worth based on their 1st quarter 2021 earnings report? Based on Urban Outfitters latest earnings report our valuation model provides a target price (full value price) for Urban Outfitters at $26.40 a stock. We therefore believe the stock of Urban Outfitters is undervalued
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 $26.40, thus a good entry point into Urban Outfitters would be at $23.80 or below.
We expect the stock of Urban Outfitters to recover from the significant drop in its stock price due to the Covid-19 pandemic as states and economies across the world starts opening up again following Covid related lockdowns and stay at home orders.
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 -0.30%
- (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:
Earlier today we covered the latest earnings report of logistics giant FedEx. Below a short extract of that article.
So based on FedEx (FDX) latest earnings report and their outlook provided what do we value FedEx's stock at? Based on their latest earnings and the outlook provided by the group our target price (full value price) for FedEx at $162.10 a stock (up slightly from our 1Q 2020 earnings report review of FedEx). We therefore believe the stock of FedEx is undervalued
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 $162.10 Therefore we believe the a good entry point into the stock is below $145.90. We expect the stock of FedEx to kick up in coming weeks and months to levels closer to our target price.
Read the full article here