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Category: Dow Jones Industrial Average (DJIA)
Last Updated: 3 January 2021 (00:26 ET) This page takes a look at the performance of the Dow Jones Industrial Average (DJIA) for the month of December 2020. Covid runs rampant and so does the markets
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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 $8.350 trillion as at end of October 2020. The Dow Jones Industrial Average has a trailing PE ratio of 24.5 and the PE is projected (forward PE) is at 22.74 with a indicated dividend yield of 2.24% and a price to book value of 4.25 "
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 $9.17 trillion as at end of November 2020. The Dow Jones Industrial Average has a trailing PE ratio of 24.58 and the PE is projected (forward PE) is at 22.74 with a indicated dividend yield of 2.24% and a price to book value of 4.25
Dow Jones Industrial Average (DJIA) performance during December 2020
The graphic below shows the daily performance of the Dow Jones Industrial Average (The Dow) on a calendar for the month of December 2020. 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 is up by 3.59%
For the month of December 2020 the Dow is up by 3.59%
Market news and website updates during 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
21 December 2020:
Dow Jones Update:
Website Update:
We recently covered the 2nd quarter 2021 earnings report. Below a short extract.
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 is sitting at $303.10 a stock (up strongly from our 1Q 2021 earnings report review of FedEx). We therefore believe the stock of FedEx is slightly 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 $303.10 Therefore we believe the a good entry point into the stock is below $272.80. We expect the stock of FedEx to kick up slightly in coming weeks and months to levels closer to our target price. Since it is trading at just below our target price we rate the stock of FedEx as a hold.
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
11 December 2020: The Dow ended the day up by 0.16%
Dow Jones Updates:
(01:56 ET): Dow Jones futures are currently trading down by - 0.01%
Website Updates:
We recently covered the latest earnings report of Designer Brands. Below a short extract
So based on Designer Brands latest earnings report and the fiscal guidance that they provided what to we value their stock at? Based on the earnings reported and the guidance provided our valuation model provides a target price (full value price) for Designer Brands at $14.30 a stock (down significantly from our 1st quarter 2020 valuation of Designer Brands). We therefore believe the stock of Designer Brands is undervalued following the significant decline in the group's stock price in recent months
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) wich in this case is $14.30. We therefore believe a good entry point into Designer Brands stock is at $12.90 or below.
Since the stock of Designer Brands is trading at well below our suggested entry point we rate the stock a buy. However this is a risky buy so investors should not invest any money they cannot afford to lose.
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 release of Casey's (CASY). Below a short extract
So based on Casey's 2nd quarter 2021 earnings report what are Casey's General Stores stock worth? Based on the earnings report and fiscal guidance provided by Casey's General Stores our valuation models has a target price (full value price) on Casey's General Stores of $208.10 a stock (up from our 1st quarter 2021 earnings report valuation of Casey's)
We therefore believe the stock of Casey's General Stores is slightly undervalued at its current price of $181.88. We suggest looking to buy into Casey's General Stores of at least 10% below our target price. So a suggested entry price is closer to $187.30 a stock.
We expect the stock price of Casey's General Stores to kick up from current levels to levels closer to our target price in coming weeks and months.
Since the stock of Casey's (CASY) is trading at below our suggested entry point we rate the stock as a buy
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 by 0.83%
Dow Jones Updates:
(1:26 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 by 0.2%
Dow Jones Updates:
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
21 December 2020:
Dow Jones Update:
Website Update:
We recently covered the 2nd quarter 2021 earnings report. Below a short extract.
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 is sitting at $303.10 a stock (up strongly from our 1Q 2021 earnings report review of FedEx). We therefore believe the stock of FedEx is slightly 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 $303.10 Therefore we believe the a good entry point into the stock is below $272.80. We expect the stock of FedEx to kick up slightly in coming weeks and months to levels closer to our target price. Since it is trading at just below our target price we rate the stock of FedEx as a hold.
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
11 December 2020: The Dow ended the day up by 0.16%
Dow Jones Updates:
(01:56 ET): Dow Jones futures are currently trading down by - 0.01%
Website Updates:
We recently covered the latest earnings report of Designer Brands. Below a short extract
So based on Designer Brands latest earnings report and the fiscal guidance that they provided what to we value their stock at? Based on the earnings reported and the guidance provided our valuation model provides a target price (full value price) for Designer Brands at $14.30 a stock (down significantly from our 1st quarter 2020 valuation of Designer Brands). We therefore believe the stock of Designer Brands is undervalued following the significant decline in the group's stock price in recent months
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) wich in this case is $14.30. We therefore believe a good entry point into Designer Brands stock is at $12.90 or below.
Since the stock of Designer Brands is trading at well below our suggested entry point we rate the stock a buy. However this is a risky buy so investors should not invest any money they cannot afford to lose.
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
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8 December 2020: The Dow Jones ended the day up by 0.35%
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(14:11 ET): The Dow Jones is currently trading up by 0.4%
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Earlier we covered the latest earnings release of Casey's (CASY). Below a short extract
So based on Casey's 2nd quarter 2021 earnings report what are Casey's General Stores stock worth? Based on the earnings report and fiscal guidance provided by Casey's General Stores our valuation models has a target price (full value price) on Casey's General Stores of $208.10 a stock (up from our 1st quarter 2021 earnings report valuation of Casey's)
We therefore believe the stock of Casey's General Stores is slightly undervalued at its current price of $181.88. We suggest looking to buy into Casey's General Stores of at least 10% below our target price. So a suggested entry price is closer to $187.30 a stock.
We expect the stock price of Casey's General Stores to kick up from current levels to levels closer to our target price in coming weeks and months.
Since the stock of Casey's (CASY) is trading at below our suggested entry point we rate the stock as a buy
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7 December 2020: The Dow Jones ended the day down by -0.49%
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(1:26 ET): Dow Jones futures are currently trading down by -0.23%
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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.
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4 December 2020: The dow Jones ended the day up by 0.83%
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(1:26 ET): Dow Jones futures are currently trading up by 0.22%
3 December 2020: The Dow Jones ended the day up by 0.29%
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(1:02 ET): Dow Jones futures are currently trading down by -0.15%
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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
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2 December 2020: The Dow Jones ended the day up by 0.2%
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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
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1 December 2020: The Dow Jones ended the day up 0.63%
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(2:24 ET) Dow Jones futures are currently trading up by 0.78%
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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
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