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Category: Dow Jones Industrial Average (DJIA)
Last Updated: 1 December 2020 (2:32 ET) This page takes a look at the performance of the Dow Jones Industrial Average (DJIA) for the month of November 2020. The month in which the US elections takes places, and this while US Covid-19 cases continues to surge.
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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 $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
Dow Jones Industrial Average (DJIA) performance during November 2020
The graphic below shows the daily performance of the Dow Jones Industrial Average (The Dow) on a calendar for the month of November 2020. The index levels used in the calculation of the daily performance of the Dow Jones Industrial Average is obtained from Macrotrends.net
So far for November 2020 The Dow Jones is up by 11.2%
So far for November 2020 The Dow Jones is up by 11.2%
Market news and website updates during November 2020
30 November 2020: The Dow Jones ended the day down by -0.91%
Dow Jones Updates:
(4:00 ET) Dow Jones futures are currently trading down by -0.61%
Website Updates:
Earlier we compared the stock performance and earnings reports of American Eagle Outfitters (AEO) and Urban Outfitters (URBN) in order to determine which stock has been the best performer in the past and which one is best placed to outperform in future.
Looking at all the fundamental metrics above Urban Outfitters wins on the Price/Stockholders equity per share metric. Urban Outfitters (URBN) also wins when it comes to the cash as percentage of stock price. American Eagle Outfitters (AEO) has the stronger cash position with their cash as percentage of total assets being higher than that of Urban Outfitters (URBN).
When looking at the PE ratio it is Urban Outfitters once again that wins as it has the lower PE ratio. Urban Outfitters (URBN) is also trading at closer to our latest stock valuation of the group (with it trading at 2.1% discount to our target price) , while American Eagle Outfitters is trading at about 32% above our latest stock valuation (target price) for the group.
Therefore all things considered in the battle between American Eagle Outfitters (EAO) vs Urban Outfitters (URBN) we rate the stock of Urban Outfitters (URBN) as the winner in the battle of the outfitters.
Read the full article here
27 November 2020: The Dow Jones ended the day up by 0.13%
Dow Jones Updates:
(11:08 ET) The Dow Jones is currently trading up by 0.17%
Website Updates:
Earlier we covered the latest earnings report of Urban Outfitters (URBN) . Below a short extract from that article
The image below shows the stock price performance of Urban Outfitters (URBN) vs Buckle Inc (BKE) vs American Eagle Outfitters (AEO) stock over the last 5 years. All of these firms are active in the clothing and accessories sector and their share price performances are pretty similar. The summary below shows their stock price performance over the last 5 years.
The stock of Urban Outfitters has easily outperformed that of American Eagle Outfitters and Buckle over the last 5 years
Read the full article here
26 November 2020:
Dow Jones Updates:
Markets were closed
Website Updates:
Earlier we covered the stock performance of Buckle (BKE) and American Eagle Outfitters (AEO) as well as their latest earnings reports in order to determine which of these two clothing and apparel retailers are best placed to outperform in future. Below a short extract from that article
So let's take a look at the fundamentals and the valuation metrics in order to determine which of these two firms offers the most value at their current stock price.
One of our key metrics is the Price to Stockholders equity per share ratio. When looking at this we find the following:
Based on this metric it is a draw between Buckle (BKE) and American Eagle Outfitters (AEO). So what is the stockholders equity per share you ask? Well if a firm sells all assets, pays all its debts ad distributes the rest to its stockholders, the stockholders equity per share shows what each stockholders will get. Thus the higher this ratio the less you will get out per stock compared to what you are paying for it. So for these firms trading at 3.07 times it stockholders equity you will only get 32.5% of its current stock price out of they were to sell all assets, pay all debt and distribute the rest to stockholders.
Next up cash as percentage of stock price:
Next up lets take a look at the percentage cash on the balance sheet makes up of each group's total assets:
So based on the cash position of these two firms when it comes to cash as percentage of stock price Buckle comes off as the winner, while it is another draw when it comes to the Cash as percentage of the total assets. Next lets take a look at the most overused financial ratio around. The Price to Earnings ratio.
Next up the PE ratio of the stock price:
Read the full article here
25 November 2020: The Dow Jones ended the day down by -0.58%
Dow Jones Updates:
(7:12 ET): Dow Jones futures are currently trading down by -0.17%
(0:07 ET): Dow Jones futures are currently trading up by 0.25%
Website Updates:
Earlier we covered the stock performance of The Home Depot and Lowe's as well as their latest earnings reports in order to determine which of these two DIY retailers are best placed to outperform in future. Below a short extract from that article
So let's take a look at the fundamentals and the valuation metrics in order to determine which of these two firms offers the most value at their current stock price.
One of our key metrics is the Price to Stockholders equity per share ratio. When looking at this we find the following:
Based on this metric Walmart offers far more value than Target Corp. Most firms tend to trade at a ratio of between 2 and 4 times. The higher this ratio the less value a stock offers. A ratio of 6.5 is implying that buying the stock of Target now means you are paying 6.5 times more for the stock than what the stockholders equity per share is worth. But a high stockholders equity per share ratio is still better than a firm that has a stockholders deficit. So what is the stockholders equity per share you ask? Well if a firm sells all assets, pays all its debts ad distributes the rest to its stockholders, the stockholders equity per share shows what each stockholders will get. Thus the higher this ratio the less you will get out per stock compared to what you are paying for it. So for Target at 6.5 times it stockholders equity you will only get 15.38% of its current stock price out of they were to sell all assets, pay all debt and distribute the rest to stockholders. Walmart is slightly better at 20.4% of current stock price
Next up cash as percentage of stock price:
Next up lets take a look at the percentage cash on the balance sheet makes up of each group's total assets:
So based on the cash position of these two firms Lowe’s (LOW) offers more value as their overall cash position compared to their stock price and their overall assets is far greater than that of The Home Depot (HD).
Next up the PE ratio of the stock price:
Read the full article here
24 November 2020:
Dow Jones Updates:
(10:56 ET): The Dow Jones is trading up by 1.31%
(0:07 ET): Dow Jones futures are currently trading up by 0.92%
Website Updates:
Earlier we covered the latest earnings report of Target Corporation. Below a short extract from that article
Looking at the stock performance of Target (TGT) vs Walmart (WMT) vs Kroger (KR) over the last 5 years. All three firms are active in the retail space in the USA. But looking at the stock price performances of these firms it doesn't look like both of them are active in the same space as their stock price performances are totally different. The summary below shows the stock price performance of these firms over the last 5 years:
The stock of Walmart (WMT) has easily outperformed the stock of Target and Kroger over the last 5 years.
Read the full article here
23 November 2020:
Dow Jones Updates:
(6:07 ET): Dow Jones futures are currently trading up by 0.73%
Website Updates:
Earlier we covered the latest earnings report of BellRing Brands.. Below a short extract from that article
COVID-19 Commentary
BellRing continues to monitor the impact of the COVID-19 pandemic on its business and remains focused on ensuring its ability to safeguard the health of its employees, including their economic health, maintaining the continuity of its supply chain to serve customers and consumers and preserving financial liquidity to mitigate the uncertainty caused by the pandemic.
The convenient nutrition category continues to be negatively impacted by changes in consumer behavior (primarily lower on-the-go consumption) in response to the COVID-19 pandemic. In the fourth quarter of 2020, the liquids and powders sub-categories returned to growth relatively in line with their pre-pandemic growth rates. However, the bar sub-category continues to experience year-over-year declines. International net sales for Dymatize and PowerBar products improved when compared to the third quarter of 2020, but continue to be negatively impacted by changes in consumer behavior as discussed earlier. The trajectory of volume recovery for Dymatize and PowerBar is expected to be impacted by changes in the degree of restrictions on mobility and gathering, including closures of specialty retail stores and gyms.
As of September 30, 2020, BellRing had $48.7 million in cash and cash equivalents and the available borrowing capacity under its revolving credit facility was $170.0 million.
Outlook
For fiscal year 2021, BellRing management expects net sales and Adjusted EBITDA to grow 8%-13% and 5%-10%, respectively, over fiscal year 2020 (resulting in a net sales range of $1.07-$1.12 billion and an Adjusted EBITDA range of $207-$217 million).
BellRing management expects the following:
Read the full article here
20 November 2020: The Dow Jones ended the day down by -0.75%
Dow Jones Updates:
(3:00 ET): Dow Jones futures are currently trading down -0.58%
Website Updates:
Earlier we covered the latest earnings report of The Home Depot (HD), the largest DIY store in the world. Below a short extract
So what is Ampco-Pittsburgh stock worth based on their 3rd quarter 2020 earnings report? Based on their earnings report our valuation model provides a target price (full value price) for Ampco-Pittsburgh at $7.20 a stock.
We therefore believe the stock of Ampco-Pittsburgh is undervalued at its current price of $4.12
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $7.20, thus a good entry point into Ampco-Pittsburgh would be at $6.50 or below.
We expect the stock of Ampco-Pittsburgh to kick up from current levels in coming weeks and months to levels closer to our target price (full value price), as their stock is price is undervalued. Since the stock of Ampco-Pittsburgh is trading at well below our suggested entry price we rate their stock as a buy
Read the full article here
19 November 2020: The Dow Jones ended the day up by 0.15%
Dow Jones Updates:
(5:33 ET): Dow Jones futures are currently trading down -0.54%
Website Updates:
Earlier we covered the latest earnings report of The Home Depot (HD), the largest DIY store in the world. Below a short extract
So what is Home Depot stock worth based on their 3rd quarter 2020 earnings report? Based on their earnings report our valuation model provides a target price (full value price) for Home Depot at $204.80 a stock (up very slightly from our 2nd quarter 2020 earnings report review of Home Depot).
We therefore believe the stock of The Home Depot is overvalued at its current price of $272
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $204.80, thus a good entry point into The Home Depot would be at $184.30 or below.
We expect the stock of Home Depot to pull back from current levels in coming weeks and months to levels closer to our target price (full value price), as their stock is price is overvalued and has been for some time and we believe once the spending of stimulus checks at stores such as the Home Depot and Walmart fades their reported earnings and stock prices will decline to reflect these lower sales.19 November 2020:
Read the full article here
18 November 2020: The Dow Jones ended the day down by -1.16%
Website Updates
We covered the latest earnings report of Whole Earth Brands (a plant based foods supplier). Below a short extract from that article
So based on Whole Earth Brands latest earnings report what do we value Whole Earth Brands stock at? The fact that Whole Earth Brands (FREE) is loss making makes it harder to value the stock. Our base position when a firm is loss making is to use its stockholders equity per share as the base of our valuation. In the case of Whole Earth Brands they stockholders equity per share is $7.58
We therefore believe that the stock of Whole Earth Brands is slightly overvalued. We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price, which in this case is $7.58. A good entry price into Whole Earth Brands would therefore be at $6.80 or below.
We expect the stock of Whole Earth Brands to pull back in coming weeks and months to levels closer to our target price (full value price) in coming weeks and months. Since the stock of Whole Earth Brands is trading at well above our suggested entry point we rate the stock of Whole Earth Brands as a sell
Read the full article here
17 November 2020: The Dow ended they day down -0.56%
Dow Jones Updates:
(00:03 ET): Dow Jones futures are currently trading down by -0.28%
Website Updates
We covered the latest earnings report of Paloalto. Below a short extract from that article
So based on Paloalto latest earnings report what do we value Paloalto stock at? Based on their earnings reported our valuation model provides a target price (full value price) for Paloalto at $169.20 per stock.
We therefore believe that the stock of Paloalto is overvalued. We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price, which in this case is $169.20 A good entry price into Paloalto would therefore be at $152.30 or below.
We expect the stock of Paloalto to pull back in coming weeks and months to levels closer to our target price (full value price). Since the stock of Paloalto is trading at well above our suggested entry point we rate the stock of Paloalto as a sell
Read the full article here
16 November 2020: The Dow Jones ended the day up by 1.6%
Dow Jones Updates:
(08:43 ET): Dow Jones futures are currently trading up 1.81%
We covered the latest earnings report of Spectrum Brands. Below a short extract from that article
So based on Spectrum Brands latest earnings report what do we value Spectrum Brands stock at? Based on their earnings reported our valuation model provides a target price (full value price) for Spectrum Brands at $47.30 per stock.
We therefore believe that the stock of Spectrum Brands is slightly overvalued. We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price, which in this case is $47.30. A good entry price into Spectrum Brands would therefore be at $42.60 or below.
We expect the stock of Spectrum Brands to pull back in coming weeks and months to levels closer to our target price (full value price) in coming weeks and months. Since the stock of Spectrum Brands is trading at well above our suggested entry point we rate the stock of Spectrum Brands as a sell
Read the full article here
13 November 2020: The Dow Jones ended the day up by 1.37%
Dow Jones Updates:
(3:54 ET): Dow Jones futures are currently trading up by 0.57%
Website Updates:
We covered the latest earnings report of CMC Materials (CCMP). Below a short extract from that article.
Key Highlights
Total revenue decreased 1.6% in the fourth quarter compared to the same quarter last year as stronger demand in CMP slurries and electronic chemicals as well as higher wood treatment revenue were offset by lower revenue in pipeline performance products and CMP pads. Net income for the quarter was $36.9 million compared to a loss of $20.2 million in the prior year primarily due to the impairment charge the company took for its strategic decision to exit the wood treatment business in the prior year. Adjusted EBITDA was $84.0 million, down 1.5% compared with the prior year. Full year revenue was a record and increased 7.6% compared to the last year primarily due to a full year of revenue from the company's acquisition of KMG Chemicals, Inc. in November of 2018, growth in CMP slurries and higher wood treatment revenue. During the year the company generated $287.3 million in cash flow from operations, and had $257.4 million of cash on hand and $921.4 million in total debt as of the end of the fiscal year.
“I am proud of our performance, delivering another year of record revenue and profitability despite the challenging and unprecedented environment caused by the COVID-19 pandemic, which demonstrates our strong execution and robust businesses. We are most grateful for the overall well-being of our employees, and I would like to thank our global teams for their dedication to driving our record results,” said David Li, President and CEO of CMC Materials. “In fiscal 2021, we expect to see continued strong demand from our semiconductor customers driven by advanced node transitions to support new technologies including 5G, as well as improving fundamentals and demand from our pipeline customers. We also started the year with the rebranding of our company to CMC Materials, which we believe embodies our focus on delivering innovative, high value, specialty materials to our customers globally.”
Read the full article here
12 November 2020: The Dow Jones ended the day down -1.08%
Dow Jones Updates:
(02:31 ET): Dow Jones futures are currently trading down by -0.58%
Website Updates:
We covered the latest earnings report of Advance Auto Parts (AAP). Below a short extract from that article.
The summary below shows the number of homes closed for D.R Horton for the 3 months ended September 2020
Region Number of homes Value (in $ millions)
Read the full article here
11 November 2020: The Dow Jones ended the day down by -0.08%
Dow Jones Updates:
(02:31 ET): Dow Jones futures are currently trading up by 0.28%
Website Updates:
We covered the latest earnings report of Advance Auto Parts (AAP). Below a short extract from that article.
Never has it been more important for us to put the health and safety of our customers and team members first as COVID-19 continues to impact our communities and ongoing operations. As a result, we continue to adapt and take the steps necessary to prioritize the well-being of our customers and team members" said Tom Greco, President and Chief Executive Officer. "Our third quarter comparable sales growth of 10.2% is the strongest in 15 years, and was led by our DIY Omnichannel performance. Double digit comp sales combined with disciplined cost control resulted in 183 basis points of adjusted operating income margin expansion and a 95% increase in quarterly free cash flow. Industry demand remained strong in the quarter, however our performance is also a testament to the resilience of our team members and independent partners during the COVID-19 pandemic. While we cannot predict the direction of the pandemic from here, we remain laser focused on the execution of our long-term plans. This includes the introduction of our #DieHardisBack marketing campaign on October 18. The energy and excitement surrounding this integrated campaign has driven widespread coverage and recognition not only for DieHard®, but for the Advance and Carquest brands. Including DieHard, we’re building an increasingly differentiated assortment to complement our strong digital presence and a comprehensive suite of fulfillment options including over 6000 conveniently located stores and Advance Same Day™ delivery. We believe that these capabilities, combined with a strong balance sheet and talented team, position us well to continue to drive growth and margin expansion in the years ahead
Read the full article here
10 November 2020:
Dow Jones Updates:
(07:19 ET): Dow Jones futures are currently trading up by 0.87%
(00:02 ET): Dow Jones futures are currently trading down by -0.71%
Website Updates:
We covered the latest earnings report of Starbucks (SBUX). Below a short extract from that article.
So based on Starbucks (SBUX) latest earnings report and their fiscal guidance what do we value the stock of Starbucks at? Based on their 4th quarter 2020 earnings report and their guidance provided our valuation model provides a target price (full value price) for Starbucks (SBUX) at $71.20 a stock. We therefore believe the stock of Starbucks is overvalued
We recommend that long term fundamental and value investors look to enter a stock at least 10% below our target price (full value price) which in this case is $71.20. A good entry point into Starbucks would therefore be at $64.10 or below.
We expect the stock of Starbucks (SBUX) to pull back from current levels to levels closer to our target price (full value price) in coming weeks and months. We therefore rate the stock of Starbucks as a sell.
Read the full article here
9 November 2020: The Dow Jones ended the day up 2.95%
Dow Jones Updates:
(11:25 ET): The Dow Jones is currently trading up by a very strong 3.7%
(08:36 ET): Dow Jones futures are currently trading up by a massive 5.97%
(08:02 ET): Dow Jones futures are currently trading up by 2.67%
(04:12 ET): Dow Jones futures are currently trading up by 1.38%
Website Updates:
We covered the latest earnings report of Discovery Inc, the owner of Discovery Channel and HGTV. Below a short extract.
So based on Discovery Inc’s latest earnings report what do we value Discovery stock at? Based on their earnings reported our valuation model provides a target price (full value price) for Discovery Corporation at $31 per stock
We therefore believe that the stock of Discovery Inc stock is undervalued. We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price, which in this case is $31. A good entry price into Discovery Corporation would therefore be at $27.90 or below.
We expect the stock of Discovery Corporation to kick up from current levels to levels closer to our target price in coming weeks and months as we do believe the group's stock is undervalued.
Since the stock of Discovery Inc is trading at well below our suggested entry point we rate the stock of Discovery Inc as a buy
Read the full article here
6 November 2020: The Dow Jones ended the day down -0.24%
Dow Jones Updates:
(02:47 ET): Dow Jones futures are currently trading down by -0.42%
Website Updates:
We covered the latest earnings report of Ferrari (RACE), one of the world's most famous brands and premier sports car builder. Below a short extract from that article/
Based on the 3rd quarter 2020 earnings report of Ferrari what do we value the group's stock at? Based on their earnings reported and their outlook our stock valuation model provides a target price (full value price) for Ferrari at $161.50 a stock. We therefore believe the stock of Ferrari is overvalued at its current price.
We usually recommend that long term fundamental and value investors look to enter a stock at least 10% below our target price which in this case is $161.50. A good entry point into the stock of Ferrari (RACE) would therefore be at $145.40 or below.
Since the stock of Ferrari is trading at well above our suggested entry point into the stock we rate the stock of Ferrari as a sell
Read the full article here
5 November 2020: The Dow Jones ended the day up by 1.95%
Dow Jones Updates:
(06:24 ET): Dow Jones futures are currently trading up by 1.17%
(02:47 ET): Dow Jones futures are currently trading up by 0.73%
Website Updates:
We covered the latest earnings report of Clearwater Paper, a manufacturer of tissues, cardboard and other paper related packing products and materials Below a short extract from that article
So what do we value the stock of Clearwater Paper (CLW) at following the release of their 3rd quarter 2020 earnings report. Based on their earnings reported our stock valuation model provides a target price of $72.70 per Clearwater Paper (CLW) stock. We therefore believe the stock of Clearwater Paper is undervalued at its current price.
We usually recommend that long term fundamental and value investors look to enter a stock at least 10% below our target price, which in this case is $72.70. A good entry point would therefore be at $65.40 or below.
Since the stock of Clearwater Paper is trading at well below our suggested entry point we rate their stock as a buy
Read the full article here
4 November 2020: The Dow Jones ended the day up by 1.34%
Dow Jones Updates:
(03:45 ET): Dow Jones futures are currently trading down by -0.27%
Website Updates:
We covered the latest earnings report of Credit Acceptance Corporation, a firm that offers finance plans that allows dealers to sell to consumers regardless of their credit record. Below a short extract.
So based on their 3rd quarter 2020 earnings report what do we value the stock of Credit Acceptance Corporation at? Based on the the earnings reported our stock valuation model provides a target price of $315 per Credit Acceptance Corporation stock. Therefore we rate the stock of Credit Acceptance Corporation as fully valued.
We usually recommend that fundamental long term and value investors look to enter a stock at least 10% below our target price, which in this case is $315 a stock. A good entry point into the stock of Credit Acceptance Corporation would therefore be at $283.50 or below.
We expect the stock of Credit Acceptance Corporation to trade in a narrow range around its current price in coming weeks and months. All things considered we rate the stock of Credit Acceptance Corporation as a hold
Read the full article here
3 November 2020: The Dow Jones ended the day up by 2.06%
Dow Jones Updates:
(11:54 ET): The Dow Jones is currently trading up by 2.29%
(06:29 ET): Dow Jones futures are currently trading up by 1.17%
Website Updates:
We covered the latest earnings report of Estee Lauder, one of the largest beauty products and makeup manufactures in the world. Below a short extract of that article
So based on Estee Lauder (EL) latest earnings report what do we value their stock at? Based on their latest earnings report our valuation model provides a target price of $161.40 a stock. We therefore believe the stock of Estee Lauder is overvalued at its current price.
We usually recommend that investors look to enter a stock at least 10% below our target price which in this case is $161.40. Therefore a good entry point into the stock of Estee Lauder would be at $145 or below.
Since the stock of Estee Lauder is trading at well above our suggested entry price or target price we rate the stock of Estee Lauder as a sell.
Read the full article here
2 November 2020: The Dow Jones ended the day up by 1.6%
Dow Jones Updates:
(11:45 ET): The Dow Jones is currently trading up by 1.51%
(06:29 ET): Dow Jones futures are currently trading up by 1.39%
Website Updates:
We covered the latest earnings report of Honeywell, one of the largest manufacturing firms in the world, and a new addition to the Dow Jones. Below a short extract of that article
So based on the 3rd quarter 2020 earnings report of Honeywell (NYSE: HON) what do we value Honeywell (HON) stock at? Based on their 3rd quarter 2020 earnings report our valuation models provide a target price (full value price) for Honeywell stock at $124.50 a stock. We therefore believe the stock of Honeywell is slightly overvalued.
We usually advise investors to look to enter a stock at least 10% below our target price (full value price) which in this case is $124.50. So a good entry point into Honeywell would be around $112.00. We expect the stock price of Honeywell will pull back to levels closer to our target price (full value price) in coming weeks and months.
Since the stock of Honeywell is trading at well above our suggested entry point we rate the stock as a sell
Read the full article here
Dow Jones Updates:
(4:00 ET) Dow Jones futures are currently trading down by -0.61%
Website Updates:
Earlier we compared the stock performance and earnings reports of American Eagle Outfitters (AEO) and Urban Outfitters (URBN) in order to determine which stock has been the best performer in the past and which one is best placed to outperform in future.
Looking at all the fundamental metrics above Urban Outfitters wins on the Price/Stockholders equity per share metric. Urban Outfitters (URBN) also wins when it comes to the cash as percentage of stock price. American Eagle Outfitters (AEO) has the stronger cash position with their cash as percentage of total assets being higher than that of Urban Outfitters (URBN).
When looking at the PE ratio it is Urban Outfitters once again that wins as it has the lower PE ratio. Urban Outfitters (URBN) is also trading at closer to our latest stock valuation of the group (with it trading at 2.1% discount to our target price) , while American Eagle Outfitters is trading at about 32% above our latest stock valuation (target price) for the group.
Therefore all things considered in the battle between American Eagle Outfitters (EAO) vs Urban Outfitters (URBN) we rate the stock of Urban Outfitters (URBN) as the winner in the battle of the outfitters.
Read the full article here
27 November 2020: The Dow Jones ended the day up by 0.13%
Dow Jones Updates:
(11:08 ET) The Dow Jones is currently trading up by 0.17%
Website Updates:
Earlier we covered the latest earnings report of Urban Outfitters (URBN) . Below a short extract from that article
The image below shows the stock price performance of Urban Outfitters (URBN) vs Buckle Inc (BKE) vs American Eagle Outfitters (AEO) stock over the last 5 years. All of these firms are active in the clothing and accessories sector and their share price performances are pretty similar. The summary below shows their stock price performance over the last 5 years.
- Urban Outfitters (URBN): 26.9%
- American Eagle Outfitter (AEO): 18.9%
- Buckle (BKE): -6.5%
The stock of Urban Outfitters has easily outperformed that of American Eagle Outfitters and Buckle over the last 5 years
Read the full article here
26 November 2020:
Dow Jones Updates:
Markets were closed
Website Updates:
Earlier we covered the stock performance of Buckle (BKE) and American Eagle Outfitters (AEO) as well as their latest earnings reports in order to determine which of these two clothing and apparel retailers are best placed to outperform in future. Below a short extract from that article
So let's take a look at the fundamentals and the valuation metrics in order to determine which of these two firms offers the most value at their current stock price.
One of our key metrics is the Price to Stockholders equity per share ratio. When looking at this we find the following:
- Price/Stockholders equity per share for American Eagle Outfitters (AEO): 3.07
- Price/Stockholders equity per share for Buckle (BKE): 3.07
Based on this metric it is a draw between Buckle (BKE) and American Eagle Outfitters (AEO). So what is the stockholders equity per share you ask? Well if a firm sells all assets, pays all its debts ad distributes the rest to its stockholders, the stockholders equity per share shows what each stockholders will get. Thus the higher this ratio the less you will get out per stock compared to what you are paying for it. So for these firms trading at 3.07 times it stockholders equity you will only get 32.5% of its current stock price out of they were to sell all assets, pay all debt and distribute the rest to stockholders.
Next up cash as percentage of stock price:
- Cash as percentage of stock price for American Eagle Outfitters (HD): 21.1%
- Cash as percentage of stock price for Buckle (BKE) : 24.4%
Next up lets take a look at the percentage cash on the balance sheet makes up of each group's total assets:
- Cash as percentage of stock price for American Eagle Outfitters (AEO) : 36.9%
- Cash as percentage of stock price for Buckle (BKE): 36.9%
So based on the cash position of these two firms when it comes to cash as percentage of stock price Buckle comes off as the winner, while it is another draw when it comes to the Cash as percentage of the total assets. Next lets take a look at the most overused financial ratio around. The Price to Earnings ratio.
Next up the PE ratio of the stock price:
- PE ratio for American Eagle Outfitters (EAO): 13.9
- PE ratio for Buckle (BKE) : 12.4
Read the full article here
25 November 2020: The Dow Jones ended the day down by -0.58%
Dow Jones Updates:
(7:12 ET): Dow Jones futures are currently trading down by -0.17%
(0:07 ET): Dow Jones futures are currently trading up by 0.25%
Website Updates:
Earlier we covered the stock performance of The Home Depot and Lowe's as well as their latest earnings reports in order to determine which of these two DIY retailers are best placed to outperform in future. Below a short extract from that article
So let's take a look at the fundamentals and the valuation metrics in order to determine which of these two firms offers the most value at their current stock price.
One of our key metrics is the Price to Stockholders equity per share ratio. When looking at this we find the following:
- Price/Stockholders equity per share for The Home Depot (HD): 4.9
- Price/Stockholders equity per share for Lowe’s (LOW): 6.5
Based on this metric Walmart offers far more value than Target Corp. Most firms tend to trade at a ratio of between 2 and 4 times. The higher this ratio the less value a stock offers. A ratio of 6.5 is implying that buying the stock of Target now means you are paying 6.5 times more for the stock than what the stockholders equity per share is worth. But a high stockholders equity per share ratio is still better than a firm that has a stockholders deficit. So what is the stockholders equity per share you ask? Well if a firm sells all assets, pays all its debts ad distributes the rest to its stockholders, the stockholders equity per share shows what each stockholders will get. Thus the higher this ratio the less you will get out per stock compared to what you are paying for it. So for Target at 6.5 times it stockholders equity you will only get 15.38% of its current stock price out of they were to sell all assets, pay all debt and distribute the rest to stockholders. Walmart is slightly better at 20.4% of current stock price
Next up cash as percentage of stock price:
- Cash as percentage of stock price for The Home Depot (HD): 3.3%
- Cash as percentage of stock price for Lowe’s (LOW) : 6.8%
Next up lets take a look at the percentage cash on the balance sheet makes up of each group's total assets:
- Cash as percentage of stock price for The Home Depot (HD) : 5.7%
- Cash as percentage of stock price for Lowe’s (LOW): 11.8%
So based on the cash position of these two firms Lowe’s (LOW) offers more value as their overall cash position compared to their stock price and their overall assets is far greater than that of The Home Depot (HD).
Next up the PE ratio of the stock price:
- PE ratio for The Home Depot (HD): 20.1
- PE ratio for Lowe’s (LOW) : 21.9
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24 November 2020:
Dow Jones Updates:
(10:56 ET): The Dow Jones is trading up by 1.31%
(0:07 ET): Dow Jones futures are currently trading up by 0.92%
Website Updates:
Earlier we covered the latest earnings report of Target Corporation. Below a short extract from that article
Looking at the stock performance of Target (TGT) vs Walmart (WMT) vs Kroger (KR) over the last 5 years. All three firms are active in the retail space in the USA. But looking at the stock price performances of these firms it doesn't look like both of them are active in the same space as their stock price performances are totally different. The summary below shows the stock price performance of these firms over the last 5 years:
- Walmart (WMT): 154.7%
- Target (TGT): 136%
- Kroger (KR): -22.6%
The stock of Walmart (WMT) has easily outperformed the stock of Target and Kroger over the last 5 years.
Read the full article here
23 November 2020:
Dow Jones Updates:
(6:07 ET): Dow Jones futures are currently trading up by 0.73%
Website Updates:
Earlier we covered the latest earnings report of BellRing Brands.. Below a short extract from that article
COVID-19 Commentary
BellRing continues to monitor the impact of the COVID-19 pandemic on its business and remains focused on ensuring its ability to safeguard the health of its employees, including their economic health, maintaining the continuity of its supply chain to serve customers and consumers and preserving financial liquidity to mitigate the uncertainty caused by the pandemic.
The convenient nutrition category continues to be negatively impacted by changes in consumer behavior (primarily lower on-the-go consumption) in response to the COVID-19 pandemic. In the fourth quarter of 2020, the liquids and powders sub-categories returned to growth relatively in line with their pre-pandemic growth rates. However, the bar sub-category continues to experience year-over-year declines. International net sales for Dymatize and PowerBar products improved when compared to the third quarter of 2020, but continue to be negatively impacted by changes in consumer behavior as discussed earlier. The trajectory of volume recovery for Dymatize and PowerBar is expected to be impacted by changes in the degree of restrictions on mobility and gathering, including closures of specialty retail stores and gyms.
As of September 30, 2020, BellRing had $48.7 million in cash and cash equivalents and the available borrowing capacity under its revolving credit facility was $170.0 million.
Outlook
For fiscal year 2021, BellRing management expects net sales and Adjusted EBITDA to grow 8%-13% and 5%-10%, respectively, over fiscal year 2020 (resulting in a net sales range of $1.07-$1.12 billion and an Adjusted EBITDA range of $207-$217 million).
BellRing management expects the following:
- Net sales growth to be high single digits in the first half of 2021 and mid teens in the second half of 2021;
- Adjusted EBITDA growth to occur entirely in the second half of 2021, resulting from the timing of material and logistics cost increases, as well as incremental investments in brand building; and
- Quarterly Adjusted EBITDA pacing in the first half of 2021 to be similar to 2020.
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20 November 2020: The Dow Jones ended the day down by -0.75%
Dow Jones Updates:
(3:00 ET): Dow Jones futures are currently trading down -0.58%
Website Updates:
Earlier we covered the latest earnings report of The Home Depot (HD), the largest DIY store in the world. Below a short extract
So what is Ampco-Pittsburgh stock worth based on their 3rd quarter 2020 earnings report? Based on their earnings report our valuation model provides a target price (full value price) for Ampco-Pittsburgh at $7.20 a stock.
We therefore believe the stock of Ampco-Pittsburgh is undervalued at its current price of $4.12
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $7.20, thus a good entry point into Ampco-Pittsburgh would be at $6.50 or below.
We expect the stock of Ampco-Pittsburgh to kick up from current levels in coming weeks and months to levels closer to our target price (full value price), as their stock is price is undervalued. Since the stock of Ampco-Pittsburgh is trading at well below our suggested entry price we rate their stock as a buy
Read the full article here
19 November 2020: The Dow Jones ended the day up by 0.15%
Dow Jones Updates:
(5:33 ET): Dow Jones futures are currently trading down -0.54%
Website Updates:
Earlier we covered the latest earnings report of The Home Depot (HD), the largest DIY store in the world. Below a short extract
So what is Home Depot stock worth based on their 3rd quarter 2020 earnings report? Based on their earnings report our valuation model provides a target price (full value price) for Home Depot at $204.80 a stock (up very slightly from our 2nd quarter 2020 earnings report review of Home Depot).
We therefore believe the stock of The Home Depot is overvalued at its current price of $272
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $204.80, thus a good entry point into The Home Depot would be at $184.30 or below.
We expect the stock of Home Depot to pull back from current levels in coming weeks and months to levels closer to our target price (full value price), as their stock is price is overvalued and has been for some time and we believe once the spending of stimulus checks at stores such as the Home Depot and Walmart fades their reported earnings and stock prices will decline to reflect these lower sales.19 November 2020:
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18 November 2020: The Dow Jones ended the day down by -1.16%
Website Updates
We covered the latest earnings report of Whole Earth Brands (a plant based foods supplier). Below a short extract from that article
So based on Whole Earth Brands latest earnings report what do we value Whole Earth Brands stock at? The fact that Whole Earth Brands (FREE) is loss making makes it harder to value the stock. Our base position when a firm is loss making is to use its stockholders equity per share as the base of our valuation. In the case of Whole Earth Brands they stockholders equity per share is $7.58
We therefore believe that the stock of Whole Earth Brands is slightly overvalued. We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price, which in this case is $7.58. A good entry price into Whole Earth Brands would therefore be at $6.80 or below.
We expect the stock of Whole Earth Brands to pull back in coming weeks and months to levels closer to our target price (full value price) in coming weeks and months. Since the stock of Whole Earth Brands is trading at well above our suggested entry point we rate the stock of Whole Earth Brands as a sell
Read the full article here
17 November 2020: The Dow ended they day down -0.56%
Dow Jones Updates:
(00:03 ET): Dow Jones futures are currently trading down by -0.28%
Website Updates
We covered the latest earnings report of Paloalto. Below a short extract from that article
So based on Paloalto latest earnings report what do we value Paloalto stock at? Based on their earnings reported our valuation model provides a target price (full value price) for Paloalto at $169.20 per stock.
We therefore believe that the stock of Paloalto is overvalued. We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price, which in this case is $169.20 A good entry price into Paloalto would therefore be at $152.30 or below.
We expect the stock of Paloalto to pull back in coming weeks and months to levels closer to our target price (full value price). Since the stock of Paloalto is trading at well above our suggested entry point we rate the stock of Paloalto as a sell
Read the full article here
16 November 2020: The Dow Jones ended the day up by 1.6%
Dow Jones Updates:
(08:43 ET): Dow Jones futures are currently trading up 1.81%
We covered the latest earnings report of Spectrum Brands. Below a short extract from that article
So based on Spectrum Brands latest earnings report what do we value Spectrum Brands stock at? Based on their earnings reported our valuation model provides a target price (full value price) for Spectrum Brands at $47.30 per stock.
We therefore believe that the stock of Spectrum Brands is slightly overvalued. We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price, which in this case is $47.30. A good entry price into Spectrum Brands would therefore be at $42.60 or below.
We expect the stock of Spectrum Brands to pull back in coming weeks and months to levels closer to our target price (full value price) in coming weeks and months. Since the stock of Spectrum Brands is trading at well above our suggested entry point we rate the stock of Spectrum Brands as a sell
Read the full article here
13 November 2020: The Dow Jones ended the day up by 1.37%
Dow Jones Updates:
(3:54 ET): Dow Jones futures are currently trading up by 0.57%
Website Updates:
We covered the latest earnings report of CMC Materials (CCMP). Below a short extract from that article.
Key Highlights
Total revenue decreased 1.6% in the fourth quarter compared to the same quarter last year as stronger demand in CMP slurries and electronic chemicals as well as higher wood treatment revenue were offset by lower revenue in pipeline performance products and CMP pads. Net income for the quarter was $36.9 million compared to a loss of $20.2 million in the prior year primarily due to the impairment charge the company took for its strategic decision to exit the wood treatment business in the prior year. Adjusted EBITDA was $84.0 million, down 1.5% compared with the prior year. Full year revenue was a record and increased 7.6% compared to the last year primarily due to a full year of revenue from the company's acquisition of KMG Chemicals, Inc. in November of 2018, growth in CMP slurries and higher wood treatment revenue. During the year the company generated $287.3 million in cash flow from operations, and had $257.4 million of cash on hand and $921.4 million in total debt as of the end of the fiscal year.
“I am proud of our performance, delivering another year of record revenue and profitability despite the challenging and unprecedented environment caused by the COVID-19 pandemic, which demonstrates our strong execution and robust businesses. We are most grateful for the overall well-being of our employees, and I would like to thank our global teams for their dedication to driving our record results,” said David Li, President and CEO of CMC Materials. “In fiscal 2021, we expect to see continued strong demand from our semiconductor customers driven by advanced node transitions to support new technologies including 5G, as well as improving fundamentals and demand from our pipeline customers. We also started the year with the rebranding of our company to CMC Materials, which we believe embodies our focus on delivering innovative, high value, specialty materials to our customers globally.”
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12 November 2020: The Dow Jones ended the day down -1.08%
Dow Jones Updates:
(02:31 ET): Dow Jones futures are currently trading down by -0.58%
Website Updates:
We covered the latest earnings report of Advance Auto Parts (AAP). Below a short extract from that article.
The summary below shows the number of homes closed for D.R Horton for the 3 months ended September 2020
Region Number of homes Value (in $ millions)
- East............................................................................................ 3,228 1,013
- Midwest..................................................................................... 1,496 549.3
- Southeast ................................................................................... 7,835 2,248
- South Central............................................................................. 6,731 1,751
- Southwest .................................................................................. 1,554 466.3
- West........................................................................................... 2,882 1.268
- Total....................................................................................... 23 726 7,298.4
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11 November 2020: The Dow Jones ended the day down by -0.08%
Dow Jones Updates:
(02:31 ET): Dow Jones futures are currently trading up by 0.28%
Website Updates:
We covered the latest earnings report of Advance Auto Parts (AAP). Below a short extract from that article.
Never has it been more important for us to put the health and safety of our customers and team members first as COVID-19 continues to impact our communities and ongoing operations. As a result, we continue to adapt and take the steps necessary to prioritize the well-being of our customers and team members" said Tom Greco, President and Chief Executive Officer. "Our third quarter comparable sales growth of 10.2% is the strongest in 15 years, and was led by our DIY Omnichannel performance. Double digit comp sales combined with disciplined cost control resulted in 183 basis points of adjusted operating income margin expansion and a 95% increase in quarterly free cash flow. Industry demand remained strong in the quarter, however our performance is also a testament to the resilience of our team members and independent partners during the COVID-19 pandemic. While we cannot predict the direction of the pandemic from here, we remain laser focused on the execution of our long-term plans. This includes the introduction of our #DieHardisBack marketing campaign on October 18. The energy and excitement surrounding this integrated campaign has driven widespread coverage and recognition not only for DieHard®, but for the Advance and Carquest brands. Including DieHard, we’re building an increasingly differentiated assortment to complement our strong digital presence and a comprehensive suite of fulfillment options including over 6000 conveniently located stores and Advance Same Day™ delivery. We believe that these capabilities, combined with a strong balance sheet and talented team, position us well to continue to drive growth and margin expansion in the years ahead
Read the full article here
10 November 2020:
Dow Jones Updates:
(07:19 ET): Dow Jones futures are currently trading up by 0.87%
(00:02 ET): Dow Jones futures are currently trading down by -0.71%
Website Updates:
We covered the latest earnings report of Starbucks (SBUX). Below a short extract from that article.
So based on Starbucks (SBUX) latest earnings report and their fiscal guidance what do we value the stock of Starbucks at? Based on their 4th quarter 2020 earnings report and their guidance provided our valuation model provides a target price (full value price) for Starbucks (SBUX) at $71.20 a stock. We therefore believe the stock of Starbucks is overvalued
We recommend that long term fundamental and value investors look to enter a stock at least 10% below our target price (full value price) which in this case is $71.20. A good entry point into Starbucks would therefore be at $64.10 or below.
We expect the stock of Starbucks (SBUX) to pull back from current levels to levels closer to our target price (full value price) in coming weeks and months. We therefore rate the stock of Starbucks as a sell.
Read the full article here
9 November 2020: The Dow Jones ended the day up 2.95%
Dow Jones Updates:
(11:25 ET): The Dow Jones is currently trading up by a very strong 3.7%
(08:36 ET): Dow Jones futures are currently trading up by a massive 5.97%
(08:02 ET): Dow Jones futures are currently trading up by 2.67%
(04:12 ET): Dow Jones futures are currently trading up by 1.38%
Website Updates:
We covered the latest earnings report of Discovery Inc, the owner of Discovery Channel and HGTV. Below a short extract.
So based on Discovery Inc’s latest earnings report what do we value Discovery stock at? Based on their earnings reported our valuation model provides a target price (full value price) for Discovery Corporation at $31 per stock
We therefore believe that the stock of Discovery Inc stock is undervalued. We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price, which in this case is $31. A good entry price into Discovery Corporation would therefore be at $27.90 or below.
We expect the stock of Discovery Corporation to kick up from current levels to levels closer to our target price in coming weeks and months as we do believe the group's stock is undervalued.
Since the stock of Discovery Inc is trading at well below our suggested entry point we rate the stock of Discovery Inc as a buy
Read the full article here
6 November 2020: The Dow Jones ended the day down -0.24%
Dow Jones Updates:
(02:47 ET): Dow Jones futures are currently trading down by -0.42%
Website Updates:
We covered the latest earnings report of Ferrari (RACE), one of the world's most famous brands and premier sports car builder. Below a short extract from that article/
Based on the 3rd quarter 2020 earnings report of Ferrari what do we value the group's stock at? Based on their earnings reported and their outlook our stock valuation model provides a target price (full value price) for Ferrari at $161.50 a stock. We therefore believe the stock of Ferrari is overvalued at its current price.
We usually recommend that long term fundamental and value investors look to enter a stock at least 10% below our target price which in this case is $161.50. A good entry point into the stock of Ferrari (RACE) would therefore be at $145.40 or below.
Since the stock of Ferrari is trading at well above our suggested entry point into the stock we rate the stock of Ferrari as a sell
Read the full article here
5 November 2020: The Dow Jones ended the day up by 1.95%
Dow Jones Updates:
(06:24 ET): Dow Jones futures are currently trading up by 1.17%
(02:47 ET): Dow Jones futures are currently trading up by 0.73%
Website Updates:
We covered the latest earnings report of Clearwater Paper, a manufacturer of tissues, cardboard and other paper related packing products and materials Below a short extract from that article
So what do we value the stock of Clearwater Paper (CLW) at following the release of their 3rd quarter 2020 earnings report. Based on their earnings reported our stock valuation model provides a target price of $72.70 per Clearwater Paper (CLW) stock. We therefore believe the stock of Clearwater Paper is undervalued at its current price.
We usually recommend that long term fundamental and value investors look to enter a stock at least 10% below our target price, which in this case is $72.70. A good entry point would therefore be at $65.40 or below.
Since the stock of Clearwater Paper is trading at well below our suggested entry point we rate their stock as a buy
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4 November 2020: The Dow Jones ended the day up by 1.34%
Dow Jones Updates:
(03:45 ET): Dow Jones futures are currently trading down by -0.27%
Website Updates:
We covered the latest earnings report of Credit Acceptance Corporation, a firm that offers finance plans that allows dealers to sell to consumers regardless of their credit record. Below a short extract.
So based on their 3rd quarter 2020 earnings report what do we value the stock of Credit Acceptance Corporation at? Based on the the earnings reported our stock valuation model provides a target price of $315 per Credit Acceptance Corporation stock. Therefore we rate the stock of Credit Acceptance Corporation as fully valued.
We usually recommend that fundamental long term and value investors look to enter a stock at least 10% below our target price, which in this case is $315 a stock. A good entry point into the stock of Credit Acceptance Corporation would therefore be at $283.50 or below.
We expect the stock of Credit Acceptance Corporation to trade in a narrow range around its current price in coming weeks and months. All things considered we rate the stock of Credit Acceptance Corporation as a hold
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3 November 2020: The Dow Jones ended the day up by 2.06%
Dow Jones Updates:
(11:54 ET): The Dow Jones is currently trading up by 2.29%
(06:29 ET): Dow Jones futures are currently trading up by 1.17%
Website Updates:
We covered the latest earnings report of Estee Lauder, one of the largest beauty products and makeup manufactures in the world. Below a short extract of that article
So based on Estee Lauder (EL) latest earnings report what do we value their stock at? Based on their latest earnings report our valuation model provides a target price of $161.40 a stock. We therefore believe the stock of Estee Lauder is overvalued at its current price.
We usually recommend that investors look to enter a stock at least 10% below our target price which in this case is $161.40. Therefore a good entry point into the stock of Estee Lauder would be at $145 or below.
Since the stock of Estee Lauder is trading at well above our suggested entry price or target price we rate the stock of Estee Lauder as a sell.
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2 November 2020: The Dow Jones ended the day up by 1.6%
Dow Jones Updates:
(11:45 ET): The Dow Jones is currently trading up by 1.51%
(06:29 ET): Dow Jones futures are currently trading up by 1.39%
Website Updates:
We covered the latest earnings report of Honeywell, one of the largest manufacturing firms in the world, and a new addition to the Dow Jones. Below a short extract of that article
So based on the 3rd quarter 2020 earnings report of Honeywell (NYSE: HON) what do we value Honeywell (HON) stock at? Based on their 3rd quarter 2020 earnings report our valuation models provide a target price (full value price) for Honeywell stock at $124.50 a stock. We therefore believe the stock of Honeywell is slightly overvalued.
We usually advise investors to look to enter a stock at least 10% below our target price (full value price) which in this case is $124.50. So a good entry point into Honeywell would be around $112.00. We expect the stock price of Honeywell will pull back to levels closer to our target price (full value price) in coming weeks and months.
Since the stock of Honeywell is trading at well above our suggested entry point we rate the stock as a sell
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