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Category: Dow Jones Industrial Average (DJIA)
Last Updated: 30 September 2020 (9:00 ET) This page takes a look at the performance of the Dow Jones Industrial Average (DJIA) for the month of September 2020. August 2020 was a very strong month for the Dow. What does September hold for it?
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The Dow Jones Industrial Average® (The Dow®), is a price-weighted measure of 30 U.S. blue-chip companies. The DJIA covers all industries except transportation and utilities. The market cap of the Dow Jones firms amounts to $9.250 trillion as at end of August 2020. "
About the Dow Jones Industrial Average (DJIA)
The Dow Jones Industrial Average® (The Dow®), is a price-weighted measure of 30 U.S. blue-chip companies. The DJIA covers all industries except transportation and utilities. The market cap of the Dow Jones firms amounts to $8.058 trillion as at end of July 2020. The Dow Jones Industrial Average has a trailing PE ratio of 21.6 and the PE is projected (forward PE) is at 23.7 with a indicated dividend yield of 2.63% and a price to book value of 3.88
Dow Jones Industrial Average (DJIA) performance during September 2020
The graphic below shows the daily performance of the Dow Jones Industrial Average (The Dow) on a calendar for the month of September 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 September 2020 the Dow is down by -1.54%
So far for September 2020 the Dow is down by -1.54%
Market news and website updates during September 2020
30 September 2020: The Dow Jones ended the day up by 1.2%
Dow Jones Updates:
(11:54 ET): The Dow Jones is currently trading up by 1.59%
(10:00 ET): The Dow Jones is currently trading up by 1.05%
(9:00 ET): The Dow Jones futures are currently trading down by -0.20%
(2:20 ET): The Dow Jones futures are currently trading down by -1.17%
Website Updates:
We covered the latest earnings report of McCormick (MKC). Below a short extract
Fiscal Year 2020 Financial Outlook
McCormick previously withdrew its fiscal 2020 guidance on March 31, 2020. While recognizing the operating environment continues to evolve and there remains a degree of uncertainty about the pace and shape of the COVID-19 recovery, the company believes the shift in consumer demand to at home consumption will continue. The company expects it will drive growth in this dynamic environment as evidenced by its strong year-to-date fiscal 2020 performance and its momentum entering its fourth quarter. With McCormick's increased visibility to the balance of its fiscal year, the company is resuming guidance.
In 2020, the company expects to grow sales compared to 2019 at the upper end of a 4% to 5% range, which in constant currency is a 5% to 6% projected growth rate. This increase consists entirely of organic growth and reflects growth driven by new products, brand marketing and expanded distribution as well the net impact of the consumer shift in demand as a result of COVID-19 and the consumer's sustained preference for cooking at home. Sales growth is also expected to include the impact of pricing at the beginning of the year, which in conjunction with cost savings, is expected to offset an anticipated mid-single digit inflationary pressure.
Operating income in 2020 is expected to grow from 6% to 7% from $958 million of operating income in 2019. The company projects COVID-19 related costs as well as a higher level of incentive compensation consistent with the company's commitment to a pay-for-performance philosophy across the organization will reduce growth in operating income. Special charges of approximately $7 million are currently projected for 2020 that relate to previously announced organization and streamlining actions. Excluding the impact of special charges in 2020 and 2019, adjusted operating income is expected to increase from 4% to 5%, which in constant currency is 5% to 6%, from adjusted operating income of $979 million in 2019.
McCormick projects 2020 earnings per share to be in the range of $5.60 to $5.68 compared to $5.24 of earnings per share in 2019. Excluding an estimated $0.04 impact of special charges in 2020, the company projects 2020 adjusted earnings per share to be in the range of $5.64 to $5.72 which is an expected increase of 5% to 7%, or in constant currency 6% to 8%.
Read the full article here
29 September 2020: The Dow Jones ended the day down by -0.48%
Dow Jones Updates:
(12:24 ET): The Dow Jones is currently trading down by -0.73%
(2:20 ET): The Dow Jones futures are currently trading up by 0.26%
Website Updates:
We covered the recent stock price history of United Airlines (UAL). Below a short extract of that article
The image below shows the stock price performance of United Airlines (UAL), Southwest Airlines (LUV) and Delta Airlines (DAL) over the last 5 years. So while the image above showed that it has not been a good time for United Airlines. The image below shows the performance of United against its peers. The summary below shows the stock price returns of the three airlines over the last 5 years, sorted from best to worst performer
So of the three airlines the stock of United Airlines have been the worst performer over the last 5 years while the stock of Southwest Airlines (LUV) has been the best performer
Read the full article here
28 September 2020: The Dow Jones ended the day up by 1.51%
Dow Jones Updates:
(13:14 ET): The Dow Jones is currently trading up by 1.83%
(12:09 ET): The Dow Jones is currently trading up by 1.78%
(4:00 ET): The Dow Jones futures are currently trading up by 0.90%
Website Updates:
We covered the latest earnings report of restaurant group, Darden whose brands include Olive Garden and LongHorn steakhouse. Below a short extract.
So based on the earnings report of Darden Restaurants (NYSE:DRI) and the latest earnings guidance provided what do we value Darden Restaurants (DRI) stock at? Based on the earnings reported by the group our valuation model provides a target (full value) price for Darden Restaurants at $84.20 a stock (up slightly from our last earnings report valuation of Darden). We therefore believe the stock of Darden Restaurants is overvalued
We usually suggest long term fundamental and value investors look to enter the stock at least 10% below our target price, which in this case is $84.20 Therefore we believe a good entry point into the stock would be at $75.80 or below
We expect that the stock of Darden to pull back slightly from its current price to levels closer to our target price in coming weeks and months
Read the full article here
25 September 2020: The Dow Jones ended the day up by 1.34%
Dow Jones Updates:
(11:00 ET): The Dow Jones is currently trading up 0.13%
(8:30 ET): The Dow Jones futures are currently trading down by -0.53%
(3:00 ET): The Dow Jones futures are currently trading up by 0.34%
Website Updates:
We covered the latest earnings release from Costco (COST). Below a short extract from that article
So what is Costco Wholesale (NASDAQ: COST) stock worth based on the release of their latest earnings report? Based on their earnings report and the guidance provided our valuation models provide a target (full value) price for Costco of $246.80 a stock. We therefore believe that the stock of Costco Wholesale is overvalued at its current price of $347
We usually suggest long term investors look to enter a stock at least 10% below our target (full value) price which in this case is $246.80. So a good entry point into Costco stock would be at $222 or below. We expect the stock of Costco Wholesale to pull back from current levels to levels closer to our target price (full value price) in coming weeks and months as
Since the stock of Costco is trading at well above our suggested entry point and our full value price we rate the stock of Costco as avoid.
Read the full article here
23 September 2020: The Dow Jones ended the day down by -1.92%
Dow Jones Updates:
(02:46 ET): Dow Jones futures are currently trading up by 0.70%
(01:00 ET): Dow Jones futures are currently trading up by 0.41%
Website Updates:
We covered the latest earnings report of Autozone. Below a short extract of that article
So based on the earnings report of AutoZone (NYSE: AZO) and the latest earnings guidance provided what do we value AutoZone (AZO) stock at? Based on their latest earnings report our target (full value) price for AutoZone at $1140 a stock. We therefore believe the stock of AutoZone is fully valued at its current price
We usually suggest long term fundamental and value investors look to enter the stock at least 10% below our target price, which in this case is $1140 Therefore we believe the a good entry point into the stock is below $1026. We believe the stock of AutoZone will trade in a narrow range around our target price in coming weeks and months.
Read the full article here
22 September 2020: The Dow Jones ended the day up by 0.54%
Dow Jones Updates:
(7:46 ET): Dow Jones futures are currently trading down by -0.14%
Website Updates:
Earlier we compared the performance of the Dow Jones, Nasdaq and S&P500 on a chart over various time periods. Below a short extract from that article
There is one thing that markets do not like. And that is uncertainty. Currently there is a lot of uncertainty in the markets, from the worries about Covid-19 and when a vaccine will become available, uncertainty about potential further fiscal stimulus to try and relieve some of the financial strain on consumers that was brought about by the Covid-19 pandemic. And then one of the biggest worries in the markets right now is the political uncertainty leading up to the elections in about 40 odd days. The only certainty right now is uncertainty. And since markets don't like uncertainty. Expect markets to move up and down in wild swings in coming months.
Read the full article here
21 September 2020: The Dow ended the day down -1.84%
Dow Jones Updates:
(12:04 ET): The Dow Jones is currently trading down by -2.89%
(06:17 ET): Dow Jones futures are currently trading down by -1.93%
(04:10 ET): Dow Jones futures are currently trading down by -1.57%
Website Updates:
Earlier today we covered the latest earnings report from Adobe (ADBE). Below a short extract
Third Quarter Fiscal Year 2020 Financial Highlights
Read the full article here
18 September 2020: The Dow Jones ended the day down by -0.88%
Dow Jones Updates:
(12:15 ET): The Dow Jones is currently trading down by -0.03%
17 September 2020: The Dow Jones ended the day down by -0.47%
Dow Jones Updates:
(12:47 ET): The Dow Jones is currently trading down by -1.04%
(04:45 ET): Dow Jones futures are currently trading down by -0.92%
Website updates:
Yesterday we covered the listing of cloud computing giant Snowflake. Below a short extract
Snowflake's founders started from scratch and built a data platform that would harness the immense power of the cloud. Thousands of customers around the world now mobilize their data in ways previously unimaginable with Snowflake's cloud data platform — a solution for data warehousing, data lakes, data engineering, data science, data application development, and data exchange. Snowflake provides the near-unlimited scale, concurrency, and performance our customers in a variety of industries want, while delivering a single data experience that spans multiple clouds and geographies. But our founder's vision didn't stop there. Our cloud data platform is also the engine that drives the Data Cloud — the global ecosystem where thousands of organizations have seamless and governed access to explore, share, and unlock the potential of data.
Read the full article here
16 September 2020:
Dow Jones Updates:
(12:35 ET): The Dow is currently trading up by 0.83%
(10:55 ET): The Dow is currently trading up by 0.38%
(08:53 ET): Dow Jones futures are currently trading up by 0.28%
(02:40 ET): Dow Jones futures are currently trading up by 0.06%
Website Updates:
We covered the latest earnings report of Cracker Barrel. Below a short extract from that earnings report review. So based on the 4th quarter 2020 earnings report of Cracker Barrel (NASDAQ: CBRL) and what do we value Cracker Barrel (CBRL) stock at? Based on the earnings reported and the fact that the group is now loss making and that they withdrew their fiscal guidance our valuation model provides a target price (full value price) for Cracker Barrel at $145.70 a stock (up slightly from our 3rd quarter 2020 earnings report valuation of Cracker Barrel).
We therefore believe that Cracker Barrel is undervalued at its current price of $133.42
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price) which in this case is $145.70. So a good entry point into Cracker Barrel would be around $131.10. We expect the stock of Cracker Barrel to kick up in coming weeks and months as the various states starts opening up after the covid-19 pandemic.
Read the full article here
15 September 2020: The Dow Jones ended up by 0.01%
Dow Jones Updates:
(09:49 ET): The Dow is currently up by 0.44%
(3:56 ET): Dow Jones futures are currently trading up by 0.38%
Website Updates:
We covered the news regarding Nvidia buying Arm from SoftBank. Below a short extract from that article
“NVIDIA is the perfect partner for Arm,” said Masayoshi Son, chairman and CEO of SBG. “Since acquiring Arm, we have honored our commitments and invested heavily in people, technology and R&D, thereby expanding the business into new areas with high growth potential. Joining forces with a world leader in technology innovation creates new and exciting opportunities for Arm. This is a compelling combination that projects Arm, Cambridge and the U.K. to the forefront of some of the most exciting technological innovations of our time and is why SoftBank is excited to invest in Arm’s long-term success as a major shareholder in NVIDIA. We look forward to supporting the continued success of the combined business.”
“Arm and NVIDIA share a vision and passion that ubiquitous, energy-efficient computing will help address the world’s most pressing issues from climate change to healthcare, from agriculture to education,” said Simon Segars, CEO of Arm. “Delivering on this vision requires new approaches to hardware and software and a long-term commitment to research and development. By bringing together the technical strengths of our two companies we can accelerate our progress and create new solutions that will enable a global ecosystem of innovators. My management team and I are excited to be joining NVIDIA so we can write this next chapter together.”
Read the full article here
14 September 2020: The Dow ended the day up by 1.18%
Dow Jones Updates:
(12:15 ET): The Dow Jones is currently trading up by 1.35%
(9:45 ET): Dow Jones is currently trading up by 0.87%
(1:50 ET): Dow Jones futures are currently trading up by 1.04%
Website Updates:
We covered the latest earnings release of one of the world's biggest retailers, Kroger Company (KR). Below a short extract from that article
So what are The Kroger Company stock worth considering their latest earnings release? Based on their earnings released our valuation models set a target (full value) price for The Kroger Company of $43.60 a stock (up from our 1st quarter 2020 earnings report valuation of Kroger) . We therefore believe Kroger Company stock is undervalued.
We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target price which in this case is $43.60, a good entry point into the stock of Kroger Company would therefore be at $39.20 or below.
We expect that the stock of Kroger Company will kick upwards from its current price to levels closer to our target price/ full value price in coming weeks and months. Since the stock of Kroger is trading at well below our suggested entry point we rate the stock of Kroger (KR) as a buy.
Read the full article here
11 September 2020: The Dow ended the day up 0.48%
Dow Jones Updates:
(03:42 ET): Dow Jones futures are currently trading up by 0.66%
Website Updates:
We covered the latest earnings report of Lululemon (LULU) earlier today. Below a short extract
Based on Lululemon's 2nd quarter 2020 earnings report from Lululemon what do we value their stock at? Based on Lululemon's earnings reported our valuation model provides a target price (full value price) of $162.60 a Lululemon stock (up slightly from our 1st quarter 2020 earnings report valuation of Lululemon).
We therefore believe that the stock of Lululemon is overvalued. We usually recommend that long term fundamental and value investors look to enter a stock at least 10% below our target price which in this case is $162.60. A good entry point into Lululemon would therefore be at $146.40 or below. Since the stock of Lululemon is trading at well above our target price we rate the stock of Lululemon as avoid.
We expect it to pull back strongly from current levels to levels closer to our target price in coming weeks and months.
Read the full article here
10 September 2020: The Dow Jones ended the day down -1.45%
Dow Jones Updates:
Website Updates:
We covered the latest earnings report of Norwegian Cruise Line Holdings (NCLH)
Based on Norwegian Cruise Line Holdings latest earnings reports what do we value their stock at? Based on the earnings reported and the fact that the group is currently loss making and will be into the foreseeable future we value Norwegian Cruise Line Holdings stock at $39.20 a stock. Sure they in a tough spot now. But travel will recover, they will operate again and the good times will be back.
We therefore believe that stock of Norwegian Cruise Line Holdings is undervalued.
We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target price which in this case is $39.20. We therefore believe a good entry point into the stock of Norwegian Cruise Line Holdings is at $35.30 or below.
Since the stock of Norwegian Cruise Line Holdings is trading at well below our recommended entry point into the stock we rate the stock of Norwegian Cruise Line Holdings as a buy. But this call is only for investors willing to sit on the stock for a prolonged period and wait for the Coronavirus to pass, which could be a while. But we believe the strong drop in Norwegian Cruise Line Holdings stock in recent weeks has created a good buying opportunity for those looking for quality assets at depressed prices.
Read the full article here
9 September 2020: The Dow ended the day up by 1.6%
Dow Jones Updates:
Website Updates:
Earlier we compared the performance of the Nasdaq to that of the S&P500 and the Dow Jones over time. Below a short extract from that article
So while the Nasdaq has been under performing the Dow Jones and the S&P500 over the very recent past. It has still easily outperformed the Dow Jones and the S&P500 over the last year, 5 years and 10 year period. Over the last 10 years the Nasdaq has provided a return of 352.4%, the S&P 500 has provided 184.8% and the Dow Jones 153.3%. So basically the Nasdaq has provided over double the returns of the Dow Jones over the last 10 years. So while over the shorter term the tech heavy Nasdaq is declining faster than the Dow Jones and the S&P500 it has easily outperformed them due to the very fact that it is tech heavy as tech stocks has had a very good decade.
Read the full article here
8 September 2020: The Dow ended the day down by -2.25%
Dow Jones Updates:
(13:00 ET): Dow Jones is currently trading down by -1.4%
(09:49 ET): Dow Jones is currently trading down by -2.04%
(08:24 ET): Dow Jones futures are currently trading down by -0.54%
(02:33 ET): Dow Jones futures are currently trading up by 1.03%
Website Updates:
We covered the latest earnings report of Broadcom (AVGO) yesterday. Below a short extract from that article
So based on Broadcom's latest earnings report what do we value their stock at? Based on their 3rd quarter 2020 earnings report our valuation model provides a target price of $345.60 per Broadcom (AVGO) stock. We therefore believe that the stock of Broadcom is fully valued at its current price
We usually recommend that long term and value investors look to enter a stock at least 10% below our target price. A good entry into the stock of Broadcom would therefore be at $311 or below.
Since the stock of Broadcom is trading at very close to our target price we rate the stock of Broadcom (AVGO) as a hold
Read the full article here
4 September 2020: The Dow ended the day down by -0.56%
Dow Jones Updates:
(8:36 ET): Dow Jones futures are currently trading up by 0.18%
(4:41 ET): Dow Jones futures are currently trading up by 0.51%
Website Updates:
We covered the latest press release by GrubHub and Just Eat Takeaway.com regarding the merger of the two firms and regulatory approval being granted. Below a short extract:
Just Eat Takeaway.com and Grubhub announced that the Committee on Foreign Investment in the United States ("CFIUS") has concluded its review of the Transaction under Section 721 of the Defense Production Act of 1950 and has determined that there are no unresolved national security concerns with respect to the Transaction. As previously disclosed on 2 July 2020, the United Kingdom Competition and Markets Authority (the "CMA") indicated in a response to a briefing paper submitted by Just Eat Takeaway.com in relation to the Transaction that it had no further questions, and on 7 July 2020, the U.S. Federal Trade Commission granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, with respect to the Transaction. Therefore, all regulatory approvals required for the completion of the Transaction have now been obtained.
Additionally, on 4 September 2020, Just Eat Takeaway.com and Grubhub announced the entry into an amendment to the Merger Agreement to extend the long stop date under the Merger Agreement from 10 June 2021 to 31 December 2021. The amendment provides additional certainty for the parties regarding the timing of the necessary steps to completion, including the registration of Just Eat Takeaway.com ordinary and American depositary shares in the U.S. under the Securities Act of 1933.
Read the full article here
3 September 2020: The Dow ended the day down by -2.78%
Dow Jones Updates:
(15:15 ET): All three major US market indices sink significantly. The S&P 500 is currently down by -4.1%, The Dow Jones is down by -3.2% and the Nasdaq is the worst performer with it being down by -5.45%
(15:06 ET): The Dow Jones is currently trading down by a very strong -3.23% and we cannot say that we are surprised. We have stated on multiple occasions we believe that the markets are heavily overvalued and a strong pull back is required for the longer term health of the markets, as pull backs rids the market of speculators and risk takers
Website Updates:
Earlier today we covered what we believe to 5 heavily overvalued stocks.
They are Tesla, Apple, Amazon, Domino's Pizza and Boston Beer Company
Read the full article here
2 September 2020: The Dow ended the day up by 1.59%
Dow Jones Updates:
(13:35 ET): The Dow Jones is currently trading up by 1.21%
(8:07 ET): Dow futures are currently trading up by 0.52%
Website Updates:
We covered the latest earnings report by At Home (HOME). Below a short extract from that article
So what do we value At Home (HOME) stock at following their 2nd quarter 2021 earnings release? Based on their latest earnings report our stock valuation models place a target price (full value price) on At Home Group of $17.70. So we do believe the stock is overvalued at its current price
We usually recommend that long term and fundamental investors look to enter a stock at least 10% below our target price. So a good entry point into the stock of At Home (HOME) would therefore be at $15.90 or below
We expect the stock to pull back from its current levels in coming weeks and months, especially considering the strong run it had recently. We therefore rate their stock as a sell.
Read the full article here.
1 September: The Dow ended the day up by 0.76%
Dow Jones Updates:
(13: 00 ET): The Dow is currently trading up by 0.25%
(02:00 ET): Dow Jones futures are currently trading up slightly by 0.08%
Website Updates:
Below reasons why we believe the stock of Tesla is overvalued.
Well let's start with its Price to Earnings Ratio (PE)
Earnings per share for 2nd quarter 2020: $0.50
Next lets take a look at Tesla's Price/Stockholders equity per share ratio
Stockholders equity in Tesla: $9.855 billion
Lets take a look at the production numbers of Tesla:
Model description June 2020 June 2019 Year on year percentage change
So total production numbers declined by -5% compared to the same quarter of the previous year, yet the group's stock price surges to new all time highs?
Come on people. Surely after reading this you will realise that Tesla (TSLA) stock is one big fat bubble that has sucked in a lot of investors all hoping to get rich from the continuing surge in its stock price. These type of people are created by excess cash in markets. And some of the Covid-19 stimulus cheques have found their way into the stock market and definitely into Tesla's stock and has driven up the stock price of Tesla to levels it should definitely not be at
If you currently own Tesla our advice is to get out while you can and take your profits (if you made some). And if you are planning in buying Tesla now, our advice is to rather not. We rate the stock of Tesla (TSLA) as a SELL
Read the full article here
Dow Jones Updates:
(11:54 ET): The Dow Jones is currently trading up by 1.59%
(10:00 ET): The Dow Jones is currently trading up by 1.05%
(9:00 ET): The Dow Jones futures are currently trading down by -0.20%
(2:20 ET): The Dow Jones futures are currently trading down by -1.17%
Website Updates:
We covered the latest earnings report of McCormick (MKC). Below a short extract
Fiscal Year 2020 Financial Outlook
McCormick previously withdrew its fiscal 2020 guidance on March 31, 2020. While recognizing the operating environment continues to evolve and there remains a degree of uncertainty about the pace and shape of the COVID-19 recovery, the company believes the shift in consumer demand to at home consumption will continue. The company expects it will drive growth in this dynamic environment as evidenced by its strong year-to-date fiscal 2020 performance and its momentum entering its fourth quarter. With McCormick's increased visibility to the balance of its fiscal year, the company is resuming guidance.
In 2020, the company expects to grow sales compared to 2019 at the upper end of a 4% to 5% range, which in constant currency is a 5% to 6% projected growth rate. This increase consists entirely of organic growth and reflects growth driven by new products, brand marketing and expanded distribution as well the net impact of the consumer shift in demand as a result of COVID-19 and the consumer's sustained preference for cooking at home. Sales growth is also expected to include the impact of pricing at the beginning of the year, which in conjunction with cost savings, is expected to offset an anticipated mid-single digit inflationary pressure.
Operating income in 2020 is expected to grow from 6% to 7% from $958 million of operating income in 2019. The company projects COVID-19 related costs as well as a higher level of incentive compensation consistent with the company's commitment to a pay-for-performance philosophy across the organization will reduce growth in operating income. Special charges of approximately $7 million are currently projected for 2020 that relate to previously announced organization and streamlining actions. Excluding the impact of special charges in 2020 and 2019, adjusted operating income is expected to increase from 4% to 5%, which in constant currency is 5% to 6%, from adjusted operating income of $979 million in 2019.
McCormick projects 2020 earnings per share to be in the range of $5.60 to $5.68 compared to $5.24 of earnings per share in 2019. Excluding an estimated $0.04 impact of special charges in 2020, the company projects 2020 adjusted earnings per share to be in the range of $5.64 to $5.72 which is an expected increase of 5% to 7%, or in constant currency 6% to 8%.
Read the full article here
29 September 2020: The Dow Jones ended the day down by -0.48%
Dow Jones Updates:
(12:24 ET): The Dow Jones is currently trading down by -0.73%
(2:20 ET): The Dow Jones futures are currently trading up by 0.26%
Website Updates:
We covered the recent stock price history of United Airlines (UAL). Below a short extract of that article
The image below shows the stock price performance of United Airlines (UAL), Southwest Airlines (LUV) and Delta Airlines (DAL) over the last 5 years. So while the image above showed that it has not been a good time for United Airlines. The image below shows the performance of United against its peers. The summary below shows the stock price returns of the three airlines over the last 5 years, sorted from best to worst performer
- Southwest Airlines (LUV): -16.45%
- Delta Airlines (DAL): -38.9%
- United Airlines (UAL): -41.1%
So of the three airlines the stock of United Airlines have been the worst performer over the last 5 years while the stock of Southwest Airlines (LUV) has been the best performer
Read the full article here
28 September 2020: The Dow Jones ended the day up by 1.51%
Dow Jones Updates:
(13:14 ET): The Dow Jones is currently trading up by 1.83%
(12:09 ET): The Dow Jones is currently trading up by 1.78%
(4:00 ET): The Dow Jones futures are currently trading up by 0.90%
Website Updates:
We covered the latest earnings report of restaurant group, Darden whose brands include Olive Garden and LongHorn steakhouse. Below a short extract.
So based on the earnings report of Darden Restaurants (NYSE:DRI) and the latest earnings guidance provided what do we value Darden Restaurants (DRI) stock at? Based on the earnings reported by the group our valuation model provides a target (full value) price for Darden Restaurants at $84.20 a stock (up slightly from our last earnings report valuation of Darden). We therefore believe the stock of Darden Restaurants is overvalued
We usually suggest long term fundamental and value investors look to enter the stock at least 10% below our target price, which in this case is $84.20 Therefore we believe a good entry point into the stock would be at $75.80 or below
We expect that the stock of Darden to pull back slightly from its current price to levels closer to our target price in coming weeks and months
Read the full article here
25 September 2020: The Dow Jones ended the day up by 1.34%
Dow Jones Updates:
(11:00 ET): The Dow Jones is currently trading up 0.13%
(8:30 ET): The Dow Jones futures are currently trading down by -0.53%
(3:00 ET): The Dow Jones futures are currently trading up by 0.34%
Website Updates:
We covered the latest earnings release from Costco (COST). Below a short extract from that article
So what is Costco Wholesale (NASDAQ: COST) stock worth based on the release of their latest earnings report? Based on their earnings report and the guidance provided our valuation models provide a target (full value) price for Costco of $246.80 a stock. We therefore believe that the stock of Costco Wholesale is overvalued at its current price of $347
We usually suggest long term investors look to enter a stock at least 10% below our target (full value) price which in this case is $246.80. So a good entry point into Costco stock would be at $222 or below. We expect the stock of Costco Wholesale to pull back from current levels to levels closer to our target price (full value price) in coming weeks and months as
Since the stock of Costco is trading at well above our suggested entry point and our full value price we rate the stock of Costco as avoid.
Read the full article here
23 September 2020: The Dow Jones ended the day down by -1.92%
Dow Jones Updates:
(02:46 ET): Dow Jones futures are currently trading up by 0.70%
(01:00 ET): Dow Jones futures are currently trading up by 0.41%
Website Updates:
We covered the latest earnings report of Autozone. Below a short extract of that article
So based on the earnings report of AutoZone (NYSE: AZO) and the latest earnings guidance provided what do we value AutoZone (AZO) stock at? Based on their latest earnings report our target (full value) price for AutoZone at $1140 a stock. We therefore believe the stock of AutoZone is fully valued at its current price
We usually suggest long term fundamental and value investors look to enter the stock at least 10% below our target price, which in this case is $1140 Therefore we believe the a good entry point into the stock is below $1026. We believe the stock of AutoZone will trade in a narrow range around our target price in coming weeks and months.
Read the full article here
22 September 2020: The Dow Jones ended the day up by 0.54%
Dow Jones Updates:
(7:46 ET): Dow Jones futures are currently trading down by -0.14%
Website Updates:
Earlier we compared the performance of the Dow Jones, Nasdaq and S&P500 on a chart over various time periods. Below a short extract from that article
There is one thing that markets do not like. And that is uncertainty. Currently there is a lot of uncertainty in the markets, from the worries about Covid-19 and when a vaccine will become available, uncertainty about potential further fiscal stimulus to try and relieve some of the financial strain on consumers that was brought about by the Covid-19 pandemic. And then one of the biggest worries in the markets right now is the political uncertainty leading up to the elections in about 40 odd days. The only certainty right now is uncertainty. And since markets don't like uncertainty. Expect markets to move up and down in wild swings in coming months.
Read the full article here
21 September 2020: The Dow ended the day down -1.84%
Dow Jones Updates:
(12:04 ET): The Dow Jones is currently trading down by -2.89%
(06:17 ET): Dow Jones futures are currently trading down by -1.93%
(04:10 ET): Dow Jones futures are currently trading down by -1.57%
Website Updates:
Earlier today we covered the latest earnings report from Adobe (ADBE). Below a short extract
Third Quarter Fiscal Year 2020 Financial Highlights
- Adobe achieved record quarterly revenue of $3.23 billion in its third quarter of fiscal year 2020, which represents 14 percent year-over-year growth. Diluted earnings per share was $1.97 on a GAAP basis, representing 22 percent year-over-year growth, and $2.57 on a non-GAAP basis, representing 25 percent year-over-year growth.
- Digital Media segment revenue was $2.34 billion, which represents 19 percent year-over-year growth. Creative revenue grew to $1.96 billion, representing 19 percent year-over-year growth. Document Cloud revenue was $375 million, representing 22 percent year-over-year growth.
- Digital Media Annualized Recurring Revenue (“ARR”) increased $458 million quarter-over-quarter to $9.63 billion exiting the quarter, representing 24 percent year-over-year growth on a constant-currency basis. Creative ARR grew to $8.29 billion, and Document Cloud ARR grew to $1.34 billion.
- Digital Experience segment revenue was $838 million. Digital Experience subscription revenue was $729 million, representing 7 percent year-over-year growth. Digital Experience subscription revenue, excluding Advertising Cloud revenue, grew 14 percent year-over-year.
- GAAP operating income in the third quarter was $1.07 billion, and non-GAAP operating income was $1.40 billion. GAAP net income was $955 million, and non-GAAP net income was $1.25 billion.
- Cash flows from operations were a record $1.44 billion.
- Remaining Performance Obligation (“RPO”) exiting the quarter was $10.34 billion, representing 18 percent year-over-year growth.
- Adobe repurchased approximately 1.5 million shares during the quarter.
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18 September 2020: The Dow Jones ended the day down by -0.88%
Dow Jones Updates:
(12:15 ET): The Dow Jones is currently trading down by -0.03%
17 September 2020: The Dow Jones ended the day down by -0.47%
Dow Jones Updates:
(12:47 ET): The Dow Jones is currently trading down by -1.04%
(04:45 ET): Dow Jones futures are currently trading down by -0.92%
Website updates:
Yesterday we covered the listing of cloud computing giant Snowflake. Below a short extract
Snowflake's founders started from scratch and built a data platform that would harness the immense power of the cloud. Thousands of customers around the world now mobilize their data in ways previously unimaginable with Snowflake's cloud data platform — a solution for data warehousing, data lakes, data engineering, data science, data application development, and data exchange. Snowflake provides the near-unlimited scale, concurrency, and performance our customers in a variety of industries want, while delivering a single data experience that spans multiple clouds and geographies. But our founder's vision didn't stop there. Our cloud data platform is also the engine that drives the Data Cloud — the global ecosystem where thousands of organizations have seamless and governed access to explore, share, and unlock the potential of data.
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16 September 2020:
Dow Jones Updates:
(12:35 ET): The Dow is currently trading up by 0.83%
(10:55 ET): The Dow is currently trading up by 0.38%
(08:53 ET): Dow Jones futures are currently trading up by 0.28%
(02:40 ET): Dow Jones futures are currently trading up by 0.06%
Website Updates:
We covered the latest earnings report of Cracker Barrel. Below a short extract from that earnings report review. So based on the 4th quarter 2020 earnings report of Cracker Barrel (NASDAQ: CBRL) and what do we value Cracker Barrel (CBRL) stock at? Based on the earnings reported and the fact that the group is now loss making and that they withdrew their fiscal guidance our valuation model provides a target price (full value price) for Cracker Barrel at $145.70 a stock (up slightly from our 3rd quarter 2020 earnings report valuation of Cracker Barrel).
We therefore believe that Cracker Barrel is undervalued at its current price of $133.42
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price) which in this case is $145.70. So a good entry point into Cracker Barrel would be around $131.10. We expect the stock of Cracker Barrel to kick up in coming weeks and months as the various states starts opening up after the covid-19 pandemic.
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15 September 2020: The Dow Jones ended up by 0.01%
Dow Jones Updates:
(09:49 ET): The Dow is currently up by 0.44%
(3:56 ET): Dow Jones futures are currently trading up by 0.38%
Website Updates:
We covered the news regarding Nvidia buying Arm from SoftBank. Below a short extract from that article
“NVIDIA is the perfect partner for Arm,” said Masayoshi Son, chairman and CEO of SBG. “Since acquiring Arm, we have honored our commitments and invested heavily in people, technology and R&D, thereby expanding the business into new areas with high growth potential. Joining forces with a world leader in technology innovation creates new and exciting opportunities for Arm. This is a compelling combination that projects Arm, Cambridge and the U.K. to the forefront of some of the most exciting technological innovations of our time and is why SoftBank is excited to invest in Arm’s long-term success as a major shareholder in NVIDIA. We look forward to supporting the continued success of the combined business.”
“Arm and NVIDIA share a vision and passion that ubiquitous, energy-efficient computing will help address the world’s most pressing issues from climate change to healthcare, from agriculture to education,” said Simon Segars, CEO of Arm. “Delivering on this vision requires new approaches to hardware and software and a long-term commitment to research and development. By bringing together the technical strengths of our two companies we can accelerate our progress and create new solutions that will enable a global ecosystem of innovators. My management team and I are excited to be joining NVIDIA so we can write this next chapter together.”
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14 September 2020: The Dow ended the day up by 1.18%
Dow Jones Updates:
(12:15 ET): The Dow Jones is currently trading up by 1.35%
(9:45 ET): Dow Jones is currently trading up by 0.87%
(1:50 ET): Dow Jones futures are currently trading up by 1.04%
Website Updates:
We covered the latest earnings release of one of the world's biggest retailers, Kroger Company (KR). Below a short extract from that article
So what are The Kroger Company stock worth considering their latest earnings release? Based on their earnings released our valuation models set a target (full value) price for The Kroger Company of $43.60 a stock (up from our 1st quarter 2020 earnings report valuation of Kroger) . We therefore believe Kroger Company stock is undervalued.
We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target price which in this case is $43.60, a good entry point into the stock of Kroger Company would therefore be at $39.20 or below.
We expect that the stock of Kroger Company will kick upwards from its current price to levels closer to our target price/ full value price in coming weeks and months. Since the stock of Kroger is trading at well below our suggested entry point we rate the stock of Kroger (KR) as a buy.
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11 September 2020: The Dow ended the day up 0.48%
Dow Jones Updates:
(03:42 ET): Dow Jones futures are currently trading up by 0.66%
Website Updates:
We covered the latest earnings report of Lululemon (LULU) earlier today. Below a short extract
Based on Lululemon's 2nd quarter 2020 earnings report from Lululemon what do we value their stock at? Based on Lululemon's earnings reported our valuation model provides a target price (full value price) of $162.60 a Lululemon stock (up slightly from our 1st quarter 2020 earnings report valuation of Lululemon).
We therefore believe that the stock of Lululemon is overvalued. We usually recommend that long term fundamental and value investors look to enter a stock at least 10% below our target price which in this case is $162.60. A good entry point into Lululemon would therefore be at $146.40 or below. Since the stock of Lululemon is trading at well above our target price we rate the stock of Lululemon as avoid.
We expect it to pull back strongly from current levels to levels closer to our target price in coming weeks and months.
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10 September 2020: The Dow Jones ended the day down -1.45%
Dow Jones Updates:
- (08:06 ET): Dow Jones futures are currently trading down by -0.47%
- (0:34 ET): Dow Jones futures are currently trading down by -0.26%
Website Updates:
We covered the latest earnings report of Norwegian Cruise Line Holdings (NCLH)
Based on Norwegian Cruise Line Holdings latest earnings reports what do we value their stock at? Based on the earnings reported and the fact that the group is currently loss making and will be into the foreseeable future we value Norwegian Cruise Line Holdings stock at $39.20 a stock. Sure they in a tough spot now. But travel will recover, they will operate again and the good times will be back.
We therefore believe that stock of Norwegian Cruise Line Holdings is undervalued.
We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target price which in this case is $39.20. We therefore believe a good entry point into the stock of Norwegian Cruise Line Holdings is at $35.30 or below.
Since the stock of Norwegian Cruise Line Holdings is trading at well below our recommended entry point into the stock we rate the stock of Norwegian Cruise Line Holdings as a buy. But this call is only for investors willing to sit on the stock for a prolonged period and wait for the Coronavirus to pass, which could be a while. But we believe the strong drop in Norwegian Cruise Line Holdings stock in recent weeks has created a good buying opportunity for those looking for quality assets at depressed prices.
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9 September 2020: The Dow ended the day up by 1.6%
Dow Jones Updates:
- (8:15 ET): Dow Jones futures are currently trading up by 0.37%
- (01:04 ET): Dow Jones futures are currently trading up by 0.08%
Website Updates:
Earlier we compared the performance of the Nasdaq to that of the S&P500 and the Dow Jones over time. Below a short extract from that article
So while the Nasdaq has been under performing the Dow Jones and the S&P500 over the very recent past. It has still easily outperformed the Dow Jones and the S&P500 over the last year, 5 years and 10 year period. Over the last 10 years the Nasdaq has provided a return of 352.4%, the S&P 500 has provided 184.8% and the Dow Jones 153.3%. So basically the Nasdaq has provided over double the returns of the Dow Jones over the last 10 years. So while over the shorter term the tech heavy Nasdaq is declining faster than the Dow Jones and the S&P500 it has easily outperformed them due to the very fact that it is tech heavy as tech stocks has had a very good decade.
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8 September 2020: The Dow ended the day down by -2.25%
Dow Jones Updates:
(13:00 ET): Dow Jones is currently trading down by -1.4%
(09:49 ET): Dow Jones is currently trading down by -2.04%
(08:24 ET): Dow Jones futures are currently trading down by -0.54%
(02:33 ET): Dow Jones futures are currently trading up by 1.03%
Website Updates:
We covered the latest earnings report of Broadcom (AVGO) yesterday. Below a short extract from that article
So based on Broadcom's latest earnings report what do we value their stock at? Based on their 3rd quarter 2020 earnings report our valuation model provides a target price of $345.60 per Broadcom (AVGO) stock. We therefore believe that the stock of Broadcom is fully valued at its current price
We usually recommend that long term and value investors look to enter a stock at least 10% below our target price. A good entry into the stock of Broadcom would therefore be at $311 or below.
Since the stock of Broadcom is trading at very close to our target price we rate the stock of Broadcom (AVGO) as a hold
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4 September 2020: The Dow ended the day down by -0.56%
Dow Jones Updates:
(8:36 ET): Dow Jones futures are currently trading up by 0.18%
(4:41 ET): Dow Jones futures are currently trading up by 0.51%
Website Updates:
We covered the latest press release by GrubHub and Just Eat Takeaway.com regarding the merger of the two firms and regulatory approval being granted. Below a short extract:
Just Eat Takeaway.com and Grubhub announced that the Committee on Foreign Investment in the United States ("CFIUS") has concluded its review of the Transaction under Section 721 of the Defense Production Act of 1950 and has determined that there are no unresolved national security concerns with respect to the Transaction. As previously disclosed on 2 July 2020, the United Kingdom Competition and Markets Authority (the "CMA") indicated in a response to a briefing paper submitted by Just Eat Takeaway.com in relation to the Transaction that it had no further questions, and on 7 July 2020, the U.S. Federal Trade Commission granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, with respect to the Transaction. Therefore, all regulatory approvals required for the completion of the Transaction have now been obtained.
Additionally, on 4 September 2020, Just Eat Takeaway.com and Grubhub announced the entry into an amendment to the Merger Agreement to extend the long stop date under the Merger Agreement from 10 June 2021 to 31 December 2021. The amendment provides additional certainty for the parties regarding the timing of the necessary steps to completion, including the registration of Just Eat Takeaway.com ordinary and American depositary shares in the U.S. under the Securities Act of 1933.
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3 September 2020: The Dow ended the day down by -2.78%
Dow Jones Updates:
(15:15 ET): All three major US market indices sink significantly. The S&P 500 is currently down by -4.1%, The Dow Jones is down by -3.2% and the Nasdaq is the worst performer with it being down by -5.45%
(15:06 ET): The Dow Jones is currently trading down by a very strong -3.23% and we cannot say that we are surprised. We have stated on multiple occasions we believe that the markets are heavily overvalued and a strong pull back is required for the longer term health of the markets, as pull backs rids the market of speculators and risk takers
Website Updates:
Earlier today we covered what we believe to 5 heavily overvalued stocks.
They are Tesla, Apple, Amazon, Domino's Pizza and Boston Beer Company
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2 September 2020: The Dow ended the day up by 1.59%
Dow Jones Updates:
(13:35 ET): The Dow Jones is currently trading up by 1.21%
(8:07 ET): Dow futures are currently trading up by 0.52%
Website Updates:
We covered the latest earnings report by At Home (HOME). Below a short extract from that article
So what do we value At Home (HOME) stock at following their 2nd quarter 2021 earnings release? Based on their latest earnings report our stock valuation models place a target price (full value price) on At Home Group of $17.70. So we do believe the stock is overvalued at its current price
We usually recommend that long term and fundamental investors look to enter a stock at least 10% below our target price. So a good entry point into the stock of At Home (HOME) would therefore be at $15.90 or below
We expect the stock to pull back from its current levels in coming weeks and months, especially considering the strong run it had recently. We therefore rate their stock as a sell.
Read the full article here.
1 September: The Dow ended the day up by 0.76%
Dow Jones Updates:
(13: 00 ET): The Dow is currently trading up by 0.25%
(02:00 ET): Dow Jones futures are currently trading up slightly by 0.08%
Website Updates:
Below reasons why we believe the stock of Tesla is overvalued.
Well let's start with its Price to Earnings Ratio (PE)
Earnings per share for 2nd quarter 2020: $0.50
- PE ratio of Tesla: 1000
- What this is saying you are paying $1000 for every $1 profit Tesla makes. So if you buying Tesla at $2000 a stock. Just know for a full year the firm is likely to make $2 a stock in profits. So do you honestly believe Tesla is still a good investment? Or that that type of return is a good investment?
Next lets take a look at Tesla's Price/Stockholders equity per share ratio
Stockholders equity in Tesla: $9.855 billion
- Stockholders equity per share in Tesla: $47.60 ($9.52 after the 5 to 1 stock split)
- Tesla is trading at 52.3 times its stockholders equity per share, which is well outside the expected range of between 2 and 4 times that most firms tend to trade at.
- If Tesla were to sell all their assets, settle all their liabilities and distribute what is left equally amongst its stockholders each stockholder will receive $9.52 a stock. So does the $498.32 stock price still look like a good investment?
Lets take a look at the production numbers of Tesla:
Model description June 2020 June 2019 Year on year percentage change
- Model S/X 6 326 14 517 - 56%
- Model 3/Y 75 946 72 531 5%
- Total 82 272 87 048 -5%
So total production numbers declined by -5% compared to the same quarter of the previous year, yet the group's stock price surges to new all time highs?
Come on people. Surely after reading this you will realise that Tesla (TSLA) stock is one big fat bubble that has sucked in a lot of investors all hoping to get rich from the continuing surge in its stock price. These type of people are created by excess cash in markets. And some of the Covid-19 stimulus cheques have found their way into the stock market and definitely into Tesla's stock and has driven up the stock price of Tesla to levels it should definitely not be at
If you currently own Tesla our advice is to get out while you can and take your profits (if you made some). And if you are planning in buying Tesla now, our advice is to rather not. We rate the stock of Tesla (TSLA) as a SELL
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