Inside GM’s Recent Stock Movements: Key Technical Levels ahead of the 1Q17 Results
As of April 20, GM stock was trading at $34.10. After breaching the lower range of an ascending price channel in November 2016, the stock price turned negative.
GM’s retail market share is stronger than some peers. But any possible downturn in the US auto market could hugely affect GM’s business going forward.
As of April 20, GM’s forward EV-to-EBITDA multiple was 5.8x—much lower than Ford’s 12.1x as of the same date.
The Three-Tier Distribution of the US Alcoholic Beverage Industry
The three-tier distribution system ensures collection of taxes and prevents control of production, distribution, and selling by a single entity.
In an economic study, the American Beverage Licensees estimated the economic impact of the alcoholic beverage industry in 2014 to be more than $245 billion.
According to the Beverage Marketing Corporation, alcoholic beverages such as beer, wine, and distilled spirits, account for 20% of the US beverage market.
What’s Priced In to Macao’s Casinos’ Valuations?
On March 28, 2017, the Macao casino industry’s valuation stood at 11.5x, lower than its average of 12.4x in November 2005. In 2016, the industry’s average valuation was 12.1x.
The Macao region relies heavily on the Chinese mainland, as it garners the majority of its visitors and VIP gamers—about 67%—from China and its neighboring countries.
Overall industry capacity rose ~60% in 2016, with key players contributing more than $28 billion to the developing Cotai Strip. This trend is expected to continue in 2017.
HBI, 1 of the Best-Rated Apparel Stocks on Wall Street
Hanesbrands (HBI) is covered by 15 Wall Street analysts who have a positive view on the company.
Hanesbrands (HBI) is currently trading at a one-year forward price-to-earnings ratio of 11x, which puts it closer to the lower end of its 52-week PE range of 9.5x – 15x.
Hanesbrands’ (HBI) management recently updated its first quarter EPS (or earnings per share) expectations.
Why Philip Morris’s Valuation Multiple Fell: Weak 1Q17 Earnings
Valuation multiples help investors make investment decisions. They’re driven by investors’ willingness to pay, perceived growth, risks, and uncertainties.
As of April 24, 2017, Philip Morris (PM) was trading at $112.39. The stock price might have factored in the various estimates we discussed in the earlier parts of this series.
In 1Q17, Philip Morris (PM) posted gross, EBIT (earnings before interest, and tax), and net margins of 64.1%, 39.5%, and 26.2%, respectively.
Why Is Carnival’s Valuation Low Compared to Its Peers?
Carnival has a low valuation compared to its peers. Analysts are expecting the lowest EBITDA growth for CCL—related to peers RCL and NCLH—in the next four quarters.
Following Carnival’s (CCL) 4Q15 earnings release, analysts’ consensus estimates remained almost flat. Also, earnings estimates rose by 0.62% for 1Q16.
Carnival identified China as its biggest potential area of expansion. It announced that Carnival Cruise Line will enter the Chinese market in 2017.
How Does Macy’s Valuation Compare?
Forward price-to-earnings multiple As of March 23, Macy’s (M) was trading at a 12-month forward PE (price-to-earnings) multiple of 8.1x. The company is currently trading at a lower valuation multiple…
Drop in earnings Macy’s (M) weak sales have caused its adjusted earnings to fall for two consecutive fiscal years. Excluding the impact of one-time items such as asset impairment and…
Analyst recommendations As of March 23, Macy’s (M) stock was rated as “hold” by 18, or 82%, of the 22 analysts covering it. Four analysts rated the stock a “buy,”…
What to Expect from Fox’s Filmed Entertainment Business
Fox’s Filmed Entertainment segment accounted for 27% of the company’s total revenues of $7.7 billion in fiscal 2Q17.
Comcast’s (CMCSA) franchise-focused strategy continues to reap rich dividends for its movie business.
Comcast (CMCSA) expects to incur a significant portion of its capex on its Theme Parks segment.
Improving weather conditions cause motor vehicle sales to increase
Motor vehicle sales The motor vehicle sales statistics are released monthly by auto manufacturers and Autodata Corporation. Individual manufacturers usually report sales on the first business day of the month.…
LKQ’s relationships with insurance companies and its proprietary location-based database creates a very powerful value proposition within the decision process of automotive repair.
LKQ is the nation’s largest provider of alternative vehicle collision replacement products and a leading provider of alternative vehicle mechanical replacement products.
What Analysts Are Recommending for RH
As of April 7, 2017, RH (RH) was trading at $46.98. The stock price may have already factored in the estimates.
Since RH announced its fiscal 4Q16 earnings, its forward PE multiple has risen from 19.0x to 21.7x.
For 2017, analysts are expecting RH (RH) to post EPS (earnings per share) of $2.11. That represents a rise of 66.1% from 2016.
What Analysts Recommend for Hilton ahead of 1Q17 Results
Hilton’s consensus 12-month target price is $64.6, which indicates a 12.6% return potential over its April 21 closing price of $58.
The hotel sector is capital intensive, and companies in the industry normally carry high debt.
Hilton (HLT) currently trades at a forward EV-to-EBITDA multiple of 17.6x.
Why Were Ralph Lauren’s Retail Sales Pressured in Fiscal 1Q17?
Ralph Lauren reported a decline of 6% in global e-commerce revenues. This is unlike the general trend that has been noticed among the apparel and fashion companies.
On August 2, Fossil was trading at a PE multiple of 12.9x. Fossil’s valuation multiple has fallen by 9% since the announcement of its 1Q16 results.
Fossil’s (FOSL) margins have been in a declining trend during recent quarters.
Why Analysts Say ‘Hold’ for Domino’s Stock ahead of Q1 Earnings
As of April 21, 2017, Domino’s Pizza (DPZ) was trading at $179.3. Domino’s stock price might have factored in the estimates we discussed in our previous articles.
Since the announcement of 4Q16 earnings on February 28, 2017, Domino’s forward PE multiple has fallen from 36.2x to 32.3x.
In 1Q17, Wall Street analysts expect Domino’s Pizza (DPZ) to post EPS (earnings per share) of $1.16, which represents growth of 30.3% from $0.89.
How Does Aramark Compare with Its Peers?
Aramark’s peers are ahead of the company based on price-to-sales ratios. However, Aramark has outperformed its peers based on other measures.
Aramark (ARMK) is in the service business, offering food, facilities, and uniforms. It has a market cap of $7.8 billion.
Wipro’s 14-day RSI is 38, which suggests that the stock is slightly oversold. It is trading at a premium of 7% to the median analyst price target.
Tiffany on the Street: Analyst Ratings and Valuations
Of the 26 analysts covering Tiffany stock, 42.0% rated it a “buy” as of April 3, 2017, while 54.0% rated it a “hold,” and one (4.0%) rated it a “sell.”
Tiffany (TIF) continues to struggle in the Americas. Lower demand from consumers has stemmed from a shift toward low-priced accessories.
Tiffany’s international operations are vital to top-line growth. In fiscal 2016, US sales accounted for 42.3% of overall sales, while other countries made up 42.6%.
Why Cedar Fair could be a solid long-term investment
Cedar Fair could be a good long-term investment option based on its current valuation, because the company generated adjusted EBITDA growth of over 80% YoY in 4Q14.
Cedar Fair’s 200-day moving average share price is $49.73 with a 52-week high and low of $56.09 and $43.81, respectively.
The share price of Cedar Fair (FUN) surged more than 5% after the announcement of its 4Q14 and FY14 results on February 19, 2015.