Why the Yen Depreciated after Market-Friendly Election Results
The Japanese yen (JYN) returned to weakness against the US dollar as Japanese elections loomed closer.
As of October 18, 2017, Ford stock (F) was trading at $12.19.
As of October 18, 2017, Ford’s (F) forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple was 13.7x.
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 Analysts Are Recommending for Major Casinos
Analysts seem to be favoring MGM Resorts (MGM) stock over the other major casinos. Of the 17 analysts tracking the stock, 16 of them recommend a “buy.”
As of August 25, 2017, the Macau casino industry valuation stands at 11.6x. However, the average valuation for 2017 is still lower at 11.3x.
A weakness in the Chinese economy could adversely affect the spending capacity of the Chinese people, which could lead to fewer visitors at Macao.
Wedbush Upgrades Skechers after 3Q Results
Skechers’ (SKX) solid 3Q17 results were followed by a host of analyst actions.
Skechers’ stellar 3Q17 performance drove its stock price up 41% on October 20. It was the company’s biggest one-day gain since the company was listed in 1991.
For 3Q17, which ended in late September, Skechers (SKX) recorded earnings per share growth of 40% YoY (year-over-year).
What Wall Street Recommends for Philip Morris after 3Q17 Earnings
As of October 20, Philip Morris International (PM) was trading at $109.52. On the same day, analysts were expecting the company’s stock price to reach $123.94 in the next 12 months.
We have opted for the forward PE (price-to-earnings) multiple for our analysis due to the high visibility of Philip Morris International’s (PM) earnings.
In 3Q17, Philip Morris International (PM) posted adjusted EPS or earnings per share of $1.27, which is 8.0% lower than analysts’ estimate of $1.38.
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.
Department Stores on the Street: Analyst Pre-Holiday Recommendations
Department stores JCPenney (JCP), Macy’s (M), Nordstrom (JWN), and Kohl’s (KSS) have “hold” ratings from a majority of analysts right now.
Analysts have lukewarm expectations for the sales of department stores this year as online retailers such as Amazon (AMZN) are eating away at market shares.
US retail e-commerce sales grew 16.2% on a YoY basis in 2Q17. The US e-commerce sales as a percentage of total retail sales reached 8.9% in 2Q17.
Gaming Companies Improving Bottom Lines and Profit Margins
Zynga’s (ZNGA) non-GAAP EPS in fiscal 2016 was $0.03. That’s expected to rise more than 200% YoY to $0.10 in fiscal 2017 and rise 30.0% YoY to $0.13 in fiscal 2018.
While Zynga (ZNGA) is primarily an Internet gaming company and 100% of its revenue is digital, it has seen a YoY growth in mobile gaming.
Analysts expect Zynga’s (ZNGA) revenue to rise 11.8% YoY in fiscal 2017 to $843.2 million and 8.7% YoY in fiscal 2018 to $916.7 million.
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 Recommend for Home Depot
As of October 5, 2017, analysts are expecting Home Depot’s (HD) stock price to reach $171.18 in the next 12 months, which represents a return potential of 3.1% from its current stock price.
In the next four quarters, analysts are expecting Home Depot (HD) to post EPS (earnings per share) of $7.77, which represents growth of 11.6% from $6.96 in the corresponding four quarters of the previous year.
On October 5, 2017, Home Depot (HD) hit a new 52-week high of $166.25 and closed the day at $166.12.
What Marriott’s Key Metrics Suggest for 2017
Marriott’s RevPAR for 2Q17 rose 2.2% YoY in constant dollars across its worldwide properties. Its North America RevPAR rose 0.9% YoY in constant dollars.
Of the 28 analysts tracking Marriott, five (17.9%) have a “strong buy” recommendation, while nine (32.1%) have a “buy,” and 13 (46.4%) have a “hold.”
Marriott is now trading at a forward EV-to-EBITDA multiple of 15.5x, compared with its average historical valuation of 13.9x since January 2008.
Coach’s Price Target Revised Downward after Mixed Fiscal 4Q17 Results
Coach’s (COH) weak guidance has led to a host of target price revisions on Wall Street.
Coach’s (COH) stock price crashed after it reported its fiscal 4Q17 results on August 15, falling 15% on guidance that fell short of Wall Street expectations.
Coach (COH) reported an 11% YoY (year-over-year) jump in its fiscal 4Q17 earnings, which stood at $0.50 per share for the quarter.
What Analysts Recommend for Dunkin’ Brands ahead of Its 3Q17 Earnings
Of the 28 analysts that follow Dunkin’ Brands, 25.0% recommend a “buy,” 60.7% recommend a “hold,” and 14.3% recommend a “sell.”
On October 19, 2017, Dunkin’ Brands (DNKN) was trading at a forward PE multiple of 21.6x compared to 20.5x before the announcement of its 2Q17 earnings.
Analysts expect Dunkin’ Brands (DNKN) to post earnings per share of $0.63, which represents growth of 5.0% from $0.60 in 3Q16.
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.
How Best Buy’s Q2 Results Impacted Its Valuation
On August 29, Best Buy’s (BBY) 12-month forward PE (price-to-earnings) ratio fell 15.8% to 13.2x following the company’s results for fiscal 2Q18.
Best Buy’s (BBY) gross margin fell in fiscal 2Q18[1. Fiscal 2Q18 ended on July 29, 2017], but the company’s operating margin expanded.
Best Buy (BBY) exceeded analysts’ revenue estimates for the second consecutive quarter in fiscal 2Q18, which ended on July 29, 2017.
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.