Why Tesla Stock Was Trading on a Mixed Note Last Week
On August 2, Tesla released its 2Q17 results. TSLA reported an adjusted net loss of $1.33 per share, which was better than analysts’ estimated loss per share of $1.76.
Last week, Fiat Chrysler stock (FCAU) turned positive and rose 8.2% from the previous week’s closing price.
In the week ended August 18, General Motors’ (GM) stock settled at $34.83 with a 0.3% decline from the previous week’s closing price.
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 Recommend for Major Casino Stock
Analysts favor MGM Resorts (MGM) stock over other major casinos’. All 20 analysts tracking the stock recommend “buy.” Seven (35%) of these analysts have “strong buy” recommendations, while the remaining…
In May 2017, visitor arrivals rose 3.7% YoY (year-over-year) to 2.6 million visitors. However, month-over-month, visitor arrivals fell 6.3%. Visitor arrivals have been improving since September 2016, except in February…
The Macao region relies heavily on the Chinese mainland, as it garners a huge majority (about 67%) of its visitors and VIP gamers, from China and its neighboring countries. The…
Ross Stores Stock: What Analysts Expect after Fiscal 2Q17
As of August 21, Ross Stores (ROST) stock was rated “buy” by 16 (64%) of 25 analysts. Nine analysts rated the company “hold.” Off-price retailer Ross Stores announced its fiscal…
Ross Stores’ (ROST) gross and operating margins expanded in fiscal 2Q17, which ended July 29, 2017. The company’s gross margin expanded ~25 basis points to 29.5% in fiscal 2Q17. The…
Off-price retailer Ross Stores (ROST) generated sales of $3.43 billion in fiscal 2Q17, which ended July 29, 2017. The company’s fiscal 2Q17 sales exceeded analysts’ estimate of $3.37 billion, marking…
Do Herbalife’s Fundamentals Support Its Stock Gain?
Sales are projected to remain low since the company’s challenges are not likely to abate in the near term.
Herbalife (HLF) stock rose 9.8% and closed at $68.04 on Monday following the company’s announcement of a buyback of $600.0 million worth of its own shares.
On August 15, Canaccord Genuity upgraded VF Corporation (VFC) to a “buy” from a “hold” and raised the target price to $73 from $58.
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.
Do Analysts Expect JCPenney Stock to Recover?
As of August 14, JCPenney stock was rated as a “buy” by five out of 23 analysts. Sixteen analysts had a “hold” rating and two analysts had a “sell” rating.
JCPenney’s (JCP) gross margin fell by 200 basis points to 35.1% in fiscal 2Q17—compared to 37.1% in fiscal 2Q16.
JCPenney (JCP) delivered sales of ~$3.0 billion in fiscal 2Q17. The company exceeded consensus analysts’ expectation of $2.8 billion in fiscal 2Q17.
Why Fox Stock Fell after Its Fiscal 4Q17 Results
Twenty-First Century Fox (FOX) reported its fiscal 4Q17 results on August 9. The company’s earnings beat expectations, but its fiscal 4Q17 revenues narrowly missed forecasts.
After announcing its fiscal 3Q17 results on August 8, Walt Disney (DIS) announced that it would no longer stream its movies on Netflix (NFLX) starting in 2019.
As we mentioned in the previous part, the cable TV sector is facing heat from digital subscription companies such as Netflix (NFLX), resulting in cable companies’ revenue stagnating. According to The Wall…
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.
Lowe’s on the Street: Analyst View ahead of the 2Q17 Earnings
Of the 30 analysts tracking Lowe’s, 56.7% recommend a “buy,” while 40% recommend a “hold,” and the remaining 3.3% recommend a “sell.”
On August 17, 2017, Lowe’s was trading at a forward PE multiple of 14.9x, compared with 17.0x before its 1Q17 earnings announcement.
For 2Q17, analysts are expecting Lowe’s (LOW) to post EPS (earnings per share) of $1.61, which would mean growth of 17.5% from $1.37 in 2Q16.
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 Do Analysts Recommend for Chipotle?
As of August 21, 2017, Chipotle Mexican Grill (CMG) was trading at $308.68. Analysts expect Chipotle’s stock price to reach $392.68 in the next 12 months.
As of August 21, 2017, Chipotle was trading at a forward PE multiple of 31.5x—compared to 34.8x before the announcement of its 2Q17 earnings.
For the next four quarters, Chipotle is expected to post EPS (earnings per share) of $9.22—growth of 75.3% from the same four quarters the previous year.
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.
Analysts Bench Foot Locker for Missing Fiscal 2Q17 Targets
On August 18, six brokers lowered Foot Locker’s rating, citing a weak second quarter and no near-term signs of improvement.
Foot Locker (FL) touched its 52-week-low price-to-earnings ratio of 7.5x after its fiscal 2Q17 results were released.
In fiscal 2Q17, Foot Locker’s (FL) gross margin fell 340 basis points to 29.6% of sales.
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.