Analyst Recommendations for Ford Stock as New CEO Takes Control
About 33.0% of analysts covering Ford Motor (F) have given the stock a “buy” recommendation, and about 59.0% have recommended a “hold.”
Ford Motor’s (F) new CEO Jim Hackett is joining the company at a time when US auto sales have been declining for several months.
Unlike GM’s move to cut fleet sales, Ford’s management seemingly continued to give equal importance to its retail and fleet sales.
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.
No Change in Analyst Ratings after Gap’s 1Q17 Results
Of the 28 analysts rating Gap, 68.0% are recommending a “hold” for the stock, 11.0% are recommending a “buy,” and 21.0% are suggesting a “sell.”
Gap (GPS) has paid dividends and repurchased its shares regularly, supported primarily by its solid cash balance.
Gap has fallen more than 13.0% over the last month and is currently at a YTD (year-to-date) loss of around 1.0%.
Why Walmart Impressed Investors and Analysts Last Week
Walmart (WMT) was featured among the top five gainers of the consumer staples sector in the week of May 15–19, 2017. The stock rose 3.2% on May 18, 2017.
In this part of the series, we’ll look at the important events for the week ahead, from May 22–26, 2017.
The Home Depot (HD), an Atlanta-based home improvement retailer, posted strong 1Q17 results on May 16, 2017, surpassing Wall Street estimates.
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 JCPenney’s Valuation Looks after Its 1Q17 Results
As of May 15, JCPenney was trading at a 12-month forward PE multiple of 9.3x. The multiple fell 13.4% on May 12, the day JCP announced its fiscal 1Q17 results.
In fiscal 1Q17 (ended April 29), JCPenney (JCP) was able to deliver an improved gross margin despite the 3.7% decline in its sales.
JCPenney (JCP) disappointed investors yet again in 1Q17 by delivering lower-than-expected sales of $2.71 billion, missing the analysts’ estimates.
Why Disney Expects Shanghai Disneyland to Be a Rising Star
The Walt Disney Company’s (DIS) Disneyland in China (FXI) is proving to be extremely popular.
The Walt Disney Company’s (DIS) theme parks in the United States (SPY) continue to record strong attendance as the company leverages its intellectual property to add new attractions.
Disney further stated that it was not interested in a premium VOD service because its Studio Entertainment business produces around ten tentpole movies each year.
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.
How Does Home Depot’s Valuation Multiple Compare to Its Peers’?
Due to the high visibility of Home Depot’s (HD) earnings, we’ve considered its forward PE (price-to-earnings multiple) for our analysis of its valuation.
On May 17, 2017, Home Depot (HD) was trading at $156.09. This price may have already factored in the various estimates we’ve discussed in this series.
Home Depot posted a gross margin, EBITDA (earnings before interest, tax, depreciation, and amortization) margin, and net margin of 34.1%, 16.1%, and 8.4%, respectively, in 1Q17.
Chart in Focus: Marriott’s Dividend Payout in 2017
Marriott (MAR) has an indicated dividend yield of 1.8%, which is the lowest among its peers.
Marriott (MAR) currently trades at a forward EV-to-EBITDA multiple of 14.5x.
Marriott’s consensus 12-month target price is $97.10. The current target price indicates a 1.5% return potential on the company’s April 28, 2017, closing price of $95.60.
Coach-Kate Spade Deal: What Investors Should Know
Coach (COH) agreed to buy Kate Spade (KATE) for a cash offer of $18.50 per share. If successful, the deal is expected to close in 3Q17.
Coach (COH), America’s leading luxury handbag and accessories maker, is buying Kate Spade (KATE) for a total transaction value of $2.4 billion.
Coach (COH) reported a 5% YoY rise in its EPS for fiscal 3Q17, registering $0.46 per share.
How JACK’s Valuation Multiple Compares with Its Peers
For the next four quarters, analysts are expecting JACK to post EPS growth of 9.4%.
Of the 17 analysts that follow JACK, 52.9% are recommending a “buy,” 41.2% are recommending a “hold,” and 5.9% are recommending a “sell.”
For next four quarters, analysts are expecting JACK to post EBIT margins of 18.1% compared to 16% in fiscal 2Q16.
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.
Foot Locker Stock Penalized after Weak 1Q17 Results
Foot Locker’s (FL) stock price moved south after posting lower-than-expected first quarter results.
After Foot Locker (FL) posted weak 1Q17 results, Wall Street reacted with a series of price target cuts.
Foot Locker’s gross margin stood at 34% of sales, 100 points lower than in the corresponding quarter last year.
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.