Could Tesla Stock Continue to Outperform after Its Solid 2Q17?
In the week ended June 23, 2017, Tesla stock rose 3.2% to $383.45. The stock has been trading positively for the last four consecutive weeks.
In the week ended June 23, 2017, Ford Motor Company (F) stock settled at $11.04 with a weekly fall of ~1.6%.
In the week ended June 23, 2017, Fiat Chrysler Automobiles (FCAU) stock turned positive and rose ~2.2% to end the week at $10.84.
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.
Nike Has One of the Best Upsides among Sportswear Stocks
2017 hasn’t been a great year for sportswear stocks so far. Lululemon Athletica, Under Armour, and Columbia Sportswear have fallen 29%, 16.5%, and 4.7% year-to-date.
Nike is covered by a total of 35 analysts, who have collectively rated the stock a 2.2 on a scale of 1 (or “strong buy”) to 5 (or “sell”).
Nike, the largest sportswear manufacturer in the world, clocked total sales of $25.7 billion in the first nine months of fiscal 2017.
Market Realist Consumer Sector Weekly: June 12–16, 2017
Key news that shook the consumer sector in the week ending June 16 was Amazon’s (AMZN) $13.7 billion acquisition of Whole Foods Market (WFM).
The majority of analysts covering Colgate-Palmolive (CL) continue to have a neutral stance on the stock.
Colgate-Palmolive’s (CL) productivity and cost reduction program have largely powered the company’s increase in profitability as sales remained soft amid challenges.
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.
Most Analysts Rate Kohl’s Stock a ‘Hold’
In 2017, Kohl’s increased its quarterly dividend 10% to $0.55 per share. As of June 22, Kohl’s current dividend yield was 6.2%.
As of June 22, Kohl’s was trading at 12-month forward PE ratio of 9.9x. Its PE multiple has fallen 2.4% since the announcement of its fiscal 1Q17 results.
Kohl’s (KSS) is trying to improve its margins through strong expense management. In fiscal 1Q17, Kohl’s gross margin grew by 83 basis points to 36.4%.
What Analysts Recommend for Activision Blizzard in June 2017
Of the 23 analysts that cover Activision Blizzard (ATVI), 18 recommended a “buy” and four recommended a “hold.” There was only one “sell” recommendation.
In 2Q17, Activision plans to release a new Hearthstone expansion and the Overwatch Uprising event. Heroes of the Storm 2.0 is expected to be launched with additional content in 2017.
China’s gaming market is expected to grow at a compound annual growth rate of 13.6% between 2013 and 2020.
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 Are Analysts Recommending for Home Depot and Lowe’s?
Of the 32 analysts that follow Home Depot (HD), 71.9% are recommending a “buy,” while 28.1% are recommending a “hold.”
Since the announcement of its 1Q17 earnings, Home Depot’s forward PE multiple has fallen.
Both Home Depot (HD) and Lowe’s (LOW) have a strong history of returning cash to shareholders.
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.
How Analysts View Michael Kors Stock after Its Fiscal 4Q17 Results
Michael Kors’ (KORS) weak guidance for fiscal 1Q18 brought the company a host of target price revisions.
Michael Kors’ fiscal 4Q17 gross profits fell 11.1% to $619.7 million, in line with the decline in its sales. Its gross margin remained flat at 58.2% of sales.
For fiscal 1Q18, Michael Kors’ (KORS) management is looking for EPS of $0.60–$0.64 on total sales in the range of $910 million–$930 million.
Darden on the Street: Why Analysts Are Favoring ‘Hold’ Recommendations
As of June 21, analysts were expecting Darden’s stock price to reach $86.86 in the next 12-months, which implies a fall of 1.6% from its current level.
On June 21, 2017, Darden was trading at a PE multiple of 20x, as compared to 17.8x before the announcement of its fiscal 3Q17 earnings.
Analysts are expecting Darden Restaurants (DRI) to post EPS of $1.15 in fiscal 4Q17, which would be a growth of 5.3% over its $1.09 in fiscal 4Q16.
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 Would Nike Gain from a Direct Partnership with Amazon?
The move would directly connect Nike with its Amazon customers, which had been served by third-party dealers—until now.
A direct partnership between Nike and Amazon would mean an increase in competition for brick-and-mortar sporting goods retailers.
Share prices of specialty athletic retailers Foot Locker, Dick’s, and Finish Line fell on June 21 after an announcement that Nike might sell products directly on Amazon.
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.