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.
On August 17, 2017, retail giant Walmart (WMT) reported its fiscal 2Q18 results. It had EPS of $1.08, which was 0.90% higher than fiscal 2Q17.
Ulta Beauty (ULTA) will announce its fiscal 2Q17 results on August 24, 2017. It’s expected to post EPS of $1.78, a rise of 24.4% YoY.
Before the market opens on August 22, Coty (COTY) is scheduled to report its fiscal 4Q17 results. It’s expected to post EPS of $0.09, which is 30.8% lower than 4Q16.
Specialty retailer L Brands (LB) announced its fiscal 2Q17 results after the market closed on August 16, 2017. It posted EPS of $0.48, a fall of 31.4% YoY.
New York–based Estée Lauder (EL) announced its fiscal 4Q17 results on August 18, 2017. EPS of $0.51 was 21.4% higher than the year-ago quarter.
The consumer discretionary and retail sectors’ rough performances continued last week. The consumer discretionary sector suffered after Foot Locker (FL) and Coach (COH) stock took hard falls.
Ramsay Health Care (RHC AU) is Australia’s largest private hospital operator and has been given a “narrow economic moat” rating from Morningstar due to its competitive cost advantages. Ramsay operates more…
Kao Corp (4452 JP) is Japan’s largest household and personal care company. Wide-moat rated Kao gets its moat from two sources according to Morningstar: “intangible assets resulting from its strong brand…
To demonstrate the power of cost advantages in creating economic moats, we highlight four moat companies: U.S. based Starbucks and Compass Mineral, and international moat companies: Kao (Japan) and Ramsay…
The attribute of “cost advantage” is the second most frequent source of economic moat ratings according to Morningstar. Companies that are able to produce and offer products or services at…
“How Moats Translate into Sustainable Competitive Advantages” is a five-part moat investing education series that explores the primary sources of economic moats. The idea of an economic moat refers to…
Ramsay Health Care is a market leader in private healthcare in Australia, treating almost 3 million patients each year.
Kao Corporation has become the largest branded and packaged goods company in Japan and the second-largest company in the cosmetics category.
After suffering declining revenues due to intense competition from McDonald’s and Dunkin’ Brands in 2009, Starbucks opted to keep its costs lower to gain a competitive advantage.
Firms with a structural cost advantage can either undercut competitors on price while earning similar margins, or they can charge market-level prices while earning relatively high margins.
The idea of an economic moat refers to how likely a company is to keep competitors at bay for an extended period. In this series, we’ll focus on one of the sources of obtaining a sustainable competitive advantage—cost leadership.
On August 11, 2017, Credit Suisse upgraded Kohls (KSS) to “neutral” from “underperform” and raised the target price to $44 from $39.