Advance Auto Parts Was the S&P 500’s Biggest Loser on August 15
Advance Auto Parts, which is one of the largest retailers of automotive replacement parts and accessories in the US, was the S&P 500’s top loser on Tuesday.
Wynn Resorts was the S&P 500’s top gainer on Tuesday. Buying was triggered in Wynn Resorts on August 16 due to the release of Deutsche Bank’s report.
The S&P 500 fell lower last week amid geopolitical concerns. However, it started this week on a stronger note by rebounding on Monday.
What Analysts’ Ratings Suggest about Schwab’s Performance in 2017
As of March 2017, 17 out of the 20 analysts covering the stock, or 85%, have rated it as a “buy” or a “strong buy,” and three analysts have rated it as a “hold.”
Charles Schwab has seen consistent improvement in operating margins, backed by higher interest revenue, higher asset management revenue, new assets, and a rise in the broader market.
Charles Schwab’s (SCHW) stock has risen 8.8% in the past three months and 56.4% in the past year, backed by an expected strong performance in 2017.
KeyCorp’s Valuation Is Close to Industry Average
KeyCorp’s valuation looks slightly overvalued compared to KBE. However, it’s undervalued compared to KRE, the regional banking ETF.
KeyCorp is a large regional bank with about $94 billion in assets. It competes with JP Morgan (JPM) and Bank of America (BAC) in various service segments.
KeyCorp (KEY) is represented in key ETFs focused on the banking sector. The SPDR S&P Bank ETF (KBE) has KeyCorp comprising ~1.7% of its portfolio.
International Equity Dominated ETF Inflows
Despite higher volatility levels, the US-listed (GS) (C) ETFs saw net inflows of ~$5.0 billion last week.
The volatility index also jumped to its highest level since the 2016 election due to heightened tension between North Korea and the US.
The top five US investment banks, including J.P. Morgan (JPM) and Goldman Sachs (GS), garnered total advisory and underwriting fees of $8 billion in 2Q17. This trend represented a 12% year-over-year increase.
Reason and Political Risk in Markets
Whether making buy and sell decisions on individual securities or allocating to asset classes, we must tune out the noise and use reason to determine the right course to set.
Mastercard (MA) posted operating income of $1.7 billion in 2Q17, which reflects a substantial rise of 20% from its 2Q16 operating income.
Mastercard (MA) is expected to declare dividends of $0.89 per share in 2017, reflecting a rise of ~17.1% from its total dividends declared in 2016.
Why PNC Financial Has Been Pricing at a Premium
PNC Financial (PNC) successfully diversified its banking operations by extending offerings in asset management, consumer services, and investment banking.
In 1Q15, PNC Financial bought back 4.4 million common shares worth $0.4 billion. The purchase was part of its four-quarter repurchase program.
PNC Financial’s non-interest income declined by 10% compared to the previous quarter—mainly due to higher fourth quarter gains on asset dispositions.
CME Returned $1.6 Billion in 2015: What About Dividends?
CME Group (CME) has returned more than $5.6 billion to shareholders in the form of dividends since the variable dividend policy in 2012. In 2015, CME declared dividends of $1.6 billion.
CME Group (CME) recorded average daily volumes of 18.2 million in January 2016. This compares to average daily volumes of 13.2 million in 4Q15.
CME Group’s (CME) operations outside the United States are expanding at a good pace. Volumes are impressive as CME leverages investments in global headcount, partnerships, and product development.
Why LSE Stock Has Outperformed over the Years
VanEck London Stock Exchange Group (LSE LN) has undergone a major transformation in the past five years and has evolved from a small to a top player among exchanges. London…
VanEck Visa (V US) is a great example of how the network effect creates powerful competitive advantages for companies in the electronic payments industry. Visa (V US) dominates the global…
Currently, in the industry, there has been sizable growth within recent years. Over the past five years, ETF AUM have grown in the US alone from $1.2 trillion to almost $3 trillion and the growth appears to be accelerating.
AIG’s Analyst Ratings Suggest a 10% Upside in Fiscal 2017
In June 2017, 13 of the 19 analysts covering AIG rated AIG as a “buy” or a “strong buy.” Five analysts rated it as a “hold,” and one analyst gave it an “underperform” rating.
AIG’s total operating expenses in 1Q17 fell 18.6% to $2.4 billion, or 10% on a constant dollar basis. This decrease was mostly due to lower acquisition costs, benefit expenses, and other general expenses.
AIG posted a net profit of ~$1.2 billion, or $1.21 per share, compared to a loss of $183 million, or $0.16 per share, in 1Q16.
The Top Dividend-Growing Consumer Staples Stocks
Consumer Staples Select Index sales, earnings, and dividends have grown at a CAGR[1. Compound annual growth rate] of 2.3%, 2.9%, and 7.4%, respectively, between 2012 and 2017.
Utilities Select Index sales, earnings, and dividends have grown at a CAGR[1. Compound annual growth rate] of 1.9%, 1.7%, and 3.6%, respectively, between 2012 and 2017.
The sector has seen the weakest growth in its top and bottom lines due to uncertainty in terms of sector reforms.
Banks Make It through the Fed’s Stress Test
Despite and a rocky 3-month period, starting in late February/early March, the financial sector has really taken a positive outlook over the past ~month and some signs point to a continuation of this recent success.
Bonds and currencies are usually among the first to react to any Fed news, but this time the reaction has been muted.
The FOMC has stuck to the script written by markets (SPY) and left interest rates unchanged at its May meeting.