Dividend Growth for Qualcomm and Crown Castle International
Qualcomm (QCOM) recorded a year-over-year decline in revenues for 2Q17 after growth in the preceding quarter.
Index & Mutual Funds
Track the hottest index funds and check in on the performance of mutal funds with Market Realist's financial analysts.
Indonesia’s Manufacturing Activity Fell in June 2017
The manufacturing PMI (purchasing managers’ index) in Indonesia (EIDO) fell to 49.5 in June 2017—compared to 50.6 in May 2017.
Chart in Focus: ConocoPhillips’s Operating Netback
What is the operating netback? The operating netback (also referred as production netback) is oil and gas revenue realized per boe (barrel of oil equivalent) after all costs to bring one boe to the market are subtracted from the realized price. The operating netback is derived by subtracting production expenses (or field operating expenses), production taxes, […]
Why China Is Becoming an Important Market for Disney
Popularity of English-language content in China Media companies in the United States (SPY) are increasingly looking at the Chinese (FXI) market as Hollywood movies become popular there. However, there have also been concerns about box office success in the country. On June 27, The Wall Street Journal reported, citing an unknown source, that the six […]
Will the Real Estate Sector Shine Thrive this Summer?
Another important summer activity is shopping for a new home. Realtors often talk of curb appeal, and there’s no better time than summer.
Interesting Options for Summer Investments
Summer is finally here after only nine months of waiting. Now might be a good time to look at investments that have to do with the summer months.
Why Barclays Thinks UAL Earnings Could Improve
UAL is currently trading at $76. Its 52-week high is $83.04, and its 52-week low is $37.64.
Improved Global Demand Boosted Brazil’s Trade Surplus in May 2017
Brazil’s exports stood at $19.7 billion in May 2017, a 12.6% increase year-over-year, boosted by sales of semi-manufactured products and basic products.
Slumping Commodity Prices Pressure the Brazilian Real in 2Q17
The Brazilian real dropped ~2% in May 2017 amid the country’s ongoing political instability.
US Crude Oil Prices Could Be Range Bound Next Week
August WTI (West Texas Intermediate) crude oil (XOP) (VDE) (RYE) futures contracts rose 0.5% and closed at $42.74 per barrel on June 22, 2017.
Will Qatar’s Economic Growth Continue to Fall amid the Crisis?
Qatar was expected to grow at a faster pace in 2017. However, economic sanctions by its neighbors are expected to impact its economic activity in 2017.
How Eli Lilly’s Taltz Performed in Clinical Trials
On June 15, 2017, Eli Lilly announced data from a study that evaluated the safety and efficacy of Taltz in patients with active psoriatic arthritis.
How Is Software Related to NVIDIA’s Operating Margin?
NVIDIA’s operating margin of 33% surpassed Intel’s (INTC) operating margin of 26% in 1Q17.
Why ETFs Are Seeing Increased Popularity
Mutual fund ownership of equities is at the lowest level in ~13 years, while ETFs (SPY) (IVV) are gradually increasing their share in the stock market.
Jury Hasn’t Decided on ETFs’ Role in Stock Market Rise
Although ETF (VTV) ownership increased substantially during the last 20 years, it still isn’t high enough to meaningfully impact stock prices.
What’s ahead for Frac Sand Producers?
Frac sand producers Emerge Energy Services (EMES) and Hi-Crush Partners (HCLP) rose nearly 44% and 16%, respectively, over the last 12-month period.
Understanding Disney’s Capital Allocation Strategy
Disney stated at the conference that it will keep investing in its businesses not just for growth but also to give superior returns to shareholders.
Apple’s iPhones Top ACSI’s Customer Satisfaction Index
An ACSI survey revealed that in the US, Apple’s (AAPL) iPhone SE and iPhone 7 are the highest-rated smartphones in terms of customer satisfaction over the last year. The iPhone SE gained the top spot with 87 points.
What Happened to Novartis’s Valuation after 1Q17?
Novartis reported EPS of $1.13 on revenues of $11.54 billion for 1Q17, which represents 2% YoY operational growth in revenues.
Salesforce’s EV-to-EBITDA Multiple Compared to Its Peers
Microsoft’s forward annual dividend yield was ~2.3% on May 15, 2017, and Oracle’s and IBM’s yields were ~1.7% and ~4.0%, respectively.
Understanding Disney’s Digital Distribution Strategy for ESPN
Disney (DIS) has been looking more and more at the distribution of its content in digital format—specifically for ESPN.
What Valero Needs to Soar in 2Q17
Valero’s crack indicators have fallen in all of these areas in May 2017 (as of May 23) as compared to April 2017.
Sanofi’s Generics and Consumer Healthcare Business in 1Q17
Sanofi’s (SNY) Generics business contributes ~5% to the group’s total revenues.
Devon Energy’s Operating Netbacks
In 1Q17, Devon Energy’s (DVN) reported operating netback was ~$16.68 per boe (barrel of oil equivalent), which is ~178% higher than in 1Q16.
How Major Refiners’ Cash Flows Fared in 1Q17
Refiners’ cash flows have turned volatile over the past few quarters due to volatile refining earnings.
Why MPC’s Valuation Commands a Premium over the Peer Average
MPC’s valuations are above the peer averages likely because it’s now in the process of restructuring its organization to unlock value.
Will Fallen Angel Bonds Continue to Capture Solid Returns?
VanEck How fallen angels may complement high yield portfolios Income investors may want to consider fallen angels as a complement to their high yield bond allocations given their higher credit quality. Fallen angels’ higher average credit quality than original-issue high yield bonds may help absorb more of the potential broader market volatility that may occur […]
Disney’s Stock Price: Identifying the Key Drivers
The Walt Disney Company (DIS) announced its fiscal 2Q17 results on May 9. The company’s stock price closed at $109.58 on May 11, 2017.
What Analysts Think of Target Stock
The majority of analysts covering Target (TGT) are neutral on the stock. Analysts’ consensus rating on TGT was 2.9 on a scale of 1.0 (strong buy) to 5.0 (strong sell).
Energy Stock Valuations and Their Historical Averages
EV-to-EBITDA multiples in 1Q17 for ExxonMobil (XOM), Chevron (CVX), Royal Dutch Shell (RDS.A), and BP (BP) were above their historical averages.
Could Crude Oil Prices Hit Lows from 2016?
WTI (West Texas Intermediate) crude oil (FXN) (SCO) (FENY) futures contracts for June delivery are near a five-month low as of May 9, 2017.
Rumor Has It NVIDIA’s Volta Will Arrive Later in 2017
Things are heating up in the GPU space as AMD looks to enter the high-end market with its Vega GPU. Vega will be priced competitively, likely creating a price war between AMD and NVIDIA.
How the Changing Regulatory Environment Could Impact Disney
Disney said in an earnings call that the US corporate tax policy needs to be changed because American companies are no longer competitive.
What Do Analysts Expect from Merck’s 1Q17 Earnings?
Merck and Co. (MRK) will release its 1Q17 earnings on May 2, 2017. Analysts’ estimates show EPS of $0.83 on revenues of $9.25 billion for 1Q17.
Will Argentina Be Upgraded to an Emerging Market in 2017?
The recent rally in Argentina’s Merval Index (ARGT) reflects improved access to Argentina’s markets with a host of reforms adopted by President Mauricio Macri.
Off-Price Retailers Look to Outperform Department Stores in 2017
Despite a rough retail environment, off-price retailers TJX Companies (TJX), Ross Stores (ROST), and Burlington Stores (BURL) have been delivering strong sales growth. In this series, we’ll compare their margins, stock price movements, and analyst recommendations.
Can Indonesia Remain an Emerging Market Favorite amid Religious Tension?
The Indonesian economy is steadily growing, fueled by strong domestic consumption and efforts by its government to instigate pro-market reforms.
Understanding Fiscal Reforms in Indonesia: The Impact of a New Administration in Jakarta
Investment climate reforms have improved Indonesia’s Ease of Doing Business rank, which has had a positive impact on its trade surpluses.
Indonesia Has High GDP Growth Expectations, but Will These Help Markets in 2017?
The World Bank is forecasting higher growth for Indonesia (IDX) at about 5.1% and 5.3% for 2017 and 2018, respectively.
Colgate-Palmolive’s Regional Trends Are Now Headed This Way
CL’s organic sales in its North American segment remained flat in 4Q16. Volume gains in toothpaste were offset by a fall in toothbrushes and liquid hand soap.
Colgate-Palmolive’s Sales Growth: Understanding Analyst Expectations
Analysts expect Colgate-Palmolive (CL) to post revenue of $3.8 billion in 1Q17, which would represent a YoY (year-over-year) growth of 0.8%.
Novartis’s 1Q17 Estimates: Innovative Medicines Segment
Novartis’s (NVS) Innovative Medicines segment includes products for therapeutic areas such as oncology, cardiometabolic, immunology, and dermatology.
Bill Gross and High-Yield Bonds: Priced for Too Much Growth
Investors generally invest in high-yield bonds (BND) when there are expectations for higher growth in the economy.
Why Cypress Semiconductor Restructured Its Business Segments
Cypress has combined its four business segments into two: MCD (Microcontroller and Connectivity Division) and MPD (Memory Products Division).
Why High-Yield Bonds Are Needed in a Portfolio
AB Summing It Up High-yield bonds present an alternative for investors at an uncertain crossroads. Equity valuations seem attractive based on some measures, but volatility has led many investors to search for ways to temper the risk in their portfolios. At the same time, bonds—a popular risk reducer—are less attractive than normal due to extremely […]
What Role Do High Yield Bonds Play in a Portfolio?
AB High Yield in the Portfolio Framework Given their higher risk levels, we’d expect that stocks would continue to outperform high yield over the long run. However, high-yield bonds have clearly demonstrated that they bring much to the table if they’re combined with stocks in a carefully designed and maintained portfolio. But not every investor […]
How Portfolio Rebalancing Boosts Overall Returns
AB Rebalancing in the Tails Because stocks have been so much more volatile than high yield, periodic portfolio rebalancing tends to occur during performance extremes—the “tails” in return distributions—when the gap between high-yield and equity returns is wide. This magnifies the “buy-low, sell-high” effect that rebalancing contributes to a portfolio’s performance. Of course, the gaps […]
How High-Yield Bonds Can Help Reduce Risk
AB A Place at the Asset-Allocation Table For investors seeking to control volatility in their equity portfolios while still maintaining return potential, high-yield bonds could represent an effective solution. A typical approach to moderating equity volatility is to reallocate assets to the greater stability of investment-grade bonds, or even cash. But this can exact a […]
Why High Yield Bonds Are an Effective Match with Equities
AB Keeping Pace with Equity Returns over Time In fact, when we widen the lens to take in the last three decades, high-yield bonds have nearly matched equity performance. And they’ve done it with much lower volatility. Since July 1983, stocks have produced an annualized return of 10.9% (Display 1). High-yield bonds have nearly equaled […]
Why High Yield Bonds Are Attractive
In this series, we’ll discuss the many advantages of high yield bonds, their correlation with other asset classes, the rise of global high yield markets, and why high yield bonds should command a place in a portfolio.