iShares Russell 1000 Growth
Why Structural Hurdles Could Thwart US Economic Progress
The American economy is facing major structural issues that have the potential to thwart economic progress. The most important hurdle facing the US economy is an aging population.
Why TJX Companies Might Post Tepid Earnings Growth in 2Q16
TJX Companies (TJX) will announce its results for the second quarter of fiscal 2016 on August 18. The second quarter ended on August 1, 2015.
Labor Market Slack Impacts Prices and Wages
If the unemployment gap is declining and the participation gap is rising, it could be due to an increase in labor market slack.
Will PepsiCo’s Margins Continue to Improve in 2Q15?
PepsiCo’s margins have improved in a volatile macro environment helped by tight cost controls and higher net pricing.
Mergers and Marketing Efforts Pressure MasterCard’s Margins
MasterCard’s rebates and incentives rose by 18% to $1.0 billion in 1Q16—higher than expected, mainly due to the timing of some deals and acquisitions.
Why the housing market impacts consumption and equity investors
This article considers the importance of investment, including residential investment, in the support of U.S. consumption data and the implications for investors.
Why smaller oil and gas firms are foraying into high yield debt
High yield debt markets saw $6 billion worth of new supply issued across 12 transactions in the week ending October 24.
ValueAct Capital Ups Its Stake in Allison Transmission Holding
Allison Transmission Holding and its subsidiaries design and manufacture commercial and defense fully automatic transmissions.
How Much Has Colgate-Palmolive Increased Its Dividend?
Colgate-Palmolive (CL) has a market capitalization of $60.9 billion. CL rose by 0.37% to close at $68.23 per share as of March 10, 2016.
Amgen Continues to Control Operating Expenses in 3Q15
In 3Q15, Amgen recorded total operating expenses of ~$3.4 billion. This fall in expenses enabled the company to report a net profit margin of ~36.4%.
JANA sells stake in Equinix
JANA Partners sold a significant stake in Equinix (EQIX) during the fourth quarter. The position accounted for 3.38% of the fund’s third-quarter portfolio.
Consumer Sentiment Is down in March after 11-Year High
The Consumer Sentiment Index for March 2015 declined to 93 from 95.4 in the month of February due to slightly higher gas prices and bad weather.
Are Activist Investors Eyeing Time Warner?
On January 7, 2016, the New York Post reported that activist shareholder Corvex Management could be building up its stake in Time Warner.
Part 6: Mid Cap Growth MLP, Mark West Energy Partners—overbought?
MLP’s—have retail investors gone too far? The below graph of Mark West Energy Partners, MWE, reflects exceptional growth against the S&P 400 mid cap index as well as the Morningstar mid cap growth index. This mid cap Master limited Partnership, MLP, has certainly ridden the MLP bull market. Despite the challenges faced by Chesapeake Energy, […]
Nordstrom Raises Its Outlook Following Strong 2Q15 Results
Nordstrom (JWN) raised its outlook for fiscal 2015, which ends January 30, 2016, backed by strong sales growth in the first half of 2015.
What Analysts Are Recommending for Marriott
Of the 29 analysts tracking Marriott International (MAR), 17.0% (five analysts) have a “strong buy” recommendation for the stock.
Maverick Capital Decreases Position in Allison Transmission
Allison Transmission and its subsidiaries design and manufacture commercial and defense fully automatic transmissions. In 4Q14, net sales grew 11% to $544 million.
Netflix Explored New Content Genres in 2015
Netflix has stayed away from sports programming but has not ruled it out entirely. However, Netflix does not consider it to be as attractive an opportunity as news programming.
Part 3–Starwood Hotels & Resorts—a mid cap growth stock that is fully booked
Strong Momentum in HOT The below graph reflects the strong performance of Starwood Hotels and resorts, HOT, which was particularly strong until the 2008 crisis, and is once gain handsomely outperforming the Morningstar mid cap growth total return index. While just a bit below the S&P 400 index over the years, Starwood Hotels has been […]
Part 4: Mid Caps—why value rallies and growth weakens post Fed taper announcement
Value for the long haul The below graph reflects the recent outperformance of mid cap value shares relative to mid cap growth shares since the 2008 crisis, with a more pronounced 10% outperformance since 2013. The prior article in this series demonstrates that mid cap value dominates mid cap growth in the long run, though […]
Coca-Cola’s Productivity Program to Improve 2015 Margins
Coca-Cola’s productivity program aims for annualized savings of $3 billion by 2019. The company will reinvest these savings in incremental media spending.
Biogen Pursuing Investigational Candidates in Alzheimer’s Disease
Biogen (BIIB) has entered into a licensing agreement with Bristol-Myers Squibb (BMY) for exclusive global rights for the development and commercialization of BMS-986168.
Skechers’ China Sales Rise: What’s the Growth Outlook?
China has been an important element in Skechers’ success in international markets. Sales from China rose to $220 million in 2015 from $86 million in 2014.
Why Emerging Market Debt Still Looks Attractive
Investors have tended to pull money from U.S. equity funds in the month before election day in the past four presidential elections, EPFR Global data show.
Mead Johnson Plans to Focus on R&D to Support Innovations
Mead Johnson follows a strategy of investments in innovation, having expanded its liquids portfolio and rolled out its key specialty formulas across Asia.
Why Ready-to-Drink Coffee Is Gaining Popularity with US Consumers
Coffee lovers in the United States are boosting ready-to-drink coffee volumes.
Why Microsoft Is Moving Away from Its Windows-Centric Strategy
Though Microsoft Windows continues to be the most popular desktop operating system, the falling popularity of desktops has added to its woes.
TJX Companies: Pricing Strategy Benefits US Sales in 2Q16
In the first six months of fiscal 2016, HomeGoods accounted for 12.2% of the consolidated net sales of TJX Companies. That’s up from 11.2% in the comparable period of the previous year.
Opportunities and Challenges for Coach
Coach expects to realize $160 million in annual savings due to its restructuring initiatives from fiscal 2016 onward. It also expects to maintain its annual dividend of $1.35 per share.
Is It Time to Fix America’s Ailing Infrastructure?
The consistent decline in public spending over the last 20 years has led to weak and inefficient infrastructure in the US. According to the Bureau of Economic Analysis, the average age of highways and streets is 28.4 years.
How PepsiCo Plans to Boost Beverage Sales in 2015
PepsiCo expects its recently launched flavors to boost beverage sales, which accounted for 47.0% of the company’s total revenue in 2014.
Greenspan’s lament: Consumption is no substitute for investment
Why it’s becoming increasingly difficult to expect sustainable prosperity from additional consumption in the U.S. economy.
State of the Jewelry Industry in 2015: Growth and Challenges
Trends shaping the jewelry industry include Increasing demand for branded jewelry and an increased focus on e-commerce sales.
US Spirits Imports in 1Q15: Double-Digit Growth in Key Categories
Distilled spirits imports increased by 17.8% to $1.5 billion in the first quarter of 2015, based on data provided by the Distilled Spirits Council of the United States.
Conference Board Indicates Upbeat Consumer Confidence in March
In March, the Consumer Confidence Index surged to 101.3. In February, it dropped to 98.8 from 103.8 in January. The CSI fell to 93.0 from 95.4 in February.
Is rising business inventory growth a bull market indicator?
This article considers the implications of growing business inventories in the context of an improving investment environment and the outlook for investors.
How Coca-Cola Benefits from Its Refranchising Efforts
By refranchising its bottling operations to independent bottlers, Coca-Cola can take advantage of these bottlers’ local expertise—including local consumer preferences, demand, and marketing programs.
Opdivo Is a Key Growth Driver for Bristol-Myers Squibb in 2016
On November 10, 2016, the FDA approved Opdivo as a treatment option for patients suffering with recurring or metastatic squamous cell carcinoma of the head and neck (or SCCHN).
BioMarin’s Disappointing 3Q16 Earnings
BioMarin Pharmaceutical (BMRN) reported its 3Q16 earnings on October 27, 2016. Revenues were $279.9 million, which was lower than Wall Street analysts’ projections.
Key Categories of the Spirits Market
Whiskey is the largest category of the US spirits market with a 33% share of gross revenues. Vodka, cordials, and rum hold 25%, 11%, and 10%, respectively.
Alcoholic Beverages: A Key Category of the Beverage Industry
According to the Beverage Marketing Corporation, alcoholic beverages such as beer, wine, and distilled spirits, account for 20% of the US beverage market.
Analyzing Tiffany’s Largest Segment: The Americas
Tiffany & Co.’s Americas segment includes sales from company-operated retail stores in the United States, Canada, Mexico, and Brazil.
Home Depot: Strong Growth Outlook for 2016
Based on Home Depot’s 2016 outlook, full-year revenues would range between $86.1 and $87.1 billion, up from $83.2 billion last year.
Why TJX is Trading at a Higher Valuation than Off-Price Peers?
As of March 24, 2016, TJX Companies was trading at a 12-month forward PE ratio of 22.3x—higher than other off-price retailers in its peer group.
How Did Beauty Companies’ Revenues Shape Up in 4Q15?
Beauty companies’ revenues for 4Q15 conveyed mixed signals to investors. Although Procter & Gamble and Avon started the earnings season on a disappointing note with lower sales, Estée Lauder and Coty beat consensus Wall Street estimates.
Why the private investment recovery supports the bull market
This series examines the current U.S. macroeconomic data pertaining to domestic investment and considers the implications for both equity and fixed income investors.
Signet Jeweler’s Market Positioning in the Retail Jewelry Industry
Total retail jewelry sales in the US grew at a CAGR of 4.4%, reaching $74.7 billion in 2014. Fine jewelry sales grew at a CAGR of 5%, reaching ~$69 billion.
How BD-Bard Acquisition Will Strengthen International Presence
C.R. Bard (BCR) has grown significantly outside the United States in recent years, driven by its international channel expansion strategy.
What to Do with Your US Large-Cap Mutual Funds Now?
Even amid uncertainty in markets, it’s wise to stay with your US large-cap mutual funds. If it hasn’t been doing well, study its past before deciding.
Will Nordstrom’s Rack Stores Continue to Be a Key Growth Driver?
In 2Q15, Nordstrom Rack store sales increased by 12.9% to $857 million from the comparable quarter of the previous year.
Lone Pine Capital Sold Its Stake in The Gap
In February 2015, The Gap declared its 4Q14 results and reported net sales of $4.71 billion, compared with $4.58 billion for 4Q13, an increase of 3%.
Currency Headwinds Might Pull PepsiCo’s 4Q15 Earnings Down
PepsiCo (PEP) is expected to announce its fourth quarter results on February 11, 2016. The consensus Wall Street analysts’ adjusted EPS estimate for 4Q15 ended December 26, 2015, is $1.06.
Tablets Help Verizon Manage Churn and Increase Usage
Tablets should have contributed to managing Verizon’s churn. In 4Q14, Verizon had the best postpaid churn among the four largest US wireless carriers.
Netflix’s Increasing Focus on Kids’ Programming
Children watching a cartoon on Netflix are also likely to want to buy a licensed toy ot other product related to the cartoon.
Pandora Media Is a New Position for Eminence Capital
Eminence Capital initiated a position in Pandora Media (P) during the fourth quarter. Pandora shares accounted for 2.22% of the fund’s 4Q14 portfolio.
Signet Jewelers’ Core Strength: Exclusive Merchandise Offerings
Signet Jewelers has taken on several merchandise initiatives in 2015. It expects its “Ever Us” offering to become a new trend in the jewelry industry.
How Might 1Q16 Results Affect Chipotle’s PE Multiple?
In this article, we’ll use the PE (price-to-earnings) ratio due to its high visibility in Chipotle’s (CMG) earnings.
What Did Erinn Murphy Say about GoPro?
GoPro cameras started selling on discount and flash sale websites. For fiscal 3Q15, GoPro ended up with a huge inventory on its balance sheet.
Will Yum! Brands’ 1Q16 Results Drive Up Its PE Multiple?
There are various multiples available to evaluate a stock. We’re choosing the PE (price-to-earning) ratio due to the high visibility of Yum! Brands’ (YUM) earnings.
Celgene’s Operating Expenses in 3Q15
In 3Q15, Celgene’s gross profit margin improved due to a favorable product mix composed mainly of Revlimid, Pomalyst, and Otezla.
Verizon’s Edge Take Rate Should Increase in 2015
Edge’s take rate—customers choosing the plan—increased significantly from 1Q14 to 4Q14. Verizon expects it to expand to the range of 34%–35% in 2015.
Appaloosa Management lowers stake in Google
Google provides Internet-related services and products. These include advertising technologies, search, cloud computing, and software.
Adena Friedman: Corporate Tax Reforms to Improve Economic Activity
Currently, the passage of tax reform is playing a significant role in Trump’s agenda in 2017 after some of the setbacks in their reforms.
Humira Continues to Be a Strong Growth Driver for AbbVie in 1Q16
AbbVie (ABBV) has projected that Humira’s sales in 2016 will be higher than those reported by the drug in 2015 by around 15%–20% in the US.
The taper could affect momentum stocks like Keurig Green Mountain
This article considers the risks associated with investing in high momentum stocks in the current environment of declining Fed bond purchases.
The fed tapers: Will small caps weaken relative to large caps?
Determining which index, with its specific risk factors, is the most appropriate for an investor depends upon the investor’s appetite for risk.
Will the S&P 500 outperform the Russell 2000 under rising rates?
Should interest rates begin rising as a result of a progressive Fed taper, post-2008 investment returns based on index-specific allocation could see major changes.
Why growth beat value by 20% post-2008 but may not continue to
Despite the recent outperformance of growth stocks in the post-2008 economic recovery, in the long run, and over several business cycles, academic studies tend to show that value stocks outperform growth stocks.
Why large cap growth stocks may hold up better with rising rates
This article illustrates the extent to which growth stocks can, and have, drastically outpaced value stocks for short periods of time.
Must-know: Momentum trading the Fed taper and your portfolio
This article considers the role momentum has in investing versus simply day trading, and the implications for equity investors.
Tactics or strategy: Momentum trading the taper and your portfolio
This article considers role momentum has in investing versus simply day trading and the implications for equity investors.
Why Lowe’s Store Productivity Is Growing Faster than Home Depot’s
One of the ways retailers can track their store performance is via productivity measures like sales and profitability per retail square foot.
Under Armour Partners with IBM and SAP to Widen Connected Fitness Potential
Under Armour’s revenues from its Connected Fitness initiative came in at $53 million in 2015, which was up from $19 million in 2014.
Bill Gross: Credit Is the Oil That Lubes the System
Currently, we’re in a highly levered system, especially the developed world. A levered economy depends on continued credit creation for stability and growth.
Is the Financialization of Education Leading to a US Bubble?
The financialization of education, especially in the United States (IWF) (IWD), has led to an important and emergent risk to the country’s economic future.
The $1.3 Trillion Student Debt Bubble
The rise in the balance of student debt has been driven by an increase in the number of borrowers and a rise in the average debt by each student.
Millennials or Baby Boomers: Who’s Affected Most by Student Debt?
The Baby Boomer generation has also been increasingly contributing to the student debt crisis.
Why Student Debt May Not Affect the US Economy Like Sub-Prime
According to the White House Council of Economic Advisers, “Student debt is less likely to make a recession more severe or slow an expansion in the way that mortgage debt may have.”
Why Clinton and Trump Believe Their Plans Could Create Jobs
At the third presidential debate on October 19, 2016, Chris Wallace asked the two presidential candidates why they believe their plans could create jobs and growth.
Can Target Make the Most of Its Opportunities?
Target’s flexible and smaller format stores could prove a cost-effective and capital-efficient way for it to reach customers in new markets.
Clinton or Trump: Who Would Add More to Debt Burden in 10 Years?
According to the CRFB, Hillary Clinton’s plan would increase public debt in the United States (IVV) (VOO) by about $200 billion over the next ten years
Bill Gross Says We Shouldn’t Expect a ‘New Trump Bull Market’
In his investment outlook for November 2016, Bill Gross advises investors to be prepared for lower stock earnings and PE (price-to-earnings) ratios in the future.
How Skechers Sells Its Products to Its Customers
In 2015, Skechers became the second-largest footwear company in the United States, trailing global market leader Nike (NKE).
Where Is Foot Locker Investing for Future Growth?
Over the last five years, Foot Locker’s (FL) capex (capital expenditures) has risen as the company has focused on growth (IWF) initiatives.
Why the biggest risk to equity portfolios is the equity market
The Federal Reserve Bank could end its bond buying program by the end of this year, so it’s important for investors to know how this development could impact their portfolio.
Crisis management: Investing in a low-growth economy
The Obama Administration has been facing an uphill battle against long-term deteriorating data, though recent signs of economic growth are starting to change the picture.
How Tesla Stock Has Fared in Q1 So Far
As of February 19, Tesla has fallen 8.2% quarter-to-date against the 10.9% gain in the S&P 500 benchmark.
Tesla’s Q4 Deliveries and Production Data: What to Expect
Tesla (TSLA) has been one of the handful of positive-return-yielding stocks in the fourth quarter so far.
Elon Musk Lists Rival Electric Vehicles on Twitter—NIO, GM, Ford
Before Tesla, many automakers launched limited-production electric models only to discontinue them soon after.
Align Technology: Analyst Ratings and Recommendations
Of the 12 investment research firms following ALGN stock, ten of them have given the stock “buy” or “strong buy” recommendations.
Mavyret May Prove a Strong Growth Driver for AbbVie Going Forward
In 3Q17, AbbVie (ABBV) reported global sales of nearly $276 million for its hepatitis C (or HCV) portfolio, which reflected a 27.7% operational fall.
Stryker’s Inorganic Growth Strategy Continues to Boost Growth
Stryker’s acquisition-driven growth strategy Stryker (SYK) has been growing at a fast pace through inorganic growth. It has undertaken a number of strategic acquisitions recently. In 3Q17, acquisitions contributed approximately 0.6% of the company’s YoY (year-over-year) sales growth, and in the first three quarters of 2017, Stryker acquisitions contributed ~3.2% of the company’s sales growth […]
Can Smart Beta Go Wrong?
The smart beta approach aims to benefit from market inefficiencies to deliver higher risk-adjusted returns and improve diversification.
How Emerging Markets Continue to be the Key Growth Driver for BD
Overview BD (BDX) has significantly diversified operations around the world. It has a diverse base in emerging markets such as Eastern Europe, Latin America, Africa, the Middle East, and certain Asia-Pacific countries. The company is focused on expanding its operations in these high-growth markets and is undertaking strategic initiatives in this regard. It is mainly focused […]
What Will Help Eli Lilly Build a Stronger Migraine Portfolio?
In September, Eli Lilly presented the results of its phase-3 Spartan trial, in which Lasmiditan demonstrated significant progress in the treatment of migraines.
Kevzara May Emerge as a Prominent Rheumatoid Arthritis Drug in 2017
Regeneron and Sanofi have submitted an application seeking regulatory approval for Kevzara in Japan.
Latest Product Launch Expands BD’s Genomics Portfolio
Becton Dickinson accelerated its strategy to establish itself as the leader in single cell genomics with its recent launch of BD Rhapsody, a single cell analysis platform.
Analysts Positive on Edwards Lifesciences: Most Recommend ‘Buy’
Edwards Lifesciences (EW) had tremendous growth in the first half of 2017. The stock has been recovering from the lows in late 2016 and has recently been on a bullish trend.
Intuitive Surgical Plans to Expand in Europe and Asia
Although Intuitive Surgical leads the surgical robotics market, there are competitive threats from other major players in the market.
Edwards Lifesciences: Focused on Inspiris Resilia and Konect
To extend the durability of the Inspiris Resilia surgical aortic valve, Edwards Lifesciences (EW) has incorporated a new tissue platform, Resilia tissue.