iShares Russell Mid-Cap Growth

In the fourth quarter last year, American financial technology firm Square’s (SQ) stock disappointed investors with a massive loss of 43.3%.

Abiomed’s (ABMD) net income has grown at a three-year and five-year average of 95.1% and 120.4%, respectively.

As a part of the broader lifecycle management for Cabometyx, Exelixis is exploring the drug in combination with other immune checkpoint inhibitors.

Edwards Lifesciences (EW) is confident that it will report total revenue growth in excess of its previous expectations of 10%–14% for 2017.

In 2013, the company had 117 factory-house stores and 6 brand stores in North America. Store rollout is up and is expected to be stronger going forward.

Halcyon is the company’s new treatment platform for cancer patients that visually enhances and simplifies image-guided radiotherapy treatments (or IMRT).

After success in the company’s phase 1/2 trial with BMN 270, an investigational gene therapy for hemophilia A, BioMarin Pharmaceuticals (BMRN) is expected to start phase 3 trials.

With the Edwards Intuity Elite valve system, Edwards Lifesciences aims to offer a minimally invasive therapy to complex aortic stenosis patients.

Of the 18 analysts tracking Southwest Airlines (LUV), six (33.3%) have rated the stock a “strong buy,” and another six (33.3%) have recommended a “buy.”

In the last quarter of fiscal 2017, Abiomed (ABMD) reported international market revenue of nearly $10.7 million, a year-over-year (or YoY) rise of ~58%.

A total of 20 analysts were analyzing BioMarin Pharmaceuticals in July 2017. Six analysts recommended a “strong buy,” while nine analysts suggested a “buy.”

Goldman Sachs downgraded Shake Shack from “neutral” to “sell” and gave a negative same-store sales growth forecast of 2.5% for 2Q17.

UAA is covered by 34 Wall Street analysts who together rate the company a 2.9 on a scale of 1.0 for “strong buy” to 5.0 for “sell.”

After posting better 1Q17 earnings on April 25, Chipotle’s stock price rose to $496.14 by May 16, 2017. Since then, it has experienced downward momentum.

In 1Q17, WellCare Health Plans’ (WCG) Medicaid business reported revenues close to $2.6 billion, which equals year-over-year growth of ~11.8%.

Zoetis (ZTS) expects to generate savings of over $300 million in 2017 through its operational efficiency program.

In 1Q17, Baskin-Robbins, which operates under the umbrella of Dunkin’ Brands (DNKN), had SSSG of -2.4% in the United States and -2.0% in international markets.

UAA’s top line expanded 22% YoY (year-over-year) in fiscal 2016 to $4.8 billion, as compared to its 30% average top-line growth between fiscal 2011 to fiscal 2015.

According to a Reuters consensus, of the 28 analysts tracking Marriott (MAR), five of them (18.0%) have a “strong buy” for the stock.

Marriott’s cash dividend ratio was 3.0x at the end of 3Q16, which indicates its ability to sustain dividend payouts.

Same-store sales growth Same-store sales growth (or SSSG), expressed as a percentage, is a measure of the rise in revenue from a company’s existing restaurants over a certain period of time. SSSG is driven by ticket size and traffic. 4Q16 performance Panera Bread (PNRA) posted systemwide SSSG of 0.7%, with company-operated restaurants posting SSSG of […]

In 4Q16, Under Armour’s adjusted earnings per diluted share stood at $0.23, which was $0.02 lower than what analysts were expecting.

Under Armour’s (UAA) Class A shares are rated 2.3 on a scale of 1.0 for “strong buy” to 5.0 for “sell.” Class C shares have a higher rating of 1.0.

International sales account for about 15.0% of UAA’s total sales compared to less than 6.0% in fiscal 2013. It has plans to further expand that business.

For the next four quarters, analysts are expecting Wendy’s to post EPS growth of $0.40, which represents a decline of 4.2% from the corresponding quarters of the previous year.

Since the announcement of its 2Q16 results on August 10, 2016, Shake Shack (SHAK) EV-to-sales multiple has fallen from 5.1x to 3.7x.

Starbucks, a company that operates coffeehouse chains across the world, is scheduled to post its fiscal 4Q16 earnings results after the market closes on November 3, 2016.

Edwards Lifesciences revised its 2016 guidance after reporting a strong 3Q16. The company maintained its sales guidance for the year at the high end of the $2.7 billion–$3 billion range.

Analysts expect Chipotle to post EPS growth of 146% in the next four quarters. Its current share price might have factored in the growth rate.

Under Armour’s massive fall was a result of a warning that came from the company’s management regarding a slowdown in sales growth over the next two years.

Panera Bread (PNRA), a fast-casual restaurant chain, is set to announce its 3Q16 earnings after the market closes on October 25, 2016.

Under Armour (UA) has witnessed a rise in its debt over the last few years. The company was recently penalized for its rising debt levels and high valuations.

Among Under Armour’s primary strengths is its strong business model, which shows substantial potential for further growth.

Under Armour’s products are sold in North America, Europe, the Middle East, Africa, the Asia-Pacific region, and Latin America. Its revenue came in at $1 billion in 2Q16.

Valuation multiple Investors should look at valuation multiples when deciding whether to buy or sell a stock. Valuation multiples are driven by perceived growth, risk and uncertainties, and investors’ willingness to pay for a stock. Analysts use various multiples to evaluate a stock. In this article, we’ll use the PE (price-to-earnings) ratio due to its […]

On October 3, 2016, Chipotle Mexican Grill (CMG) announced that chorizo would be available in all its US restaurants as of October 4, 2016.

As of September 27, 2016, Darden Restaurants was trading at $61.5. This price may already have priced in the estimates we’ve discussed in this series.

Analysts are expecting Darden Restaurants (DRI) to post systemwide same-store sales growth of 1.6% in fiscal 1Q17 compared to 3.4% in fiscal 1Q16.

On September 13, International Flavors and Fragrances (IFF) announced that it entered into an agreement to acquire food flavor company David Michael.

Edwards Lifesciences’ SHV Therapy segment contributed approximately 26% to the company’s total sales in 2Q16.

Burlington Stores’ gross margin, based on total revenue, improved by about 40 basis points to 39.9% in 2Q16 due to higher initial markup.

In 2Q16, FMC Corporation’s (FMC) Health and Nutrition segment reported revenue of $195 million, representing 24.1% of FMC’s total revenue.

In 1Q16, Alnylam Pharmaceuticals (ALNY) completed enrollment of clinical subjects for its Phase 3 trial, Apollo. This trial aims to study the efficacy and safety of Patisiran as a treatment for hereditary ATTR amyloidosis with polyneuropathy

In fiscal 4Q16, which ended on February 29, 2016, Constellation Brands’ gross margin expanded by 100 basis points to 45.1%, driven by the company’s premiumization efforts.

Foot Locker (FL) has earned above-average returns on its capital investments over the past five years.

Foot Locker (FL) operates several e-commerce websites under the Foot Locker and other store banners. It reports e-commerce sales under the direct-to-customer segment.

The E. coli outbreak seriously dented Chipotle Mexican Grill’s (CMG) image.

After being a loss-making company in 2011, Skechers (SKX) has engineered a resurgence in financial performance from 2012 to the present.

In recent years, Skechers has reported improved working capital metrics. The company’s inventory turnover (or ITR) rose from 2.9x in 2013 to 3.2x in 2015.

On June 13, 2016, Coty’s (COTY) stock price was trading at $26.36. The stock price has risen 5.7% year-to-date (or YTD) and 29.0% since January 2015.

Dentsply Sirona (XRAY) offers a broad portfolio of dental equipment and consumables that have urological and surgical applications.

Lululemon Athletica’s guidance assumes a slightly higher tax rate compared to the prior year and no share repurchases in fiscal 2017.

In 1Q16, seven of our eight fast-food restaurant companies under review generated a median revenue of $167 per square foot.

In fiscal 1Q17, LULU expects revenue ranging from $483 million–$488 million, an implied growth rate of 14%–15.2% over fiscal 1Q16.

Intuitive Surgical (ISRG) defines its business model as a “razor/razor blade” model. What does this mean?

Off-price retailer Ross Stores (ROST) is scheduled to announce its results for fiscal 1Q16 on May 19. In fiscal 4Q15, Ross Stores’ adjusted EPS increased by 10% to $0.66.

Medivation (MDVN) is an oncology-focused biopharmaceutical company, and Xtandi as its only approved drug.

In April 2016, Nordstrom announced certain operating model improvements to generate savings of about $60 million in fiscal 2016.

With unit growth expected to dominate the second part of 2016, analysts are expecting Papa John’s to register a revenue growth of 3.4% from $1.6 billion in 2015 to $1.7 billion in 2016.

Xyrem is the only FDA-approved drug for both cataplexy and EDS (excessive daytime sleepiness) with narcolepsy.

To diversify, Buffalo Wild Wings (BWLD) has invested in PizzaRev, a fast-casual pizza restaurant, and R Taco, a fast-casual taco restaurant.

Xtandi’s oncology prescriptions grew annually by ~40% in fiscal 2015. Similarly, the drug’s overall treatment duration over past three years has grown significantly.

As of April 12, 2016, about 73.1% of analysts surveyed by Bloomberg rated Edwards Lifesciences as a “buy.”

According to the Wall Street analyst consensus, Under Armour is expected to post revenues of $1.04 billion in the quarter, an increase of 28.8% over 1Q15.

In this article, we’ll discuss analysts’ revised estimates and recommendations for fast casual companies following the companies’ 4Q15 results.

Southwest Airlines (LUV) still has some edge over legacy carriers, such as its recent entry into international markets using the Southwest Effect.

Chipotle declared its intention of regaining its customers’ loyalty and to establish testing and safety protocols that ensure the quality of its products. It conducted a comprehensive reassessment of its supply chain and restaurant practices and implemented a variety of measures.

The 4Q15 sales of upscale department store Nordstrom (JWN) came in at $4.19 billion, missing the consensus analysts’ estimate of $4.22 billion. In this series, we will discuss the company’s earnings, store growth plans, planned capital spending, and the outlook for fiscal 2016.

In fiscal 2016, Panera Bread (PNRA) is set open 90–100 new restaurants, with the majority of new openings being company-operated restaurants. The company has set to convert 200 of its company-operated restaurants to Panera 2.0.

After the closure of Centene-Health Net Deal, Centene expects to benefit from increased scale of operations and diversification of revenue base.

Coty (COTY) markets its beauty and cosmetic products in more than 130 countries and territories. Coty derives its revenue from three geographical regions.

The stock market reacted positively to news of Macy’s (M) productivity initiatives. Macy’s stock rose 2% on January 7, a day after the announcement.

Strategic rationale of the deal Both Newell Rubbermaid (NWL) and Jarden (JAH) are US-based consumer products conglomerates operating in diverse industries, with presences in several global markets. Both companies have strong portfolios of leading brands that are number one or number two in their categories. The combined company will have a concentrated portfolio of brands, […]

Newell Rubbermaid’s sales for the year ending December 2014 stood at $5.7 billion. Jarden’s sales for the same period stood at $8.3 billion.

As of November 4, Nordstrom’s stock price has fallen by 11.3% to $66.42 since the announcement of the company’s 2Q15 results on August 13.

In 4Q15, Motorola expects its revenues to decline by 6–8% YoY compared to 4Q14, assuming an unfavorable foreign currency impact of $65 million.

Motorola’s revenues declined by 1% YoY primarily due to unfavorable currency exchanges. Its sales, however, increased by 3% on a constant currency basis.

On November 4, Motorola reported its 3Q15 revenues at $1.4 billion, a 1% YoY decrease including $54 million from unfavorable foreign currency exchange.

On October 23, the Kellogg Company announced that its Board of Directors declared a dividend of $0.50 per share on the company’s common stock.

In fiscal 2015, Coty clocked global sales of $4.4 billion, with the highest geographic exposure coming from the EMEA region.

High-end companies like Coty rely on repeat customers and mainly compete on the basis of product quality and product differentiation.

Keurig’s sales in the third quarter of fiscal 2015 ended June 27, 2015, declined by 5.2% to $969.6 million, due to declines in brewer sales and pod sales.

As of September 4, department store stocks for Macy’s fell by 11.1% since the start of 2015. Despite 1H15 sales growth, Nordstrom’s stock also fell by 7%.

Nordstrom reported a 9.4% rise in total revenue for 1H15. The sales growth was due to growth from full-line stores, online businesses, and off-price stores.

Dr Pepper Snapple adopted a strong strategy by acquiring an 11.7% stake in BodyArmor. But it could grow more in other non-carbonated beverage categories.

Blue Harbour raised its stakes in Allscripts Healthcare Solutions (MDRX) in 4Q14. The company accounts for 5.91% of the fund’s portfolio in 4Q14.

Blue Harbour Group manages capital on behalf of pension funds, endowments, and other institutional investors.

TPG-Axon boosted its holdings in Allison Transmission Holdings (ALSN) in 4Q14, increasing the number of shares a whopping 79%.

TPG-Axon Management initiated a new position in Axalta Coating Systems Ltd (AXTA) by purchasing 2,409,701 shares of the company, representing 4.7% of the fund’s 4Q14 portfolio.

Magnetar Capital added new stake in Restaurant Brands International (QSR) in 4Q14. The position represented 0.73% of its holdings at the end of the year.

Zoetis (ZTS) is the animal health business that Pfizer (PFE) spun off in June 2013.

Under Armour’s (UA) back-to-back acquisitions this year could help it claim the top position from the market leader—NIKE.

Under Armour’s footwear revenues grew 41.8% to $0.3 billion in Q1–Q3 2014. Under Armour is a much newer entrant in the NIKE-dominated footwear space.

Stuart Weitzman is a vertically integrated high-profile footwear manufacturer. The company sells footwear targeted at the premium women’s market.

Under Armour, Inc.’s cost of goods sold margins have been fairly steady over the years. SG&A costs are likely to trend higher in the near to medium term.