PowerShares Buyback Achievers ETF
Southwest Airlines’ Utilization Has Decreased in 2017
In November 2017, Southwest Airlines’ (LUV) utilization improved 0.7% year-over-year (or YoY) to 85.8% as its traffic growth exceeded its capacity growth.
Delta Air Lines Capacity Growth on Track to Meet 2017 Guidance
In November 2017, Delta’s (DAL) capacity grew 2.9% YoY (year-over-year) to ~18.9 billion miles. YTD (year-to-date), the carrier’s capacity has risen 1.0%.
Analysts’ Recommendations for Southwest Airlines
Analysts’ recommendations Of the 17 analysts tracking Southwest Airlines (LUV), 36.8% of the analysts (seven analysts) gave a “strong buy” rating on the stock, while another 47.4% (nine analysts) gave a “buy” rating. The remaining 15.8% (three analysts) gave a “hold” rating. None of the analysts gave a “sell” or “strong sell” rating on the […]
Southwest Airlines Reduces Its Debt Slightly
Southwest Airlines ended 3Q17 with ~$3.0 billion in cash on its balance sheet.
Delta Air Lines’ Valuation Multiple: What’s Priced In?
Delta Air Lines (DAL) has a forward EV-to-EBITDA multiple of 5.6x. That’s higher than its average valuation of 5.4x from January 2009 to date.
Delta Air Lines Reduces Its Debt: Can It Lower It Even More?
At the start of 2017, Delta Air Lines (DAL) raised its debt by ~$2.0 billion in order to reduce its pension plan liability.
Delta Air Lines: Operational Performance for 2017
Delta Air Lines’ (DAL) average traffic increased 3.4% YoY to 61.0 million passenger miles for 3Q17. For the first nine months of 2017, traffic has increased 2.1% to 166.5 billion miles.
Why Analysts Expect American Airlines’ Margin to Contract in 2017
In 1Q17, American Airlines’ (AAL) EBITDA (earnings before interest, tax, depreciation, and amortization) is expected to fall 31% to $1.2 billion.
What’s Priced into Delta’s Valuation?
Delta Air Lines (DAL) is currently valued at 5.3x its forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple.
Why It’s Important That Delta Cuts Capacity
For 1Q17, Delta Air Lines (DAL) expects a 0.5% capacity decline as compared to the first quarter of 2016.
Delta Air Lines’ Debt: What You Should Know
In the fourth quarter of 2016, Delta Air Lines (DAL) generated $640 billion of free cash flow—slightly higher than the $497 billion free cash flow generated in 4Q15.
Will Delta Air Lines’ Strong Operational Performance Last?
Delta Air Lines (DAL) saw average traffic of about 50 million passenger miles for the quarter, a 0.8% year-over-year improvement
Inside Boeing’s Often Overlooked Risk: Pension Liabilities
For Boeing (BA) to fulfill this promise to its employees, it would require $17.9 billion—a huge sum by any standard.
What Do Marriott’s Key Metrics Suggest ahead of 3Q16 Results?
Marriott’s (MAR) RevPAR for 2Q16 rose 2.9% across its worldwide properties. North America RevPAR rose 3.2% due to a 2.2% rise in ADR.
Why Is Delta’s Pilot Deal Important for the Airline Industry?
All airline pilots have their eyes on Delta Air Lines’ (DAL) final agreement with its pilots. This is because Delta’s deal will set a precedent in the industry.
Why Are Delta Air Lines Pilots at War with the Company?
In this series, we’ll take a look at Delta’s proposed new deal for a pay raise for its pilots. We’ll also see why this deal will be important for other airlines
Shareholder Buyback: A Powerful Tool to Achieve Higher Income
What products single out specifically the share buyback companies?
Buyback Achievers Strategy Significantly Outperforms Benchmark
Historically, we have seen Buyback does perform very well across all interest rate environments. Looking at the data back to the mid-80s, it does well.
How Will the Marriott-Starwood Merger Impact Consumers?
According to Marriott’s (MAR) CEO, Arne Sorensen, Starwood’s (HOT) guest loyalty program was a “central, strategic rationale for the transaction.”
Market Conditions Continued to Impact ADM’s Revenue in 2Q16
Archer Daniels Midland’s (ADM) revenue fell 9% YoY (year-over-year) to $15.63 billion in 2Q16—compared to $17.19 billion in the same quarter last year.
Will Boeing’s Dividend Payout Increase in the Rest of 2016?
Looking at Boeing’s dividends, we see that it has been a consistent dividend payer for more than two decades. For 2Q16, it paid a total of $691 million in dividends.
Carl Icahn’s View on Share Buybacks Is Divided
Apple (AAPL) is one of the most cash-rich companies in the US. While Carl Icahn has been talking about share buybacks artificially inflating the Market and asset values, some buybacks have occurred as a result of his push.
Icahn Identifies a Key Motivation behind the Buyback Spree in the US
Carl Icahn is one of the first activist investors to voice his opinion against share buybacks. He believes that companies are increasingly putting money into buybacks instead of using them for much-needed capital improvements.
The Earnings Outlook for Nike in Fiscal 4Q16
After posting adjusted EPS growth rates exceeding 20% in the first three quarters of fiscal 2016, the earnings expectations for Nike (NKE) in the fourth quarter are modest.
Home Depot Eyes Higher Growth in Fiscal 2017
Home Depot’s EPS growth for fiscal 2017 is expected to be 14.8%, which is higher than the 12%–13% expected earlier.
Inside Boeing’s Commercial Airplane Prospects for the Rest of 2016
Boeing’s Commercial Airplanes segment saw a 6% YoY (year-over-year) decline in revenue to $14.3 billion in 1Q16.
Share Buybacks: Lower Valuation or Cheap Capital?
By reducing the number of outstanding shares, companies increase the EPS. Through share buybacks, companies return more cash to shareholders.
How Can the Alaska Air-Virgin America Deal Affect Delta Air Lines?
The merger of Alaska Air and Virgin America is expected to be completed by January 1, 2017. Alaska Air last went through this process in 1982, when it acquired Horizon Air.
Nike: How Did It Perform in Fiscal 1H16?
Nike has (NKE) had two good quarters in fiscal 2015, propelled by a higher demand for its premium products.
Comparing Costco’s Dividend Policies with Other Big-Box Retailers
Costco Wholesale’s (COST) current dividend stands at $0.40 per share each quarter. This works out to a DPS (dividend per share) of $1.60 annually.
Understanding Boeing’s 787 Dreamliner Project
Boeing has been continuously investing labor and capital into the production of the Dreamliner series in order to improve efficiency and lower the production costs for the jet.
How Panera 2.0 Improved Its 4Q15 Same-Store Sales Growth
Panera Bread (PNRA) noted that the increase in same-store sales growth was primarily due to the implementation of Panera 2.0. Panera 2.0 utilizes digital technology to enhance customer experience and increase the company’s operational efficiency.
Can Boeing Continue Its Dividend Payout?
Boeing (BA) paid $608 million in dividends during 4Q15. In 2015, BA paid a total of $2.5 billion in dividends, which is ~36% of its free cash flow generated for 2015.
Share Buybacks Boost Returns for Lowe’s and Home Depot Investors
Besides margins enhancements, Lowe’s has also employed both leverage and share buybacks to improve returns to shareholders.
Analysts Optimistic about FedEx despite Reducing 2Q16 Estimates
Of the 28 analysts rating FedEx stock, 57.1% (16 analysts) have a “buy” rating, 42.9% (12 analysts) have a “hold” rating, and no analysts have a “sell” rating.
What Is FedEx Management’s Outlook for the Future?
FedEx continues to see growth in the global economy. It expects the US GDP to grow by 2.4% in 2015 and by 2.6% in 2016, driven by increased consumer spending.
FedEx Ground: Delivering on E-Commerce Growth
FedEx Ground is being driven by the booming growth in e-commerce, and it contributed to 35% of the company’s revenues but 44% of its profits.
How Has PKW Performed in the Market in 2015?
Of the total 206 holdings of PKW, 102 have given negative performances in the market, whereas the rest have given positive returns.
Beauty Brands Sale: Strategic Benefits for Coty and Hypermarcas
Hypermarcas is Brazil’s largest pharmaceutical company, with an estimated market share of 14% in terms of unit sales.
A Must-Read Overview of Smart Beta Funds
Unlike funds that are either actively or passively managed, smart beta funds use the combination of both approaches to generate high returns at a low cost.
Coty’s Initiatives to Expand Business through Brand Acquisitions
On July 9, 2015, Coty and Procter & Gamble announced a definitive agreement to merge 43 P&G beauty brands with Coty in a Reverse Morris Trust deal.
PKW and VLUE Side by Side with SPY
SPY’s performance was more volatile than that of PKW and VLUE. PKW and VLUE performed nearly equally in the market, with PKW leading VLUE at various points.
PKW Holdings’ 2015 Performance Breakdown
Apart from IBM, “buy” recommendations surpass “sell” and “hold” recommendations for all PKW’s top stocks, indicating that Wall Street analysts are positive.
Home Depot’s Capitalization Policies in 2Q16
The Home Depot (HD) paid out $1.5 billion by way of dividends in the first two quarters of fiscal 2016. The company has paid out 39.6% of its earnings as dividends over the past 12 months.
PCY and PKW Are Smart Strategies for Investment
PCY is a smart beta fixed income security fund. It tracks the investment results of the DB Emerging Market USD Liquid Balanced Index.
What Are Smart Beta ETFs?
Smart beta ETFs are simply funds that follow their indexes. They’re designed unconventionally to take advantage of the inefficiencies in the market.
Which ETFs Give Exposure to Courier Stocks?
Smaller ETFs that provide exposure to the courier services industry include Buyback Achievers (PKW), the First Trust Capital Strength ETF (FTCS), and the MSCI Industrials Index ETF (FIDU).
A Look at the Courier Service Industry in the United States
The growth in e-commerce among various economies across the globe has helped shape the highly competitive courier service industry that we know today.
FedEx’s Delivery Market Share Is Threatened by New Competitors
FedEx was formed with a vision to change the way delivery services worked prior to 1971. It established a new industry and it has been leading its peers since then.
How Does FedEx Plan to Improve Its Margins?
Another long-term financial goal for FedEx (FDX) when it launched a $1.7 billion profitability improvement effort was to improve margins.
What Are FedEx’s Major Costs?
Salaries and employee benefits form the highest cost for FedEx. They account for ~36% as a percentage of revenue. Salary costs rose 6% for fiscal 2015.
FedEx’s Growth Is Led by Acquisitions and Technology
By 1983, FedEx (FDX) had become the strongest delivery business in the nation. It started a string of acquisitions in order to grow more.
FedEx Freight: Flat Revenue and Better Operating Margins
FedEx Freight’s (FDX) service offerings include priority services when speed is critical and economy services when time can be traded for savings.
FedEx Express: Segment Undergoes Changes to Improve Profit
FedEx Express (FDX) provides customers with reliable and timely delivery by connecting markets that comprise more than 90% of the world’s GDP.
FedEx: How a College Paper Idea Turned into a Delivery Giant
The idea behind FedEx (FDX) started off as a term paper by undergraduate Frederick W. Smith in 1965 at Yale University. The company started operations in 1973.
NetApp Dropped from Oaktree Capital’s Portfolio
NetApp offers data management and storage systems, software, and services. NetApp increased its stock repurchase program by an additional $2.5 billion.