Vanguard Consumer Discretionary ETF
JCPenney: Insight into Its Roller Coaster Journey
This series on JCPenney will provide insight into the company’s business and its turnaround strategy, key growth initiatives, stock price movement, and valuation.
What Could Hurt Fiat Chrysler Stock This Week?
In 1Q17, Fiat Chrysler stock impressed investors by gaining ~19%. But the stock began 2Q17 on a negative note. As of April 13, FCAU has lost 11.3% month-to-date.
Could Higher Retail Sales Help Ford Boost Its Margins?
In January 2017, Ford’s US sales to retail customers rose 6% YoY to 120,400 vehicle units.
Toyota’s US Sales Continue to Strengthen in February 2018
In February 2018, Toyota (TM), the largest Japanese automaker, reported a 4.5% YoY (year-over-year) increase in its US sales volume, to 182,195 units.
Office Depot: Why the Stock Seems to Have Bottomed Out
Office Depot’s (ODP) fundamental performance has taken a toll on the company’s stock price.
Lululemon’s Digital Update: e-Commerce Sales Climb in Fiscal 1Q17
In fiscal 1Q17. Lululemon’s (LULU) e-commerce sales rose by 16.7% to $97.6 million in the quarter, representing 19.7% of its revenue.
Volkswagen’s US Sales Fell in July for the First Time in 2017
In July 2017, Volkswagen’s US sales fell 5.8% on a year-over-year (or YoY) basis to 27,091 vehicle units.
What Do US Luxury Vehicle Sales in July Tell Us?
In July 2016, the sales volume of luxury cars in the US dropped by 7.7% YoY, but the sales of entry-level luxury SUVs increased by 9.9% YoY.
Tesla’s 2016 and Beyond: Analysts Have Mixed Opinions
39.1% of analysts covering Tesla Motors (TSLA) have given “buy” recommendations, while 34.8% of analysts have given it “hold” recommendations.
Kate Spade: Wall Street Says ‘Buy’
The consensus analyst recommendation for Kate Spade’s (KATE) stock is “buy,” which was given by 70.0% of the Wall Street analysts surveyed.
Fiat Chrysler’s 2Q17 Results Kept Optimism Alive on Wall Street
In the week ended July 28, 2017, Fiat Chrysler Automobiles (FCAU) stock continued to trade on a positive note and rose 1.6% from the previous week’s closing price.
How Might the US Auto Industry Benefit from the Weakening US Dollar?
The recent weakness in the US dollar is positive for US-based automobile companies (VCR) like Ford (F), General Motors (GM), and Tesla Motors (TSLA).
Analysts’ Optimism Continues for Honda after Solid Q3 Truck Sales
In the first nine months of 2018, Honda’s US sales volume fell 2.0% YoY to 1.21 million units.
US Dollar Continues to Help US Automakers in June 2017
As of June 14, the Dollar Index was trading at 96.9 without any major change on a month-to-date basis.
How Are Analysts Rating Honda in September?
According to Reuters, as of September 20, 57% of the 21 analysts covering Honda Motor Company (HMC) have given it “buy” recommendations.
Why Ford Is Struggling to Protect Its Margins
Last year, Ford’s operating margins fell primarily in the Asia-Pacific region as well as in the Middle East and Africa.
What Ford’s Falling Retail Sales Could Mean for Investors
In February 2017, Ford’s US sales to retail customers dropped 3% YoY to 134,576 vehicle units.
Inside Toyota’s Lower US Sales in March 2017
In March 2017, Toyota Motor (TM), the largest Japanese automaker, reported a YoY (year-over-year) fall of 2.1% in US sales to 215,224 vehicle units.
What Drove Ferrari’s Shipments to the Americas Higher in 1Q17?
In 1Q17, Ferrari’s (RACE) shipments to the Americas rose 4.2% year-over-year to 545 car units from 523 units in 1Q16.
How Did AutoZone’s Key Business Segments Perform in Fiscal 3Q17?
In fiscal 3Q17, AutoZone’s DIY traffic count fell on a YoY (year-over-year) basis.
Why Fiat Chrysler Started 2Q17 on a Weak Note
In 1Q17, Fiat Chrysler Automobile (FCAU) stock impressed investors by yielding ~19% in returns.
Could Fiat Chrysler Resolve EPA Issue with Software Upgrade?
In the week ended May 19, 2017, Fiat Chrysler stock traded on a negative note and ended the week at $10.50 with a ~3.4% weekly loss.
Key Technical Levels for Toyota after Its Fiscal 2018 Earnings
On May 16, Toyota Motor’s (TM) ADR (American depositary receipt) was trading at $137.35.
Ford versus Trump: What Options Does the Company Have?
If Trump maintains his tough stance, things could get worse for Ford. Any move by Trump to penalize Ford could hurt the company’s small car business.
Could Q2 Gains in Crude Oil Prices Hurt US Truck Sales?
When we look at the last three years’ trend in US auto sales, we see a sharp rise in the demand for pickups and utility vehicles.
Inside Fiat Chrysler’s Valuation—Ahead of 1Q16 Results
Fiat Chrysler’s forward EV-to-EBITDA multiple is 1.3x, which is much lower than GM’s and Ford’s multiples, which are 2.2x and 3.0x, respectively.
Where Could Tesla Stock Find Support This Week?
In 2016, Tesla stock was on a roller coaster ride on Wall Street, trading at $194.47 with a 19% year-to-date fall as of September 9, 2016.
Inside Fiat Chrysler’s 2Q Revenues from outside North America
In 2Q17, FCAU’s shipments in Europe rose 8% to about 395,000 vehicle units, up from 367,000 units in 2Q16.
Nike Still Dominates Athletic Footwear in 1Q15
US dollar sales of athletic footwear rose 8% in the first quarter of 2015. Nike was the most dominant brand by far with a market share of 62%.
Why Did Ford’s Stock Turn Negative Last Week?
Last Friday, Ford’s stock (F) ended the week on a negative note with a 3.1% loss to close at $11.91 on October 14, 2016.
Could the Samsonite-Tumi Merger Get Competitive?
The $42 purchase price was a high premium of over 33% to where Tumi (TUMI) was trading on March 2, 2016—the day before the deal was announced.
Why Ford’s Stock Turned Positive Last Week
Ford sold ~204,000 vehicle units in the US in September, which represents a YoY fall of about 8%.
Best Buy’s Online Revenue Records Strong Growth in 2Q16
Best Buy’s (BBY) domestic online revenue grew by 17% on a comparable basis to $676 million in the second quarter of fiscal 2016.
NHTSA Report Cleared Tesla: Will Its Stock Rise?
On January 19, Tesla posted a link to a recent NHTSA report on its blog. It suggests no involvement of Tesla’ Autopilot system in reported road accidents.
The Case against US Consumer Discretionary Stocks
Given the headwinds that consumption faces, consumer-related sectors—especially the US consumer discretionary sector—appear expensive.
Should You Worry about Ferrari’s Flat Revenue in the Americas?
While Greater China accounted for just 9% of the company’s total shipments, it’s still strategically important for Ferrari due to China’s future growth potential.
Why General Motors Stock Rose 3.7% in November
Last week, General Motors (GM) stock largely traded on a positive note, and it ended the period with a solid 5.6% gain.
Finding Tesla’s Key Support and Resistance for This Week
On Friday, Tesla settled at $207.45. Despite the company’s two positive announcements earlier this month, the stock is still trading in negative territory.
Could Fiat Chrysler Stock Rise in the Final Week of June?
In the week ended June 23, 2017, Fiat Chrysler Automobiles (FCAU) stock turned positive and rose ~2.2% to end the week at $10.84.
Why Did Office Depot’s Sales Fall So Much in 4Q15?
In 4Q15, Office Depot’s (ODP) sales (VCR) fell 9%. Sales responded to the closure of 56 stores in North America, which had a negative impact of 4.0%.
Tesla-Panasonic Partnership: How Did Tesla Stock React?
On the day of the announcement, Tesla stock rose to a four-month high and closed at $219.53 with 2.9% gains for the session. The optimism didn’t last long.
Most Analysts Recommend ‘Buy’ for AAP, Pre-Q2 Earnings Release
Of the 24 analysts covering Advance Auto Parts (AAP), 54% recommend “buy,” 38% recommend “hold,” and 8% recommend “sell.”
Will Tesla Get Support from Trump’s Administration?
Trump’s administration will likely favor companies like Tesla. Improving the US job market is one of Trump’s key agendas.
After Solid Fiscal 2018 Results, Toyota Gave Dismal 2019 Guidance
Toyota Motor Corporation (TM) released its fiscal 2018 (April 1, 2017–March 31, 2018) earnings report today before the market opened.
Must-know: Top auto industry ETFs for investors
The First Trust NASDAQ Global Auto ETF (CARZ) is the most traded auto-focused ETF. The three-year return for the ETF is 48.32%. YTD, CARZ provided a return of 2.23%.
Could US Dollar Movement Benefit US Automakers in 3Q17?
Strong July consumer confidence and improving economic conditions could be a positive sign for the auto industry.
What Could Drive GM’s Valuation Multiples in 1Q18?
As of February 6, General Motors’ (GM) forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple was 7.7x.
Revenue Drivers: What’s Putting Pressure on Coach’s Sales?
In fiscal 1Q16, which ended September 26, 2015, Coach (COH) reported a 1% decline in sales to ~$1.0 billion. However, sales rose 3% in constant-currency terms.
Will Arbitrageurs Set Up the WhiteWave Trade?
In the risk arbitrage world, an 0.5% annualized return is too tight to bother with unless you think it gets competitive.
How Toyota’s May US Sales Compare
In April, Toyota (TM), the largest Japanese automaker, reported a 4.7% YoY (year-over-year) decrease in its North American sales volume to 192,348 units.
Why Did Fiat Chrysler’s 4Q16 Revenues Rise in Europe?
Fiat Chrysler’s (FCAU) lower shipments in North America in 4Q16 continued to hurt revenues from its largest single market.
Regulatory Conditions to the Jarden–Newell Rubbermaid Merger
In the case of the Jarden–Newell Rubbermaid merger, the companies will have to get the joint proxy statement approved by the Securities and Exchange Commission.
Why Ferrari’s 4Q15 Revenues Disappointed the Market
Ferrari (RACE) reported net revenues of ~$829 million in 4Q15, which was down ~1% from about $836.9 million the previous year.
Will Tesla Be Able to Protect Its Margins in Coming Years?
In 1Q16, Tesla reported a gross margin of 22% on a GAAP basis, which was much lower than its 27.7% GAAP gross margin in 1Q15.
What Factors Could Affect GM’s 2Q17 Revenues?
Analysts estimate GM’s 2Q17 revenues to be $40.8 billion, down about 3.7% from its revenues of $42.4 billion in 2Q16.
Could Weak Oil Prices Continue to Drive Truck Demand in 2H17?
On June 28, 2017, WTI (West Texas Intermediate) crude oil futures were trading at $44.74 per barrel. Oil prices have witnessed a fall of ~7.4% in June so far, and they’re fallen 11.6% quarter-to-date.
Analyzing Lululemon’s 3rd Quarter 2014 Financial Results
Lululemon’s latest results were well-received by markets. The stock jumped over 9% after the company released its results on December 11.
Analyzing Lululemon’s Revenues By Geographical Segment
The company grew its revenues at a compound annual growth rate of more than 35% over the past five years to come in at $1.6 billion in fiscal 2014.
A key preview of retail indicators due for release this week
Last week, both the ICSC–Goldman Sachs Retail Chain Store Sales Index and the Johnson Redbook index recorded strong year-on-year gains.
Under Armour’s 4Q15 Revenue Performance Boosted by Curry Two Slam Dunk
Under Armour’s sales grew by 30.8% in 4Q15 to ~$1.2 billion. Its 2015 sales rose by 28.5% to almost $4 billion, beating its own guidance of $3.9 billion.
Skechers: Achieving Growth through Diverse Product Development
Since the launch of its first line in 1992, Skechers has diversified into several new lines, targeting different demographics and different activities.
Six Flags Entertainment: An overview of the largest theme park
Six Flags Entertainment Corp. (SIX) is the world’s largest regional theme park company with $1.1 billion in revenue and 18 parks across North America.
Why Six Flags’ operating cash flows are prone to fluctuation
Six Flags Entertainment’s (SIX) operating cash flows are largely driven by attendance and per capita spending levels.
Why Six Flags is returning capital to its shareholders
A fundamental goal of Six Flags is returning capital to its shareholders. It has paid quarterly cash dividends since the fourth quarter of 2010.
Six Flags Entertainment is expanding beyond America
On April 10, 2014, Six Flags announced that it’s expanding beyond America with a Six Flags–branded theme park at Dubai in the United Arab Emirates.
Six Flags’ ownership is dominated by hedge funds
Institutional shareholders hold ~86% of Six Flags Entertainment (SIX). The top 20 hedge funds own ~25% of Six Flags.
Why Six Flags Entertainment is so profitable
Let’s look at why Six Flags Entertainment is profitable. Adjusted EBITDA was $429 million for the LTM, growing at 19.7% over a four-year period since 2009.
Share price performance for Six Flags since bankruptcy recovery
Six Flags’ share price on May 10, 2010, reflects $7.36 per share, the price of new common stock upon the company’s emergence from bankruptcy.
A brief overview of Six Flags’ management
Six Flags’ management plays a vital role in shaping the company and leading it in the desired direction. This article reviews three management positions.
Why the fall of continuing claims provides a silver lining to jobless claims
The weekly initial jobless claims report for the week ending May 17, was released on Thursday, May 22 by the U.S. Department of Labor: Employment and Training Administration.
Will Crude Oil Futures and Wall Street Extend Their Rally?
February WTI crude oil futures contracts rose 0.34% to $64.52 per barrel at 12:05 AM EST on January 16, 2018. It’s the highest level since December 2014.
Strong Demand and Production Cuts Could Impact Crude Oil Futures
US crude oil futures (DWT) (UCO) contracts for March delivery rose 0.96% to $66.14 per barrel on January 26, 2018.
How Harley’s Financial Services Division Performed in Q1 2019
In the first quarter, Harley-Davidson’s operating income fell 37.3% YoY (year-over-year) to $108 million in its Motorcycles and Related Products segment.
What Are Analysts Recommending on Honda in March?
As of March 28, 60% of the analysts covering Honda Motor Company (HMC) have given it “buy” recommendations.
How Investors Reacted to Ford’s Q4 Earnings Report
US legacy automaker Ford Motor Company (F) announced its fourth-quarter earnings results after the market closed on January 23.
A Look at Ferrari’s Q3 Performance in the Americas and Europe
In the third quarter, Ferrari reported shipments of about 1,005 car units to the EMEA (Europe, the Middle East, and Africa) segment.
Ferrari’s Top-Selling Cars in the United States in Q2 2018
In the second quarter, Ferrari’s shipments to the Americas rose 7% YoY to 850 car units from 797 units in Q2 2017.
Why Does the Fed Expect Unemployment to Fall Further?
The US Federal Reserve has a dual mandate of achieving maximum employment and stable prices (TIP) in the economy.
Comparing AutoZone’s Key Ratios ahead of Fiscal Q3 Earnings
Analyst estimates suggest AZO could report positive year-over-year growth in its Q3 2018 earnings and revenues, but its profit margins might disappoint.
A Look at Toyota’s Fiscal 2018 Revenue from North America
Toyota Motor’s (TM) vehicle sales in North America fell 1.1% YoY (year-over-year) to 2.8 million units in fiscal 2018.
What Drove FCAU’s 1Q18 Shipments in Europe?
After North America, EMEA (Europe, the Middle East, and Africa) is the second-largest segment for Fiat Chrysler.
It’s Surprising that President Trump Isn’t Tweeting about This
The US goods and services deficit was at $49.0 billion in March, a decrease of $8.8 billion from $57.7 billion in February.
Why 1Q18 Real GDP Estimate Raises Chance of 4th Rate Hike
The Bureau of Economic Analysis (or BEA) released its first estimate for 1Q18 real GDP on Friday.
Toyota Reported Stronger US Sales for the Third Month in Row
In March 2018, Toyota Motor (TM), the largest Japanese automaker, reported a YoY (year-over-year) rise of 3.5% in its North American sales volumes to 223,000 units.
March Non-Farm Payroll and Future Auto Sales
Non-farm payroll (or NFP) data shows the number of jobs added or lost each month in the United States.
What Are the Reasons behind Improved Projections for US GDP?
Policy changes announced in the last six months may have led to the increased projection for economic growth.
What to Make of the Rebound in the Final Estimate for 4Q17 GDP
The Bureau of Economic Analysis released the third and final estimate for 4Q17 GDP, indicating that the economy has improved at an annual rate of 2.9%.
Why GM Stock Underperformed Peers Last Week
Last week, General Motors (GM) stock settled at $35.17, falling ~7.3% from the previous week, when the stock rose 0.3%.
Analyzing Toyota’s Recent Financial Performance
In its fiscal 3Q18 (which ended December 31, 2018), Toyota’s adjusted earnings rose 97.4% year-over-year to ~315 JPY (or Japanese yen).
Why Is Advance Auto Parts’ Stock Consolidating in March 2018?
Advance Auto Parts (AAP) began 2018 on a solid note with 17.4% gains in January 2018.
Why Is Fiat Chrysler in a Better Position than Peers in 1Q18?
In 2017, Fiat Chrysler Automobiles (FCAU) yielded impressive returns of 96.4%.
February Payroll Data and Future Auto Sales
US NFP (non-farm payroll) data shows the number of jobs lost and added each month in the country.
Analysts’ Views on Foreign Automakers after February 2018
According to recent data from Reuters, 48% of the 23 analysts covering Fiat Chrysler (FCAU) stock have recommended “buy.”
What to Expect for AutoZone’s Future Earnings
AutoZone stock As we discussed in the first part of this series, AutoZone (AZO) was unable to boost investors’ confidence despite reporting earnings and sales growth in 2Q18. In general, the company has a stable business model, with lower investment requirements to drive growth than the auto manufacturing business. In this part, we’ll see what Wall Street analysts expect […]
How Crude Oil Could Affect the Auto Industry’s 1Q18 Earnings
As of February 27, WTI (West Texas Intermediate) crude oil futures are trading at $63.01 per barrel.
Fiat Chrysler’s European Sales Rose in January 2018
In January 2018, Fiat Chrysler Automobiles’ (FCAU) total European sales reached ~85,000 vehicle units.
Examining the Auto Industry’s Valuations after 4Q17 Earnings
Valuation multiples are commonly used by investors to compare auto companies. These multiples can be used to compare companies that are similar in size or in nature.
AutoZone’s Key Ratios ahead of Its fiscal 2Q18 Earnings
So far in this series, we’ve covered analysts’ estimates for AutoZone’s second-quarter earnings, revenues, and profit margins.
Conference Board CEO Confidence Survey Signals Price Rise in 2018
The Conference Board CEO Confidence Index was reported to have increased from 59 in the third quarter to 63 in the fourth quarter, which means 63% of the respondents have a positive outlook.
Could Harley-Davidson’s Profit Margins Expand in 4Q17?
Now, let’s explore analysts’ estimates for Harley-Davidson’s margins in 4Q17.