Vanguard Consumer Discretionary ETF

This series on JCPenney will provide insight into the company’s business and its turnaround strategy, key growth initiatives, stock price movement, and valuation.

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.

39.1% of analysts covering Tesla Motors (TSLA) have given “buy” recommendations, while 34.8% of analysts have given it “hold” recommendations.

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).

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.

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.

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.

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%.

Ford sold ~204,000 vehicle units in the US in September, which represents a YoY fall of about 8%.

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.

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.

Toyota Motor Corporation (TM) released its fiscal 2018 (April 1, 2017–March 31, 2018) earnings report today before the market opened.

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%.

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.

Ferrari (RACE) reported net revenues of ~$829 million in 4Q15, which was down ~1% from about $836.9 million the previous year.

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.

Lululemon’s latest results were well-received by markets. The stock jumped over 9% after the company released its results on December 11.

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.

Last week, both the ICSC–Goldman Sachs Retail Chain Store Sales Index and the Johnson Redbook index recorded strong year-on-year gains.

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 Corp. (SIX) is the world’s largest regional theme park company with $1.1 billion in revenue and 18 parks across North America.

Six Flags Entertainment’s (SIX) operating cash flows are largely driven by attendance and per capita spending levels.

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.

Six Flags’ management plays a vital role in shaping the company and leading it in the desired direction. This article reviews three management positions.

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.

US crude oil futures (DWT) (UCO) contracts for March delivery rose 0.96% to $66.14 per barrel on January 26, 2018.

The US Federal Reserve has a dual mandate of achieving maximum employment and stable prices (TIP) in the economy.

Toyota Motor’s (TM) vehicle sales in North America fell 1.1% YoY (year-over-year) to 2.8 million units in fiscal 2018.

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).

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 […]

In January 2018, Fiat Chrysler Automobiles’ (FCAU) total European sales reached ~85,000 vehicle units.

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.

So far in this series, we’ve covered analysts’ estimates for AutoZone’s second-quarter earnings, revenues, and profit margins.

Comcast’s (CMCSA) revenue grew 8% and 5% in 2016 and 9M17, respectively. The broadcast of the Rio Olympics in 3Q16 drove the 2016 numbers.

As of December 11, the US Dollar Index was trading at 93.95 with an 8.1% fall in 2017. On January 3, the index posted its highest level since 2003.

The Conference Board CEO Confidence Survey is a quarterly report based on a survey that collects responses from approximately 100 CEOs who represent a variety of industries.

According to analysts’ consensus data, 41% of analysts covering Honda Motor Company (HMC) gave it a “buy” recommendation on October 11.

As of August 1, WTI (West Texas Intermediate) crude oil futures are trading at $48.78 per barrel.

Lowe’s Companies (LOW) operates 2,129 home improvement and hardware stores in the United States, Canada, and Mexico.

Total US auto sales in May 2017 stood at ~1.51 million vehicle units, or 0.5% lower than the vehicle units sold in May 2016.

In the week ending May 12, 2017, Fiat Chrysler Automobiles (FCAU) stock traded on a negative note and ended the week at $10.87 with a loss of ~4.4%.

Macao’s unemployment rate was as high as 7% in 2000. Growth in the tourism and gaming industry helped to curb the high rate.

Currently, General Motors’ driverless car testing fleet is the largest in the automotive industry (VCR). General Motors is ahead of its direct US peers.

In November 2016, the WTI (West Texas Intermediate) crude oil prices traded on a bullish note after witnessing a 2.9% rise in the previous month.

Ford worked to redesign its F-650 and F-750 trucks. In August 2015, the company shifted the truck manufacturing to its Ohio assembly plant from Mexico.

In August 2016, the sales volume of entry-level luxury cars in the US dropped by a significant 19.6% YoY (year-over-year) to ~53,000 units.

In 2Q16, Fiat Chrysler began to collaborate with Google (GOOGL) to produce about 100 Chrysler Pacifica hybrids to test Google’s self-driving technology.

Analysts are probably divided on Tesla stock primarily over the company’s ability to deliver its Model 3 on time and its production constraints.

As we saw in the first part of this series, French food company Danone is buying US dairy products firm WhiteWave (WWAV) for $56.25 a share in cash.

Helen of Troy’s (HELE) stock fell by 3.7% to close at $99.27 per share during the first week of July 2016.

In addition to connecting drivers and customers, Uber’s application calculates the charges that a customer needs to pay at the end of the trip.

Since fiscal 2010, Honda’s revenues from its home market have inched up by just 11.2% since fiscal 2010.

In fiscal 2016, Honda reported strong revenues of ~1.5 trillion Japanese yen, which is 9.6% higher than its revenues of ~1.3 trillion yen in fiscal 2015.

Honda’s sales from Japan have been declining lately due to slowing auto demand in the region. In fiscal 2016, 12% of the company’s total revenues were from its home market, much lower than 19% in fiscal 2012.

In 2008–2009, the auto industry crisis became a nightmare for automakers. That was when Tesla, an auto start-up put its first electric car on the market.

With increasing environmental awareness across the globe, a delay in Toyota’s ability to deliver mainstream eco-friendly vehicles may restrict its future growth prospects.

According to a report published by Forbes in May 2015, Toyota was the eighth-largest company in the world by revenue. The company is not directly listed in the US, although its ADR is traded on the NYSE.

Toyota (TM) has 53 overseas manufacturing companies in 28 countries and regions. Originally considered a regional auto manufacturer, Toyota has busted this myth by gaining a huge global market share, particularly in the US and Europe.

Ford’s 1Q16 profit margins were higher than GM’s and Fiat Chrysler’s, primarily due to Ford’s dominance in the US pickup truck segment with its legacy F-series trucks.

An upward revision of analysts’ target prices can be seen as a positive indication for Tesla stock. The company’s focus on timely delivery of its Model 3 could be a reason for the revision.

Fiat Chrysler’s margins are gradually expanding, in line with its 2018 business plan.

General Motors provides a variety of financing services through GM Financial. In this part of the series, we’ll see how the financial services arm performed in 1Q16.

In this series, we’ll explore what analysts estimate for Ford’s 1Q16 and beyond. This includes estimates for revenues and margins ahead of the company’s 1Q16 earnings release.

In 2015, General Motors (GM) reported an adjusted EBITDA of $12.9 billion with an EBITDA margin of 8.5%.

As of March 29, 2016, Harley-Davidson’s forward EV/EBITDA multiple is 11x for the next 12 months.

It’s important for investors to take a look at an automaker’s marketing strategy to understand how the company differentiates its strategy to market its offerings.

It’s important for investors to pay attention to a company’s leverage position. High debt levels increase the risk profile of a company.

In 2015, the company shipped ~95,000 motorcycles outside the US. Australia, Mexico, and Canada are also some of the other key markets for Harley-Davidson motorcycles.

Most of Harley-Davidson’s (HOG) manufacturing and assembly plants are located in the US.

Harley-Davidson has become a synonym for power, passion, and class among motorcycle enthusiasts around the world.

Car2go is the largest car-sharing service provider in the world. It could be seen as the biggest competition for GM’s ambitious car-sharing program, along with Uber and Zipcar.

In 2015, GM remained at the top in the Chinese auto market, with the largest market share of 14.9%. This was higher than its share of 14.7% in 2014.

Cadillac is the most popular luxury car brand in General Motors’ portfolio. It was established with the foundation of the Cadillac Automobile Company.

In 2015, Ford reported a gross margin of 15.4%. This was marginally lower than its competitor General Motors (GM), which reported a gross margin of 15.8%.

Any economic data that reflect increased disposable income in any significant market should also positively impact auto sales.

Currently, Ford’s electric vehicle segment presence is limited. It produced its first full production electric vehicle, Ford Focus Electric, in late 2011.

General Motors (GM) is the largest American automaker. The company was founded in the year 1908 by William C. Durant.

Samsonite will need to file for merger approval under the Hart-Scott-Rodino Antitrust Improvements Act. The companies will need to file for Canadian antitrust approval.

Hong Kong-based Samsonite is buying luxury brand Tumi (TUMI) in a $1.8 billion deal. Samsonite is mainly known as a utilitarian luggage company.

Ford’s assembly line innovation allowed it to reduce the price of its Model T to $350 from $850 and to produce a vehicle within 90 minutes.

Dunkin’ Brands’ EBITDA (earnings before interest, tax, depreciation, and amortization) margins fell to 27.4% in 4Q15 from 52.6% in the corresponding quarter of 2014.

Generally, auto shipments depend on demand from end consumers as well as on any portfolio actions undertaken by the company.

Fiat Chrysler Automobiles made a revision to its five-year business plan, highlighting that it has already made a big leap towards the targets set for 2018.

In 4Q15, General Motors reported an expansion in its gross profit margin to 16.7% from 14.1% in 4Q14. GM reported a record EBITDA of $3.96 billion with an expanded EBITDA margin of 10%.

Being a fairly new automaker, Tesla Motors’ valuation multiples are not comparable with other industry giants such as Ford, General Motors, and Toyota.

Connected fitness is one of Under Armour’s most important future growth drivers. The company has even begun reporting the business as a separate segment.

Lowe’s (LOW) is one of the largest and oldest big box retailers around. It’s been publicly listed since 1961.

Apparel is a core product category for Under Armour (UA), representing 74.3%, or $2.3 billion, of sales in 2014.

Holiday initiatives could provide a sales upside for Nike in fiscal 2Q16. Its Black Friday launches are typically much-anticipated by fans.

Despite missing its e-commerce growth expectations in fiscal 3Q16, Walmart (WMT) is bullish on prospects for expanding its online grocery initiatives.

Redbook Research released its report for the week ending October 10, 2015. The same-store sales index rose 1.1% on a YoY basis. It fell by 0.20% last month.

In 2Q15, Dish Network (DISH) ended with 13.93 million pay-TV subscribers—compared to 14.05 million subscribers at the end of 2Q14.

Fourth-quarter revenues of Sotheby’s rose to $351.2 million, showing a 3.5% increase that beat analyst estimates. However, net income fell to $73.9 million.

Lear (LEA) is one of the largest automotive parts suppliers with FY14 revenues of $17.7 billion.

Cost-side factors are also expected to affect profitability in fiscal 2015, with gross margin falling between 51% and 52%, down from 53.9% in fiscal 2014.

Each month, Gallup releases its estimate of daily, discretionary expenditure for the average American. Gallup will release June’s report on Monday, July 7.