Consumer Discret Sel Sect SPDR® ETF
Must-know: A breakdown of Las Vegas Sands’ revenue
Las Vegas Sands (LVS) earns revenue through casinos, hotels, food and beverages, and convention or retail operations. The company’s main revenue driver is casino revenue. It’s generated from slot machines and table games. Casino revenue represents ~79% of the total revenues.
Aging Population May Keep Global Growth Muted
An aging population is likely to keep global economic growth muted in the years to come. This is primarily because the dynamics of the population are rapidly changing.
Must-know: Important performance metrics for casino resorts
The occupancy rate is very important for casino resorts. The occupancy rate shows the relationship between the number of occupied rooms and the total number of rooms.
Overview: Hilton Worldwide Holdings Inc.
Hilton Worldwide Holdings is one of the largest hospitality companies in the world. It was founded in 1919 by Conrad Hilton. The company started when he bought his first hotel in Texas.
Must-know: The most popular casino games
Casinos’ popularity is growing. This suggests that people like to gamble occasionally. Unfortunately, they don’t always win. For most of the people, the real fun is playing the game—not necessarily winning.
Nordstrom’s operating margins feel the squeeze from expansion
In fiscal 2014, Nordstrom’s operating margins declined by another 9.8% on the heels of a 10.8% decline in fiscal 2013.
Is a Pullback around the Corner for Shake Shack?
Should investors be paying a high premium for the company’s high growth? When compared to its peers, Shake Shack seems overvalued.
Why more Europeans could be eating at McDonalds and Yum!
Employment could be turning around The below chart shows employment growth for countries in Europe. The Eurozone, which only includes countries using the euro (so, excluding the United Kingdom and Russia), has been experiencing a declining growth rate over the past two years. While the overall growth was in positive territory from mid-2010 to mid-2011, […]
Why Chipotle Has A Lot Of Room For Unit Growth
Unit growth isn’t the only factor that drives revenue. A restaurant can keep adding more restaurants. Eventually, it can capture newer markets. This is what Chipotle is doing.
Why Ford’s Lincoln Sales Fell 6% in China in October
In the previous part of this series, we looked at the second-largest US automaker, Ford’s (F), sales in China in October. The company’s weakening Chinese sales are likely to continue.
Netflix’s Competition Could Increase in the Future
Netflix (NFLX) leads the share of Internet traffic on computers and networks in North America. However, the competition is increasing against it.
How Does Starbucks’s Valuation Compare?
Valuation multiple Investors may want to look at valuation multiples when deciding whether to buy or sell stocks. Valuation multiples are driven by perceived growth, risks and uncertainties, and investors’ willingness to pay. Analysts use various multiples to evaluate stocks. In this article, we’ll use the PE (price-to-earnings) multiple due to its high visibility in […]
Fiat Chrysler’s US Jeep Sales Jumped 45% in March 2018
In March 2018, Fiat Chrysler Automobiles (FCAU) sold 2,576 car units of its luxury brand, Alfa Romeo, in the US market.
Why margin improvement is a priority for Interpublic
The company said its “financial goals include competitive organic revenue growth and operating margin expansion, which we expect will further strengthen our balance sheet and total liquidity and increase value to our shareholders.”
Farallon Capital Increases Its Position in Dollar General
In 2014, Dollar General reported net sales of $18.9 billion, an increase of 8% compared to sales of $17.5 billion in 2013.
Can Investors Expect Momentum from McDonald’s 3Q16 Earnings?
McDonald’s (MCD) is scheduled to announce its 3Q16 results on October 21, 2016. As of October 13, 2016, it was trading at $115.40, a fall of 9.4% from July 25.
Ford’s December Sales Tanked 8.8%: Is a US Slowdown Coming?
Today, America’s second-largest automaker, Ford Motor Company (F), released its US sales figures for December 2018.
Should Automakers Celebrate after Trump’s Tweet on China Tariffs?
In the last couple of quarters, US automakers (XLY) including Ford (F), Tesla (TSLA), and General Motors (GM) have warned investors about the negative impact of China tariffs on their business.
What’s Driving Honda Higher on Wall Street in 1Q17?
Currently, Honda is trading at $30.79 and is hovering right above an important support level of $30.70.
Ford F-Series Truck Sales Grew 9% Year-over-Year in February 2017
In February 2017, Ford’s F-Series truck US sales stood at 65,956 units with a YoY increase of ~9%.
Strength in Initial Jobless Claims Is Positive for Restaurants
Initial jobless claims can help us gauge the health of the US labor market. It indicates the number of people filing for unemployment.
Tesla’s Journey from Top Carmaker to Underperformer
Despite the company’s meeting its second-quarter Model 3 production goal, its stock traded on a negative note in the third quarter.
Fiat Chrysler’s European Sales Fell in November 2017
In November 2017, Fiat Chrysler Automobiles’ (FCAU) total Italy sales were at ~74,600 vehicles units, which reflected a minor decline of 0.9% from the company’s European market sales of ~75,300 units in the same month of 2016.
What Could Drive Starbucks’s Same-Store Sales Growth in 2016?
Over the past four quarters, Starbucks’s same-store sales growth has increased due to growth in ticket and traffic.
Why Fiat Chrysler Outperformed Its Peers in 4Q16
In 3Q16, Fiat Chrysler reported strong adjusted EPS (earnings per share) of 0.47 euros or $0.53—more than double its EPS in 3Q15.
Philip Morris Stock Falls on Weak 3Q17 Earnings
Philip Morris International (PM) announced its 3Q17 earnings on October 19. The company posted adjusted EPS (earnings per share) of $1.27 on revenues of $7.47 billion.
Why the Gloomy GDP Estimate Is Not Cause for Panic
There are several reasons why the gloomy GDP estimate is not cause for panic. The slowdown in GDP growth seems to be a temporary setback.
What Went Wrong with Macy’s 1Q15 Operating Margins?
Macy’s (M) operating margins declined to 6.6% in 1Q15—ending May 2, 2015—from 7.1% in the same quarter last year. The operating income declined by 7.7%.
Honda’s Strong US Truck Sales Keep the Optimism Alive in February
In 2016, America Honda Motor sold about 1.6 million units in the US market, a YoY increase of 3.2%.
Beef Prices: 2015–2016 Outlook for the Restaurant Industry
Although beef prices recently increased slightly, they’ve been on a downtrend trend since the beginning of 2015. They’re expected to remain elevated for the rest of 2015.
Home Depot Outlook Depends on the Consumer
If it’s to increase sales, in-store execution, omni-channel efforts, and better customer service will be critical for Home Depot (HD).
Domino’s Adds 51 New Stores In 4Q14
Domino’s added more units internationally last quarter. The company added a total of 662 units in the last 12 months.
Why Fiat Chrysler Stock Is Trading in a Narrow Range
Last week, which ended October 13, 2017, Fiat Chrysler (FCAU) stock remained mixed and witnessed a minor rise of 0.90%.
Why Most Analysts Have ‘Hold’ Ratings on Nordstrom
On August 2, 2016, Nordstrom’s (JWN) stock price had fallen by 18.7% to $40.74 on a YTD (year-to-date) basis.
Labor market predominates again in deciphering extent of recovery
In this part, we will discuss Janet Yellen’s views on labor market slack, one of the “three broad questions” posed by the Fed Chair, the answers to which are likely to shape the future monetary policy.
What Analysts Are Saying about General Motors: 4Q15 and Beyond
General Motors (GM) is set to release its 4Q15 earnings on February 3, 2016. In this series, we’ll see what analysts are estimating for the company.
Important releases hone in on rates and consumer spending
The hottest topic for market players right now is the interest rate hike. Last week’s labor releases spurred the recovery. Many investors had thought the recovery was flagging.
Starbucks Analysts: Their Ratings and Their Targets
Looking at analysts’ ratings for Starbucks, about 79% of analysts have “buy” recommendations for Starbucks, 21% have “hold” recommendations, and none has “sell” recommendations.
The Redbook shows strength in retail sales due to a late Easter
The Redbook showed some strength in same-store sales during the April 19 week by recording a year-on-year rate of +3.7%.
Why Family Dollar’s profits tumbled 33% in the third quarter
Comparable store sales for the 13-week period decreased 1.8% as a result of fewer customer transactions—sales in the 3Q14 were strongest in the Consumables category, driven primarily by strong growth in refrigerated or frozen food and tobacco.
Valuation Multiples of Key Restaurant Players
Where are some of the major restaurant companies such as Starbucks, Chipotle, Panera, and Yum! Brands trading from a valuation standpoint? Over the past month, US markets have experienced high volatility.
Can Tesla Keep Shining in 2Q17?
In 1Q17, Tesla (TSLA) stock delivered an impressive return of ~30%. After struggling for the previous six quarters, it appears to have stepped into glory.
Yum! Brands’ Management Initiatives and Outlook for 2015
Management stated that it expects the second quarter EPS to lag by 20% YoY. It expects full-year EPS growth of 10% in 2015.
How Under Armour Stock Reacted to a Poor 4Q16
Under Armour’s (UAA) stock plunged 25% after the company reported lower-than-expected top and bottom lines and a glum guidance.
What Is the Outlook for Shake Shack in 2016?
A New York–based fine casual restaurant chain, Shake Shack (SHAK) announced its 4Q15 results on March 7, 2016. SHAK reported an overall revenue of $51.1 million and earnings per share of $0.08.
How Ferrari Began 2018 with Stronger Profitability
In 1Q18, Ferrari (RACE) reported a 13% YoY (year-over-year) rise in its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of 272 million euros or about $323 million.
Where Will Yum! Brands Trade in the Next Few Quarters?
Yum! Brands has a forward PE ratio of 25x. This indicates that the stock is valued fairly. It’s a stable company with a long history of EPS growth.
Should Investors Worry about Panera’s High Valuation?
In this part, we’ll look at how the company’s valuation PE (price-to-earnings multiple) affects Panera’s stock price.
What Could Affect Tesla’s Valuation Multiples in Q3 2018?
Despite their recent falls, Tesla’s valuation multiples are still much higher than those of other legacy auto giants.
Why Analysts Expect Improved Margins for General Motors in 2016
Analysts are estimating that General Motors’ profit margins more than doubled in 2015. They estimate 5.2% in 2015 compared to 2.5% in 2014.
TSLA: Why Improving the Model 3’s Gross Margin Could Be Difficult
In the first quarter, Tesla reported a 19.7% gross margin in its Automotive segment on a generally accepted accounting principles basis.
Consumer Spending Edges up in February 2015
Consumer spending remained subdued in February. The harsh weather kept consumers indoors. Individuals used the gains from lower gasoline prices to boost their savings.
Analysts’ Expect Ford to Post Lower Revenues in 4Q16
Analysts estimate that Ford’s 4Q16 revenues will be at $35.1 billion—about 7.2% lower than the same quarter last year.
Inflation Remains Subdued
Inflation remains subdued by all measures. Since inflation is way below the Fed’s long-term target, the Fed can afford to keep interest rates lower for a little longer.
Why Caesars Entertainment has a massive $24 billion debt
Texas Pacific Group and Apollo Management took Harrah’s Entertainment, now Caesars Entertainment, private in a leveraged buyout deal valued at $30.7 billion in 2008.
Tesla Stock Beats Wall Street as Model 3 Fever Is On
In the fourth week of May 2017, Tesla stock (TSLA) rose 4.6% to $325.14. The company had a market cap of ~$53.4 billion on May 26.
Bloomin’ Brands Has 3 Key Costs of Operation
Bloomin’ Brands’ revenue was affected by as much as 0.7% due to price increases for beef and seafood. A restaurant can do little when facing rising prices
Restaurant Capex Outlook Remains Elevated in May
The expected capital expenditure index increased by 0.9% to 100.8 in May from 101.7 in April.
21st Century Fox Is Still Focusing on Film Diversity
21st Century Fox’s Filmed Entertainment segment performed well in the last two quarters. The segment’s revenue grew by 5% year-over-year to $2.4 billion in 3Q15.
Advance retail sales for December 2014 were disappointing
Markets were disappointed by the weak retail sales report. Estimates for advance retail sales were $442.9 billion in December 2014.
Why Investors Are Confident in YUM ahead of Its 3Q16 Results
Yum! Brands develops, operates, franchises, and licenses the Pizza Hut, KFC, and Taco Bell brands. It’s set to announce its 3Q16 results on October 5, 2016.
Why did consumers’ confidence rise in December?
The Board’s Consumer Confidence Index rose to 92.6 in December—compared to 91 in November. For November, the index was revised from an initially reported value of 88.7.
Tesla Stock Is Trading Near Its 52-Week Low: What’s Next?
In the week ended October 5, Tesla stock (TSLA) fell 1.1% after tanking 11.5% in the previous week.
Why trend in fee income is an important source of revenue
Marriott increased its fee income at a ten-year compound annual growth rate (or CAGR) of 7.6% to $1,543 million in 2013—from $742 million in 2003.
Yum! Brands’ 4Q15 Same-Store Sales Growth Is 2% in China
Following its dismal performance in 3Q15, Yum! decided to release its same-store sales growth performance for China on a monthly basis.
Kocherlakota’s thoughts about monetary policy stimulus in 2015
Kocherlakota asked “Should the fed funds rate target range be raised soon?” He thinks it will be a few years before PCE inflation returns to the target.
Tesla Stock Reacts to Elon Musk’s Latest ‘Joint’ Venture
Elon Musk may have surprised many of his followers and loyal Tesla investors today.
When Will Yum! Complete the Separation of Its China Division?
On October 20, Yum! announced that it will separate its China division from the rest of its business. It’s expected to complete this by the end of 2016.
Will Success Continue for Jack in the Box?
Same-store sales at Jack in the Box’s company-operated restaurants are expected to grow 4%–6% in 3Q15 and 4.5%–5.5% for the year. Qdoba’s sales are expected to increase 6%–8%.
The US Economy Has a Hiccup—Hopefully Just One
The second estimate from the Bureau of Economic Analysis (or BEA) showed that gross domestic product (or GDP) growth for the US economy slowed to 2.2%.
Ferrari Stock Remained Bearish in the 1st week of December 2017
During the week ended December 8, Ferrari (RACE) stock traded below its 50-day SMA (simple moving average) of $112.60, suggesting a bearish bias.
Starbucks Beats 1Q16 Expectations, Still Down Year-to-Date
Starbucks (SBUX) reported earnings per share of $0.46 for 1Q16, which exceeded Wall Street’s consensus estimates as well as management’s guidance of $0.45 per share.
Why Are Pork Prices Stabilizing?
Pork prices have dropped significantly in 2015 from the high of $1.38 per pound in June 2014 to the low of $0.65 per pound in March 2015.
Honda’s US Truck Sales Were Weaker in April 2017
April was the first month in 2017 that Honda reported lower US truck sales on a YoY basis. Weaker truck sales could hurt its second quarter profitability.
Why Falling Crude Oil Is Good for Automakers
As of June 14, WTI (West Texas Intermediate) crude oil futures are trading at $44.73 per barrel.
Why NIO Stock Turned Negative after Q3 2018 Earnings Call
Chinese electric carmaker NIO (NIO) released its third-quarter results on November 6.
Nike Has One of the Best Upsides among Sportswear Stocks
2017 hasn’t been a great year for sportswear stocks so far. Lululemon Athletica, Under Armour, and Columbia Sportswear have fallen 29%, 16.5%, and 4.7% year-to-date.
Why Fiat Chrysler’s Profit Margins Could Expand in 2Q17
According to Wall Street analysts’ estimates, FCAU is likely to report an EBITDA margin of ~11.6% in 2Q17. This shows a handsome expansion over its 2Q16 EBITDA margin of 9.3%.
How Does Shake Shack Compare to Its Peers?
Shake Shack (SHAK) has an enterprise-value-to-revenue multiple of 13.9x, compared to the peer average of 3.5x.
Why Investors Weren’t Impressed by Starbucks’s Fiscal 2Q17
Starbucks (SBUX) posted its fiscal 2Q17 earnings after the market closed on April 27, 2017. Its EPS was $0.45 on revenues of $5.3 billion.
Honda Rounded Out the List of Top 5 Auto Stocks in 2017
Honda Motor Company traded on a positive note in 2017 and managed to make our list of the top five gainers in the auto industry for the year.
What Factors Are Hindering Harley-Davidson’s Profitability?
In 1Q16, Harley-Davidson reported a shift in its product mix. The shipments of Harley’s touring motorcycles fell by 0.8% while shipments of the cruiser and Sportster/street motorcycles rose by 15.1% and 1.2%, respectively.
Honda’s Car Sales Continue to Rise in October 2017
Honda’s US sales in October In October 2017, the American division of Honda Motor (HMC) reported a YoY (year-over-year) rise of about 0.9% in its US sales. The company sold 127,353 units in the United States last month, compared with 126,161 units in October 2016. October 2017 marked the second consecutive month in which American Honda reported a YoY rise […]
Looking at Mainstream Automakers’ 3Q16 Revenues
In 3Q16, mainstream automakers’ year-over-year global revenues didn’t reflect much optimism. Except for GM, no other auto giant posted a notable jump in its global revenue.
A Look at AutoZone’s Key Ratios ahead of 4Q17 Earnings Report
Analyst estimates suggest the company could report positive year-over-year growth in its 4Q17 earnings and revenues.
Honda’s US Sales Rose for the 6th Consecutive Year in 2017
In December 2017, the American division of Honda Motor Company (HMC) reported a YoY (year-over-year) decrease of about 7.0% in its US market sales.
Why poor comps affected McDonald’s revenues
With disappointing same-store sales performance across all four segments, it isn’t surprising that McDonald’s reported revenues of $6,987 million—a 4.5% decline.
Why Another F-Series Sales Drop Could Make Ford Stock Nosedive
In November 2018, Ford F-Series truck US sales were at 72,102 units, a 0.9% YoY decrease.
Must-know: Chipotle Mexican Grill’s food costs
CMG reported $372 million in food costs in 3Q14. Food costs accounted for 34.3% of the revenue. It was an increase of 70 basis points year-over-year (or YoY).
Who Cares if It’s a Tent? Just Build Teslas Faster!
On June 16, Musk shared an image of the new Model 3 production line on Twitter, saying “Amazing work by Tesla team. Built entire new general assembly line in 3 weeks w minimal resources.”
Estée Lauder Sees Positive Outlook in China
International brands such as Estée Lauder (EL), L’Oréal (LRLCY), Procter & Gamble (PG), Shiseido (SSDOY), and Nivea (BDRFF) dominate the cosmetics market in China.
Must-know: MGM’s relative share price performance
Share prices for most of the gambling stocks declined significantly over the last three months. MGM Resorts (MGM) declined 14.9%.
Johnson Redbook Index Reflects Sluggish US Same-Store Sales
Subdued US same-store sales are not a favorable indicator for department stores. In 1Q15, which ended May 2, 2015, Macy’s (M) reported a 0.7% fall in same-store sales.
July Jobs Report: Strong Numbers amid Trade Tension
The Department of Labor released the July jobs report on Friday morning. Amid the trade tensions, the July jobs report brought relief.
The Tails Of The Yield Curve May Provide Value
The tails of the yield curve may provide more value due to low inflation.
What Are Analysts’ Recommendations for Tesla?
As of April 5, Tesla stock had ~23% positive returns in the past year. According to analysts’ consensus, Tesla’s target price for the next year was $254.76.
How Does Lowe’s E-Commerce Performance Compare to Rivals?
Lowe’s (LOW) derived about 2.5% of its sales from the e-commerce channel, or an estimated $1.4 billion, in fiscal 2015.
Stock Price: Ross Stores Outperforms Off-Price Retailer Peers
On a year-to-date basis, Ross Stores’ stock price has appreciated more than that of other off-price retailers.
Why Lowe’s Is Bullish on Its Prospects in the Medium Term
Lowe’s (LOW) expects year-over-year sales growth in fiscal 2016 to come in between 4.5%-5%.
Moody’s Doesn’t Like the Idea of Tesla Going Private
Tesla (TSLA) has attracted enormous media coverage following Elon Musk’s idea of “taking Tesla private.” What does Moody’s say?