Richard Drury The Vanguard Information Technology ETF (NYSEARCA:VGT) is down over 7% over the past three weeks, which is equivalent to around 10 years of the ETF’s dividend yield. VGT has underperformed the return on cash since its 2021 peak, which marks a two and a half year period of zero excess returns, which included…
RapidEye/E+ via Getty Images We previously covered Tesla, Inc (NASDAQ:NASDAQ:TSLA) in January 2024, discussing why its EV King investment thesis had faded, with it no longer the largest global volume producer as of FQ3’23, with its profit margins likely to continue suffering as an adverse effect of the sustained price cuts. While improved manufacturing scale…
hapabapa Elevator Pitch I have a Buy rating awarded to NerdWallet, Inc. (NASDAQ:NRDS) shares. In my previous August 24, 2023 write-up, I touched on NRDS’ potential M&As (Mergers & Acquisitions) and margin expansion levers. My attention turns to NerdWallet’s long-term financial goals and the company’s capital allocation approach in the latest update. My latest article…
tadamichi By Seema Shah, Chief Global Strategist Global equity valuations are stretched, characterized by the U.S., Europe and Japan all sitting at or near record highs. However, amidst the elevated valuations, pockets of opportunity are emerging – especially within U.S. small-caps, buoyed by favorable economic conditions, and in Latin America, where compelling valuations align with…
Kansuda Kaewwannarat/iStock via Getty Images Thesis The rally in the past year has been nothing short of astounding, with the S&P 500 index producing a return in excess of 27%. The story has been centered around artificial intelligence and the tech mega-caps, which have attracted an enormous amount of capital and interest. The rest of…
DNY59 As the S&P 500 has risen to new highs, analysts and investors have played down valuation concerns as they still compare favourably to the 2000 bubble peak. Justifying expensive valuations by comparing them with the biggest bubble in US history tells us something about the bullish sentiment in the market, but it also ignores…
RazoomGames JBS S.A. (OTCQX:JBSAY) is the largest meatpacking company in the world. The company is the number one global processor and seller of beef and poultry and number two in pork. The company has also expanded downstream to value-added products like prepared foods, sausages, etc. In my opinion, JBS shows a history of great capital…
LeoPatrizi Elevator Pitch KT Corporation (NYSE:KT) [030200:KS] shares continue to warrant a Hold investment rating in my opinion. Earlier, I previewed KT Corporation’s financial results for the third quarter of last year and analyzed the company’s shareholder return plans in my November 2, 2023 update. I outline my thoughts regarding how KT Corporation’s key business…
yujie chen/iStock Editorial via Getty Images Elevator Pitch My investment rating for L’Occitane International S.A. (OTCPK:LCCTF) [973:HK] is a Buy. The company describes itself as a “leading manufacturer and retailer of premium products with a focus on wellness and natural beauty” on its website. My earlier September 1, 2020 article was focused on L’Occitane’s Q1…
deepblue4you By Alejandro Saltiel, CFA The current valuation of the S&P 500 Index (SP500, SPX) is at 20 times forward earnings. The below chart, taken from WisdomTree’s Daily Market Snapshot, shows this is above the 30-year median but still within 1 standard deviation. Our Senior Economist, Jeremy Siegel, has written that 20 times forward earnings…
da-kuk China’s Politburo meeting statement this month confirmed that the central government is ready to step in with expansionary fiscal policy heading into 2024. The caveat to this pro-growth stance is that any easing will be carried out “at an appropriate pace” – hardly sufficient intervention, in my view, given a backdrop of slowing growth,…
Natee127 Elevator Pitch I rate Jiayin Group Inc. (NASDAQ:JFIN) shares as a Hold. The company’s financial prospects relating to loan facilitation and margins are weak. But JFIN stock is trading at depressed valuations, and the company has done well in the area of shareholder capital return. Company Overview In its press releases, Jiayin Group describes…
monsitj Investment Thesis Fortune Brands Innovations, Inc.’s (NYSE:FBIN) stock is up slightly since my previous buy rating in September. The end-market outlook has meaningfully improved since then and, with lower-than-expected inflation, analysts have started betting on a rate cut as soon as the middle of next year. The improving end-market demand given moderating inflation and…
digitalmazdoor digitalmazdoor I never miss the monthly J.P. Morgan Guide to the Markets. One of my go-to charts is the refresh on the US vs ex-US stock market view. The MSCI All Country World Ex-US minus S&P 500 next 12-month dividend yield spread is now more than 1.8% – more than two standard deviations above…
Bet_Noire/iStock via Getty Images Warren Buffett’s mentor, Benjamin Graham, famously stated that “in the short-run, the stock market Is a voting machine, but in the long-run, it is a weighing machine”. That means stock prices tend to be driven by investor psychology in the short-term, but by valuation levels in the long-term. The value of…
Nikada Nearly all stocks outside of the US megacap Magnificent Seven have produced negative alpha this year. Stretch out the performance scope to five years, and you’ll also see heavy underperformance among value stocks, foreign equities, and domestic SMID caps. But did you know: It’s not big glamour stocks, strength overseas, or US small-caps that…
abadonian It’s certainly no secret that the utility sector has been beaten down by the market since the beginning of 2023. According to Morningstar, the “median 16.0 P/E (for utilities) is at its lowest since exiting the 2008-09 recession,” and the sector is now down 16.0% since the beginning of 2023. This has made many…
Hispanolistic/E+ via Getty Images Business Model Overview U.S. Physical Therapy (NYSE:USPH) operates in two business segments: physical therapy operations and industrial injury prevention (IIP) services. Within the physical therapy segment, USPH has established itself as a significant player in the industry, with 662 clinics spread across 41 states, with a particular presence in Texas and…
Pgiam/iStock via Getty Images Investment summary Since my last Repligen Corporation (NASDAQ:RGEN) publication, the stock has continued to track lower and continues within its longer-term downtrend (Figure 1). The latest investment updates do little, if anything, to change the company’s neutral view. Shares still trade at 88x forward earnings, Q2 numbers were relatively flat, and…
xijian At the beginning of the year, I penned a cautious article on the Utilities Select Sector SPDR ETF (NYSEARCA:XLU), noting that valuations for utilities were absurdly high on both an absolute and relative basis. After massively outperforming in 2022, I believed that utilities would underperform in 2023. So far this year, the utilities sector,…
Vladimir Vladimirov/E+ via Getty Images Elevator Pitch My rating for PLDT Inc. (NYSE:PHI) [TEL:PM] shares is a Hold. I reviewed PLDT’s financial results for the first quarter of this year in my earlier write-up for PHI published on May 9, 2023. With this latest update, I find that PHI’s near-term prospects aren’t exactly exciting, but…
naphtalina/iStock via Getty Images Investment briefing Establishment Labs Holdings Inc. (NASDAQ:ESTA) continues to sell within a range that’s held tight for the past 2-years. Following the firm’s Q2 numbers, it reversed sharply to the downside, catching the bottom end of this range, as seen in Figure 1. Since the June publication, it has sold off…
vchal/iStock via Getty Images The MSFT Investment Thesis Remains Somewhat Lofty Now We previously covered Microsoft (NASDAQ:MSFT) in May 2023, discussing its successful transition toward the next generational platform, Artificial Intelligence, thanks to the early investments in OpenAI. This cadence had naturally led to the stock’s extreme rally thus far, significantly aided by the excellent…
13threephotography Since the last time I wrote about the British bio-pharma company GSK plc (NYSE:GSK) in January of this year, its price has barely moved. It has softened by under 2%. It’s year-to-date [YTD] performance is similarly underwhelming, with a 1.3% rise. This lack of price movement is a definite a call to review my…