/* Article Data (Server Side) article (o): [object Object] WSODIssue (s): |207857|280365|60856|172489|249299 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Five S&P 500 stocks with earnings next week and high ROE Link (s): http://folionation.squarespace.com/news/2014/7/9/five-sp-500-stocks-with-earnings-next-week-and-high-roe.html Thumbnail (s): DocumentDate_raw (n): 1404920760000 DocumentDate (s): July 9, 2014 DocumentDate_smart (s): Jul 9, 2014 DocumentKey (s): 1107-290734296785734912717-3S9TDUUDRL6S4CVTTHV5T4KCHK ContentType (s): Article TrackingPixel (s): Content (s):

We screened S&P stocks with earnings next week to see who had the best ROE last quarter. 

The aluminum giant Alcoa (AAstarted earnings season with a bang on Tuesday afternoon, beating estimates across the board despite persistent weak demand from emerging markets. 

The company has had a fantastic year, with about a 91% return. It continued its gains into Wednesday morning, advancing 3% as of 10:40 EST.

Eyes are carefully watching earnings this season, as investors wait to see whether the stock market's propensity to break records has any chance of continuing. So far, investors gravitated from internet companies toward high-yield utility stocks, perceived as safer.

With that in mind we decided to look for companies that might also have a chance to beat earnings. To do that we decided to use the Dupont Breakdown of return on equity (ROE). 

ROE is one measure of how well a company generates returns on each dollar of equity. But since increasing your leverage can also increase your ROE—the Dupont Corporation developed a formula for examining ROE more closely. 

The formula looks for companies that have net profit margins that rose over time, and companies whose asset turnover grew over time. When a high ROE is supported by these two factors, it is said to have an encouraging Dupont Breakdown.

Strong ROE in the last quarter means that the company did a good job of growing earnings. Do you think their strong performance might be repeated? Use the list below to begin your analysis. 

Click on the interactive chart to view data over time. 

 

1. Morgan Stanley (MS, Earnings, Analysts, Financials): Provides various financial products and services to corporations, governments, financial institutions, and individuals worldwide. Market cap at $57.74B, most recent closing price at $30.31.

 


2. V.F. Corporation (VFC, Earnings, Analysts, Financials): Designs and manufactures, or sources from independent contractors various apparel and footwear products primarily in the United States and Europe. Market cap at $25.83B, most recent closing price at $58.84.

 


3. Baker Hughes Incorporated (BHI, Earnings, Analysts, Financials): Baker Hughes Incorporated supplies wellbore related products, and technology services and systems for drilling, formation evaluation, completion and production, and reservoir technology and consulting to the oil and natural gas industry worldwide. Market cap at $27.94B, most recent closing price at $63.08.

 


4. Johnson Controls Inc. (JCI, Earnings, Analysts, Financials): Engages in building efficiency, automotive experience, and power solutions businesses worldwide. Market cap at $33.52B, most recent closing price at $49.72.

 


5. The Charles Schwab Corporation (SCHW, Earnings, Analysts, Financials): Provides securities brokerage, banking, and related financial services to individuals and institutional clients. Market cap at $34.6B, most recent closing price at $26.53.

 


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© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

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Source (s): Christian Science Monitor DocumentDate (s): 1 hour ago DocumentDate_raw (n): 1432745550000 Link (s): http://www.csmonitor.com/Business/2015/0527/Apple-takes-back-most-valuable-brand-title-from-Google DocumentKey (s): HTTPwww.csmonitor.com/Business/2015/0527/Apple-takes-back-most-valuable-brand-title-from-Google DMSourceID (s): Google ContentType (s): Article 5 (o): [object Object] Headline (s): Yum! Brands Taco Bell to Offer Additive-Free Food Items Teaser (s): Yum! Brands, Inc.'s (YUM - Analyst Report) Taco Bell is looking to appease the heath-conscious guests by joining the natural food bandwagon. 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Source (s): Zacks.com DocumentDate (s): 1 hour ago DocumentDate_raw (n): 1432744875000 Link (s): http://www.zacks.com/stock/news/176273/snapchat-ceo-announces-ipo-plans DocumentKey (s): HTTPwww.zacks.com/stock/news/176273/snapchat-ceo-announces-ipo-plans DMSourceID (s): Google ContentType (s): Article 7 (o): [object Object] Headline (s): Copper Wire Theft Causes Subway Headaches For Thousands of Commuters Teaser (s): The A train, New York City's longest subway line, was crippled in a part of Queens on Wednesday following what the Metropolitan Transportation Authority called a “massive theft” of copper cables. Source (s): Wall Street Journal DocumentDate (s): 1 hour ago DocumentDate_raw (n): 1432742175000 Link (s): http://www.wsj.com/articles/copper-wire-theft-causes-subway-headaches-for-thousands-of-commuters-1432742450 DocumentKey (s): HTTPwww.wsj.com/articles/copper-wire-theft-causes-subway-headaches-for-thousands-of-commuters-1432742450 DMSourceID (s): Google ContentType (s): Article 8 (o): [object Object] WSODIssue (s): |243688|58327|79521|139905|8169008|264447 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Best Buy is doing better than anyone expected Link (s): http://folionation.squarespace.com/news/2015/5/27/best-buy-is-doing-better-than-anyone-expected.html Thumbnail (s): DocumentDate_raw (n): 1432738560000 DocumentDate (s): May 27, 2015 DocumentDate_smart (s): 10:56 AM DocumentKey (s): 1107-290734296785735355864-2MQHGJSA2JN6HRAR0EBE3VQ6N8 ContentType (s): Article TrackingPixel (s): Teaser (s):

Many thought Best Buy would close its doors in 2014. The company is still here, and, by the looks of it, doing well. 

Best Buy (BBY) is full of surprises. The electronics retailer reported a stellar first quarter, much to everyone’s surprise.  Is Best Buy’s worst finally behind it?

During the first quarter of 2015, Best Buy earned $0.37 per share on revenue of $8.56 billion. Revenue is lower than last year’s, but domestic gross profits improved by 120 basis points, or 1.20 percent, to 22.7 percent.

Unfortunately, the company forecast that domestic revenue growth would not be any higher than the low single-digits. Internal sales could also fall by as much as 35 percent due to fewer open stores. On the plus side, Best Buy is improving its performance because management is watching its costs, initiating focused marketing campaigns and investing in technology to support its business.

Best Buy is the largest electronics retailer by market cap. GameStop (GME) is a distant second, with a market cap at $4.2 billion:

At a price of around $34, Best Buy is well off its March peak of $41.26. The stock is fairly valued at 11.97 times forward earnings, but has room to move up if its profitability keeps improving. There’s also back-to-school season to consider in August, which has coincided with a rally in Best Buy shares.

For investors considering the stock, it may be best to add Best Buy shares on any pullback.

Written by Chris Lau

 

Click on the interactive chart to view data over time. 

1. Aaron's Inc. (AAN, Earnings, Analysts, Financials): Operates as a specialty retailer of consumer electronics, computers, residential furniture, household appliances, and accessories in the United States and Canada. Market cap at $2.58B, most recent closing price at $35.40.

 

 

2. Best Buy Co. Inc. (BBY, Earnings, Analysts, Financials): Operates as a retailer of consumer electronics, home office products, entertainment products, appliances, and related services primarily in the United States, Europe, Canada, and China. Market cap at $12.22B, most recent closing price at $33.90.

 

 

3. Conns Inc. (CONN, Earnings, Analysts, Financials): Operates as a specialty retailer of home appliances, consumer electronics, home office equipment, lawn and garden products, mattresses, and furniture in the United States. Market cap at $1.41B, most recent closing price at $39.54.

 

 

4. GameStop Corp. (GME, Earnings, Analysts, Financials): Operates as a retailer of video game products and personal computer (PC) entertainment software. Market cap at $4.31B, most recent closing price at $40.18.

 

 

5. hhgregg Inc. (HGG, Earnings, Analysts, Financials): Operates as a specialty retailer of consumer electronics, home appliances, and related services. Market cap at $107.61M, most recent closing price at $3.93.

 

 

6. Systemax Inc. (SYX, Earnings, Analysts, Financials): Operates as a direct marketer of brand name and private label products. Market cap at $312.95M, most recent closing price at $8.44.

 

 

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© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

9 (o): [object Object] Headline (s): McDonald's Targets Bun Toasting, Burger Searing Teaser (s): McDonald's is tweaking how it cooks it burgers in hopes of winning back customers. To improve the taste of its food, the chain is toasting its buns longer so sandwiches will be warmer, said McDonald's CEO Steve Easterbrook at the Bernstein's Strategic ... Source (s): ABC News DocumentDate (s): 3 hours ago DocumentDate_raw (n): 1432735360000 Link (s): http://abcnews.go.com/Business/wireStory/mcdonalds-stop-reporting-monthly-sales-figures-31332846 DocumentKey (s): HTTPabcnews.go.com/Business/wireStory/mcdonalds-stop-reporting-monthly-sales-figures-31332846 DMSourceID (s): Google ContentType (s): Article 10 (o): [object Object] Headline (s): Wall Street rises as Greece worries abate Teaser (s): U.S. stocks rose higher in afternoon trading on Wednesday, on track for their best day since mid-May, on reports that Greece would avoid a default. Source (s): Reuters DocumentDate (s): 6 hours ago DocumentDate_raw (n): 1432727153000 Link (s): http://www.reuters.com/article/2015/05/27/us-markets-stocks-usa-idUSKBN0OC1BE20150527 DocumentKey (s): HTTPwww.reuters.com/article/2015/05/27/us-markets-stocks-usa-idUSKBN0OC1BE20150527 DMSourceID (s): Google ContentType (s): Article 11 (o): [object Object] WSODIssue (s): |197606|81931009|82867067|292976 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Shake Shack is sizzling Link (s): http://folionation.squarespace.com/news/2015/5/26/shake-shack-is-sizzling.html Thumbnail (s): DocumentDate_raw (n): 1432658220000 DocumentDate (s): May 26, 2015 DocumentDate_smart (s): May 26, 2015 DocumentKey (s): 1107-290734296785735354728-6VC6KAS57324T01MM2Q83LMLS1 ContentType (s): Article TrackingPixel (s): Teaser (s):

Popular burger chain Shake Shack is one of the hottest stocks on the market right now, but is it a bubble?

Shake Shack (SHAK) bottomed at $38.63 on February 17, and the stock keeps moving up. After taking a breather at $70, the stock rallied again and reached $92.86 on May 22. Does this burger company really deserve its $3.2 billion market cap? At this rate, each of Shake Shack's 68 locations is worth $50 million. This makes Chipotle (CMG), at $10 million a location, look inexpensive.

Shake Shack’s stock is expensive. The valuation is even more obvious when compared to McDonald’s (MCD) or Chipotle, which are valued at 20 times and 35 times forward multiples, respectively:

Shake Shack’s forward P/E is over 70. Then again, McDonald's first-quarter earnings fell by 9 percent, when adjusted for currency fluctuations, to $0.84 per share. The food chain giant is tweaking its stores in China by testing customization. It is also simplifying the menu by cutting down the number of offerings at the drive-thru.

On the other hand, Shake Shack is arguably inexpensive when compared to market darlings Amazon (AMZN), Tesla (TSLA) or even Facebook (FB). Still, the comparison is weak when comparing by valuation alone. Shake Shack is still a restaurant that sells burger and hot dogs, though the company may soon branch out into chicken sandwiches. There is no moat. Meanwhile, Facebook has a moat in social media, Amazon keeps getting bigger and Tesla’s electric cars command a high price and healthy demand.

The problem with owning Shake Shack is that a relatively inexpensive stock will still fall if other over valued ones falls, too. Tailwinds invariably become headwinds when the earnings growth rate does not justify the stock price. 

Though Q1 2015 was great for Shake Shack. The company earned just $0.04 per share, but this beat consensus by $0.07 per share. Revenue, at only $37.8 million, grew an impressive 56.3 percent. Same-store sales increased by 59.2 percent. These high-growth figures support a high multiple, but the company must continue this rate of growth indefinitely. If growth slows, the positive momentum behind the stock will slow. This would mean a lower stock price in the future.

Written by Chris Lau

 

Click on the interactive chart to view data over time. 

1. McDonald's Corp. (MCD, Earnings, Analysts, Financials): Operates as a foodservice retailer worldwide. Market cap at $94.88B, most recent closing price at $98.99.

 

 

 

2. Restaurant Brands International Inc. (QSR, Earnings, Analysts, Financials): Owns and operates quick service restaurants under the Burger King and Tim Hortons brand names. Market cap at $8.06B, most recent closing price at $39.84.

 

 

3. Shake Shack Inc. (SHAK, Earnings, Analysts, Financials): Owns, operates, and licenses Shake Shack restaurants (Shacks) in the United States, the District of Columbia, North America, Europe, and Asia. Market cap at $3.37B, most recent closing price at $92.86.

 

 

4. Yum! Brands, Inc. (YUM, Earnings, Analysts, Financials): Operates quick service restaurants. It operates in five segments: YUM China, YUM India, the KFC Division, the Pizza Hut Division, and the Taco Bell Division. Market cap at $39.28B, most recent closing price at $91.54.

 

 

(Monthly return data sourced from Zacks Investment Research. All other data sourced from FINVIZ.)

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© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

12 (o): [object Object] WSODIssue (s): |36276|55991|7759733|94966|72887506|4874202|10808544 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): The end of cash? Link (s): http://folionation.squarespace.com/news/2015/5/22/the-end-of-cash.html Thumbnail (s): DocumentDate_raw (n): 1432316940000 DocumentDate (s): May 22, 2015 DocumentDate_smart (s): May 22, 2015 DocumentKey (s): 1107-290734296785735351607-7KDL4AAO17BV2FM4JGDE4QABQP ContentType (s): Article TrackingPixel (s): Teaser (s):

When taking advantage of the Memorial Day sales this weekend, will you be using cash, credit or something else?

Much to countless mothers' chagrin, it's becoming increasingly less necessary for people to carry cash these days. Alternative forms of payment are growing in popularity, with the mobile payment market projected to swell to $142 billion in annual volume by 2019 from its current $50 billion.

Plastic is also having a moment. The American Bankers Association's December 2014 Credit Card Market Monitor Report found consumers went back to swiping their cards in the second quarter of the year after a rough first quarter. Monthly purchase volume rose across all risk types: $173, or 14.3 percent, for sub-prime; $363, or 10.3 percent, for prime and $512, or 8.2 percent, for super-prime.

Furthermore, after a string of high-profile security breaches at Target (TGT) and other leading retailers, the US is finally embracing the more secure chip and PIN cards. According to the Smart Payment Association, 185 million cards and modules were shipped to the US in 2014. 

Cash isn't obsolete just yet, though. Last April, the Federal Reserve Bank of San Francisco published a report on Americans' cash habits. The title of the report? "Cash Continues to Play a Key Role in Consumer Spending: Evidence from the Diary of Consumer Payment Choice." Its findings? Cash continues to play a key role in consumer spending.

The San Francisco Fed writes that although cash only makes up 14 percent of total consumer transaction activity on a value basis, it actually accounts for 40 percent of all consumer transactions. Mobile payments made up less than one half of 1 percent, though in 2019, the year when mobile payments explode, that figure is expected to rise to 1 percent.

While cash may not be a distant memory anytime soon, alternative payments are definitely encroaching on its market share. Below is a list of stocks that offer alternative forms of payment, both plastic and digital, to consumers. Give us your two cents: do you think the shift away from cold, hard cash will boost these companies' sales? 

Click on the interactive chart to view data over time. 

 

1. Apple Inc. (AAPL, Earnings, Analysts, Financials): Designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. Market cap at $756.94B, most recent closing price at $131.39.

Sales growth quarter over quarter at 27.10%.

 

2. American Express Company (AXP, Earnings, Analysts, Financials): Provides charge and credit payment card products, and travel-related services worldwide. Market cap at $82.04B, most recent closing price at $80.76.

Sales growth quarter over quarter at -2.90%.

 

3. Discover Financial Services (DFS, Earnings, Analysts, Financials): Operates as a credit card issuer and electronic payment services company primarily in the United States. Market cap at $26.37B, most recent closing price at $59.60.

Sales growth quarter over quarter at 5.20%.

 

4. eBay Inc. (EBAY, Earnings, Analysts, Financials): Provides online marketplaces for the sale of goods and services, as well as other online commerce, platforms, and online payment solutions to individuals and businesses in the United States and internationally. Market cap at $72.57B, most recent closing price at $59.74.

Sales growth quarter over quarter at 4.40%.

 

5. Google Inc. (GOOG, Earnings, Analysts, Financials): Builds technology products and provides services to organize information. Market cap at $185.32B, most recent closing price at $542.51.

Sales growth quarter over quarter at 11.90%.

 

6. MasterCard Incorporated (MA, Earnings, Analysts, Financials): Provides transaction processing and related services to customers principally in support of their credit, deposit access, electronic cash and automated teller machine payment card programs, and travelers' cheque programs. Market cap at $105.93B, most recent closing price at $92.90.

Sales growth quarter over quarter at 2.40%.

 

7. Visa Inc. (V, Earnings, Analysts, Financials): Operates retail electronic payments network worldwide. Market cap at $169.74B, most recent closing price at $69.37.

Sales growth quarter over quarter at -46.00%.

 

 

(List compiled by Mary-Lynn Cesar. Monthly return data sourced from Zacks Investment Research. All other data sourced from FINVIZ.)

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© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

13 (o): [object Object] WSODIssue (s): |205778|207106|256562 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): What is wrong with Micron Technology? Link (s): http://folionation.squarespace.com/news/2015/5/21/what-is-wrong-with-micron-technology.html Thumbnail (s): DocumentDate_raw (n): 1432233660000 DocumentDate (s): May 21, 2015 DocumentDate_smart (s): May 21, 2015 DocumentKey (s): 1107-290734296785735350528-2AFBCDEUTSA5SSSPN0EE125H2J ContentType (s): Article TrackingPixel (s): Teaser (s):

A recent downgrade, falling shares—Micron Technology is dealing with a lot of challenges lately.

From the look of Micron Technology’s (MU) fall, memory chip semiconductor firms have a tough road ahead. The stock recently closed at $26.33, far from its $36.49 peak.

Brokerage firm Nomura’s May 15th downgrade of Micron’s stock hasn’t helped either. Analysts are worried a lack of pricing power for memory will hurt the company’s revenue and profits. Last quarter, Micron reported a drop in DDR3 demand, citing a weak PC market as the cause.

The other big elephant in the room is the threat of Samsung (SSNLF) boosting its semiconductor supply in 2017. The new factories, which boast sizes comparable to football fields, will have tremendous capacity, and this may hurt Micron.

There are two positive events that will likely help Micron later this year: 3D NAND development and the Windows 10 release. The former will improve Micron’s profitability. PC sales might improve when Microsoft (MSFT) releases Windows 10, which could boost DDR3 demand. Already, as of May, four million people have downloaded a test copy of Windows 10. The strong demand for the updated operating system suggests many could upgrade their hardware to accommodate it.

At eight times forward earnings, Micron’s valuation is considerably cheap. SanDisk (SNDK), which reduced its revenue outlook for 2015 on April 16, trades at much higher multiples:

There is considerable negative sustained momentum against Micron right now. Eventually, the sell-off will end. When that happens, it might be worth investing in Micron.

Written by Chris Lau


Click on the interactive chart to view data over time. 

1. Microsoft Corporation (MSFT, Earnings, Analysts, Financials): Develops, licenses, and supports a range of software products and services for various computing devices worldwide. Market cap at $384.90B, most recent closing price at $47.58.

 

 

2. Micron Technology Inc. (MU, Earnings, Analysts, Financials): Engages in the manufacture and marketing of semiconductor devices worldwide. Market cap at $28.76B, most recent closing price at $26.59.

 

 

3. SanDisk Corp. (SNDK, Earnings, Analysts, Financials): Designs, develops, manufactures, and markets NAND-based flash data storage card products that are used in various consumer electronics products. Market cap at $13.95B, most recent closing price at $67.08.

 

 

(Monthly return data sourced from Zacks Investment Research. All other data sourced from FINVIZ.)

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ABOUT US

© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

14 (o): [object Object] WSODIssue (s): |73059378|40339818 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Mobile gaming just became more crowded Link (s): http://folionation.squarespace.com/news/2015/5/20/mobile-gaming-just-became-more-crowded.html Thumbnail (s): DocumentDate_raw (n): 1432149120000 DocumentDate (s): May 20, 2015 DocumentDate_smart (s): May 20, 2015 DocumentKey (s): 1107-290734296785735349125-66F4H5IUONPFOBOP0BLCM7066K ContentType (s): Article TrackingPixel (s): Teaser (s):

Nintendo wants to be the newest player on the mobile gaming block. Does the industry have room to grow?

Nintendo (OTCMKTS: NTDOY) got its groove back. After bottoming at $11.80, shares rebounded to nearly yearly highs for a multitude of reasons. First, Nintendo announced it would enter the mobile gaming market. Second, the company reported profits in its quarterly earnings. Though Nintendo has more positive momentum, its foray into mobile suggests it may be worth staying bullish on the mobile gaming sector.

According to a Wall Street Journal report, Nintendo intends to release five mobile games by March 2017. If King Digital Entertainment’s (KING) success is any indication, Nintendo’s know-how in game development could very well make it a big player in the mobile game space. Then again, Zynga (ZNGA) and King both spend significant amounts on developing games, but not every title is a winner.

Nintendo only needs a single hit to do well in its mobile gaming endeavour. King’s Candy Crush is responsible for the majority of the firm’s revenue. Zynga’s Farmville was a success on Facebook (FB), and the firm is trying to copy its success on the mobile platform.

Speaking of King Digital, the company continued its strong performance in mobile gaming in the first quarter of the year. The company grew gross bookings to $604 million. Mobile gross bookings reached an all-time high at $491 million.

Candy Crush Soda, the follow-up to Candy Crush, is doing well. King hopes the Candy Crush series will continue its stellar run and that its Farm Heroes series can join the ride too.

Meanwhile, Zynga is still realigning its business. The firm is simplifying its product line-up by focusing on just six to eight products in 2015. Its balance sheet is healthy: the firm has $1.1 billion in cash and marketable securities. Cash flow used from operations was $47 million. This is due to a $43 million payout for the acquisition of Spooky Cool.

Overall, expenses fell 29 percent quarter over quarter. Headcount related costs were steady, though Zynga lost $7 million, or $0.01 per share, non-GAAP, in the first quarter.

Written by Chris Lau

 

Click on the interactive chart to view data over time. 

1. King Digital Entertainment plc (KING, Earnings, Analysts, Financials): Produces and distributes digital games on multiple platforms. Market cap at $4.75B, most recent closing price at $14.99.

 

 

2. Zynga, Inc. (ZNGA, Earnings, Analysts, Financials): Develops, markets, and operates online social games as live services played on the Internet, social networking sites, and mobile platforms. Market cap at $2.74B, most recent closing price at $3.00.

 

 

(Monthly return data sourced from Zacks Investment Research. All other data sourced from FINVIZ.)

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© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

15 (o): [object Object] WSODIssue (s): |5938994|206472|212653|255804|256588|269774 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): The Japanese economy has some good news Link (s): http://folionation.squarespace.com/news/2015/5/20/the-japanese-economy-has-some-good-news.html Thumbnail (s): DocumentDate_raw (n): 1432141200000 DocumentDate (s): May 20, 2015 DocumentDate_smart (s): May 20, 2015 DocumentKey (s): 1107-290734296785735348978-6SIJQ2G8OII4IDOMJP4POIRHBC ContentType (s): Article TrackingPixel (s): Teaser (s):

Don't call it a comeback just yet, but the Japanese economy is finally showing signs of life

The third-largest economy in the world is starting the year on the right foot. On Wednesday, the government revealed that the Japanese economy grew at an annualized rate of 2.4 percent in the first quarter, its fastest pace in a year. The figure was a marked improvement from the 1.1 percent growth recorded between October and December 2014, and it beat the 1.5 percent forecast over at The Wall Street Journal.

Japan isn't out of the woods just yet, though. Inventories rose, which indicates that consumption remains a hurdle for the country. The buildup in unsold goods contributed a whopping 0.5 percentage point to the GDP—more than business and housing investment and consumption—which grew by 0.6 percent in the quarter. If inventories are removed from the equation, the Japanese economy's annualized rate of growth falls to 0.4 percent.

It still remains to be seen whether Abenomics will be a success, but Wednesday's data could be a cautious endorsement of Prime Minister Shinzo Abe's economic reforms.

To celebrate the Japanese economy's best performance in a year, here's a list of Japanese stocks that are trading up to 3 percent below their 52-week highs. They may not be at their best just yet, but they could be getting close.

Click on the interactive chart to view data over time. 

1. Mizhuo Financial Group Inc. (MFG, Earnings, Analysts, Financials): Provides various banking and financial services in Japan and internationally. Market cap at $49.98B, most recent closing price at $4.11.

The stock is trading -0.97% below its 52-week high.

 

2. Mitsubishi UFJ Financial Group Inc. (MTU, Earnings, Analysts, Financials): Provides various financial services to individual and corporate customers in Japan and internationally. Market cap at $104.57B, most recent closing price at $7.50.

The stock is trading -2.10% below its 52-week high.

 

3. Nidec Corporation (NJ, Earnings, Analysts, Financials): Engages in the design, development, manufacture, and marketing of small precision motors, mid-size motors, machinery, and electronic and optical components. Market cap at $22.08B, most recent closing price at $19.06.

The stock is trading -2.14% below its 52-week high.

 

4. Sumimoto Mitsui Financial Group Inc. (SMFG, Earnings, Analysts, Financials): Provides various banking and financial products and services in Asia and the Oceania, the Americas, Europe, the Middle East, and Africa. Market cap at $60.64B, most recent closing price at $8.84.

The stock is trading -2.74% below its 52-week high.

 

5. Sony Corporation (SNE, Earnings, Analysts, Financials): Designs, develops, manufactures, and sells electronic equipment, instruments, and devices for consumer, professional, and industrial markets worldwide. Market cap at $37.65B, most recent closing price at $32.61.

The stock is trading -2.25% below its 52-week high.

 

6. Toyota Motor Corporation (TM, Earnings, Analysts, Financials): Engages in the design, manufacture, assembly, and sale of passenger cars, minivans, and commercial vehicles. Market cap at $218.81B, most recent closing price at $139.52.

The stock is trading -4.47% below its 52-week high.

 

(List compiled by Mary-Lynn Cesar. Monthly return data sourced from Zacks Investment Research. All other data sourced from FINVIZ.)

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© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

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*/ Five S&P 500 stocks with earnings next week and high ROE

Five S&P 500 stocks with earnings next week and high ROE

We screened S&P stocks with earnings next week to see who had the best ROE last quarter. 

The aluminum giant Alcoa (AA) started earnings season with a bang on Tuesday afternoon, beating estimates across the board despite persistent weak demand from emerging markets. 

The company has had a fantastic year, with about a 91% return. It continued its gains into Wednesday morning, advancing 3% as of 10:40 EST.

Eyes are carefully watching earnings this season, as investors wait to see whether the stock market's propensity to break records has any chance of continuing. So far, investors gravitated from internet companies toward high-yield utility stocks, perceived as safer.

With that in mind we decided to look for companies that might also have a chance to beat earnings. To do that we decided to use the Dupont Breakdown of return on equity (ROE). 

ROE is one measure of how well a company generates returns on each dollar of equity. But since increasing your leverage can also increase your ROE—the Dupont Corporation developed a formula for examining ROE more closely. 

The formula looks for companies that have net profit margins that rose over time, and companies whose asset turnover grew over time. When a high ROE is supported by these two factors, it is said to have an encouraging Dupont Breakdown.

Strong ROE in the last quarter means that the company did a good job of growing earnings. Do you think their strong performance might be repeated? Use the list below to begin your analysis. 

Click on the interactive chart to view data over time. 

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1. Morgan Stanley (MS, Earnings, Analysts, Financials): Provides various financial products and services to corporations, governments, financial institutions, and individuals worldwide. Market cap at $57.74B, most recent closing price at $30.31.

 

2. V.F. Corporation (VFC, Earnings, Analysts, Financials): Designs and manufactures, or sources from independent contractors various apparel and footwear products primarily in the United States and Europe. Market cap at $25.83B, most recent closing price at $58.84.

 

3. Baker Hughes Incorporated (BHI, Earnings, Analysts, Financials): Baker Hughes Incorporated supplies wellbore related products, and technology services and systems for drilling, formation evaluation, completion and production, and reservoir technology and consulting to the oil and natural gas industry worldwide. Market cap at $27.94B, most recent closing price at $63.08.

 

4. Johnson Controls Inc. (JCI, Earnings, Analysts, Financials): Engages in building efficiency, automotive experience, and power solutions businesses worldwide. Market cap at $33.52B, most recent closing price at $49.72.

 

5. The Charles Schwab Corporation (SCHW, Earnings, Analysts, Financials): Provides securities brokerage, banking, and related financial services to individuals and institutional clients. Market cap at $34.6B, most recent closing price at $26.53.

 

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Morgan Stanley(MS, Chart, Download SEC Filings)V.F. Corporation(VFC, Chart, Download SEC Filings)Baker Hughes Incorporated(BHI, Chart, Download SEC Filings)Johnson Controls Inc.(JCI, Chart, Download SEC Filings)The Charles Schwab Corporation(SCHW, Chart, Download SEC Filings)

ABOUT US

© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

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