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Do Analysts Know How To Value Ford And GM?
- Analysts can't seem to agree on how to value Ford and GM.
- Even though the current valuations of both companies look very cheap, they are in line with historical averages.
- This doesn't mean these companies should be avoided; there is still room for both companies to improve.
How Much Hope Is Built Into Intel's Stock Price?
- Intel's lack of growth has been well understood and punished by the investors.
- The company's margins have been trending downwards for a while, and the revenues have been flattish at best.
- The company is trading for a cheap multiple in terms of net earnings and cash flow.
- Investors don't expect much from this company, and any surprise to the upside might be rewarded handsomely.
Will Yelp Ever Justify Its Ridiculous Valuation?
- Just because a stock fell sharply recently does not mean it is cheap.
- Yelp's business model of spending $50 million in marketing to generate $45 million in revenues is not sustainable.
- Even if all analyst goals are met, we are still looking at a ridiculous forward valuation.
- Revenue-wise the growth opportunities are limited for Yelp outside of the US.
Should SodaStream Have The Same Valuation As Coca-Cola?
- Coca-Cola is a mature company, while SodaStream is a growth company.
- The current valuation of two companies implies that Coca Cola's growth will be comparable to SodaStream's.
- It is unfair that SodaStream gets valued like a mature company when it's still growing.
WWE Gets A Reality Check, Still Not Cheap
- WWE's bloated share price was based on a lot of big ifs.
- It turns out that those "ifs" will not be happening anytime soon.
- Even after the crash, it's hard to call the shares cheap.
Johnson & Johnson: Now What?
- JNJ continues to reward investors with price appreciation and dividend raises.
- The company still looks cheap compared to historical standards despite a recent rally.
- The pharmaceutical sector of the company will continue to account for most of the growth as we move forward.
- As the margins are back to where they were prior to the recession, things are looking up and the analysts covering the company have high expectations.
Despite The Run Up, Wells Fargo Is Still Cheap
- Wells Fargo receives a lot of love from investors both inside and outside of Wall Street.
- This love is not unjustified at all, the bank has a clear and simple business plan.
- The company has a proven track record, cheap valuation and great potential.
- Wells Fargo might be one of the best investment opportunities in the market today.
Can Rite Aid's Run Up Continue?
- Rite Aid has been on a bumpy road in the last decade.
- From a valuation standpoint, the company looks fairly valued after a strong rally of a year.
- Things have been improving from an operations standpoint and the company might warrant a better valuation now.
Tesla: Strong Quarter, But Investors Feel Like They Need More Details
- Tesla posted pretty strong results for the last quarter.
- The costs are going higher as the company ramps up production.
- Many investors are left confused about giga-factory details.
- Tesla will have to work hard and keep delivering strong results to keep its valuation.
Does Micron Technology Make Sense At The Current Price?
- Micron Technology has been receiving a lot of attention in the market recently.
- The company's share price seems to be supported by strong fundamentals.
- Investors are paying very little for the company's cash flow compared to historical standards.
- Micron could increase its margins helped by price hikes and new synergies (through the Elpida acquisition) and provide a lot of value to shareholders.
Does Alcoa's Current Valuation Make Sense?
- Alcoa's stock price has been appreciating rather nicely in the recent weeks.
- Unfortunately this doesn't come with a significant improvement in the company's fundamentals.
- Even if it meets all the analyst targets, it still doesn't appear cheap at the current price.
Yelp Is Headed Towards Another Year Without A Profit
- Yelp's quarterly results beat the analyst estimates by a little bit but the results were nothing to write home about.
- The company's growth rate continues to slow down, dilution continues to increase and monetization of content is very poor.
- The company's future guidance calls for further slow down in growth, more dilution and lack of profitability.
- At the current valuation, the company is still too expensive and it is mostly a speculation.
How Does Intel's Valuation Look Past Earnings Report?
- Intel's revenue and profit growth has been relatively flattish in the recent years.
- Investors are currently discounting the company based on its historical fundamentals.
- Intel is trading for a historically low price to cash flow and price to book value ratio than what we are used to seeing.
- If you believe in the turnaround story, this may be a good time to buy.
Is This Time To Give Goldman Sachs A Chance?
- Investors seem to be losing faith with Goldman Sachs in the last year.
- Compared to its historical revenue and earnings multiples, the company looks slightly cheap.
- Compared to its book-value multiples where we see a more reliable valuation pattern, the company looks even cheaper.
- Looking at analyst estimates for the next 3 years, the company looks exceptionally cheap but there are some uncertainties moving forward.
PepsiCo: Historically Cheap Due To Investor Worries
- PepsiCo seems to struggle with flat revenues and falling margins.
- Investors are worried because the company will have to grow its earnings to be able to keep raising dividends.
- If the company can take advantage of future opportunities and meet analyst targets, there is upside.
This Is How Amazon Looks Historically
- Investors don't mind Amazon's lack of profitability as long as the company can grow its revenues rapidly.
- Historically, the company's market cap has been about 2 times its annual revenues.
- The company has been able to grow its cash-from-operations nicely over the years and trades for 28 times this metric.
- There is still a lot of uncertainty regarding what metric the market will use to value this company as we move forward.
Is It Time To Buy Nike?
- Nike's stock price has been performing weakly in the last few weeks due to the disappointing earnings report.
- Nike has a strong history of accomplishing high-growth and profitability simultaneously.
- While many analysts downgraded their outlook for the company, the long-term picture still looks good.
- While valuation is not historically cheap, it is not expensive either. The current pullback might be a chance many people have been waiting for.
Should You Buy Johnson & Johnson At All-Time Highs?
- JNJ seems to put some of its past drama behind as the shares have been in a rally mode.
- The company's margins are improving towards their historical peaks.
- Historically speaking, JNJ's valuation is far from expensive both in terms of past earnings and future expectations.
- Buying might not be a bad idea for long-term investors.
Procter & Gamble's Current Trend Needs To Change Soon
- Procter & Gamble's growth is slowing and margins are struggling to keep up with historical averages.
- While the company continues to be a dividend champion, its payout ratio is getting dangerously high.
- The company is relying on stock buybacks to post any meaningful earnings per share growth.
- Any meaningful future growth will have to rely on margin expansion for the time being.
Microsoft: Pushing Our 'Retire Young' Portfolio Higher
- Microsoft finally broke the psychological barrier of being under $40 that's been in place since the 1990s.
- The company's growth rate easily justifies the recent rally, which should continue.
- Microsoft proves that a company can become a "cash cow" and be able to grow simultaneously.
- Helped by Microsoft's recent performance, our portfolio continues to outperform the market.
Adding Perspective To First Solar's Strong Guidance
- First Solar made a rare move in providing full-year guidance figures for the next 3 years and investors reacted very positively to this move..
- Looking at the long term revenue and earnings trends, the company's growth will continue even after its backlog is depleted..
- Even after the big spike, the company's valuation still looks attractive compared to its cash flow and book value.
- Investors not willing to wait for a correction can sell naked puts or covered calls to make things interesting.
Kandi Continues To Impress Investors
- Kandi Technologies posted impressive results in the last quarter, with accelerated growth.
- In 2013, the fourth quarter's revenues alone are almost as high as all of 2012's.
- The company is investing heavily for further growth.
- If the company keeps up the growth, its forward metrics look pretty attractive.
Is GE Getting Pricey?
- GE's revenue and earnings growth has been slowing down.
- The company's margins have also been contracting over the last decade.
- Depending on which metric one looks at, shares look anywhere from fairly-priced to pricey.
- Future estimates and opportunities can make the stock attractive if the company can execute.
General Motors: The Drama Continues
- GM issued another round of recalls involving more than 1.5 million vehicles.
- These events can't be brushed off easily as they will have major impact on the company.
- GM's low margins make recall events exceptionally risky for the company's profitability.
Will Ford's Analysts And Investors Ever Agree?
- Many analysts are very bullish on Ford even though investors don't always agree.
- Ford's current valuation is in line with the company's historical valuation.
- There may be significant upside once the European issues are fixed and Asia is at full potential.
- The company's current cash position and forward valuation offers limited downside risk for investors.
Did Disney's Stock Get Ahead Of Itself?
- Disney's stock has performed greatly in recent years; many are wondering if it rallied too fast.
- The company continues to grow its revenues and expand margins at a rapid pace.
- As there are little to no signs of slowing growth in the near future, the company continues to be a strong investment.
AMD: Let's Look At The Only Thing That Matters
- Many articles talk about AMD's new products and chips with little mention to company's finances.
- The company's financial health situation has been extremely volatile and unpredictable over the years.
- AMD can still turnaround but the analysts don't bet on it as they see it as marginally profitable for years to come.
- While shares are not fundamentally cheap, they are weak and any sign of a strong turnaround can send them flying.
Is It Finally Time To Buy Petrobras?
- Petrobras has been performing badly as the stock kept going lower without finding a bottom.
- Fundamentally, Petrobras looks cheap compared to both its peers and historical valuation.
- The company is cheap for a good reason; it is controlled by the Brazilian government, which doesn't really care much about investors.
- As the political and economical situation in Brazil continues to be unstable, this stock continues to be a speculation play.
Wal-Mart: The Current Price Ignores Growth Opportunities
- Wal-Mart continues to grow its revenues across the board regardless of the economical environment, which proves the company's resiliency.
- The company is seeing some margin pressures due to newly emerging competition, such as Dollar General and Dollar Tree, in the low-cost consumer sector.
- Wal-Mart has always been fully committed to share its profits with its shareholders. The company is now sharing more money than ever with increased dividends and buybacks.
- Wal-Mart's current price is historically low given the analyst estimates for the next 3 years and its historical valuation multiples.
Can McDonald's Be A Tasty Investment?
- McDonald's has been able to grow its earnings faster than it has been able to grow its revenues.
- Margin expansion due to more efficient operations and share repurchases helped the company's earnings substantially.
- Moving forward, if the company can execute in this improving-but-uncertain environment, investors will be rewarded handsomely.
- Exxon Mobil: Limited Risk, Limited Upside
- Verizon's Current Price Ignores Any Growth Potential