Key Takeaways: UnitedHealth Group (UNH) stock has fallen over 15%, following the unexpected passing of UnitedHealthcare’s CEO, Brian Thompson. This loss has had a significant impact on the company and its leadership. Despite the short-term uncertainty, UnitedHealth appears undervalued today, with analysts estimating a 25% upside potential. As the largest U.S. health insurer, UnitedHealth boasts …
Key Takeaways: Amazon (AMZN) has delivered an impressive 28% average annual return over the past decade, driven by its e-commerce dominance and the rapid growth of Amazon Web Services (AWS). Amazon looks slightly undervalued today, with analysts expecting 20% annual earnings growth ahead. That said, the company faces challenges in keeping up its cloud growth …
Key Takeaways: Microsoft has averaged an impressive 26% annual return over the past decade, driven by its successful transition to cloud computing, the dominance of its Azure platform, and steady growth across its Office 365 and LinkedIn segments. That said, Microsoft faces ongoing challenges in maintaining its cloud growth momentum as competition intensifies from Amazon …
Key Takeaways: Alibaba stock has fallen over 60% over the past 5 years, reflecting regulatory pressures, slowing growth, and increasing competition in the evolving e-commerce landscape. Nevertheless, Morningstar continues to rate Alibaba as a wide-moat company, citing its dominant position in China’s e-commerce market and its ability to boost gross merchandise volume through strong customer …
Key Takeaways: Target stock has fallen over 40% over the past 3 years, reflecting the market’s concerns over its weakening position in the evolving retail landscape and its lack of a competitive moat. Today, the stock looks undervalued. However, the business has struggled to define its unique selling position in an increasingly competitive retail environment. …
Key Takeaways: Walmart’s stock has jumped nearly 75% over the past year, thanks to a big boost in its valuation as the market recognizes Walmart as a leader in the evolving retail landscape. Walmart might look like an interesting company today, but it’s worth understanding that the stock has never been so expensive over the …
Key Takeaways: Intel’s stock has dropped nearly 60% just this year, driven by stagnant revenue growth and shrinking earnings. The company is dealing with operational challenges, including supply chain issues and a slower-than-expected turnaround in its manufacturing technology. Intel is also expected to face tougher competition in the semiconductor market, particularly from rivals like AMD …
Key Takeaways: Starbucks’ stock is down nearly 20% over the past three years, because even though revenue has grown 20% over this period, earnings have stayed flat. Starbucks faces operational challenges, like labor disputes and strategic hurdles, and Starbucks is expected to face growing competition in China from both local and international rivals, which could …
Key Takeaways: AMD stock is down over 15% since the start of 2022. Now, analysts think the stock is undervalued: Could this be the opportunity investors have been waiting for? What is the 2-Minute Valuation Model? There are 3 core factors that drive a stock’s long-term value: The 2-Minute Valuation Model uses a simple formula …
A company with higher net margins than its peers often shows strong management and competitive advantages, which can build wealth for shareholders over time. In this guide, we’ll cover everything you need to know about net margins, including how to calculate them, what factors influence them, and what a good net margin is for different …
Key Takeaways: What is the 2-Minute Valuation Model? There are 3 core factors that drive a stock’s long-term value: The 2-Minute Valuation Model uses a simple formula to value stocks: Expected Normalized EPS * Forward P/E ratio = Expected Share Price Revenue growth and margins drive a company’s long-term normalized EPS, and investors can use …
Key Takeaways: What is the 2-Minute Valuation Model? There are 3 core factors that drive a stock’s long-term value: The 2-Minute Valuation Model uses a simple formula to value stocks: Expected Normalized EPS * Forward P/E ratio = Expected Share Price Revenue growth and margins drive a company’s long-term normalized EPS, and investors can use …
Valuing a stock doesn’t need to take hours of research or complex Excel spreadsheets. The 2-Minute Valuation Model that we’ll talk about today is an incredibly handy tool for investors to quickly assess whether a stock is overvalued or undervalued. Even if math was your least favorite subject in school, and it feels like you’re …
A company with higher gross margins than its peers often demonstrates efficient production processes or strong pricing power, which can drive long-term profitability and shareholder value. In this guide, we’ll cover everything you need to know about gross margins, including how to calculate them, what factors influence them, and what a good gross margin looks …
Key Takeaways: Estée Lauder has fallen over 75% in the past 3 years, driven by weak performance in travel retail, slower recovery in key international markets like China, and evolving consumer preferences in the beauty industry: Nevertheless, Morningstar continues to rate Estée Lauder as a wide-moat company due to its strong portfolio of luxury beauty …
Key Takeaways: Disney’s stock has fallen over 20% in the past 3 years due to challenges in its streaming business, linear TV, and concerns with the company’s strategic direction: Nevertheless, Morningstar still rates Disney as a wide-moat company due to its strong content franchises. Disney is still figuring out the proper monetization strategy for its …
Key Takeaways: Pfizer’s stock has fallen over 50% in the past 3 years as revenue from its COVID-19 vaccine waned. Investors have also grown worried about the lack of results from the company’s $43 billion purchase of Seagen and rising competition following the patent expiration on key drugs. Nevertheless, Morningstar still rates Pfizer as a …
Key Takeaways: Nike’s stock has fallen over 50% in the past 3 years due to a series of strategic missteps and a lack of product innovation: Nevertheless, Morningstar still rates Nike as a wide-moat company due to its strong brand, which means the company should be able to earn returns on capital exceeding its cost …
Key Takeaways: NXP Semiconductors is a wide-moat company that has traded flat over the past 3 years. As a result, it looks like the stock is strongly undervalued today: Today, NXP Semiconductors powers the future of technology with its leadership in automotive chips and IoT solutions. The company could have a promising future as it …
Key Takeaways: Meta stock has led investors to see a 30.1% annualized return over the past 12 years. Very few companies have delivered this kind of performance for investors. Today, Meta dominates social media and is a leader in digital advertising. The company could have a promising future with its ventures into AI and the …
Key Takeaways: Google has been a capital-compounding stock for investors, returning 18.7% per year over the past 20 years: Today, Google is a wide-moat, high-quality business, and the stock seems slightly undervalued. This could be an excellent stock to buy at the right price in 2025. What is the 2-Minute Valuation Model? There are 3 …
What is the EV/Revenue Ratio? The EV/Revenue ratio, or the Enterprise Value-to-Revenue ratio, is a particularly useful valuation multiple when analyzing companies that aren’t yet profitable, such as early-stage tech companies or businesses with inconsistent earnings. By focusing on revenue, the EV/Revenue ratio offers a snapshot of how much investors will pay for each dollar …
What is EV/EBIT? EV/EBIT is a financial ratio that stands for Enterprise Value (EV) to Earnings Before Interest and Taxes (EBIT). This ratio helps long-term investors evaluate whether a company’s stock is fairly valued. EV/EBIT measures a company’s total value (including debt obligations) relative to its operating income, or EBIT. Unlike other valuation metrics like …
Key Takeaways: What is the 2-Minute Valuation Model? There are 3 core factors that drive a stock’s long-term value: The 2-Minute Valuation Model uses a simple formula to value stocks: Expected Normalized EPS * Forward P/E ratio = Expected Share Price Revenue growth and margins drive a company’s long-term normalized EPS, and investors can use …
Stock screeners can be valuable tools for investors because they help filter through thousands of stocks based on specific criteria. This saves investors time by quickly finding the best stocks that fit their investing strategy. Two popular options for stock screeners are TIKR and Finviz. In this article, we’ll compare these two screeners so you …
When a company consistently sees stronger operating margins than its peers, it might indicate that the business has a competitive advantage and can outperform its peers and build wealth for its shareholders. In this guide, we’ll cover everything you need to know about operating margins, including how to calculate them, why they matter, what a …
Key Takeaways: What is the 2-Minute Valuation Model? There are 3 core factors that drive a stock’s long-term value: The 2-Minute Valuation Model uses a simple formula to value stocks: Expected Normalized EPS * Forward P/E ratio = Expected Share Price Revenue growth and margins drive a company’s long-term normalized EPS, and investors can use …
In investing, understanding a company’s profit margins helps to provide a clear picture of how much profit a company retains at different stages of its income statement. These metrics reveal whether a business can control costs, beat competitors, and generate sustainable shareholder returns. In this guide, we’ll break down the three types of profit margins, …
In the world of investing, few concepts are as powerful yet misunderstood as a company’s competitive advantage. In this guide, we’ll walk through what competitive advantages are, the types of “moats” companies can have, and the key financial and qualitative indicators to spot them. What is a Competitive Advantage? A competitive advantage is any unique …
What is the Buffett Indicator? The Buffett Indicator, named after legendary investor Warren Buffett, is a simple yet powerful tool that helps investors gauge whether the overall stock market is fairly valued, overvalued, or undervalued. Buffett himself has referred to this ratio as “probably the best single measure of where valuations stand at any given …
What is the Dividend Payout Ratio? The dividend payout ratio is a financial metric that shows how much of a company’s earnings are distributed to shareholders as dividends. This ratio is particularly important for dividend investors because it helps to show whether the company can continue to pay and grow its dividends. It’s better for …
Key Takeaways: What is the 2-Minute Valuation Model? There are 3 core factors that drive a stock’s long-term value: The 2-Minute Valuation Model uses a simple formula to value stocks: Expected Normalized EPS * Forward P/E ratio = Expected Share Price Revenue growth and margins drive a company’s long-term normalized EPS, and investors can use …
Key Takeaways: What is the 2-Minute Valuation Model? If you think about it, there are really only 3 things that drive a stock’s long-term valuation: The 2-Minute Valuation Model uses a simple formula to value stocks: Expected Normalized EPS * Forward P/E ratio = Expected Share Price Revenue growth and margins drive a company’s long-term …
What Are the Important Dividend Dates? When it comes to investing in dividend-paying stocks, it’s important to understand a stock’s key dividend dates because these dates determine your eligibility for receiving dividends on the dividend stocks you buy. The four most important dividend dates are the ex-dividend date, the declaration date, the record date, and …
What is a Cash Flow Statement? The cash flow statement is one of the primary financial statements that provides a detailed breakdown of how cash is generated and used by a company over a period of time. The cash flow statement is often regarded as the most important financial statement for understanding a business’s true …
What is the Balance Sheet? A balance sheet is a financial statement that provides a snapshot of a company’s financial position at a specific point in time. Understanding and analyzing a company’s balance sheet helps investors assess a company’s stability, growth potential, and overall financial health. The Balance Sheet’s Key Formula The balance sheet formula, …
What is an Income Statement? The income statement, also known as the profit and loss statement, provides insights into a company’s operational performance and profitability over a quarterly or annual period and summarizes a company’s revenue, expenses, and profits or losses. 3 Key Parts of an Income Statement The income statement has three main parts: …
Analyst estimates are predictions or forecasts about a company’s future financial performance created by equity research analysts who follow that business or industry. Analyst estimates often take the form of quarterly, annual, or multi-year forecasts for a company’s revenue, earnings per share (EPS), operating margins, or other key metrics. Analyst Estimate Common Terms What are …
What is Revenue Growth, and Why Does It Matter? Revenue growth is a company’s sales increase over a specific time period, and is one of the key drivers of a company’s shareholder returns over time. It helps to indicate demand for a company’s products or services, reflects competitive positioning, and signals the potential for sustainable …
What is Dividend Growth? Dividend growth refers to the increase in a company’s dividend payments to its shareholders over time. By increasing dividends, companies increase shareholder returns and signal confidence in creating strong future cash flows. Overview of Dividends and Their Importance to Investors Dividends are portions of a company’s earnings distributed to shareholders, usually …
What is CAGR, and What Does It Stand For? CAGR stands for Compound Annual Growth Rate. CAGR is particularly important for long-term investors because it provides a clear picture of how an investment has grown over time, accounting for the compounding effect. For instance, if you invested $10,000 in a stock ten years ago, and …
What Are Dividend Stocks? Dividend stocks are stocks that pay regular dividends to their shareholders. A dividend is a portion of a company’s earnings that a company can pay out as cash to its shareholders, usually quarterly. Dividend stocks are popular among retirees and investors seeking consistent, steady income from their portfolio holdings. High-quality dividend-paying …
Despite a weak consumer environment, analysts see a 62% upside for Celsius stock. Celsius just reported Q2 earnings, where CEO John Fieldy noted that Celsius’s second-quarter sales were stunted by the “second quarter energy drink category slowdown.” This and other factors have contributed to Celsius Holdings (CELH) stock seeing a 56.1% price drop in the …
GoDaddy stock has skyrocketed 121.5% in the past year. 2024 has been great for GoDaddy (GDDY) shareholders, with the stock soaring 121.5% in the past year, from $71/share to $157/share today: GoDaddy’s operating profits increased significantly in the first half of 2024, and analysts forecast continued revenue and earnings growth in the years to come. GoDaddy primarily …
The past 5 years have been tough for Hormel stock. Hormel (HRL) shareholders nearly broke even in the past 5 years, collecting $4.89 in dividends over the past 5 fiscal years while the stock fell from $42 to $32/share. This is really poor: Hormel develops and distributes meat and other food products primarily in the …
3M stock recently jumped 23.0% in a day following strong earnings. If you’re considering whether 3M Company (MMM) is a good stock to buy, you’ll want to evaluate the company’s safety and quality to see if it would make a suitable long-term investment. While 3M is expected to grow over the next few years, it’s …
Why is growth important for a stock? Growth is one of the most important things to look for in stocks that you’re thinking about investing in – even if you just want to buy safe stocks that go up over time and pay dividends. According to the International Monetary Fund, global GDP is expected to …
GCT stock is down, but revenue is expected to grow over 50% this year. GigaCloud Technology (GCT) stock has skyrocketed 236.7% in the past year, but its recent 35.1% fall from its 52-week high could make it cheaper for investors with a high risk tolerance: GCT provides B2B e-commerce solutions for cumbersome products like furniture, …
ZIM stock is up 43% in the past 90 days and technically had a 50% dividend yield last year. ZIM Integrated Shipping Services (ZIM) provides container shipping and related services in Israel and internationally. As of March 1, 2024, ZIM operated a fleet of 150 vessels, including 134 container vessels and 16 vehicle transport vessels. …
If you’re considering whether Genuine Parts Company (GPC) is a good stock to buy, you’ll want to evaluate the company’s safety and quality to see if it would make a suitable long-term investment. While GPC is still growing, it’s technically a mature company. It’s all too common for mature companies to see lower sales, shrinking …
If you’re considering whether Coca-Cola is a good stock to buy, you’ll want to evaluate the company’s safety and quality to see if it would make a suitable long-term investment. It’s no secret that Coca-Cola is a mature company. In fact, Coca-Cola’s revenue peaked back in 2012, and the business saw years of revenue declines. …
Genuine Parts Company (GPC) has one of the best dividend track records in public equity market history, with the company paying dividends every year since going public in 1948. But the best part is that GPC’s legacy isn’t over. Wall Street analysts expects for GPC to see steady sales growth and dividend increases over the …
It’s no secret that 3M’s going through some tough times. But it’s cheap. 3M used to be a magical stock. The company delivered double-digit shareholder returns while growing its dividend every year, all fueled by its recession-proof business model. However, things have taken a turn for the worse as the stock has fallen (47.4%) over …
Key Points: View 3M’s full Q2 earnings results >>> 3M’s Earnings Results: 3M Company’s shares hit a 52-week high after reporting strong quarterly results: 3M reported adjusted revenue of $6.26 billion, beating analysts’ estimates of $5.83 billion by 7.3%. The company also reported adjusted EPS of $1.93 per share, beating analysts’ estimates of $1.68 by …
GPC has one of the strongest dividend track records of all public stocks. Genuine Parts Company (GPC) has grown its dividend for 68 consecutive years and has paid dividends every year since it went public in 1948 (a total of 76 consecutive years). This makes GPC one of only 53 “Dividend Kings” today, which are …
Key Points: View GPC’s full Q2 earnings results >>> GPC’s Earnings Results: Genuine Parts Company lowered its full-year outlook due to decreased sales growth expectations, which were exacerbated by high interest rates and higher living costs. Newly appointed CEO Will Stengel said the results reflected “softer-than-expected market conditions.” GPC now expects 1-3% sales growth for …
Coca-Cola is one of only 54 Dividend Kings in the world, because it’s increased its dividends to shareholders for 52 consecutive years.
Share repurchases, or share buybacks, have gained popularity in the last two decades. According to a report from Goldman Sachs, stock buybacks initiated by companies part of the S&P 500 index might touch $925 billion in 2024, up 13% year over year, and Goldman estimates buybacks to rise by 16% to $1.075 trillion in 2025. …
Amazon’s story began in 1994 when Jeff Bezos had a simple yet ambitious idea: an online marketplace for books. Over the course of decades, Amazon grew from selling books to operating successful business units across many industries. What’s most important about this remarkable journey is that while Amazon’s team has done the hard work of …
Genuine Parts Company (GPC) is an old-time dividend favorite. But are its best days in the past? GPC has increased its dividend payments to investors for a whopping 68 consecutive years. While GPC has one of the best track records among dividend stocks, it’s still not immune to setbacks. Over the past 12 months, GPC’s …
Key Points: PepsiCo’s Earnings Results: PepsiCo’s most recent earnings report showed mixed quarterly results due to declining demand for its drinks and snacks in North America. The lower demand is likely a result of years of price increases. CEO Ramon Laguarta stated that shoppers across all income levels adjusted their buying habits and opted for …
Real estate has been one of the greatest asset classes for wealth creation in history, and investing in Real Estate Investment Trusts (REITs) can allow you to get all the benefits of investing in real estate without going through the hassles that come with direct property ownership. In addition, owning REITs is one of the …
The dividend yield is a crucial metric for investors looking to gauge the income potential of their investments. Often expressed as a percentage, it measures the annual dividend payments made by a company relative to its current stock price. Understanding dividend yield can help you identify income-generating opportunities in the stock market. What is Dividend …
Enterprise value (EV) is a financial metric that offers a comprehensive snapshot of a company’s total value. Unlike market capitalization which solely accounts for a company’s equity value, enterprise value factors in the firm’s entire capital structure such as its debt, cash, preferred equity, and minority interest. By doing so, EV provides investors, analysts, and …
Long-term investors often look at various valuation metrics when deciding whether to invest in a particular company. One helpful metric to evaluate is market capitalization or market cap. Market capitalization is a measure of the total value of a company’s outstanding shares of stock. It is calculated by multiplying the current market price of one …
EBITDA stands for earnings before interest, taxes, depreciation and amortization. It’s a financial metric commonly used to evaluate a company’s financial performance and its ability to generate cash flow. This post will cover EBITDA in detail, including what it tells you, when to use it to evaluate businesses, and its limitations. What is EBITDA? EBITDA …
Free cash flow, or FCF, is the cash a company generates after it accounts for outflows required to maintain business operations and support capital expenditures. Many investors consider FCF a better measure of profitability than net income or earnings, as it excludes non-cash expenses and accounts for capital spending and changes in net working capital …
A price target is a stock’s estimated future price, and it’s typically based on a company’s projected earnings, historical earnings, and economic conditions. Wall Street equity research analysts typically provide stock price targets for the public companies that they cover. They also offer buy, sell, or hold recommendations. While there’s no guarantee a stock will …
Earnings Per Share (EPS) is a financial ratio investors use to evaluate a company’s profitability. It represents the portion of a company’s net earnings allocated to each outstanding share of common stock. By examining EPS, you gain valuable insights into a company’s ability to generate and distribute profits to its shareholders. This article will cover …
Before investing in a company, investors want to be sure that their hard-earned money will generate returns. But figuring this out can be difficult. That’s why investors look at various metrics to evaluate a company’s financial performance. If you’re curious about how companies make the most out of their money and generate profits, then understanding …
Return on Equity (ROE) is a financial ratio that reflects a company’s profitability in relation to the equity invested by shareholders. It basically measures how effectively a company utilizes investors’ funds to generate profits. The ratio is vital in assessing a company’s financial performance and comparing it to that of its industry peers. In this …
Financial analysts and investors look at various metrics before deciding whether a stock is a buy. One of the metrics is the price-to-earnings ratio (P/E ratio). The P/E ratio tells you whether a company’s stock price is overvalued, fairly valued, or undervalued. It also gives insight into a stock’s value compared to its industry peers. …
From national and global events to individual company fundamentals, there are many variables that contribute to the dynamic nature of stock prices. Understanding what impacts the ups and downs of a stock in the short and long term can help investors make more informed decisions and better navigate stock trading. This article provides an overview …
