Dividend Growth Idea Home Depot Raises Payout as Its Growth Story Continues
March 22, 2022
Image Shown: Dividend growth idea Home Depot Inc has put up strong financial performance of late. Image Source: Home Depot Inc – Fourth Quarter of Fiscal 2021 Supplemental Material By Callum Turcan Demand for home improvement and construction activities remains strong according to Home Depot Inc (HD), an idea in the Dividend Growth Newsletter portfolio. When Home Depot reported its fourth quarter earnings for fiscal 2021 (period ended January 30, 2022) in February 2022, the company beat both consensus top- and bottom-line estimates. Home Depot also announced a 15% sequential increase in its dividend and issued out favorable guidance for fiscal 2022 in conjunction with its latest earnings report. The company’s new quarterly payout sits at $1.90 per share or
Berkshire Hathaway Is Firing on All Cylinders; Shares Surging
March 17, 2022
Image Shown: Shares of best idea Berkshire Hathaway Class B (ticker: BRK.B) have surged higher over the past year with room to run. By Callum Turcan Those of you that have been long-time members of Valuentum (thank you by the way!) know that we are huge fans of Warren Buffett. We include Berkshire Hathaway Inc (BRK.A) (BRK.B), specifically its Class B shares (ticker: BRK.B), as an idea in the Best Ideas Newsletter portfolio. Recently, Buffett (CEO and Chairman of Berkshire) released his latest annual letter to shareholders, which included plenty of important information regarding the conglomerate’s financial performance and investing practices at-large. One of the things that stuck out in Buffett’s latest annual letter to shareholders, a topic that he
Oracle Expects Its Solid Revenue Growth Trajectory Will Continue Into This Fiscal Quarter
March 15, 2022
Image Source: Oracle Corporation – September 2019 IR Presentation By Callum Turcan On March 10, Oracle Corporation (ORCL) reported third quarter earnings for fiscal 2022 (period ended February 28, 2022) that matched consensus top-line estimates but missed consensus bottom-line estimates. The company’s revenue growth came in at a decent clip last fiscal quarter, and that trajectory is expected to continue into the current fiscal quarter, according to guidance management announced during Oracle’s latest earnings call. We include Oracle as an idea in the Dividend Growth Newsletter portfolio, and shares of ORCL yield ~1.7% as of this writing. Financial Update In the fiscal third quarter, Oracle’s GAAP revenues grew 4% and its non-GAAP constant currency revenues grew 7% year-over-year. Strong growth at
Chevron Buys Renewable Energy Group
March 11, 2022
Image Shown: Chevron Corporation is acquiring Renewable Energy Group Inc through an all-cash deal that was announced at the end of February 2022. Image Source: Renewable Energy Group Inc – October 2020 IR Presentation By Callum Turcan On February 28, Chevron Corporation (CVX) announced it would acquire Renewable Energy Group Inc (REGI) through an all-cash transaction. The energy giant is paying $61.50 per share in cash for each share of the renewable fuel producer through a deal with a total enterprise value of $2.75 billion when including Renewable Energy Group’s $0.4 billion net cash position. During the second half of 2022, the transaction is expected to close. Overview Renewable Energy Group produces biofuels with a heavy emphasis on biodiesel and
AT&T’s WarnerMedia Unit and Discovery Are Close to Finalizing Their Blockbuster Merger
March 10, 2022
Image Shown: Announced back in May 2021, the blockbuster merger of AT&T Inc’s WarnerMedia unit with Discovery Inc is expected to close in the second quarter of 2022. Image Source: AT&T Inc & Discovery Inc – May 2021 IR Presentation By Callum Turcan The blockbuster merger of WarnerMedia, currently a part of AT&T Inc (T), with Discovery Inc (DISCA) (DISCB) (DISCK) is getting closer to completion. On March 11, Discovery shareholders voted on whether to proceed with the transaction. AT&T does not need to secure shareholder approval through a vote to close the transaction. If everything goes as planned, WarnerMedia and Discovery are set to close their merger during the second quarter of 2022. Let’s dig more into the details
GoodRx’s Modest Q4 Miss, Slowing Revenue Growth Expectations Send Shares Tumbling
March 7, 2022
Image: Many speculative areas have faced tremendous pressure in recent months from new issues to entities tied to the trend of disruptive innovation. Image Source: TradingView. By Valuentum Analysts The past year or so hasn’t been kind to companies tied to the theme of disruptive innovation. New issues such as Snowflake (SNOW), Zoom Video Communications, Inc. (ZM), and Palantir Technologies Inc. (PLTR) have also had a rough go at it of late. For example, the Renaissance IPO ETF (IPO) has fallen almost 20% since late September 2020, while the ARK Innovation ETF (ARKK) has fallen almost 30%. GoodRx Holdings, Inc. (GDRX) is one of those companies that hasn’t performed as well. We first wrote up GoodRx Holdings, Inc. in December
Valuentum Weekly: Outsized Energy Exposure Continues to Buoy Newsletter Portfolios
March 7, 2022
Image: Light crude oil futures once traded for roughly -$40 (negative $40) during the COVID-19 crisis, but have now rocketed to more than $120 in recent trading. Image Source: TradingView. This note was emailed to members Sunday, March 6, 2022. Markets The S&P 500, as measured by the SPY, is down 9% year-to-date, a modest pullback, in our view, particularly in light of the fantastic performance the past few years. Though not necessarily welcome, a down year every now and then for the broader market indexes and a modest bear market can only be expected, at times. The Dow Jones Industrial Average, as measured by the DIA, is down more than 7% year-to-date (not too bad), while the Nasdaq–as measured by the
NextEra Energy’s Bright Outlook
March 4, 2022
Image Shown: NextEra Energy Inc, one of our favorite utilities, owns the largest regulated electric utility in Florida and has exposure to the state’s promising population and economic growth trajectory. The utility is shifting its power generation base away from coal and towards renewable energy, leaning on natural gas and nuclear power plants to make the transition feasible. Image Source: NextEra Energy Inc – Fourth Quarter of 2021 IR Earnings Presentation By Callum Turcan The U.S. utility sector (XLU) is home to some high-quality income generating opportunities, especially utilities with exposure to states that are experiencing strong population and economic growth. Rising interest rates down the road may be a concern, though geopolitical headwinds as a result of the Ukraine-Russia
Evaluating the Exposure of Chevron and Exxon Mobil to Russia’s Energy Industry
March 2, 2022
Image Shown: Shares of Chevron Corporation (blue line) and Exxon Mobil Corporation (orange line) have skyrocketed over the past six months. By Callum Turcan In the wake of Russia invading Ukraine (again) in February 2022, geopolitical tensions between the West and Russia have reached levels last seen during the height of the Cold War. At the beginning of March 2022, near term WTI and Brent futures were trading north of $100 per barrel while liquified natural gas (‘LNG’) spot prices and European natural gas prices remained incredibly expensive. The supply-demand dynamics for crude oil and natural gas were already tight before this crisis, and in light of the expansive sanctions programs enacted by the West and some of its allies
Our Report on Stocks in the Utilities (Mid/Small) Industry
February 28, 2022
Structure of the Utilities Industry Utilities provide an essential service, generally operate in a near-monopoly position, and benefit from significant barriers to entry due to the capital intensity of new projects and regulatory/environmental requirements. Regulatory frameworks differ across the grid, but most utilities benefit from an assured rate of return on capital investments through predetermined rate structures, where cost adjustments are made by authorities periodically. Most constituents benefit from stable operations and generally lower debt financing, though credit ratings should be monitored closely. We like the structure of the group. Please select here (pdf) to download the report on utilities in our coverage. —– Valuentum members have access to our 16-page stock reports, Valuentum Buying Index ratings, Dividend Cushion ratios, fair value
