Broadcom’s Financials Are Stabilizing
June 25, 2020
Image Source: Broadcom Inc – June 2020 IR Presentation By Callum Turcan On June 4, Broadcom Inc (AVGO) posted second quarter earnings for fiscal 2020 (period ended May 3, 2020). Shares of AVGO are trading in the upper bound of our fair value estimate range and appear reasonably priced as of this writing considering the relatively favorable forward-guidance management offered for the fiscal third quarter. Though the ongoing coronavirus (‘COVID-19’) pandemic is negatively impacting Broadcom’s operations with an eye towards “challenges” at the firm’s supply chain, the company’s growing ‘Infrastructure software’ segment appears to be helping stabilize its financial performance. We give Broadcom a Dividend Cushion ratio of 1.0, earning the firm a “GOOD” Dividend Safety rating (these metrics factor
Kroger Fighting for Market Share in the Online US Grocery Business
June 23, 2020
Image Source: The Kroger Company – Fiscal 2019 Annual Report By Callum Turcan On June 18, The Kroger Company (KR) released its first quarter fiscal 2020 earnings (period ended May 23, 2020) that beat both top- and bottom-line estimates. Comparable store sales (excluding fuel) grew by 19% year-over-year as consumers flocked to its various grocery stores and supermarkets (under brands such as Fred Meyer, Fry’s Marketplace, Pick ‘n Save, and others) to stock up on consumer staples products as the coronavirus (‘COVID-19’) spread across North America. Kroger’s digital sales surged 92% year-over-year last fiscal quarter as curbside and home delivery options have become increasingly popular during the pandemic. Shares of KR yield ~2.0% and are trading in the upper bound
Gap Buys Itself Some Time
June 21, 2020
Image Shown: An overview of Gap Inc’s net sales by brand. Image Source: Gap Inc – First Quarter Fiscal 2020 IR Earnings Presentation By Callum Turcan On June 4, Gap Inc (GPS) reported first quarter fiscal 2020 earnings (period ended May 2, 2020) that missed both consensus top- and bottom-line estimates. Shares of GPS have gotten crushed due to the ongoing coronavirus (‘COVID-19’) pandemic as consumers (particularly those in the US) have spent far less on discretionary goods (like apparel) over the past several months. Combined with the negative impact of physical store closures and the lack of a meaningful online presence, Gap shares sank as its outlook turned dire. Though Gap operates stores in over 40 countries, please note
Warren: Four Ways to Play the Market at This Juncture
June 21, 2020
Image Source: Daniel Lobo In this piece, we examine where the economy and stock markets have been recently, where we are now, and where we are going next. We also highlight four key ways to play this volatile market. We think this is a helpful way to think about overall portfolio construction, especially so that one does not overly expose themselves to a particular set of risks that could come to fruition—like an extended downturn in the economy or a rapid discovery of a vaccine for Covid-19 on the other hand. By Matthew Warren Macro Matters When you turn on the television to the stock channel, there is a tremendous amount of discussion about where we are now and where
Recent Events Concerning Johnson & Johnson
June 18, 2020
Image Source: Johnson & Johnson – First Quarter of 2020 IR Earnings Presentation By Callum Turcan We include Johnson & Johnson (JNJ) as a top-weighted holding in the Dividend Growth Newsletter portfolio and as a medium-weighted holding in the Best Ideas Newsletter portfolio. The firm’s Dividend Cushion ratio sits at a solid 2.1, and please note that this forward-looking dividend coverage ratio factors in our expectations that Johnson & Johnson will grow its per share dividend by mid-single-digits annually over the coming years. Johnson & Johnson earns a “GOOD” Dividend Safety rating and an “EXCELLENT” Dividend Growth rating, with shares of JNJ yielding ~2.8% as of this writing. In our view, Johnson & Johnson’s strong balance sheet and high quality
Best Idea PayPal Hits Record High!
June 18, 2020
—– Hi everyone, — The Valuentum strategy continues to deliver! My goodness! One of our favorite ideas in the payment processing space PayPal (PYPL) is hitting a record high today. Simply incredible. For those that missed the latest edition of the Best Ideas Newsletter, it can be downloaded here (pdf). For those that missed the latest edition of the Dividend Growth Newsletter, it can be downloaded here (pdf). Thanks so much for your interest, and we’re available for any questions. Cheers! — Kind regards, Brian Nelson, CFA President, Investment Research Valuentum Securities, Inc. brian@valuentum.com — Financial Tech Services: MA, MELI, PYPL, V, VRSK
Nelson: Trust Is What Matters
June 18, 2020
Video: President of Valuentum Brian Nelson remains optimistic about the markets and the outlook for Valuentum investing. Don’t forget to fill out the survey! To watch the video >> — —– Valuentum members have access to our 16-page stock reports, Valuentum Buying Index ratings, Dividend Cushion ratios, fair value estimates and ranges, dividend reports and more. Not a member? Subscribe today. The first 14 days are free. Brian Nelson owns shares in SPY and SCHG. Some of the other securities written about in this article may be included in Valuentum’s simulated newsletter portfolios. Contact Valuentum for more information about its editorial policies.
Turbulent Fiscal Fourth Quarter Aside, Oracle Paints a Promising Outlook for Fiscal 2021
June 17, 2020
Image Source: Oracle Corporation – Oracle Database Update September 2019 Presentation By Callum Turcan On June 16, Oracle Corp (ORCL) reported fourth quarter fiscal 2020 earnings (period ended May 31, 2020) that beat consensus bottom-line estimates and missed consensus top-line estimates, though there is some noise given the turbulence created by the ongoing coronavirus (‘COVID-19’) pandemic. Additionally, Oracle declared a $0.24 per share quarterly dividend that is slated to get paid out in July, which was flat on a sequential basis. Shares of ORCL yield ~1.8% as of this writing, and we continue to like the idea as a holding in the Dividend Growth Newsletter portfolio. While shares of ORCL sold off on June 17, management painted a more optimistic
Reiterating Our Bullish Long-Term View on Stocks
June 16, 2020
Reiterating Our Bullish Long-Term View on Stocks Image: The NASDAQ 100 Index remains resilient, bouncing off support, after breaking out to new highs recently. Some of our best ideas are included in the NASDAQ 100, and our favorite concentrations include exposure to big cap tech and large cap growth. We continue to be bullish on equities for the long run. — By Brian Nelson, CFA — Hi everyone, — Hope you are doing great! First, I wanted to let you know that we’re still working to get the second release of the survey out to you. Your participation in the survey will determine whether we launch a new business, so please do fill it out and keep a watchful eye out for
Exxon Mobil Puts on a Brave Face
June 16, 2020
Image Source: Exxon Mobil Corporation – November 2019 Guyana IR Presentation By Callum Turcan Near-term oil prices and most importantly, the oil price futures curve, have improved materially since just a couple of months ago when it looked like the sky was falling. For the first time ever, WTI turned negative in April 2020 for physical deliveries due May 2020 of light sweet oil to Cushing, Oklahoma, as storage options were limited (and arguably, many speculators had jumped into the market not fully aware of the risks they were taking on). Exxon Mobil Corporation (XOM) has seen its share price recover considerably since the drop, though we caution that management’s commitment to the dividend will prove a hard task if
