Member Articles

Johnson & Johnson Beats Estimates, Raises Guidance Once Again

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Image Source: Johnson & Johnson – Second Quarter of 2021 IR Earnings Presentation By Callum Turcan On July 21, Johnson & Johnson (JNJ) reported second-quarter 2021 earnings that beat both consensus top- and bottom-line estimates. The company (once again) boosted its full-year guidance in conjunction with its latest earnings update as Johnson & Johnson’s business is steadily rebounding from the worst of the coronavirus (‘COVID-19’) pandemic, with an eye towards the ongoing recovery in the sales of its medical devices and related offerings. We include shares of JNJ as an idea in both the Best Ideas Newsletter and Dividend Growth Newsletter portfolios. Its latest earnings report and guidance boost reinforced our favorable view towards the name. Shares of JNJ yield … Read more

Best Idea Chipotle Rockets Higher!

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Image Shown: We include Chipotle Mexican Grill Inc an as idea in the Best Ideas Newsletter portfolio. On July 21, shares of CMG surged higher after the firm reported a stellar earnings report after the market close on July 20. By Callum Turcan On July 20, Chipotle Mexican Grill Inc (CMG) reported second-quarter 2021 earnings that beat both consensus top- and bottom-line estimates. The company’s comparable store sales boomed higher by over 31% year-over-year as Chipotle’s customer base returned to its in-store dining offerings in the wake of coronavirus (‘COVID-19’) containment efforts getting eased across the US. Its digital sales were up almost 11% year-over-year and represented a little under half of its total revenues. Chipotle’s momentum is expected to … Read more

Netflix’s Free Cash Flow Remains Poor While Competition Is Intensifying

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Image shown: Netflix continues to experience robust growth and improvements in its operating margin, but free cash flow remains weak. Image source: Netflix’s second-quarter earnings shareholder letter. By Brian Nelson, CFA We’re okay with watching Netflix (NFLX) from the sidelines. The company has been lumped in with other companies such as Facebook (FB), Apple (AAPL), and Alphabet (GOOG) (GOOGL) as a “FANG” stock, but the economics of Netflix’s business is quite different than this “peer” group, while the competition is considerably more intense. During the past 52 weeks, shares of Netflix are roughly flat compared to a market that is up over 30%, as measured by the SPDR S&P 500 Trust ETF (SPY). While Facebook, Apple and Alphabet continue to … Read more

Robotic-Assisted Surgery Idea Intuitive Surgical Rebounds Nicely in Second Quarter

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  Image shown: Intuitive Surgical benefits from a razor-razor blade business model and a large installed base. The more systems it places, the more instruments and accessories are sold. We expect clinical applications for robotic-assisted surgeries to continue to increase. Image source: Intuitive Surgical’s second-quarter earnings press release. By Brian Nelson, CFA On Tuesday, July 20, Intuitive Surgical (ISRG) reported excellent second-quarter results for the three months ended June 30, 2021, with revenue up 71.3% and non-GAAP earnings per share exceeding the consensus estimate by $0.86, to $3.92. The company is the pioneer in the robotic-assisted surgery field, and it continues to set the bar with respect to technologies for minimally invasive care. The company’s da Vinci Surgical System is … Read more

Bank Earnings Solid During Second Quarter 2021

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Image Source: Bank of America Corporation – Second Quarter of 2021 IR Earnings Presentation In Alphabetical Order by Ticker: BAC, MS, JPM By Callum Turcan In this note, we cover three recent reports from the banking industry as earnings season gets underway. Ongoing coronavirus (‘COVID-19’) vaccine distribution efforts are enabling the domestic economy to reopen in earnest, and consumers are beginning to return to “pre-pandemic activities,” though the risk of variants remains. In our view, the outlook for the US economy is quite bright. The outlook for net interest margins (‘NIMs’) should improve alongside the domestic economy, though yields remain rather low as of this writing and lackluster NIMs weighed on the performance of the banking space at-large last quarter. … Read more

Conagra Brands Facing Major Inflationary Headwinds

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Image Shown: Conagra Brands Inc recently reduced its full-year guidance for fiscal 2022 in the face of major inflationary headwinds. Image Source: Conagra Brands Inc – Fourth Quarter of Fiscal 2021 IR Earnings Presentation By Callum Turcan On July 13, the company behind the Slim Jim, Duncan Hines, Gardein brands (among other), Conagra Brands Inc (CAG), reported fourth quarter earnings for fiscal 2021 (period ended May 30, 2021) that beat both consensus top- and bottom-line estimates. However, its guidance for fiscal 2022 came in a bit light in the face of major inflationary headwinds which saw shares sell off initially after the report was published. Please note that its fiscal 2020 was a 53 week reporting period while its fiscal … Read more

Dividend Growth Idea UnitedHealth Group Surges Towards All-Time Highs After Stellar Earnings Update, Guidance Boost

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Image Shown: Shares of UnitedHealth Group Inc, an idea in the Dividend Growth Newsletter portfolio, are trading near their all-time highs as of this writing after the firm reported a stellar second quarter 2021 earnings report. In conjunction with its latest earnings report, UnitedHealth Group once again raised its full-year adjusted EPS guidance for 2021. We continue to be huge fans of the name. By Callum Turcan On July 15, UnitedHealth Group Inc (UNH) reported second-quarter 2021 earnings that beat both consensus top- and bottom-line estimates thanks to the enduring strength of its Optum businesses and strong performance at its UnitedHealthcare health insurance businesses. Its Optum businesses provide an expansive slate of healthcare offerings from ambulatory services to pharmacy and … Read more

Dividend Increases/Decreases for the Week July 16

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Below we provide a list of firms that raised their dividends during the week ending July 16. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week Agree Realty (ADC): now $0.217 per share monthly dividend, was $0.200. Ally Financial (ALLY): now $0.25 per share quarterly dividend, was $0.19. American Financial (AFG): now $2.00 per share special dividend, was $0.50. Bank of America Corporation Deposit Shs Perp Pfd Shs Series E (BAC.PE): now $0.2556 per share quarterly dividend, was $0.2472. Bank of New York Mellon (BK): now $0.34 per share quarterly dividend, was … Read more

PepsiCo Beats Estimates, Raises Guidance

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Image Source: PepsiCo Inc – CAGNY 2021 Presentation By Callum Turcan On July 13, PepsiCo Inc (PEP) reported second-quarter fiscal 2021 earnings (period ended June 12, 2021) that beat both consensus top- and bottom-line estimates. Due to its strong performance during the first half of the fiscal year, PepsiCo raised its full-year guidance for fiscal 2021 in conjunction with its latest earnings report. Now the firm expects to post 6% organic sales growth (versus a mid-single-digit range previously) and 11% core constant currency EPS growth (versus a high-single-digit range previously) in fiscal 2021 on an annual basis. Foreign currency tailwinds favorably impacted its financial performance last fiscal quarter, and for the full fiscal year, PepsiCo sees these tailwinds boosting its … Read more

10 YEARS OF EXCELLENCE AT VALUENTUM

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Tickerized for the DIA. ———- About Our Name But how, you will ask, does one decide what [stocks are] “attractive”? Most analysts feel they must choose between two approaches customarily thought to be in opposition: “value” and “growth,”…We view that as fuzzy thinking…Growth is always a component of value [and] the very term “value investing” is redundant.                          — Warren Buffett, Berkshire Hathaway annual report, 1992 At Valuentum, we take Buffett’s thoughts one step further. We think the best opportunities arise from an understanding of a variety of investing disciplines in order to identify the most attractive stocks at any given time. Valuentum therefore analyzes each stock across a wide spectrum of philosophies, from deep value through momentum investing. And a combination of the … Read more