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Recent Articles
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The Stock Market Is Nearing Technical Support Levels
Jun 18, 2022
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Image: This year has been a difficult one for equity investors, but the selling pressure that has been common in the markets may start to slow as broader indices such as the S&P 500 begin to approach technical support levels. On the S&P 500, we think there is substantial technical support in the 3,200-3,500 range, which to us suggests that further near-term downside may be limited. The S&P 500 closed at 3,674.84 on Friday, June 17, and we think fair value is much higher.
What might be a fair value for the S&P 500 today? Well, throwing the 10-year S&P 500 average multiple of 16.9x on 2023 expected earnings numbers of 251.76 gets to a 4,255 mark on the S&P 500, which is above the last closing level of 3,674.84 for the index. Benchmark Treasury rates remain low relative to history, and balance sheets of many S&P 500 companies are overflowing with net cash, supporting such a multiple, too. All told, investors might expect the stock market to hit technical support levels on the S&P 500 of 3,200-3,500 in the near term, but from where we stand, stocks remain an attractive proposition at the moment and a very attractive consideration over the long haul.
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Three Growth Stocks That Offer Tremendous Value!
Jun 17, 2022
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Image: Some of the most attractive stocks on the market have both growth and value characteristics.
As the market struggles to find a near term bottom, three of our favorite ideas are on sale. Meta and Alphabet are dirt cheap, in our view, while Microsoft has tremendous dividend growth prospects. We expect these three names to bounce back considerably once economic uncertainty subsides.
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Qurate Retail Faces Difficult Turnaround Process
Jun 17, 2022
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Image Source: Qurate Retail Inc – First Quarter of 2022 IR Earnings Presentation.
Executive Summary: Qurate Retail Inc is home to several well-known retail brands including QVC and HSN that operate television networks and online marketplaces that sell curated products. The company is contending with several exogenous shocks such as inflationary pressures and supply chain hurdles, while customer engagement levels are on the decline after growing during the initial phases of the COVID-19 pandemic. Qurate Retail has a massive net debt load and sizable annual financing obligations, and its margins have deteriorated substantially of late. Due to its complex share structure and management organization, weak financial position, and lackluster outlook, we are not interested in Qurate Retail’s common or preferred shares at this time. Qurate Retail is too risky for our taste.
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Dividend Increases/Decreases for the Week of June 17
Jun 17, 2022
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Let's take a look at firms raising/lowering their dividends this week.
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View Current and Archived Best Ideas Newsletters
Jun 15, 2022
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View previous editions of the Best Ideas Newsletter in this article.
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