|
|
Recent Articles
-
Goldman Sachs Beats Third Quarter Estimates, Puts Up Strong Economic Returns
Oct 16, 2024
-
Image: Goldman Sachs’ shares have done well the past couple years.
Goldman Sachs continues to generate value for shareholders. Annualized return on average common shareholder equity [ROE] was 10.4% for the third quarter of 2024 and 12.0% for the first nine months of 2024. We liked Goldman’s revenue growth in the quarter, and the company continues to put up double-digit economic returns. Shares trade at 1.6x book value, so we’re not viewing them as cheap at this time. Shares yield 2.3%.
-
Johnson & Johnson's Shares Look Fairly Valued
Oct 16, 2024
-
Image: Johnson & Johnson’s 2024 P&L guidance.
Looking to all of 2024, Johnson & Johnson expects the midpoint of adjusted operational sales growth of 6%, up from its prior expectation of 5.8%. At the midpoint, diluted adjusted operational earning per share expansion is targeted at $9.91 per share down from $10.05 per share due to a negative impact from its recent acquisition of V-Wave. Our fair value estimate stands at $165 per share, about in-line with where shares are currently trading. Shares yield ~3%.
-
UnitedHealth Remains a Free Cash Flow Generating Powerhouse
Oct 15, 2024
-
Image: UnitedHealth’s shares have done well the past few years, but a gloomy outlook for 2025 has prompted a selloff.
Looking to 2024, UnitedHealth Group lowered the high end of its guidance to the range of $27.50-$27.75 compared to $27.50-$28.00 previously due in part to higher than expected business disruption impacts for the affected Change Healthcare services. On the conference call, the company noted that its “2025 adjusted profit could be $30 per share (Seeking Alpha),” which was below consensus of $31.17 per share for the year. Though its medical care ratio advanced in the quarter and it continues to navigate the impact of cyberattack and direct response costs, we’re huge fans of UnitedHealth’s robust free cash flow generation, and we still like shares in the Best Ideas Newsletter portfolio.
-
JPMorgan Continues to Generate Value for Shareholders
Oct 15, 2024
-
Image Source: Hakan Dahlstrom.
During the third quarter, JPMorgan's book value per share was up 15%, to $115.15, while tangible book value per share grew 18%, to $96.42. Shares of JPMorgan aren’t cheap trading at north of 1.9x book value. JPMorgan is an important bellwether for the global economy, and its third quarter results spoke of continued strength and high returns on capital. We include Financial Select SPDR in the Best Ideas Newsletter portfolio to capture diversification benefits from the largest financial institutions. Shares of JPM yield approximately 2.3% at the time of this writing.
|
