AOUT

How Some Members Use Valuentum’s Investment Services

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By Brian Nelson, CFA Thank you for your membership to Valuentum. We serve a wide variety of investors, including dividend growth investors, value investors, and pure Valuentum investors, among others. Many different types of investors and professionals use our research and financial analysis in a whole host of applications from individual stock-selection to the evaluation of closed-end funds to an overlay in a money-management setting and beyond. We wanted to make sure that you know that, if you’re a dividend growth or income investor, that there are others that use our website to utilize the Valuentum process, fair value estimates and other metrics. Similarly, if you’re a practitioner of the Valuentum system, I wanted to make sure that you are … Read more

Dividend Growth Idea Dick’s Sporting Goods Beats Estimates, Raises Guidance

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Image Shown: Shares of Dick’s Sporting Goods Inc have been on a nice upward climb of late. The sporting goods retailer raised its full-year guidance for fiscal 2022 during its fiscal second quarter earnings report. By Callum Turcan On August 23, Dick’s Sporting Goods Inc (DKS) reported second quarter earnings for fiscal 2022 (period ended July 30, 2022) that beat both consensus top- and bottom-line estimates. The sporting goods retailer also raised its full-year guidance for fiscal 2022 in conjunction with the report, after previously lowering its guidance during its fiscal first quarter earnings update in May 2022. We continue to like Dick’s Sporting Goods as an idea in the Dividend Growth Newsletter portfolio. Shares of DKS yield ~1.8% as … Read more

Disney’s Theme Parks and Resorts Benefiting from Pent-Up Demand

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Image Shown: The Walt Disney Company posted a rock-solid earnings report for the period ended July 3 as its business benefited from pent up demand for its theme parks and resorts offerings. Image Source: The Walt Disney Company – Third Quarter of Fiscal 2022 Earnings Press Release By Callum Turcan On August 10, The Walt Disney Company (DIS) reported third quarter earnings for fiscal 2022 (period ended July 3, 2022) that beat both consensus top- and bottom-line expectations. Its theme parks and reports business came roaring back from the worst of the COVID-19 pandemic while its video streaming services continued to add millions of paid subscribers to their customer bases. Shares of DIS have surged higher in recent weeks, and … Read more

Nike Beats Estimates in the Face of Supply Chain Constraints

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Image Shown: Shares of Nike Inc shifted higher in the wake of its latest earnings report. By Callum Turcan On December 20, Nike Inc (NKE) reported second quarter earnings for fiscal 2022 (period ended November 30, 2021) that beat both consensus top- and bottom-line estimates. The company did its best to navigate serious supply chain hurdles as efforts by public health officials and governments to contain the spread of the coronavirus (‘COVID-19’) pandemic in Southeast Asia (a major production hub for apparel and footwear) weighed quite negatively on its ability to meet demand. Earnings Update Nike’s GAAP revenues grew 1% year-over-year in the fiscal second quarter, hitting $11.4 billion, as the company, and the apparel and footwear industry at large, … Read more

Dividend Growth Idea Dick’s Sporting Goods Is Firing on All-Cylinders; Raises Guidance (Again) While Generating Gobs of Free Cash Flow

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Image Source: Valuentum By Callum Turcan On November 23, Dick’s Sporting Goods Inc (DKS) reported third quarter earnings for fiscal 2021 (period ended October 30, 2021) that beat both consensus top- and bottom-line estimates. The sporting goods retailer once again raised its full-year guidance for fiscal 2021 in conjunction with its latest earnings report. Dick’s Sporting Goods also raised its guidance when reporting its fiscal second quarter earnings back in August 2021 and its fiscal first quarter earnings back in May 2021, highlighting management’s growing confidence in the company’s near term performance. Though shares of DKS sold off following its latest earnings update, likely due to concerns over inflationary pressures and supply chain hurdles, Dick’s Sporting Goods’ outlook remains rock-solid. … Read more

Dividend Growth Idea Dick’s Sporting Goods Announces Great News

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Image Shown: Dividend Growth Idea Dick’s Sporting Goods Inc has put up tremendous performance of late. By Callum Turcan On August 25, Dick’s Sporting Goods Inc (DKS) reported second quarter earnings for fiscal 2021 (period ended July 31, 2021) that soared past consensus top- and bottom-line estimates. Furthermore, Dick’s Sporting Goods raised its full-year guidance for fiscal 2021, doubled its minimum share buyback program to $0.4 billion for fiscal 2021, increased its regular quarterly dividend by 21% on a sequential basis to $0.4375 per share (bringing its annualized payout up to $1.75 per share), and announced a special dividend of $5.50 per share during its latest earnings update. We are incredibly pleased with the company’s performance of late. Dick’s Sporting … Read more

ICYMI: Valuentum’s Brian Nelson on the Latest Howard Marks’ Memo: “Something of Value”

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Valuentum’s President of Investment Research Brian Michael Nelson, CFA, explains why there are not really value and growth stocks, why most of the research in quantitative finance is spurious and needs to be redefined on a forward-looking basis, and why enterprise valuation (not the efficient markets hypothesis) should be the organizing principle of finance. Nelson explains his views about valuation, what it means to be a value investor, and investing in the context of Oaktree Capital Howard Marks’ latest memo, “Something of Value,” January 11, 2021. Please don’t forget to give the second edition of the book “Value Trap” a 5-star rating on Amazon here. Thank you for your membership! —– Tickerized for holdings in the IWM. Valuentum members have … Read more

Value Is Not Static and the Qualitative Overlay Is Vital to Our Process

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With prudence and care, the Valuentum Buying Index process and its components are carried out. Our analyst team spends most of its time thinking about the intrinsic value of companies within the context of a discounted cash-flow model and evaluating the risk profile of a company’s revenue model. We have checks and balances, too. First, we use a fair value range in our valuation approach as we embrace the very important concept that value is a range and not a point estimate. A relative value overlay as the second pillar helps to add conviction in the discounted cash-flow process, while a technical and momentum overlay seeks to provide confirmation in all of the valuation work. There’s a lot happening behind the scenes even before a VBI rating is published, but it will always be just one factor to consider. Within any process, of course, we value the human, qualitative overlay, which captures a wealth of experience and common sense. We strive to surface our best ideas for members.

Stock Market Outlook for 2021

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By Valuentum Analysts February 8, 2021 2020 was one for the history books. We covered our thoughts and reflections on the past year in our “2020 Won’t Soon Be Forgotten” article (link here), and now we are looking towards the future. Global health authorities should be able to bring an end to the ongoing coronavirus (‘COVID-19’) pandemic sooner than many had expected as several vaccines have already been improved for emergency use and several others appear increasingly likely to get approved. Global vaccine distribution activities are currently underway, and this should allow the world to slowly return to pre-pandemic activities. Before then, immense stimulus measures launched primarily in developed nations should support global economic activities until the public health crisis … Read more

What Really Is the “S” in ESG Investing

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By Valuentum Analysts Back in October, we explored “Putting the Environmental in ESG” investing. In this article, let’s dig deep into the second consideration of ESG (Environmental, Social, and Governance) investing — “Social.” While there has been greater attention paid to the social impact of companies in recent years–from the industries they operate in to the ways they impact their communities–this concept is definitely not a new trend. Investors have always cared about the impact of the companies they invest in. In the past, this idea has been encapsulated in the phrase Socially Responsible Investing (SRI), which is essentially the practice of seeking out companies that have a positive social impact on society. Some even put the earliest origins of … Read more