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Lululemon’s Growth Outlook Is Bright

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Image Source: Lululemon Athletica Inc – First Quarter of Fiscal 2021 IR Earnings Infographic By Callum Turcan Athleisure wear maker Lululemon Athletica Inc (LULU) recently reported first quarter earnings for fiscal 2021 (period ended May 2, 2021) that smashed past both consensus top- and bottom-line estimates. Its company-operated stores posted net revenue growth of 106% year-over-year as global economies began to recover from the coronavirus (‘COVID-19’) pandemic. The company’s direct-to-consumer (‘DTC’) net revenue grew 55% year-over-year (the e-commerce side of its business) last fiscal quarter, keeping in mind its DTC business more than doubled its net revenues in fiscal 2020. We were impressed with Lululemon’s latest results, and there could be room for shares of LULU to continue climbing higher. … Read more

ICYMI — Video: Exclusive 2020 — Furthering the Financial Discipline

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ICYMI — Video: Exclusive 2020 — Furthering the Financial Discipline — — In this 40+ minute video jam-packed with must-watch content, Valuentum’s President Brian Nelson talks about the Theory of Universal Valuation and how his work is furthering the financial discipline. Learn the pitfalls of factor investing and modern portfolio theory and how the efficient markets hypothesis holds little substance in the wake of COVID-19. He’ll talk about which companies Valuentum likes and why, and which areas he’s avoiding. This and more in Valuentum’s 2020 Exclusive conference call.   Note: This video was originally published August 2, 2020.    To watch the video >>   The Theory of Universal Valuation —– Valuentum members have access to our 16-page stock reports, … Read more

Dick’s Sporting Goods Soars, Reports Record First-Quarter Sales, Highest-Ever Quarterly Earnings!

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Image Shown: Dick’s Sporting Goods’ stock price soared following the release of its first-quarter fiscal 2021 earnings report and robust guidance for the remainder of the year. We added the sporting goods retailer to the Dividend Growth Newsletter portfolio last November, and we continue to like shares. By Brian Nelson, CFA On Wednesday, May 26, Dick’s Sporting Goods (DKS) released a stellar fiscal first-quarter earnings report for the period ending May 1, 2021, that showed its omni-channel sales strategy is paying off as the U.S. economy continues its robust recovery. We added Dick’s Sporting Goods to the Dividend Growth Newsletter portfolio in November of last year, and its dividend growth prospects remain as strong as ever. In March of this year, … Read more

Video: Sports Cards as an Alternative Asset Class

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Sports Cards as an Alternative Asset Class Valuentum’s President Brian Nelson explains recent developments in the sports cards and memorabilia market, and why he thinks the area will become a feasible, transparent and liquid alternative asset class for investors to consider in the longer run. Tickerized for CLCT, MUDS, BID, MVP, MSGN, MSGS, VIAC, GTN, BATRA, BATRK, FDMSF, MANU, WWE, NKE, UA, UAA, ADDYY, DIS, ELY, DKS, FWONK, EDR, BETZ, RACE, SEAH, RBAC, SPTKU, PUCKU, SBGI, AKIC, DVD, PLBY —– 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, … Read more

Nike’s Digital Strategy Supports Its Future Revenue Growth and Margin Expansion Prospects

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Image Shown: Since announcing the launch of its Consumer Direct Offense initiative in June 2017, Nike Inc has done a stellar job building its omni-channel selling capabilities. The company’s digitally-oriented direct-to-consumer strategy offers it the opportunity to enhance both its long-term revenue growth outlook and operating margin expansion potential. On March 18, Nike reported mixed earnings though its near-term guidance indicates its financial performance will continue to rebound after taking a beating from the COVID-19 pandemic. As of this writing, shares of NKE are trading in the upper bound of our fair value estimate range, indicating shares are roughly fairly valued at this time. By Callum Turcan The coronavirus (‘COVID-19’) pandemic has made it clear that companies with strong omni-channel … Read more

Dividend Growth Portfolio Idea Dick’s Sporting Goods Raises Dividend 16%!

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  Image Source: Mike Mozart. Dick’s Sporting Goods put up its best same-store-sales growth rate in history during 2020. We continue to like shares of the sporting goods retailer in the Dividend Growth Newsletter portfolio. By Brian Nelson, CFA Kudos to one of the latest additions to the Dividend Growth Newsletter portfolio, Dick’s Sporting Goods (DKS). The company announced March 9 concurrent with its fourth-quarter 2020 press release that it increased its quarterly payout 16%, to $0.3625 per share, or $1.45 per share on an annualized basis, good enough for a nice ~2% forward expected dividend yield. The latest iteration of the Dividend Growth Newsletter portfolio can be found here. With a Dividend Cushion ratio of 3.2 at its last … 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

Omni-Channel Strategy at Dick’s Sporting Goods Makes It a Long-Term Dividend Growth Idea

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Image Source: Dick’s Sporting Goods Inc – Third Quarter of 2020 Earnings Infographic By Callum Turcan The ongoing coronavirus (‘COVID-19’) pandemic, due to the desire of households to socially distance, has driven a meaningful amount of consumer spending to e-commerce platforms. Retailers that invested heavily in their online operations, while also bulking up their omni-channel sales capabilities, were in a much better position when the pandemic hit than those that had to rely largely on their physical footprint. Over the past year, “contactless” delivery options have become much more popular. That includes fulfillment options such as curbside pickup and in-store pickup (usually in specially designated areas), where consumers purchase goods online and then travel to the relevant physical store location … Read more

Dick’s Sporting Goods’ 2%+ Dividend Yield Is Solid

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Dick’s Sporting Goods put up impressive third-quarter results that showed strong sales performance across both e-commerce and brick-and-mortar. E-commerce/digital/online sales continue to soar across the broader retail arena. Dick’s Sporting Goods’ gross and merchandising margins were healthy during its third quarter, and its inventory is clean as the sporting goods retailer heads into the all-important holiday season. We’re big fans of Dick’s Sporting Goods’ tremendous free cash flow generation and its balance sheet health. For dividend growth investors, Dick’s Sporting Goods offers a compelling combination of a 2%+ dividend yield and an impressive 3.2 Dividend Cushion ratio at the time of this writing. By Brian Nelson, CFA On November 24, Dick’s Sporting Goods (DKS) reported fantastic third-quarter results that showed … 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.