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Undervalued PINS, SNAP Rallying; FB Incredibly Mispriced, and Refreshed Consumer Discretionary Reports

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Image: Valuentum’s Periodic Screener, February 4.  — By Valuentum Analysts — Two of the most undervalued stocks in our coverage Pinterest, Inc. (PINS) and Snap Inc. (SNAP) are indicated to rally hard February 4 after issuing positive earnings reports, providing further evidence of the importance of the discounted cash flow process and the magnet that intrinsic value estimates are to stock prices. Pinterest is indicated up ~14%, while Snap is indicated up ~47% based on the latest information we have. — The refreshed Valuentum periodic data screener is now available for download on our website (it can be found in the ‘Stock Screens’ section in the left column of our website). The periodic data screener, which also includes updated fair value estimates on … Read more

Don’t Throw the Baby Out with the Bathwater

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Image: Erica Nicol Takeaways: Junk tech should continue to collapse, but the stylistic area of large cap growth and big cap tech should remain resilient. Moderately elevated levels of inflation coupled with interest rates hovering at all-time lows isn’t a terrible combination. In fact, it’s not bad at all. The markets are digesting the huge gains of the past few years so far in 2022, and the excesses in ARKK funds, crypto, SPACs, and meme stocks are being rid from the system. Our best ideas are “outperforming” the very benchmarks that are outperforming everyone else. The BIN portfolio is down 6.4% and the DGN portfolio is down 3.2% year to date. The SPY is down 7.8%, while the average investor … Read more

General Mills Managing Inflationary Headwinds; Scaling Up Pets Business

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Image Source: General Mills Inc – Second Quarter of Fiscal 2022 IR Earnings Presentation By Callum Turcan On December 21, General Mills Inc (GIS), the firm behind the Cheerios, Pillsbury, and Nature Valley brands (among various others), reported second quarter earnings for fiscal 2022 (period ended November 28, 2021) that beat consensus top-line estimates but missed consensus bottom-line estimates. The consumer staples giant also raised its full year guidance for fiscal 2022 in conjunction with its latest earnings report. In the face of major input cost inflationary pressures and supply chain constraints, brought on in part by the coronavirus (‘COVID-19’) pandemic and the fiscal/monetary policies enacted to offset the economic damage caused by the public health crisis, General Mills has … Read more

Kroger Beats Estimates and Once Again Raises Guidance

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Image Source: Kroger Co – Third Quarter of Fiscal 2021 IR Earnings Presentation By Callum Turcan Kroger Co (KR) recently reported third quarter earnings for fiscal 2021 (period ended November 6, 2021) that beat both consensus top- and bottom-line estimates, and the retailer also once again boosted its full-year guidance for fiscal 2021. Kroger’s operations include retail store brands such as City Market, Food 4 Less, Fred Meyers, Metro Market, and more, along with its private label brands of consumer staples offerings. Shares of KR have shifted meaningful higher since its latest earnings update as of this writing. Earnings Update In fiscal 2020 (period ended January 30, 2021), Kroger put up banner performance due in large part to the “panic” … Read more

Tyson’s Pricing Strength Enables Margin Expansion During Turbulent Time

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Image Shown: Tyson Foods Inc put up stellar results for fiscal 2021. Image Source: Tyson Foods Inc – Fourth Quarter of Fiscal 2021 IR Earnings Presentation By Callum Turcan On November 15, Tyson Foods Inc (TSN) reported fourth quarter earnings for fiscal 2021 (period ended October 2, 2021) that beat both consensus top- and bottom-line estimates largely due to the firm’s impressive pricing strength, the focus of this article. The company is facing major headwinds from the coronavirus (‘COVID-19’) pandemic, from labor shortages to supply chain bottlenecks to rising input costs, though Tyson has adeptly navigated this turbulence while bolstering both its revenues and its margins. For reference, please note that Tyson’s fiscal year ends around late-September or early October. … Read more

Hard Work and the Trust That Binds

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Image Source: Terry Johnson By Brian Nelson, CFA We’ll have our traditional Valuentum Weekly email coming out on Sunday, and I’m excited to say our team is putting the finishing touches on our technology industry update, so we’ll have a whole bunch of fresh reports for you to look at Sunday evening/Monday morning. It’s easy to forget how much we’ve been through the past two years. Often, we forget how helpful the warning that markets were going to crash was the weekend before they did on February 22, 2020, “Is a Stock Market Crash Coming? – Coronavirus Update and P/E Ratios,” how we thought dollar-cost-averaging made sense at the bottom in March 2020, and how we went “all-in” in April … Read more

Dividend Increases/Decreases for the Week June 25

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Below we provide a list of firms that raised their dividends during the week ending June 25. 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 Alico (ALCO): now $0.50 per share quarterly dividend, was $0.18. Bancolombia S.A. (CIB): now $0.072 per share quarterly dividend, was $0.064. Darden Restaurants (DRI): now $1.10 per share quarterly dividend, was $0.88. Empire (EMLAF): now CAD 0.15 per share quarterly dividend, was CAD 0.13. Fifth Street Asset Management (FSAM): now $0.014665 per share final dividend, was $0.0145. First Bancorp (FNLC): now $0.32 per share quarterly dividend, … Read more

Kroger Raises Guidance After Solid Earnings Report

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Image Source: Kroger Co – First Quarter of Fiscal 2021 IR Earnings Presentation By Callum Turcan Grocers are facing tough year-over-year comparisons due to the pantry stockpiling dynamic seen in 2020 in the wake of the coronavirus (‘COVID-19’) pandemic, though demand for consumer staples products remains healthy. On June 17, Kroger Co (KR) reported first quarter earnings for fiscal 2021 (period ended May 22, 2021) that beat both consensus top- and bottom-line estimates. Kroger’s management team also noted how the grocer views the current inflationary landscape, which we will cover in this note. Earnings Update and Guidance Boost Though Kroger’s same-store sales fell by 4.1% in the fiscal first quarter, on a two-year stack basis (the sum of its same-store … 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

Walmart’s E-Commerce Growth Supports Long Term Dividend Strength

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Image Source: Mike Mozart By Brian Nelson, CFA On Tuesday, May 18, Walmart (WMT) reported first-quarter 2022 results for the 13-week period ended April 30, 2021. Leading the charge was a 37%, 47%, and 49% leap in e-commerce sales in its Walmart U.S., Sam’s Club, and Walmart International segments, respectively, with management noting that sales through its online channel have “more than doubled over the last two years.” Walmart continues to embrace e-commerce and omni-channel capabilities, and that bodes well for the long-term sustainability of its dividend payout, in our view. Walmart’s shares yield ~1.5% at the time of this writing, and they have years of dividend growth ahead of them, in our view. As one of the largest big … Read more