NTNX

There Will Be Volatility

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By Brian Nelson, CFA Last year, 2022, was a big test for equity investors, and the downside volatility that we witnessed during the year wasn’t comfortable, to say the least. Following the COVID-19 crash and rebound during 2020, and then the market surge in 2021, it wouldn’t be a stretch to say many investors’ heads are probably still spinning from all the volatility witnessed to start this decade. That said, part of what we’ve been warning about the past few years with respect to the equity market, especially in Value Trap, is that the proliferation of price-agnostic trading (e.g. quant, machine/algorithmic trading, etc.) will only lead to more and more market volatility, so while we were somewhat surprised by last … Read more

Cisco Raises Fiscal 2023 Guidance But Orders Face Difficult Comps

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Image: Cisco’s annualized recurring revenue (ARR) continues to advance nicely. Image Source: Cisco By Brian Nelson, CFA On November 16, Cisco Systems, Inc. (CSCO) reported better than expected first-quarter fiscal 2023 results (for the period ending October 29, 2022) that beat expectations on both the top and bottom lines. The networking giant raised its revenue and adjusted earnings forecast for the fiscal year, indicating strong momentum behind its business amid a very uncertain economic backdrop for both consumers and businesses alike. We’re sticking with our fair value estimate of $50 per share for Cisco at this time. The headlines for Cisco’s first-quarter fiscal 2023 results were fantastic. For starters, the company delivered the largest quarterly revenue in its history, while … Read more

Dividend Growth Idea Oracle Showing Serious Growth Momentum

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Image Source: Oracle Corporation – September 2019 IR Presentation By Callum Turcan On June 13, Oracle Corporation (ORCL) reported fourth quarter earnings for fiscal 2022 (period ended May 31, 2022) that beat both consensus top- and bottom-line estimates. The tech giant also provided favorable constant currency revenue growth guidance for its cloud businesses for fiscal 2023. Shares of ORCL initially surged higher in the wake of its latest earnings report before drifting modestly lower along the decline in broader equity markets. We include Oracle as an idea in the Dividend Growth Newsletter portfolio and shares of ORCL yield ~1.9% as of this writing. Quarterly Update In the fiscal fourth quarter, Oracle’s GAAP revenues grew by 5% year-over-year and were up … Read more

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

Cisco Systems Expects Revenue Growth Will Resume This Fiscal Quarter

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Image Source: Cisco Systems Inc – Second Quarter of Fiscal 2021 IR Earnings Presentation By Callum Turcan On February 9, Cisco Systems Inc (CSCO) reported second quarter earnings for fiscal 2021 (period ended January 23, 2021) that beat consensus top- and bottom-line estimates. Additionally, Cisco Systems raised its quarterly dividend by about 3% on a sequential basis in conjunction with its earnings report. We include Cisco Systems in both the Best Ideas Newsletter and Dividend Growth Newsletter portfolios and continue to like exposure to the name. As of this writing, shares of CSCO yield ~3.1% on a forward-looking basis, and our fair value estimate stands at $51 per share of Cisco Systems. Earnings Overview Cisco Systems’ GAAP revenues were broadly … Read more

Salesforce Has Room to Run

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Image Source: Salesforce Inc – Fourth Quarter of Fiscal 2022 IR Earnings Presentation By Callum Turcan Salesforce Inc (CRM) was founded in 1999 as software-as-a-service (‘SaaS’) company built around customer relationship management (‘CRM’) software, initially a version created by its co-founders Marc Benioff, Parker Harris, Frank Dominguez, and Dave Moellenhoff. The firm is headquartered in San Francisco, California. The company offers software that assists its customers with marketing, customer service, sales, digital commerce, business development, collaboration, analytics, recruitment, and numerous other activities. These offerings aim to improve workplace productivity by streamlining certain functions and automating others. Salesforce provides a comprehensive suite of software solutions designed for businesses and government entities across its Customer 360 platform, while using analytics and AI … Read more