Companies usually pitch these alternative metrics as “supplementary” data to help investors get a “better” view of the profitability of the business. Instead, we see red flags, not a better view.
The Health Care sector ranks sixth out of the ten sectors as detailed in my Sector Rankings for ETFs and Mutual Funds report. It gets my Neutral rating, which is based on aggregation of ratings of 22 ETFs and 82 mutual funds in the Health Care sector as of July 14, 2014.
The Financials sector ranks ninth out of the ten sectors as detailed in my Sector Rankings for ETFs and Mutual Funds report. It gets my Dangerous rating, which is based on aggregation of ratings of 46 ETFs and 232 mutual funds in the Financials sector as of July 15, 2014.
The Energy sector ranks eighth out of the ten sectors as detailed in my Sector Rankings for ETFs and Mutual Funds report. It gets my Dangerous rating, which is based on aggregation of ratings of 20 ETFs and 94 mutual funds in the Energy sector as July 17, 2014.
The Consumer Staples sector ranks first out of the ten sectors as detailed in my Sector Rankings for ETFs and Mutual Funds report. It gets my Very Attractive rating, which is based on aggregation of ratings of 10 ETFs and 15 mutual funds in the Consumer Staples sector as of July 17, 2014.
Yahoo's (YHOO) CEO Marissa Mayer and its M&A chief Jackie Reses have both crushed speculation that Yahoo would buy AOL (AOL: ~$39/share) with its cash from the Alibaba IPO. Mayer reportedly told Re/code that an AOL acquisition would be "small, unexciting, uninspiring, and backward-looking."
In my most recent article, I said that modest growth over the next 15 years makes Intel worth ~$41 share today, and this earnings report strengthens my belief in that fair value estimate.
The Consumer Discretionary sector ranks fourth out of the ten sectors as detailed in my Sector Rankings for ETFs and Mutual Funds report. It gets my Neutral rating, which is based on aggregation of ratings of 16 ETFs and 21 mutual funds in the Consumer Discretionary sector as of July 9, 2014.
Figure 1 compares 10 companies that make common kitchen products on the basis of return on invested capital (ROIC) and price to economic book value (PEBV).
This week’s Danger Zone pick features a consumer goods company with inflated earnings growth and an unrealistic valuation.
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There are many ways to define the quality and merit of equity research. One measure stands tallest: performance of stock recommendations. And by that measure, New Constructs’ research is of very high quality.
Trading stocks sometimes feels like a very modern phenomenon, so it’s easy to forget that some of the companies we’re investing in go back a century or more.