This Danger Zone pick has seen its profitability decline as new competition has entered the scene. As the market commoditized, this firm’s negative margins and limited service offering undermined its ability to compete.
Our Safest Dividend Yields Model Portfolio (+1.9%) underperformed the S&P 500 (+4.1%) last month. The best performing stocks in the portfolio were large cap stock Cisco Systems (CSCO), which was up 13%, and small cap stock, Highway Holdings (HIHO), which was up 9%.
The fundamentals of this business make it hard to imagine a scenario where this firm can meet the expectations baked into its lofty valuation. For these reasons and more, Palo Alto Networks is in the Danger Zone this week.
The Large Cap Value style ranks third out of the twelve fund styles as detailed in our 4Q16 Style Ratings for ETFs and Mutual Funds report. It gets our Neutral rating.
Much has been made of the candidates’ sharp differences, but there’s one area where they have put forward remarkably similar plans. Both candidates agree: repatriate offshore cash, invest in infrastructure
This week’s Danger Zone is a company that claims consistent profitability and continued success, despite years of shareholder value destruction. Misleading non-GAAP results, large losses, and an overvalued stock price land 8×8 in the Danger Zone.
The All Cap Growth style ranks sixth out of the twelve fund styles as detailed in our 3Q16 Style Ratings for ETFs and Mutual Funds report. It gets our Neutral rating.
Many investors saw the recent price decline as a time to buy, and the stock is up 30% since mid-May. With shares now greatly overvalued plus large profit losses and strong competition, FireEye (FEYE) is this week’s Danger Zone pick.
But what happens when a once profitable company makes the transition to the cloud and has become largely unprofitable? That company, Interactive Intelligence (ININ) is in the Danger Zone this week.
The Information Technology sector ranks fourth out of the ten sectors as detailed in our 2Q16 Sector Ratings for ETFs and Mutual Funds report. It gets our Neutral rating.
Thesis: Management can boost the market value of ORCL in the amounts provided by aligning the firm’s strategy and performance compensation with real cash flows or what we call return on invested capital.
This week’s Danger Zone hones in on another IPO from 2015 that may have been one of the last to capitalize on the easy money in the market. Post IPO, we believe it won’t take long for investors to realize this company is bleeding cash, has no profits, and faces stiff competition moving forward.
This week’s Long Idea not only pays a quality dividend, but when combined with aggressive share repurchases, provides investors a yield over 9%. Best of all, it is anything but a trap. With consistent profit growth, strong free cash flow, and the opportunity for share price appreciation, Brocade Communications Systems (BRCD) is this week’s Long Idea.
The All Cap Blend style ranks third out of the twelve fund styles as detailed in 4Q15. Last quarter, the All Cap Blend style ranked third as well. It gets our Neutral rating.
Our Most Attractive Stocks (-1.6%) underperformed the S&P 500 (-1.4%) last month. Our Most Dangerous Stocks (-3.6%) outperformed the S&P 500 (-1.4%) last month.
As hacks or data breaches seem to occur almost daily, the cyber security sector is receiving significant attention across the globe. When we focus on fundamentals and cut through the “sector theme” noise, we find some weak links in the cyber security industry. This week’s Danger Zone is one of those weak links.
The Information Technology sector ranks second out of the 10 sectors as detailed in our 3Q15 Sector Ratings for ETFs and Mutual Funds report. It gets our Neutral rating.
Companies are investing record amounts to protect themselves from system breaches. Investors can profit from this trend by investing in a global leader in cyber security.
Last week, we wrote about the riskiest stocks in the Dow Jones Industrial Average. We thought we’d be remiss to not mention our favorite stocks in the index as well. Not all of the blue chips are created equal, and the following are what we consider to be the most attractive investment opportunities in the Dow at the moment.
In this podcast, CEO David Trainer provides a pair trade for 2015 with two technology stocks that could not be more different from one another.
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