We joined Reuters on April 27, 2022 to discuss why the expectations for future profits in Cisco, Domino’s Pizza, Shell, and HCA Healthcare are too low.
While economists warn of the possibility of an impending recession, investors should focus on putting their money in the stocks of companies with enduring business models that generate significant free cash flow and offer an attractive yield.
This tech firm has a long history of profit growth, prudent capital stewardship, an undervalued stock, and it’s business model creates more value than peers.
Risk of losing market share, when coupled with highly negative margins, unsustainable cash burn, and a soaring stock price mean this firm lands in the Danger Zone.
New Constructs’ proprietary forensic accounting research empowers investors to identify alpha-generating investment ideas more efficiently than traditional manual approaches. This report highlights investment ideas based on insights our research technology automatically provides on a firm’s true return on invested capital (ROIC) and economic earnings.
The best performing stocks in the portfolio were large cap stock Tupperware Brands (TUP), which was up 6% and small cap stock, CBL & Associates Properties (CBL), which was up 11%. Get a look at one of the new stocks on April’s Model Portfolio.
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 8x8 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.