These stocks are for great companies whose valuations are a little high. If those valuations decline, investors should scoop up these quality businesses.
The Financial Accounting Standards Board (FASB) introduced a new accounting standard (ASU 2016-02) that requires companies to recognize operating lease assets and liabilities on the balance sheet.
By leveraging our Robo-Analyst technology to parse and analyze company filings, including the footnotes and MD&A, we have identified companies with multiple years of after-tax profit growth and above average returns on invested capital.
As tireless advocates for the importance of Return on Invested Capital (ROIC), we’ve been encouraged to see a growing appreciation for the metric. Unfortunately, many investors may be relying on flawed calculations of ROIC.
Any brick and mortar retailer carries some risk in this environment, but investors who really want exposure to this sector should look for higher quality companies than TUES. Other retailers have superior profitability metrics, better branding and e-commerce capabilities, and a cheaper valuation. The only reason to touch TUES is to short it.
The holiday season is upon us, which means all eyes are going to be on the retail sector for the next few weeks. One-fifth of all retail spending in the U.S. happens during the holidays. For some retailers the period between Thanksgiving and Christmas can account for 40% of their yearly revenue. ETFs can be a good, low cost way to get exposure to the retail sector.
Stein Mart (SMRT) is in the Danger Zone this week and earns my Very Dangerous rating. Hidden items in its filings artificially boost earnings growth and mask significant liabilities.
The All-cap Growth style ranks fifth out of the twelve fund styles as detailed in my Style Rankings for ETFs and Mutual Funds report. It gets my Neutral rating, which is based on aggregation of ratings of 2 ETFs and 466 mutual funds in the All-cap Growth style as of May 2, 2013.
The mid-cap growth style ranks seventh out of the twelve fund styles as detailed in my style roadmap. It gets my Dangerous rating, which is based on aggregation of fund ratings of 396 mid-cap growth funds as of February 9, 2012.