Articles for tag: Investing, Pre-Market, Stocks, US Markets

May 16, 2024

Ron Finklestien

3 Drug Stocks to Watch on Raised 2024 Earnings & Sales Guidance

The first-quarter earnings season has come to an end for large drug and biotech companies, with Bayer reporting its results earlier this week. Per the Zacks classification, the pharma/biotech industry comes under the broader Medical sector, which comprises pharma/biotech as well as medical device companies. As of May 15, the Earnings Trends report showed that 87.9% of medical companies beat estimates for earnings and 72.4% beat the same for revenues. While earnings declined 24.3% year over year, revenues rose 6.9%. Concerns around the economy and inflation, Medicare drug price negotiations, the Federal Trade Commission’s scrutiny of M&A deals, regular pipeline setbacks and

May 16, 2024

Ron Finklestien

TreeHouse Foods (THS) Looks Resilient on Private-Label Strength

TreeHouse Foods, Inc. THS appears to be at the crossroads of promising opportunities and pressing challenges as it moves through 2024. Let’s delve deeper into the factors shaping the journey of this renowned private brand snacks and beverage company. Private-Label Strength and Market Dynamics One of TreeHouse Foods’ strategic advantages lies in its position within two thriving consumer trends. These include the growth of private-label groceries in North America and the ongoing shift in consumer preferences toward snacking. On its first-quarter 2024earnings call management highlighted consistent market share gains that private brands have achieved over the past two decades, indicating

May 15, 2024

Ron Finklestien

Down 20% This Year, Will Under Armour’s Stock Recover Following Q4 Results?

 Note: Under Armour’s FY’24 ended on March 31, 2024. Under Armour (NYSE: UA), a sports equipment company that manufactures footwear, sports, and casual apparel, is scheduled to report its fiscal fourth-quarter results on Thursday, May 16. We expect Under Armour stock to trade higher post-fiscal Q4 2024 results with revenues and earnings likely beating consensus. The company’s stock traded lower this year as the company’s growth slowed down due to a heavily promotional market in the North American retail segment. The announcement that founder Kevin Plank would return as CEO (barely one year after the appointment of Stephanie Linnartz) also

May 15, 2024

Ron Finklestien

Up 15% This Year, Will Walmart Stock Rally Further After Q1 Results?

Note: Walmart’s FY’2024 ended in January 2024. Walmart (NYSE: WMT), the world’s largest retailer (by revenue), operating discount stores, supercenters, neighborhood markets, and Sam’s Club warehouses, is scheduled to report its fiscal first-quarter results on Thursday, May 16. We expect WMT stock to likely trade lower with revenue and earnings marginally missing expectations in fiscal first-quarter results. It should be noted that Walmart owes $46.9 billion in debt and has $9.9 billion in cash position currently. With financing rates significantly higher than in previous years, this significant debt not only increases long-term risk for the retailer but also interest costs.

May 15, 2024

Ron Finklestien

Which Healthcare Stock Is A Better Pick – UnitedHealth Group Or CVS Health?

We believe that CVS Health stock (NYSE: CVS) is currently a better pick over its peer UnitedHealth Group stock (NYSE:UNH), given its attractive valuation. UNH stock trades at 1.3x revenues, versus just 0.2x for CVS. UnitedHealth has delivered better revenue growth lately and is more profitable, partly explaining the gap in the valuation multiples for both these stocks. In the sections below, we discuss why we think CVS is a better pick. In this analysis, we compare a slew of factors, such as historical revenue growth, returns, and valuation. 1. UnitedHealth Stock Has Fared Much Better Than CVS UNH stock

May 15, 2024

Ron Finklestien

Is Johnson & Johnson Stock A Better Pick Over Merck?

We believe that the pharmaceuticals bellwether Johnson & Johnson (NYSE: JNJ) is currently a better pick over its peer Merck (NYSE: MRK). Although Merck trades at a higher valuation of 5.5x trailing revenues, compared to 4.2x for J&J, we think that this valuation gap will likely narrow over the coming years in favor of J&J, given its superior profitability and better prospects. In the sections below, we discuss why we think JNJ will outperform MRK in the next three years. We compare a slew of factors, such as historical revenue growth, returns, and valuation. 1. Merck Stock Has Outperformed J&J In

May 14, 2024

Ron Finklestien

Is Eli Lilly Stock A Better Pick Over Amgen?

Given its better prospects, we believe Eli Lilly stock (NYSE: LLY) is a better pick than Amgen stock (NASDAQ: AMGN). Both stocks have been in the limelight lately, given their focus on the lucrative weight-loss treatment market. Eli Lilly trades at a higher valuation multiple of 20.4x revenues vs. 5.9x for Amgen. Also, Eli Lilly has seen a better revenue growth and is more profitable. There is more to the comparison, and in the sections below, we discuss why we believe Eli Lilly is a better pick over Amgen for the next three years. In this note, we compare a slew of

May 13, 2024

Ron Finklestien

With The Stock Flat This Year, Will Q1 Results Drive Home Depot Stock Higher?

Note: Home Depot FY’23 ended on January 28, 2024. Home Depot (NYSE: HD) is scheduled to report its fiscal first-quarter results on Tuesday, May 14. We expect the company’s stock to likely trade higher with its revenues and earnings beating the market expectations marginally. The company’s stock has been flat since the beginning of this year due to falling lumber prices and softening demand. Consumer spending has shifted more to services instead of goods, along with pressure in certain big-ticket discretionary categories. Looking ahead, Home Depot expects comparable sales to decline approximately 1.0% in FY’24. The home improvement retailer expects

May 10, 2024

Ron Finklestien

Reasons Why Investors Should Bet on RLI Stock Right Now

RLI Corp.’s RLI compelling product portfolio, rate increases, improved retention, higher premium receipts and sufficient liquidity make it worth adding to one’s portfolio. Optimistic Growth Projections The Zacks Consensus Estimate for RLI’s 2024 earnings per share indicates a year-over-year increase of 16.1% from the consensus estimate of 2023. The consensus estimate for revenues is pegged at $1.63 billion, implying a year-over-year improvement of 15.1% from the consensus mark of 2023. The consensus estimate for 2025 earnings per share indicates a year-over-year increase of 3.2% from the consensus estimate of 2024. The estimate for 2025 revenues is pinned at $1.75 billion,

May 9, 2024

Ron Finklestien

Down 13% This Year, What’s Happening With Yelp Stock?

Yelp (NYSE: YELP), an online site for discovering local businesses ranging from bars, restaurants, and cafes, to hairdressers, spas, and gas stations, is scheduled to report its fiscal first-quarter results on Thursday, May 9. We expect the stock to see little to no movement post the fiscal Q1 release with revenues and earnings matching expectations. In 2023, Yelp’s net revenue increased by 12% year-over-year (y-o-y) to a record $1.34 billion. Its net income nearly tripled y-o-y to $99 million and adjusted EBITDA grew 23% y-o-y to $330 million, delivering a strong 7% net income margin and a record 25% adjusted