Share to Twitter Share to Linkedin We believe Walgreens stock (NASDAQ NDAQ : WBA) is currently a better pick than Walmart stock (NYSE: WMT), given its better prospects. Although Walgreens WBA is trading at a comparatively lower valuation of 0.3x, trailing revenues than 0.7x for Walmart WMT , this gap in the valuation is justified given the latter’s superior revenue growth, profitability, and lower financial risk, as discussed below. If we look at stock returns, Walmart, with a 6% rise this year, has fared better than Walgreens, down 21%, and the broader S&P 500 index, down 17%. There is more to the comparison, and in the sections below, we discuss why we believe WBA stock will offer better returns than WMT stock in the next three years. We compare a slew of factors, such as historical revenue growth, returns, and valuation, in an interactive dashboard analysis of Walgreens vs. Walmart : Which Stock Is A Better Bet? Parts of the … [Read more...] about Is Walgreens Stock A Better Pick Over This Giant Retailer?
How to protect 401k from stock market crash
Share to Twitter Share to Linkedin Activision Blizzard stock (NASDAQ NDAQ : ATVI) reported its Q3 results in the second week of November, with revenue and earnings falling above the street expectations. Activision Blizzard’s revenue of $1.8 billion reflected a 14% y-o-y decline on a GAAP basis, while its net bookings of $1.8 billion were down 3% y-o-y. This can be attributed to a decline in monthly active users (MAUs) for both Activision and King segments. The gaming industry is witnessing a slowdown in user engagement after robust growth during the pandemic. For perspective, Activision Blizzard’s ATVI total average MAUs rose 15% to 401 million in 2021, compared to 349 million in 2019, before the pandemic. This metric has now fallen to 368 million as of September 2022. Looking at the bottom line, the company reported earnings of $0.68 on a per-share and adjusted basis, down 24% y-o-y but well above the consensus estimate of $0.50. The y-o-y … [Read more...] about What’s Happening With Activision Blizzard Stock?
Share to Twitter Share to Linkedin Bank of America’s stock (NYSE: BAC) has lost 20% YTD as compared to the 17% drop in the S&P500 index over the same period. Further, at its current price of $37 per share, the stock is trading 12% below its fair value of $42 – Trefis’ estimate for Bank of America’s valuation . The bank topped the consensus estimates of revenues and earnings in the third quarter, with net revenues increasing by 8% y-o-y to $24.5 billion. It was mainly driven by a 24% growth in the net interest income, which benefited from improvement in interest rates and higher outstanding loan balances. However, the growth was partially offset by an 8% drop in noninterest revenues. This suffered due to a decrease in investment banking income, asset management fees, and service charges, overpowering the growth in sales and trading revenues. On the expense front, the provisions for credit losses saw an unfavorable build-up from -$624 million to $898 … [Read more...] about Is Bank Of America Stock Fairly Priced?
Share to Twitter Share to Linkedin The San Francisco Bay Area is well-known for its high cost of living and, more specifically, how expensive home prices are. This isn’t a new development; in fact, during the famous California Gold Rush, which began in 1848, residents of San Francisco were already complaining of how expensive things were. But, beginning with the original dotcom bubble at the turn of the millennium, the Bay Area housing market really took off, with home prices surging and never really coming down, except for the period during America’s housing market crash in the late-2000s and its aftermath. However, with the Federal Reserve determined to rein in inflation with interest rate hikes, rising mortgage rates have been affecting housing market activity. In 2021, the second year of the pandemic, housing markets across the United States became hot , some very hot. Yet, with the constant rate hikes that have been occurring in 2022, housing markets … [Read more...] about Is The Bay Area Housing Market Cooling Off?
Electronic display boards at Hana Bank in central Seoul shows the Kospi closing at 2,479.84 points and the won at 1,299.70 to the dollar on Thursday. [YONHAP] Stocks and the won recovered to levels not seen in months on Thursday after the Federal Reserve Chairman signaled a slowing in the pace of interest rate increases. The Kospi broke 2,500 for the first time since August, before settling back below that level, while the won traded below 1,300 to the dollar, a level last hit in August. “The time for moderating the pace of rate increases may come as soon as the December meeting,” said Jerome Powell during a speech at the Brookings Institution in Washington. But he added, “cutting rates is not something we want to do soon. So that’s why we’re slowing down, and going to try to find our way to what that right level is.” On Thursday, foreign investors net purchased 32.8 billion won of Kospi shares and institutional investors 227 billion won. Individual investors unloaded 278.99 … [Read more...] about Stocks and won rally as Fed chair signals conditional dovishness
Jerome Powell - A + A (Dec 1): A rally in US stocks and bonds powered ahead after a speech by Federal Reserve chairman Jerome Powell on Wednesday, but some investors believe a looming recession could cap gains in both asset classes. Though asset prices have been battered by the Fed’s rate rises this year, momentum has been on the side of the bulls in recent weeks. The S&P 500 has soared nearly 14% from its October low while yields on the 10-year benchmark Treasury, which move inversely to prices, are down at around 3.6%, from a 15-year high of 4.3% earlier this year. The immediate reaction to Powell’s speech on Wednesday showcased investors’ recently optimistic mood. The S&P 500 soared more than 3% after Powell said the Fed could scale back the pace of its rate increases as soon as December, although he warned there was little clarity on how high rates will ultimately need to rise as the central bank fights the worst outbreak of inflation in decades. … [Read more...] about Markets sigh with relief after Powell speech, but more turbulence likely ahead
- A + A (Dec 1): Equities in Asia extended gains after their best monthly rally in 24 years, as concerns eased over China's Covid-19 measures and the US Federal Reserve's (Fed) tightening. After capping a 15% gain November, the MSCI Asia Pacific Index jumped as much as 2.5% on Thursday, inching closer toward a bull market. Gauges in China, Japan, and Taiwan led gains — although Hong Kong's measures pared — as a top Chinese official said efforts to combat the virus are entering a new phase with the Omicron variant weakening and vaccination rates rising. Investors may look past China's near-term economic slump "as long as there are positive signs of China's reopening", David Chao, global market strategist for Asia Pacific ex-Japan at Invesco, wrote in a note. Traders will watch whether China's central bank will ease further in December, he added. Regional equities also got a boost from a weaker dollar, after Fed chair Jerome Powell said that the pace of rate … [Read more...] about Asian stocks extend best rally in 24 years on China, Fed boosts
Share to Twitter Share to Linkedin Jackie Shoback is co-founder and managing director of 1414 Ventures, an early stage venture capital fund focused on digital identity. The digital identity market has experienced accelerated growth and major transformation in recent years. This is the result of the increase in digitization, the proliferation of more virtualized business models and increasing requirements around privacy and security, coupled with reduced friction and more operational efficiency. The digital identity market, as defined by my company, 1414 Ventures, is comprised of 50 subsectors, and it has a valuation of $663.9 billion, up 8.5% from a valuation of $612 billion in 2021, and is projected to cross $1 trillion by 2024 according to our calculations. The digital identity market's growth is not a surprise given the key dynamic market drivers in the industry. The sharp increase in identity fraud (costing $43 billion in 2020) and … [Read more...] about Four Key Drivers Of The Digital Identity Market’s Growth
A potential solution to this difficulty is Business-to-Business (B2B) “buy now, pay later” (BNPL) payment models. In recent years, BNPL has risen in popularity among consumers, allowing them to spread the cost of purchases over a series of equal payments. If businesses can do the same, some say, they can reduce risks, and ultimately be more resilient. Small, new businesses often need to invest a significant amount of upfront cash to get their ventures off the ground, but it can be risky. In response, payment providers are extending the BNPL model into the B2B space. These companies include Plastiq, Mondu, and Billie, all of which now offer BNPL solutions for both B2C and B2B customers. For small businesses, the availability of B2B BNPL represents both risks and rewards. B2B Payments Are Becoming More Flexible Many businesses are currently facing unpredictable market conditions. Consumer demand held steady in November, but many are nervous that rising interest … [Read more...] about “Buy Now, Pay Later” Lenders Spot A New Market: Small Businesses
Share to Twitter Share to Linkedin From supply shortages to the war in Ukraine, surging energy prices, and the midterm elections, the top news stories in 2022 have been rife with issues impacting your wallet. While inflation has stolen the spotlight for much of the year, the job market remains surprisingly strong, and the stock market appears poised for recovery, following the best October on record. Below we look at five of the top headlines impacting consumers and investors in 2022. 1. Inflation remains stubbornly high The September Consumer Price Index (CPI) rose 0.4% month-over-month, well above the 0.2% that was expected for a year-over-year number of 8.2%, down slightly from August’s 8.3%. Meanwhile, core CPI (ex-food and energy) soared a huge 0.6% from August versus the 0.4% expected. The year-over-year increase was a fresh 40-year high of 6.7%, up from 6.3% in August. That gave the Federal Reserve (Fed) plenty of room to continue its aggressive … [Read more...] about 5 Economic Headlines Impacting Your Finances In 2022 And How You Can Prepare For The Year Ahead