Share to Twitter Share to Linkedin We believe DexCom stock (NASDAQ NDAQ : DXCM) is currently a better pick than Abbott stock (NYSE: ABT), given its better prospects. Although Abbott is trading at a comparatively lower valuation of 3.8x trailing revenues vs. 12.3x for DexCom DXCM , this gap in the valuation is largely justified given DexCom’s superior revenue growth and lower financial risk, as discussed below. If we look at stock returns, ABT, with a 30% fall this year, has fared better than a 39% decline for DXCM stock, but both have underperformed the broader S&P 500 index, down 23%. There is more to the comparison, and in the sections below, we discuss why we believe DXCM stock will offer better returns than ABT stock in the next three years. We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis Abbott vs. DexCom : Which Stock Is A Better Bet? Parts of … [Read more...] about This CGM Device Maker Is Likely To Outperform Abbott Stock
Stock market going down
- A + A (Sept 29): Hong Kong stock traders just can’t catch a break from bad news. Thursday saw a disastrous trading debut of a Chinese electric-vehicle maker that was one of the worst in the city. A slump in China tech stocks added to the woes, with a gauge closing near the lowest since inception two years ago. That came after the financial hub’s stock benchmark Hang Seng Index sank to the lowest in over a decade last week and a measure of Chinese stocks listed in Hong Kong plunged to the weakest since the global financial crisis. The two indexes rank as the worst performing among major equity benchmarks globally this month. The selloff was part of a global rout as central bankers are determined to raise rates further to squash inflation, raising fears of a recession. In Hong Kong, stocks — many of which are from mainland firms — have been battered particularly hard as hostility grows between Beijing and Washington over Taiwan, Chinese firms’ listing status in the … [Read more...] about Things keep getting worse for Hong Kong’s embattled stock market
Share to Twitter Share to Linkedin [Note: Nike FY 2022 ended May 31, 2022] Nike’s stock (NYSE: NKE), a company designing, developing, and marketing footwear, apparel, equipment, and accessory products, is scheduled to report its fiscal 2023 first-quarter results on Thursday, September 29. We expect Nike’s stock to trade higher due to revenues and earnings beating expectations. While the athleisure giant is grappling with supply chain constraints and a slower-than-expected recovery in China - it still continues to see robust demand from consumers. The Covid-19 pandemic has accelerated Nike’s efforts to become more self-sufficient by operating more of its own stores and expanding its own online shopping presence. That said, 40% of its revenue now comes from sales made directly to consumers (Nike Direct) rather than via wholesaling, and Q4 2022 online sales were up a large 18% on a currency-neutral basis. We expect this trend to continue into the upcoming Q1, … [Read more...] about What To Expect From Nike’s Stock Post Q1?
Share to Twitter Share to Linkedin We believe that Boeing stock (NYSE: BA) is currently a better pick than Lockheed Martin stock (NYSE: LMT), given its better prospects. Although Lockheed Martin LMT is the more expensive of the two, trading at 1.7x trailing revenues compared to 1.3x for Boeing BA , this valuation gap is largely justified given Lockheed Martin’s superior revenue growth and profitability, as discussed below. Looking at stock returns, LMT has significantly outperformed BA and the broader indices. While LMT is up 11% YTD, BA is down 35%, and the S&P500 index is down 23%. BA stock has been weighed down due to supply chain disruptions impacting its production rate. There is more to the comparison, and in the sections below, we discuss why we believe BA stock will offer better returns than LMT stock in the next three years. We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an … [Read more...] about Here’s A Better Pick Over Lockheed Martin Stock
Representative Image Initial public offerings by U.S. tech companies have sunk to their lowest levels since the global financial crisis of 2008, as stock market volatility, soaring inflation, and interest rate hikes have soured investor sentiment towards new listings. According to Refinitiv data, only 14 tech companies have floated their shares on stock exchanges so far this year, compared with 12 in 2009. The IPOs this year have raised $507 million, the lowest amount that has been raised through flotations since 2000. Total IPO volumes fell 90.4% in the first nine months of this year, compared with last year. Analysts interviewed by Reuters said a steep drop in stock market valuations has deterred tech firms from pursuing stock market launches. The forward P/E (price-to-earnings) ratio of the S&P Information Technology index was trading at 20.18 — the lowest level since April 2020. Close ”Institutional investors have been shifting capital … [Read more...] about Tech IPO market faces worst year since global financial crisis
- A + A (Sept 30): Federal Reserve policymakers will press ahead with raising US borrowing costs to fight the corroding effects of too-high inflation, taking in stride both turmoil in global financial markets and early signs their actions are weakening the job market. "I'm quite comfortable" with raising interest rates to 4%-4.5% this year and 4.5%-5% next year, San Francisco Fed President Mary Daly told reporters after a speech at Boise State University on Thursday, adding she expects that rates will need to stay at that level for all of 2023. Those ranges encompass what the majority of Daly's fellow policymakers wrote in their rate path projections published last week, when the Fed lifted interest rates to 3%-3.25% in what is proving to be the most aggressive round of rate hikes since the 1980s. The Fed's steeper-than-expected policy tightening, aimed at bringing down inflation that's running at more than triple the Fed's 2% target, is expected to slow economic … [Read more...] about Fed policymakers press ahead with inflation fight, even with markets in turmoil
- A + A (Sept 29): Porsche AG gained during its trading debut after parent Volkswagen AG set the final listing price for the sports-car company at the upper limit in defiance of market upheaval. The maker of the 911 rose as much as 2.9% to €84.88 in Frankfurt, against a decline of as much as 2% in Germany’s leading DAX index. The offer price of €82.50, the top end of VW’s initial range for the shares, valued the company at €75 billion (US$73 billion). The listing, reaping €9.4 billion in proceeds for VW, is Europe’s largest initial public offering in a decade and comes amid some of the most challenging market conditions in years. “Today is a historic day for Porsche,” Volkswagen and Porsche Chief Executive Officer Oliver Blume said in an interview with Bloomberg Television. “The first reaction of the market is very positive and that shows the potential of our company.” Porsche’s listing is a bold move into public markets, which have been largely shut to IPOs for … [Read more...] about Porsche rises in landmark IPO weathering tough markets
The Reserve Bank of India is expected to raise interest rates at a faster rate than expected earlier, said Sanjeev Prasad, managing director and co-head at Kotak Institutional Equities. Prasad said the central bank may do so to react to the aggressive rate hikes by the US Federal Reserve and to counter strength in the dollar. Last week, the Fed had hiked the Federal funds rate by 75 basis points (bps) to 3-3.25 percent to curb soaring inflation. "I guess every other central bank could be posed to, in a way, manage the external situation/currency also," he said in an interview to CNBC TV18. "So just not a case of inflation. It's just also the external situation." According to reports, the RBI is set to raise interest rate for the fourth time in a row at its Monetary Policy Committee outcome on Friday to tame stubborn inflation. The central bank is seen going for a 50-bps increase to take interest rates to a three-year high of 5.9 percent. Close Also read: RBI … [Read more...] about RBI may raise interest rates faster than expected, says Kotak Institutional Equities’ Prasad
Share to Twitter Share to Linkedin XpresSpa Group (NASDAQ: XSPA) stock has been galloping after the company got the nod to conduct Covid-19 tests at the airports. And the company’s recent $40 million capital raise should give it the flexibility to deal with a possible Covid induced recession. The company has gained a massive 17x since mid-March but the company’s existing business model - which includes spa services at airports - will remain under considerable pressure in the near- to mid-term due to the travel restrictions imposed across the globe. A Covid recession will impact the company’s revenues, cash flows, and other liquidity reserves. Trefis analyzes the Impact Of The Covid-19 Recession On XpresSpa in an interactive dashboard with a focus on the company’s liquidity reserves and concludes that the recent direct equity offering of $40 million should be more than enough for the company to tide over the Covid recession. We estimate that a … [Read more...] about Does XpresSpa Have Enough Liquidity To Survive A Covid Recession?
Former Democratic Gov. Andrew Cuomo of New York has announced a return to politics, per a new video posted online on Wednesday. “I am starting a new political action committee to elect the right people to office. We do not need more panderers, we need producers,” Cuomo said in the video, which was posted on Vimeo by Rich Azzopardi, Cuomo’s longtime aide. He also said he was starting the “Gun Safe America project,” which he said he would address later, adding that “I do not believe our federal government has the courage or capacity to make real progress.” Let’s do it, let’s do it together. https://t.co/MIXwqEjqTE — Andrew Cuomo (@andrewcuomo) September 28, 2022 Cuomo’s announcement of new political activity comes over a year after he resigned in disgrace on Aug. 23, 2021. In 2020 and 2021, Cuomo was accused by several women – including his former aides, political consultants, and a State Police trooper assigned to his protective detail – of sexual harassment, prompting … [Read more...] about Comeback: Disgraced Former NY Governor Plans To Start A Podcast And A PAC