- 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
Stock market will go down
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 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
Share to Twitter Share to Linkedin Vertex Pharmaceuticals stock (NASDAQ NDAQ : VRTX) has seen a 33% rise this year, significantly outperforming the broader S&P500 index, down 23%. Even if we look at the longer term, VRTX stock, with 72% returns from levels seen in late 2018, has outperformed the S&P 500 index, up around 50%. VRTX stock now looks fairly valued at around $290, as discussed below. This 72% rise for VRTX stock since late 2018 can primarily be attributed to 1. Vertex Pharmaceuticals’ revenue rose a significant 253% to $8.4 billion over the last twelve months, compared to $2.4 billion in 2018, partly offset by 2. a 53% fall in the company’s P/S ratio to 8.7x trailing revenues currently, compared to 18.4x in 2018, and 3. a 0.5%% rise in its total shares outstanding to 256 million. The increase in revenue and a rise in shares outstanding has meant that Vertex Pharmaceuticals VRTX ’ revenue per share rose 251% to $32.66 … [Read more...] about What’s Driving Vertex Pharmaceuticals Stock Higher?
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
Share to Twitter Share to Linkedin With its shares down about 93% from their 2014 high, can Bed Bath & Beyond BBBY execute a turnaround plan before it burns through its cash? That’s the question that comes to my mind after the retailer reported a 28% drop in revenue and a loss that topped expectations in its August-ending quarter. The primary reason for the sorry condition of this retailer is a failed bet that a private label strategy that helped turn around Target TGT would boost BBBY’s growth. The Wall Street Journal reports that as of mid-September, about 39.3% of its float is sold short — a considerable wager that BBBY’s shares have further to fall. That looks like it could be a profitable bet. (I have no financial interest in the securities mentioned in this post). BBBY’s Bad Fiscal Q2 Report BBBY sales dropped 28% and it reported a bigger than expected loss in the fiscal second quarter. According to CNBC , the … [Read more...] about After 28% Drop In Revenue, Bed Bath & Beyond Stock Needs A Markdown
Stock Market News, stock market, stock Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × Indian benchmark equity indices continued to slide further on September 28, for the sixth straight session, dragged by banks, financials and metal companies amid weak global cues. At 10:28am the Sensex was at 56,851.62, down 255.9 points or 0.45 percent, while the Nifty50 slipped 60.85 points or 0.36 percent to 16,946.55, below the psychological level of 17,000. Blaming it on the bearish global trend, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, Nasdaq is down 33.2 % from the peak and S&P 500 is down 24.3% from the peak. The Euro Stoxx 50 is down 24.3% from its peak. These are clear bearish signals from markets in the developed world. India is a distinct outlier with only 8.5 percent decline from the peak … [Read more...] about Sensex, Nifty drag for sixth straight session: Key factors behind the selloff
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
SEBI Capital markets regulator Sebi on Thursday allowed Foreign Portfolio Investors (FPIs) to participate in the exchange-traded commodity derivatives segment, a move that will further increase depth and liquidity in the market. The new guidelines, came after Sebi's board approved a proposal in this regard in June, will come into force with immediate effect. The regulator has already allowed institutional investors such as Category III Alternative Investment Funds (AIFs), Portfolio Management Services and Mutual Funds to participate in the Exchange Traded Currency Derivatives (ETCD) market. In a circular, the Securities and Exchange Board of India (Sebi) said it has decided to allow foreign investors to participate in Indian ETCDs subject to certain conditions. To begin with, FPIs will be allowed to participate in cash settled non-agricultural commodity derivative contracts and indices comprising such non-agricultural commodities, Sebi said in a circular. FPIs desirous of … [Read more...] about SEBI permits FPIs to participate in exchange-traded commodity derivatives market
Share to Twitter Share to Linkedin Topline Fears of global recession have helped the dollar skyrocket in value this year, allowing it reach parity with the euro for the first time in 20 years, and while the strength should help foreign exporters and potentially the European tourism industry, history shows the stock market may keep falling until the dollar stabilizes. Key Facts In the current environment, the dollar's strength is a sign of investors’ concerns about a global recession, say Nick Colas and Jessica Rab of DataTrek Research, adding that it signals a flight to the relative safety of the world’s reserve currency, as the euro, British pound and Japanese yen fall to their lowest levels in years. DataTrek notes the dollar, which is up some 16% over the past year, has posted similar rallies during past periods of market stress—including during the Great Recession, when the dollar jumped 22% in the second half of 2008, and in the first … [Read more...] about Surging Dollar Is Bad News For Stocks—History Shows Markets Won’t Recover Until Greenback Falls