Latest Stock Buy or Sell? Make More Informed Decisions!
Today, Michael Hakes - CFA, MBA commented about whether PRU-LON, MA-N, LVMUY-OTC, TSM-N, LULU-Q, DG-N, DEO-N, CMCSA-Q, GOOG-Q, EXPE-Q, BKNG-Q, INTC-Q, TMO-N, MS-N, TGT-N, TD-T, BNS-T, UPS-N, NVO-N, LLY-N, RCL-N, CCL-N, F-N, BYDDY-OTC, CRWD-Q, COST-Q are stocks to buy or sell.
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A difficult day. But if you look at the companies reporting up to the end of last week, almost 80% beat on EPS, and close to 60% beat on revenue expectations. Forward guidance, however, was really down for the second half of the year. Saw that especially in consumer discretionary and staples.
If you look at DEO, SBUX, CMG and Ford, they all guided down for the year. An example of weakness in the consumer; people are trading down, looking for value, and not buying discretionary items as much as they were.
In the last 2 days, we've finally seen weakness in the labour markets. Up to Monday or Tuesday, everyone was expecting a soft landing with the Fed. Now, all of a sudden, the market's reversed the whole September cut and maybe we'll see that almost 2 or 3 cuts are baked in by the Fed by the end of the year.
Gen AI space, which is almost a Mag 7, had a great runup in the first quarter, and then flatlined through the second. Numbers reported were actually quite good in terms of the evolution of what we're going to see in data centre buildouts and MSFT benefiting from Copilot.
But the macro data is causing a real downturn.
Superior retailer, steady and consistent revenue and bottom line growth for at least a decade. If you don't need cash tomorrow, it's always been a mistake to sell. Not huge growth (~6-8% topline, 11-12% bottom line), but growth nonetheless quarter after quarter.
Historically trades around 30x earnings, a deserved premium. Announced subscription increase and stock took off along with the multiple at close to 50x. Lots of exuberance in the stock, be cautious. Wait for pullback to $700 level.
Up till Covid, well-positioned to take advantage of increased cruising. Had to offer new shares, which diluted shares and increased debt. Clawing their way back up from lows. Cruise industry is very positive for next 12 months. Down with overall market today.
RCL is in better shape and better managed.
Up till Covid, well-positioned to take advantage of increased cruising. Had to offer new shares, which diluted shares and increased debt. Clawing their way back up from lows. Cruise industry is very positive for next 12 months. Down with overall market today.
RCL is in better shape and better managed.
News just keeps getting better and better as to how obesity drugs can help other medical conditions. Cautious on it now, selling down as the position increased in the portfolio. Overhang is competitors coming in over next 3-5 years, and the dominant position today may not be so dominant.
Added it a month or so ago. US money-laundering overhang, depressing the valuation to 8-9x from the gold standard in Canada of Royal Bank's 12-13x. Hoping for clarity in the fall of the monetary fine, which will clear the decks and provide room for multiple expansion.
Huge concern if they're told they can't purchase US assets for a time, but at least people will know where they stand. He's equally bullish on both names, for different reasons.
He exited around $170 as it got exuberant in the spring on improving margins. The thesis has played out. Still positive on it, but doesn't yet meet his portfolio requirement of a +20% return to the target price.
Consumer is looking for savings, so he's neutral to fairly positive on the name at these levels.
