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LULU, a stock to watch!Lululemon stock (LULU) has traded down into the $230's for the first time since the COVID-19 Crash of 2020. I believe that LULU is a stock to keep your eye on, for a few reasons. - The stock is trading at a 20x p/e whereas its historical p/e is in the mid 40's. - Margins for the company have all been steady, and remain an industry leader. - Lululemon is still set to see 10% CAGR for EPS in the next 5 years. (consensus) - The stock is seeing a severe correction, on par with its past decade corrections. Above is bullish sentiment on LULU, and can be considered the "bull/base case" Personally, I have not turned bullish on LULU yet, but with the levels it is reaching it has most certainly caught my eye and has been added to my watch list. While the stock is seeing oversold levels, I think the midterm outlook can still remain bearish for Lululemon. Below are reasons why the short/midterm outlook for LULU may not be optimal. - Weaker forward projections compared to last 5 years. Though LULU is expecting 10% CAGR EPS for the next 5 years, that is just a fraction of its last 5 year CAGR of 38.55%. While projections are still positive, they have certainly dampened compared to recent years' growth. - Macroeconomic environment. Though the economy remains hot/fine for now, there have been warning signs flashing of a rising unemployment figure across the country. With suboptimal economic conditions, the average consumer may cut down on expensive Lululemon clothing. These Macro conditions may also continue to dampen the economy, which can cause an overall market correction, where LULU would likely follow the sentiment. Overall, I believe that LULU offers significant reward, but the shorter term horizon is still worrisome for Lululemon and the global economy. Lululemon is a leader in the Retail Trade sector and dominates when it comes to profitability. The stock is definitely one to keep an eye on if it continues to get crushed. Regarding technicals, I am watching this demand zone around the 200 level. The stock could trend down to this area, and reach close to COVID-19 lows if sentiment does not change. This area could also offer significant R/R for an entry point. Disclosure: I currently hold no position in LULU stock, and have never been a shareholder.
NASDAQ:LULU
by ZachSap
Weak Trend Line and Bearish MACD Gap Indicate Potential ReversalNYSE:HD has profitable for the past five years, with earnings per share (EPS) growing at an average rate of 17.67%. The company also pays a dividend, which has been growing at an average rate of 16.37%. The company's valuation metrics are also relatively healthy, with a price-to-earnings ratio (P/E) of 17.355 and a price-to-book ratio of 205.99. However, there are a few areas of concern. First, the company's debt-to-equity ratio is high, at 96.411%. This means that the company is relying heavily on debt to finance its operations. Second, the company's inventory turnover ratio is low, at 4.4343. This means that the company is taking longer to sell its inventory than it should. The technical indicators are showing some intriguing signs the chart. A weak trend line on the buy signal combined with a hidden divergence suggests consolidation or choppy market conditions. Furthermore, a gap in the MACD histogram could be signaling a potential bearish reversal. The weak trend line on the buy signal suggests a lack of strong bullish momentum. This, coupled with the hidden divergence, could be indicating a phase of consolidation or choppy market conditions. During such periods, the market often moves sideways within a range, making it difficult for trend-based strategies to generate profits. The gap in the MACD histogram is another crucial factor to consider. Such gaps often precede reversals, indicating that the bears could be about to take control. This could be an excellent opportunity for traders looking to short sell or buy put options. The key levels to watch are: - Support at 287: This is where we can expect buying pressure to emerge. If the price drops to this level and then bounces, it could be a buying opportunity for short-term traders. - Resistance at 291.3: This is where we can expect selling pressure. If the price rises to this level and then starts to fall, it could be an opportunity for short selling or buying put options. In conclusion, the current chart presents a mixed outlook with indications of potential bearish reversal. Im looking to enter a short position if it breaks through the support line.
NYSE:HDShort
by TicksandWicks22
What should I look at in the Income Statement?The famous value investor, Mohnish Pabrai , said in one of his lectures that when he visited Warren Buffett, he noticed a huge handbook with the financial statements of thousands of public companies. It's a very dull reading, isn't it? Indeed, if you focus on every statement item - you'll waste a lot of time and sooner or later fall asleep. However, if you look at the large volumes of information from the perspective of an intelligent investor, you can find great interest in the process. It is wise to identify for yourself the most important statement items and monitor them in retrospect (from quarter to quarter). In previous posts, we've broken down the major items on the Income statement and the EPS metric: Part 1: The Income statement: the place where profit lives Part 2: My precious-s-s-s EPS Let's now highlight the items that interest me first. These are: - Total revenue The growth of revenue shows that the company is doing a good job of marketing the product, it is in high demand, and the business is increasing its scale. - Gross profit This profit is identical to the concept of margin. Therefore, an increase in gross profit indicates an increase in the margin of the business, i.e. its profitability. - Operating expenses This item is a good demonstration of how the management team is dealing with cost reductions. If operating expenses are relatively low and decreasing while revenue is increasing, that's terrific work by management, and you can give it top marks. - Interest expense Interest on debts should not consume a company's profits, otherwise, it will not work for the shareholders, but for the banks. Therefore, this item should also be closely monitored. - Net income It's simple here. If a company does not make a profit for its shareholders, they will dump its shares*. *Now, of course, you can dispute with me and give the example of, let's say, Tesla shares. There was a time when they were rising, even when the company was making losses. Indeed, Elon Musk's charisma and grand plans did the trick - investors bought the company's stock at any price. You could say that our partner Mr. Market was truly crazy at the time. I'm sure you can find quite a few such examples. All such cases exist because investors believe in future profits and don't see current ones. However, it is important to remember that sooner or later Mr. Market sobers up, the hype around the company goes away, and its losses stay with you. - EPS Diluted You could say it's the money the company earns per common share. So, I'm finishing up a series of posts related to the Income statement. This statement shows how much the company earns and how much it spends over a period (quarter or year). We've also identified the items that you should definitely watch out for in this report. That's all for today. In the next post, we will break down the last of the three financial statements of a public company - the Cash Flow Statement. Goodbye and see you later!
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NASDAQ:TSLAEducation
by Be_Capy
My precious-s-s-s EPSIn the previous post , we began looking at the Income statement that the company publishes for each quarter and year. The report contains important information about different types of profits : gross profit, operating income, pretax income, and net income. Net income can serve both as a source of further investment in the business and as a source of dividend payments to shareholders (of course, if a majority of shareholders vote to pay dividends). Now let's break down the types of stock on which dividends can be paid. There are only two: preferred stock and common stock . We know from my earlier post that a stock gives you the right to vote at a general meeting of shareholders, the right to receive dividends if the majority voted for them, and the right to part of the bankrupt company's assets if something is left after paying all debts to creditors. So, this is all about common stock. But sometimes a company, along with its common stock, also issues so-called preferred stock. What advantages do they have over common stock? - They give priority rights to receive dividends. That is, if shareholders have decided to pay dividends, the owners of preferred shares must receive dividends, but the owners of common shares may be deprived because of the same decision of the shareholders. - The company may provide for a fixed amount of dividend on preferred shares. That is, if the decision was made to pay a dividend, preferred stockholders will receive the fixed dividend that the company established when it issued the shares. - If the company goes bankrupt, the assets that remain after the debts are paid are distributed to the preferred shareholders first, and then to the common shareholders. In exchange for these privileges, the owners of such shares do not have the right to vote at the general meeting of shareholders. It should be said that preferred shares are not often issued, but they do exist in some companies. The specific rights of shareholders of preferred shares are prescribed in the founding documents of the company. Now back to the income statement. Earlier we looked at the concept of net income. Since most investments are made in common stock, it would be useful to know what net income would remain if dividends were paid on preferred stock (I remind you: this depends on the decision of the majority of common stockholders). To do this, the income statement has the following line item: - Net income available to common stockholders (Net income available to common stockholders = Net income - Dividends on preferred stock) When it is calculated, the amount of dividends on preferred stock is subtracted from net income. This is the profit that can be used to pay dividends on common stock. However, shareholders may decide not to pay dividends and use the profits to further develop and grow the company. If they do so, they are acting as true investors. I recall the investing formula from my earlier post : give something now to get more in the future . And so it is here. Instead of deciding to spend profits on dividends now, shareholders may decide to invest profits in the business and get more dividends in the future. Earnings per share or EPS is used to understand how much net income there is per share. EPS is calculated very simply. As you can guess, all you have to do is divide the net income for the common stock by its number: - EPS ( Earnings per share = Net income for common stock / Number of common shares issued). There is an even more accurate measure that I use in my analysis, which is EPS Diluted or Diluted earnings per share : - EPS Diluted ( Diluted earnings per share = Net income for common stock / (Number of common shares issued + Issuer stock options, etc.)). What does "diluted" earnings mean, and when does it occur? For example, to incentivize management to work efficiently, company executives may be offered bonuses not in monetary terms, but in shares that the company will issue in the future. In such a case, the staff would be interested in the stock price increase and would put more effort into achieving profit growth. These additional issues are called Employee stock options (or ESO ). Because the amount of these stock bonuses is known in advance, we can calculate diluted earnings per share. To do so, we divide the profit not by the current number of common shares already issued, but by the current number plus possible additional issues. Thus, this indicator shows a more accurate earnings-per-share figure, taking into account all dilutive factors. The value of EPS or EPS Diluted is so significant for investors that if it does not meet their expectations or, on the contrary, exceeds them, the market may experience significant fluctuations in the share price. Therefore, it is always important to keep an eye on the EPS value. In TradingView the EPS indicator as well as its forecasted value can be seen by clicking on the E button next to the timeline. We will continue to discuss this topic in the next publication. See you soon!
AMEX:SPYEducation
by Be_Capy
Graphical and Fundamental Analysis of Riot Blockchain (RIOT)1. Graphic Analysis The price has broken a diagonal support at the white line. If going to bet on a rise, I would expect a bear trap at $4. If the downtrend continues, the next targets will be hit on the Fibonacci projection. $1.30 would be the longer target. The indicator at the bottom demonstrates the correlation with the price of Bitcoin, which is positive. The macro scenario remains bad, largely due to the FTX crash. The quarterly results presented by blockchain and mining companies are being released, and by the way, they are not good. The question is: if the next results are not positive or if more companies fail, to what extent this would affect Bitcoin and other cryptocurrencies. 2. Fundamental Analysis
NASDAQ:RIOT
by andre_007
Graphic and fundamental analysis of Marathon (MARA)1. Graphical Analysis Since the all-time high, the price has dropped 99% on March 16, 2020 in the pandemic crisis. It then rose 23000% reaching the peak on November 15, 2021, exactly one year ago. However, it was insufficient to recover the historic maximum. It is now in a definition region. It needs to break the psychological resistance of $10 and after $20 to re-up in a macro trend. 2. Fundamental Analysis 2.1. Earns per Share "EPS stands for earnings per share. Investors use EPS to measure how much money a company makes for every outstanding share the company has. Diluted EPS is slightly different in that it measures the earnings per share for a company if all convertible securities (such as preferred stocks, convertible debt instruments, stock options and warrants) were used to calculate the metric. Diluted earnings per share provides a picture of the true shareholder base and how the company's earnings are distributed. Diluted EPS is an important metric for shareholders because it determines the profit shareholders will receive in a scenario that includes all securities from preferred stocks to stock options and warrants." The fundamental indicator remains stable below zero, only reiterating the absence of profit most of the time. 2.2. Net Income "Net Income shows how much money a company earns after expenses. Net Income represents the amount of money a company earns after all operating expenses, interest, taxes and dividends on preferred shares have been paid for. If Net Income is negative, it means that a company spent more money than it earned In other words, they lost money. Net income shows investors if a company is profitable or not. When a company can earn more money than it spends, it’s net income is positive. These profits can potentially be distributed to shareholders through dividends, buybacks, or investment back into the company. However, it's important to remember that companies use different methods to determine Net Income depending on their location and earnings report." The good news is that the damage is reduced. 2.3. Net Debt "Net Debt represents the amount of debt that would remain after a company had paid off as much debt as possible with its liquid assets. This financial metric shows how well the company can handle its current obligations and if it has the ability to take on more debt in the future. Net Debt can be calculated as Total Debt minus Cash & Short Term Investments". The remaining debt got worse. 2.4. Free Cash Flow "Free Cash Flow (FCF) represents the cash that a company generates as a result of its activities, excluding on expenses assets. Free Cash Flow is sometimes considered the hardest financial metric to fake because of its calculation and for that reason, it's a popular financial metric in the investor community. Free Cash Flow signals a company's ability to pay debts and dividends, repurchase shares and contribute to business growth." The value fluctuated from 20 million to 2 million, but at least it remains positive. 2.5. Total Equity "Total Equity is what's left after subtracting total liabilities from total assets. It represents the amount that belongs to the joint-stock company. It includes Shareholders' Equity and Minority Interest. Total Equity is important because it represents the value of the investor's share in the securities or company. Investors who own shares in a company are usually interested in the equity of the company represented by their shares." The value did not undergo a small downward swing. 2.6. P/E Ratio "The Price to earnings ratio measures the market price of a stock relative to its earnings per share. This metric shows how much profits are willing to pay for the company the company generates. A high price to earnings ratio and a low price to earnings ratio can mean different things. Some investors believe that a high price to earnings ratio means a company is becoming expensive and possibly overvalued. A low price to earnings ratio may mean that a company is undervalued or cheap. Of course, this is not always true as sometimes a company has a high price to earnings ratio because it is growing fast and expected to grow into its high price to earnings ratio." The value did not suffer major fluctuations. It remains stable below zero, reflecting the absence of profit. 2.7. P/CF Ratio "Price to operating cash flow is the ratio of the share price to operating cash flow. Essentially, Price to operating cash flow measures how much money a company generates relative to its share price. Price to cash flow is considered to be a more indicative investment measurement metric than Price to earnings per share because cash flows cannot be manipulated as easily as incomes. Some companies seem unprofitable due to large non-cash expenses, even if they have positive cash flows." The value has remained relatively stable and positive since March 2021.
NASDAQ:MARA
by andre_007
Coinbase graphical and fundamental analysis (COIN)1. Graphical Analysis Since listing on the stock exchange, the stock has had a maximum depreciation of 90%, reached on May 12, 2022. If the downtrend continues, the $40 support will be retested and in the worst case the price will reach $30 given the Fibonacci predictions. To reverse this bearish bias, the price needs to break through the resistance ranging from the $58 to $68 region. 2. Fundamental Analysis - Earnings per Share - Net income - Free cash flow These indicators appear to reverse a downtrend. But given the dire scenario created by the fall of FTX, it may be too early to say that. - Net worth There were no big swings. - Price to Earns Ratio - Price to Cash Flow Ratio From July 2022 until now, there has been an inability to generate a profit. Ditto for the previous comment, apparently it is reversing a downtrend. Opportunity? I don't know... I won't know for sure until the indicator crosses the zero line and the company actually makes a profit. --- Speaking of the crypto market, it is also important to analyze the results of other companies in the cryptocurrency and blockchain sector, which are also publishing their results. They are companies like Marathon, Riot, Hut, Core, Nile, among others. By the way, the results that have come out so far don't look good.
NASDAQ:COIN
by andre_007
EPSEPS (Ellipsis) is in a general downtrend on Daily and higher time frames, with an occasional side action. In the short term, it looks like EPS will retest the Golden Pocket (0.2754 to 0.2822) channel of Fibonacci Retracement from December 27th. I'm waiting for either a bounce off of Support 4H or the GP rejection. This is my Thesis, targets are purely hypothetical based on my analysis. This is NOT Investment and/or Trading Advice. Happy Trades! ❤️ If you enjoy my ideas, Please like/comment, it means a lot, Thank You! ❤️ BINANCE:EPSUSDT BINANCE:EPSBTC KUCOIN:EPSUSDT
E
by WhoIsWu
12
Ellipsis (EPS) Breaks Resistance | Is Time For Altcoins 2 Grow!We have another Altcoin pair doing really good on the USDT front; the BTC pairs are also moving... We predicted this weeks ago... ("Altcoins Going Bullish"). We can see really huge volume on today's candle, same day that EPSUSDT breaks above EMA50, signaling that the bear run is over and the bulls are now in control. We have the confirmed breakout. We have the broken resistance... It is time for the Altcoins to grow. Namaste.
ELong
by AlanSantana
2