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UNLOCK PROFITS! 5 Opportunities to Capitalise1. Tesla (Weekly Timeframe) NASDAQ:TSLA ● A symmetrical triangle pattern is clearly visible on the weekly chart. ● Following a recent breakout with strong volume, the price is likely to rise significantly. 2. Lam Research Corporation (Weekly Timeframe) NASDAQ:LRCX ● After breaking out of the cup and handle pattern, the price surged to an all-time high around the 113 level. ● A notable rejection from this peak caused a pullback to the previous breakout level. ● The price is currently consolidating at this level, preparing for a potential upward move. 3. Tapestry (Daily Timeframe) NYSE:TPR ● The stock has been trading within a rectangle pattern for a while. ● Now, following a robust breakout supported by significant volume, the stock price is primed for an upward trajectory. 4. Oppenheimer Holdings (Daily Timeframe) NYSE:OPY ● After breaking out of a bullish pennant pattern, the stock price is targeting higher levels. ● The breakout was accompanied by significantly high trading volume. 5. Deckers Outdoor Corporation (Daily Timeframe) NYSE:DECK ● The stock price has formed a symmetrical triangle pattern. ● A recent breakout could drive the price to higher levels.
NASDAQ:TSLALong
by NaranjCapital
Abbott Labs Shakes Off Downtrend, Sets Sights on $142 milestoneIn December 2021, the stock price hit an all-time high near the 142 mark, after which it experienced a significant drop. Following this decline, the price found support around the 90 level and began to recover. Last week, the stock managed to break through the upper boundary of the descending parallel channel, setting the stage for additional upward momentum. An immediate resistance level is noted at the 122 level, and a substantial movement is expected if this level is surpassed.
NYSE:ABTLong
by NaranjCapital
The Payment Card Titan: Comparing Visa, Mastercard, and Amex◉ Abstract The global credit card market is projected to grow from USD 559.18 billion in 2023 to USD 1,146.62 billion by 2033, driven by advancements in digital payment technologies, e-commerce growth, increased financial literacy, and urbanization, especially in Asia-Pacific. Visa leads the market with a 38.73% share, followed by Mastercard and American Express. Visa and Mastercard operate primarily as payment networks, while American Express both issues cards and offers unique rewards. Financially, all three companies show strong revenue growth, with American Express yielding the highest ROI but also carrying significant debt. Despite this debt, American Express appears undervalued based on financial ratios. Overall, while American Express presents an attractive investment opportunity, Visa and Mastercard also demonstrate solid fundamentals and growth potential for investors in the expanding credit card market. Read the full analysis here . . . ◉ Introduction The Global Credit Card Market Size was Valued at USD 559.18 Billion in 2023 and the Worldwide Credit Card Market Size is Expected to Reach USD 1146.62 Billion by 2033, ◉ Key Growth Drivers ● Digitalization and Technology: Advancements in payment technologies, including mobile wallets and contactless payments, enhance convenience and security. ● E-Commerce Growth: The rise of online shopping increases demand for credit card payments, as consumers prefer their ease and safety. ● Financial Literacy: Improved understanding of financial products encourages more consumers, especially in developing regions, to adopt credit cards. ● Urbanization: Growing urban populations, particularly in Asia-Pacific, lead to greater access to banking services and credit facilities. ● Emerging Markets: Rising disposable incomes in developing countries drive new credit card accounts as financial institutions expand their offerings. ● Consumer Convenience: The preference for quick and easy payment methods boosts credit card usage over cash transactions. ● Rewards Programs: Attractive loyalty programs incentivize consumers to use credit cards for everyday purchases. ● Regulatory Support: Government initiatives promoting cashless transactions foster a favourable environment for credit card adoption. ◉ Market Overview As of 2022, the global credit card market was primarily led by Visa, which held a 38.73% share of the worldwide payment volume. Mastercard followed with a 24% market share, while American Express (Amex) accounted for 4.61%. Notably, China UnionPay is also a major player in this space, surpassing Amex in terms of purchase volume ◉ Key Players in the Payment Card Industry 1. Visa NYSE:V ● Market Cap: $552 B ● Market Share: 38.73% ● Business Model: Payment network facilitating transactions between consumers, businesses, banks, and governments globally. ● Card Issuance: Does not issue cards itself. ● Global Reach: Extensive acceptance network across more than 200 countries. 2. Mastercard NYSE:MA ● Market Cap: $474 B ● Market Share: 24% ● Business Model: Payment processor and network partnering with banks to offer various card products. ● Card Issuance: Does not issue cards itself. ● Global Reach: Broad acceptance worldwide with diverse products catering to different consumer needs. 3. American Express NYSE:AXP ● Market Cap: $203 B ● Market Share: 4.61% ● Business Model: Card issuer and payment network offering unique benefits and rewards directly to cardholders. ● Card Issuance: Issues its own cards. ● Global Reach: High acceptance rate in the US (99% of merchants), lower in Europe and Asia due to higher transaction fees. ◉ Technical Aspects ● From a technical perspective, there's a notable similarity among the three stocks: each is exhibiting strong bullish momentum, consistently achieving higher highs and higher lows. ● All three stocks have formed a Rounding Bottom pattern, and after breaking out, their prices have climbed to new heights. ● While Mastercard and American Express are currently trading at their all-time highs, Visa is positioned just below its peak. ◉ Relative Strength The chart vividly demonstrates that American Express has excelled remarkably, achieving a return of nearly 85%, whereas Mastercard and Visa have delivered returns of 28% and 20%, respectively. ◉ Revenue & Profit Analysis 1. Visa ● Year-over-Year ➖ In FY23, Visa achieved a remarkable revenue increase of 11.4%, reaching $32.7 billion, up from $29.3 billion in FY22. ➖ The EBITDA for FY23 also saw a significant rise, totalling $22.9 billion compared to $20.6 billion in FY22. ● Quarter-over-Quarter ➖ In the latest June quarter, Visa's revenue rose to $8.9 billion, slightly surpassing the $8.8 billion reported in March 2024. This reflects a year-over-year growth of nearly 9.5% from $8.1 billion in the same quarter last year. ➖ The EBITDA for the most recent June quarter reached $6.2 billion, indicating an almost 9% increase from $5.7 billion in the same quarter last year. ➖ In June, the diluted EPS saw a modest rise, climbing to $9.35 (LTM) from $8.94 (LTM) in March 2024, which represents a notable year-over-year increase of 18.6% from $30.3 (LTM). 2. Mastercard ● Year-over-Year ➖ Mastercard's revenue for FY23 experienced a robust growth of 12.9%, reaching $25.1 billion, up from $22.2 billion in FY22. ➖ The EBITDA for FY23 also increased, reporting $22.9 billion, up from $20.6 billion in FY22. ● Quarter-over-Quarter ➖ In the recent June quarter, Mastercard's revenue climbed to $7.0 billion, compared to $6.3 billion in March 2024. Year-over-year, this marks an increase of nearly 11% from $6.3 billion in the same quarter last year. ➖ The EBITDA for the latest June quarter was $4.4 billion, reflecting an almost 9% rise from $3.9 billion in March 2024. ➖ In June, the diluted EPS saw a slight increase, rising to $13.08 (LTM) from $12.59 (LTM) in March 2024, which is a significant year-over-year increase of 23% from $10.67 (LTM). 3. American Express ● Year-over-Year ➖ For the fiscal year 2023, the company experienced a remarkable revenue growth of 9.7%, reaching an impressive $55.6 billion, compared to $50.7 billion in fiscal year 2022. ➖ Additionally, operating income showed a positive trajectory, with fiscal year 2023 reporting $10.8 billion, an increase from $10 billion in the previous fiscal year. ● Quarter-over-Quarter ➖ In the latest June quarter, revenue continued its upward trend, totalling $15.1 billion, up from $14.5 billion in March 2024. This represents a significant year-over-year growth of nearly 8.7% from $13.9 billion in the June quarter of the previous year. ➖ Furthermore, operating income for the June quarter reached $3.2 billion, marking a substantial increase of almost 19% from $2.7 billion in the same quarter last year. ➖ The diluted earnings per share (EPS) also saw a remarkable rise in June, climbing to $13.39 (LTM) from $12.14 (LTM) in March 2024, which is a significant jump of 36% compared to $9.83 (LTM) in the same quarter last year. ◉ Valuation ● P/E Ratio ➖ Visa stands at a P/E ratio of 29.1x. ➖ Mastercard is at a P/E ratio of 38.7x. ➖ American Express shows a P/E ratio of 20.6x. ➖ When we analyze these figures, it becomes clear that American Express appears significantly undervalued compared to its peers. ● P/B Ratio ➖ Visa has a P/B ratio of 14.3x. ➖ Mastercard's P/B ratio is a staggering 64x. ➖ American Express, however, has a P/B ratio of just 6.8x. This further reinforces the notion that American Express is currently undervalued in the market. ● PEG Ratio ➖ Visa's PEG ratio is 1.56. ➖ Mastercard's PEG stands at 1.71. ➖ American Express shines with a PEG ratio of just 0.56. ➖ This metric also highlights American Express's superior value proposition compared to its peers. ◉ Cash Flow Analysis ➖ Visa's operating cash flow for the fiscal year 2023 has risen to $20.8 billion, marking a notable increase from $18.8 billion in fiscal year 2022. ➖ Similarly, Mastercard has experienced growth in its operating cash flow, which has reached $12 billion in fiscal year 2023, up from $11.2 billion in the previous year. ➖ In contrast, American Express has reported a significant decline in its operating cash flow, decreasing from $21.1 billion in fiscal year 2022 to $18.6 billion in fiscal year 2023. ◉ Debt Analysis 1. Visa ● Debt to Equity Ratio: Approximately 0.52 as of June 2024, indicating a stable financial structure with moderate leverage. ● Total Debt: About $20.6 billion. ● Total Shareholder Equity: $39.7 billion. ● Analysis: Visa's ratio reflects a cautious debt approach, balancing equity and debt financing, with net debt well-supported by operating cash flow, enhancing financial stability. 2. Mastercard ● Debt to Equity Ratio: Approximately 2.10, indicating a higher reliance on debt compared to Visa 5. ● Total Debt: $15.6 billion. ● Total Shareholder Equity: $7.5 billion. ● Analysis: Mastercard’s higher ratio suggests it is more aggressive in leveraging debt for growth initiatives compared to Visa. This strategy may lead to greater volatility in earnings due to interest obligations. 3. American Express ● Debt to Equity Ratio: Approximately 1.80, indicating a significant level of debt relative to equity 5. ● Total Debt: $53.2 billion. ● Total Shareholder Equity: $29.54 billion. ● Analysis: American Express’s ratio shows a strong reliance on debt financing, which can enhance growth but also introduces risks related to interest payments and market conditions. ◉ Top Shareholders 1. Visa ● The Vanguard Group has notably boosted its investment in Visa, now commanding a remarkable 7.52% share, reflecting a 0.62% increase since the close of the March quarter. ● In contrast, Blackrock maintains a stake of approximately 6.7% in the firm. 2. Mastercard ● When it comes to Mastercard, Vanguard has also made strides, raising its ownership to an impressive 8.27%, which is a 1.02% uptick since the end of March. ● Blackrock, on the other hand, has a substantial 7.56% stake, showing a 1.17% growth from the same period. 3. American Express ● As for American Express, Warren Buffet’s Berkshire Hathaway boasts a significant 21.3% stake in the company. ● Meanwhile, Vanguard holds a 6.36% interest, while Blackrock has a 5.89% share. ◉ Conclusion After a thorough analysis of both technical and financial indicators, we find that American Express offers a compelling valuation opportunity that is likely to attract investors. Nonetheless, it is important to recognize the significant debt load the company carries, a concern that also extends to Mastercard. ● From a technical standpoint, the chart for American Express seems to be stretched thin. Investors might want to hold off for a corrective dip to secure a more advantageous entry point. ● Mastercard's financial results reflect solid performance, though it carries a high level of debt. The technical chart indicates a slight overvaluation. Savvy investors might look to build their positions during times of price stabilization. ● Visa presents a well-rounded synergy between its technical and fundamental metrics. Its chart reveals a remarkable rebound, approaching previous all-time highs after a notable decline. The company's valuation and growth potential make it a compelling investment choice.
NYSE:VLong
by NaranjCapital
7
Globus Medical: Approaching resistance, is a breakthrough comingWeekly Chart ● The stock has tested the trendline resistance multiple times. ● Currently, it is trading just below this level. ● A breakout above this resistance is anticipated in the near future. ● Following the breakout, the price may increase. Daily Chart ● A Symmetrical Triangle pattern has formed. ● A strong breakout has taken place, supported by significant volume. ● The price is now set for a potential upward movement.
NYSE:GMEDLong
by NaranjCapital
S&P Pharmaceutical Sector: A Prescription for Growth● The S&P Pharmaceutical sector has great potential for growth. ● The weekly chart shows that after breaking out of the Symmetrical Triangle Pattern, the ETF had a short period of consolidation and is now ready for a rise. ● The daily chart also indicates a Cup & Handle Pattern, with the price trending upward post-breakout. As the industry revives, certain stocks are ready to achieve similar success Key stocks to watch: Hims & Hers NYSE:HIMS ● The price has broken the trendline resistance with high volume. ● More upward movement is likely to follow. Crinetics Pharmaceuticals NASDAQ:CRNX ● Mirrors HIMS' chart pattern. ● Poised for robust growth after breakout.
AMEX:XPHLong
by NaranjCapital
POET: A Technical Play with Fundamental RisksThe recent announcement of POET Technologies, Inc.'s ( NASDAQ:POET ) collaboration with Mitsubishi Electric on September 19, 2024, suggests greater upside potential for the company. Given the current trend, the stock could reach $6-7 per share by year-end. Over the past year, the stock has risen 56%, with a 377% increase year-to-date. Despite this strong performance, there are several risks to consider: • Negative net income (the company has not been profitable) • Frequent stock-based compensation (a 39% increase in shares outstanding since 2020) • Negative operating cash flow • Regulatory risks related to business operations in China While there is potential for substantial price growth, it does come with risks. I think starting with a small position and monitoring the technical and fundamental developments is the best way to play this opportunity.
NASDAQ:POETLong
by PeakInvestmentStrategies
Exxon's Make-or-Break Moment: $123 Resistance in FocusThe chart distinctly illustrates that the stock has been in a consolidation phase for over a year and is presently trading slightly below its resistance zone. For a potential upward movement, the price must surpass the 123 level and maintain its position above this threshold. At the same time, there is a significant likelihood that the stock price may encounter rejection once more, leading to a decline towards its trendline support level.
NYSE:XOM
by NaranjCapital
1
Ralph Lauren: Elevate Your Wealth with the Essence of Luxury◉ Abstract Ralph Lauren is thriving in the booming luxury apparel market. The company, founded in 1967, has a market cap of $11.83 billion and generates nearly 44% of its revenue from North America, totaling $2.93 billion. The industry is valued at approximately $110.13 billion in 2024 and projected to reach $151.32 billion by 2029, growing at a CAGR of 6.56%. Recent technical analysis shows Ralph Lauren's stock has outperformed the NYSE Composite index with a 66% annual return. Despite a slight revenue increase of 2.9% year-on-year, EBITDA soared to $1,024 million, reflecting strong financial health. With a current P/E ratio of 17.4x, Ralph Lauren presents an attractive investment opportunity amidst rising global wealth and consumer demand for luxury goods. Read full analysis here . . . ◉ Introduction The global luxury apparel market is currently experiencing significant growth, driven by various factors including increasing disposable incomes, brand loyalty, and the rising influence of social media on consumer behaviour. Here’s a detailed overview of the market size and growth outlook: ◉ Current Market Size According to Mordor Intelligence, the global luxury apparel market was valued at approximately USD 110.13 billion in 2024, with expectations to grow to USD 151.32 billion by 2029, reflecting a CAGR of 6.56%. ◉ Growth Drivers ● Increasing Wealth: The rising number of millionaires globally and growing middle-class affluence, particularly in regions like Asia-Pacific, are significant contributors to luxury apparel demand. ● Consumer Trends: There is a growing perception that luxury goods enhance social status, which fuels consumer interest in high-end fashion. ● Digital Influence: Enhanced online shopping experiences and the effective use of social media for marketing have opened new avenues for luxury brands to reach consumers. ◉ Regional Insights ● Europe Dominant Market: Holds a market share of approximately 34% to 43%. The presence of numerous luxury brands and high purchasing power among consumers drive demand, supported by significant tourist spending on luxury goods. ● North America Strong Demand: The U.S. is a key player, characterized by a wealthy consumer base and increasing brand loyalty, particularly among younger generations who view luxury items as status symbols. ● Asia-Pacific Fastest Growing Market: Anticipated to grow rapidly due to rising disposable incomes and brand awareness, especially in countries like China and India. ● Latin America Emerging Potential: Currently holds a smaller market share but shows promise for growth as consumer awareness and travel increase. ● Middle East & Africa Limited Contribution: This region contributes the least to the luxury apparel market, although countries like the UAE are seeing growth due to tourism. The overall outlook for the luxury apparel market remains optimistic, supported by evolving consumer preferences and increasing global wealth. Amidst the global luxury apparel market's promising growth prospects, we have identified Ralph Lauren as a prime opportunity for investment. With its robust financial performance and impressive technical indicators, Ralph Lauren is well-positioned to propel success. ◉ Company Overview Ralph Lauren Corporation NYSE:RL is a renowned American fashion company known for its high-quality, luxury lifestyle products. Founded in 1967 by the iconic designer Ralph Lauren, the company has become a global symbol of timeless style and sophistication. The company offers a wide range of products, including apparel, footwear, accessories, home goods, fragrances, and hospitality. Ralph Lauren's iconic polo shirt and strong brand identity have contributed to its success, making it a global leader in the luxury fashion industry. ◉ Investment Advice 💡 Buy Ralph Lauren Corporation NYSE:RL ● Buy Range - 190 - 193 ● Sell Target - 245 - 250 ● Potential Return - 27% - 30% ● Approx Holding Period - 8-10 months ◉ Market Capitalization - $11.83 B ◉ Peer Companies ● Tapestry NYSE:TPR - $10.59 B ● Levi Strauss NYSE:LEVI - $8.57 B ● PVH Corp. NYSE:PVH - $5.44 B ● Columbia Sportswear Company NASDAQ:COLM - $4.87 B ◉ Relative Strength The chart clearly illustrates that Ralph Lauren has greatly outperformed the NYSE Composite index, achieving an impressive annual return of 66%. ◉ Technical Aspects ● Monthly Chart ➖ The monthly chart clearly shows that the stock price faced several rejections near the 190 level, which ultimately triggered a significant drop, brought the price down to the 66 level. ➖ Afterward, the price experienced various fluctuations and, after a prolonged consolidation phase, developed an Inverted Head & Shoulders pattern. ➖ Upon breaking out, the price surged upward but encountered resistance again at the previous resistance zone. ➖ However, after a pullback, the stock has successfully surpassed this resistance for the first time in almost 11 years. ● Daily Chart ➖ On the daily chart, the price has formed a Rectangle pattern following a brief consolidation phase and has recently made a breakout. ➖ If the price can hold above the 190 level, we can expect a bullish movement in the coming days. ◉ Revenue Breakdown - Location Wise Ralph Lauren Corporation is a global luxury brand with a strong presence in various regions. ➖ North America remains Ralph Lauren's biggest market, contributing nearly 44% of its total revenue, which amounts to $2.93 billion. ➖ In Europe , the brand is seeing consistent growth, with revenue reaching around $2 billion, making up about 30% of total earnings. ➖ Asia , especially China, is becoming a key player for Ralph Lauren, generating approximately $1.58 billion, or 24% of total revenue. ◉ Revenue & Profit Analysis ● Year-on-year ➖ In the fiscal year 2024, the company achieved a modest revenue increase of 2.9%, totaling $6,631 million, compared to $6,443 million in the prior year. ➖ On the other hand, EBITDA growth has been remarkable, soaring to $1,024 million from $801 million in FY23. The current EBITDA margin stands at an impressive 15.5%. ➖ Additionally, diluted earnings per share (EPS) experienced a substantial year-over-year rise of 28%, reaching $9.71 in FY24, up from $7.58 in FY22. ● Quarter-on-quarter ➖ In terms of quarterly performance, the company reported a decline in sales over the last three quarters, with the most recent quarter showing sales of $1,512 million, down from $1,568 million in March 2024 and $1,934 million in December 2023. ➖ Nevertheless, EBITDA demonstrated significant growth in the June quarter, climbing to $265 million from $176 million in March 2023. ◉ Valuation ● P/E Ratio ➖ Current P/E Ratio vs. Median P/E Ratio The current price-to-earnings ratio for this stock stands at 17.4x, which is notably elevated compared to its four-year median P/E ratio of 5.7x. This suggests that the stock is presently overvalued. ➖ Current P/E vs. Peer Average P/E When evaluating the stock's Price-To-Earnings Ratio of 17.4x, it shows a more attractive valuation, as it is lower than the peer average of 25.5x. ➖ Current P/E vs. Industry Average P/E RL is positioned at a more appealing price point, with a Price-To-Earnings Ratio of 17.4x, which is significantly less than the US Luxury industry's average of 19.x. ● P/B Ratio ➖ Current P/B vs. Peer Average P/B The current P/B ratio reveals that the stock is considerably higher than its peers, with a ratio of 5x compared to the peer average of 3x. ➖ Current P/B vs. Industry Average P/B In comparison to the industry average, RL's current P/B ratio of 5x indicates that it is substantially overvalued, as the industry average is only 2.2x. ● PEG Ratio A PEG ratio of 0.54 suggests that the stock is undervalued relative to its expected earnings growth. ◉ Cash Flow Analysis In fiscal year 2024, operational cash flow experienced remarkable growth, reaching $1,069 million, a substantial increase from $411 million in fiscal year 2023. ◉ Debt Analysis The company currently holds a long term debt of $1,141 million with a total equity of $2,367 million, makes long-term debt to equity of 48%. ◉ Top Shareholders ➖ The Vanguard Group has significantly increased its investment in this stock, now owning an impressive 8.23% stake, which marks a 3.9% rise since the end of the March quarter. ➖ Meanwhile, Blackrock holds a stake of around 4.11% in the company. ◉ Conclusion After a thorough evaluation, we find that Ralph Lauren Corporation is strategically poised to thrive in the expanding luxury apparel market, driven by increasing disposable incomes and a growing appetite for high-end products.
NYSE:RLLong
by NaranjCapital
Coca-Cola's Bull Run Intensifies: Pole & Flag Breakout Expected!The chart shows that the stock price encountered resistance near the $65 level, subsequently dropping to $52, where it found support. After rebounding from this support, the price began to rise, successfully breaking through the Inverted Head & Shoulders pattern that had formed during the consolidation phase. Following this breakout, the price entered another consolidation period, created an Ascending Triangle Pattern. With another breakout, the stock price surged to an all-time high of $73.5 before experiencing a pullback. A bullish Pole & Flag pattern has emerged on the chart, signaling a potential continuation of the upward trend. It is expected that the price will break through this pattern and reach new highs in the near future.
NYSE:KOLong
by NaranjCapital
2
Tesla (TSLA) Resistance Breakout and Next Target Current Resistance Level: Tesla’s stock (TSLA) is currently testing a key resistance level. Breakout Scenario: If TSLA breaks above this resistance, it could indicate a bullish breakout, suggesting more upside potential. Next Resistance Target: Once the breakout is confirmed, the price could aim for the next resistance level as the target. Confirmation: Wait for Tesla to close above the resistance with strong buying volume. Look for bullish candlestick patterns to confirm the breakout. Risk Management: Place a stop-loss just below the new support level (the previous resistance) to manage the risk of a false breakout or price reversal.
NASDAQ:TSLALong
by rebenga93
EdTech Unicorn Stride Surges: Strong Financials Fuel Rally!The EdTech revolution is progressing rapidly! As technology advances, internet access grows swiftly, and students seek innovative learning methods, the global EdTech market is flourishing. North America currently holds a significant 37.3% share, but regions such as the Middle East and Africa, Europe, and Asia-Pacific are gaining ground, fueled by government support, digital literacy, and a burgeoning middle class. It's an exciting time for digital learning, and there's even more to look forward to! ◉ EdTech Market Growth Outlook ➖ Valuation projected to rise from $220.5 million in 2023 to $810.3 million by 2033. ➖ Compound Annual Growth Rate (CAGR) of 13.9%. ◉ Government Initiatives Supporting EdTech Sector The US Department of Education has allocated $277 million in new grants through the Education Innovation and Research program to enhance educational equity and innovation, particularly in areas affected by the COVID-19 pandemic, specifically focusing on STEM education and rural regions. Recognizing the enormous opportunity in EdTech, we're examining a stock that exhibits remarkable growth potential within the sector. ◉ Company Overview Stride Inc. NYSE:LRN is a tech-driven education service provider offering proprietary and third-party online curricula, software, and services in the U.S. and globally. Their products support personalized learning for K-12 students through virtual and blended public schools, individual online courses, and supplemental materials in subjects like math, English, science, and history. Stride also emphasizes career learning in fields such as IT, healthcare, and business, and operates tuition-based private schools. Additionally, they provide post-secondary programs in software engineering and healthcare under brands like Galvanize and Tech Elevator, along with staffing services. Rebranded from K12 Inc. in December 2020, Stride has been incorporated since 1999 and is headquartered in Reston, Virginia. Investent Advice by Naranj Capital Buy Stride NYSE:LRN ● Buy Range- 77 - 80 ● Target- 115 - 120 ● Potential Return- 45% - 50% ● Invest Duration- 12-18 Months ◉ Market Capitalization - $3.31 B ◉ Peer Companies ➖ Graham Holdings NYSE:GHC - $3.23 B ➖ Adtalem Global Education NYSE:ATGE - $2.67 B ➖ Grand Canyon Education NASDAQ:LOPE - $4.04 B ➖ Laureate Education NASDAQ:LAUR - $2.25 B ◉ Technical Aspects ● Monthly ➖ The stock price initially faced resistance at $40 in 2011 but later found support at $17. ➖ Despite several attempts to break through resistance, the stock experienced significant declines. ➖ However, after a 12-year period, it finally broke out and rallied to a high of $84. ➖ Currently trading at $77.7, the stock is expected to continue rising in the near future ● Daily ➖ The daily chart indicates a clear uptrend in the price movement. ➖ An ascending triangle pattern has formed, and following the breakout, the price has retraced to the breakout level. ➖ At this moment, the price is attempting to find support at the 50 EMA. ➖ From a technical standpoint, the stock is resting at a support level, making it an attractive option for accumulation with a mid to long-term investment outlook. ◉ Relative Strength ➖ The chart clearly illustrates that Stride Inc. has greatly outperformed the US Smallcap 2000 index, achieving an impressive annual return of 82%, which is a notable achievement. ◉ Revenue & Profit Analysis ● Year-on-year ➖ In FY24, revenue surged by 11.3%, reaching $2,040 million, up from $1,837 million in FY23. ➖ EBITDA saw a substantial boost, climbing to $295.3 million in FY24 compared to $225.2 million the previous year. ➖ The EBITDA margin also experienced growth, rising to 14.47% from 12.26% in FY23. ➖ Additionally, diluted EPS witnessed an impressive increase of 57.91%, jumping to $4.69 in FY24 from $2.97 in FY23. ● Quarter-on-quarter ➖ In the latest June quarter, the company achieved a remarkable milestone with quarterly sales reaching an all-time high of $520.8 million. This marks a 3% increase from the $504.9 million recorded in the March quarter and a significant 10.75% rise compared to $470.3 million in the same quarter last year. ➖ EBITDA declined from $100.2 million to $82.3 million in the latest quarter, representing a 17.8% decrease. ◉ Valuation ◉ PE Ratio ● Current PE Ratio vs. Median PE Ratio ➖ The present price-to-earnings ratio for this stock is 16.2x, which is considerably below its four-year median price-to-earnings ratio of 18.9x times, indicating that the stock is currently undervalued. ● Current PE vs. Peer Average PE ➖ The stock presents a favorable valuation when considering its Price-To-Earnings Ratio of 16.2x, which is lower than the average of its peers at 18.3x. ● Current PE vs. Industry Average PE ➖ Stride appears to be offered at a more competitive price, featuring a Price-To-Earnings Ratio of 16.2x, which is significantly below the average of 19.2x for the US Consumer Services industry. ◉ PB Ratio ● Current PB vs. Peer Average PB ➖ The present PB ratio in relation to the average PB of peers indicates that the stock is somewhat higher, with a ratio of 2.8x in contrast to the peer average of 2.6x. ● Current PB vs. Industry Average PB ➖ When comparing the current PB ratio to the industry average, Stride appears to be considerably overvalued, exhibiting a PB ratio of 2.8x, while the industry average stands at 1.6x. ◉ Cash Flow Analysis ➖ The cash generated from operations has experienced substantial growth in fiscal year 2024, increasing to $278.8 million from $203.2 million in fiscal year 2023. ◉ Debt Analysis ➖ Stride has a total debt of $528.2 million, resulting in a debt-to-equity ratio of 0.44. ➖ The company generates sufficient interest income to exceed its interest expenses, indicating that interest payment coverage is not an issue. ◉ Top Shareholders ➖ BlackRock Inc. holds a significant ownership interest in this company, with a notable stake of 14.9%. This level of investment reflects BlackRock's confidence in the company's potential for growth and profitability. ➖ The Vanguard Group also maintains a considerable presence, owning 10.7% of the company's shares. ➖ Together, these two investment giants represent a substantial portion of the company's equity, indicating strong institutional support and interest in its future performance. ◉ Conclusion Upon examining Stride Inc.'s financial performance, we focused on essential metrics such as revenue growth, profit margins, and the stability of cash flow. Additionally, we assessed the company's future growth potential by looking into industry trends and the competitive landscape. As a result, we are confident that Stride Inc. is positioned to capitalize on new opportunities while effectively navigating challenges, making it an attractive option for both investors and stakeholders.
NYSE:LRNLong
by NaranjCapital
6
SPX: A Double Top at the peak could lead to a short-term fall! The chart depicts a steady upward trend of the index. After reaching an all-time high close to the 5,670 level, the index saw a significant decline, dropped by nearly 550 points. However, after a recovery, the index once again neared its previous high, but experienced another setback. The emergence of a Double Top pattern, along with a clear RSI divergence, indicates that the index may face difficulties in the near future. On the downside, immediate support is found between the 5,250 and 5,300 levels. A break below this support could lead to a considerable drop in the index.
SP:SPXShort
by NaranjCapital
NOC vs LMT: A Valuation War Between Top Defence Manufacturers!ABOUT COMPANIES Northrop Grumman NYSE:NOC excels in advanced aircraft systems, divided into four main areas: Aeronautics Systems, Defense Systems, Mission Systems, and Space Systems. Aeronautics Systems designs and manufactures cutting-edge aircraft for the U.S. military and global clients. Defense Systems integrates battle management and weaponry, while Mission Systems delivers innovative solutions for defense and intelligence. Space Systems focuses on solutions for national security and commercial purposes. Established in 1939 by John K. Northrop and others, the company is headquartered in Falls Church, VA. Lockheed Martin NYSE:LMT stands as a top global security and aerospace company, dedicated to the research, design, and production of advanced technology systems. It operates in four primary segments: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS), and Space. The Aeronautics segment focuses on military aircraft, including combat and drones. MFC specializes in air and missile defense and precision strike systems. RMS develops military and commercial helicopters and cyber solutions, while the Space segment creates satellites and defense systems. Founded in 1912, the company is located in Bethesda, MD. MARKET CAPITALIZATION ● Northrop Grumman (NYSE: NOC) - $75.96 Billion ● Lockheed Martin (NYSE: LMT) - $135.53 Billion TECHNICAL ASPECTS ● Northrop Grumman ➖ The monthly chart shows that the stock price is currently on a distinct upward path. ➖ Previously, it faced resistance around the $360 level, caused a notable pullback. ➖ Subsequently, the price formed a Double Bottom pattern and broke out successfully. ➖ This breakout drove the price to an all-time high near the $556 level but the price started declining from there. ➖ Nevertheless, the stock price found strong support around the $420 level, allowed it to bounce back. ➖ Currently, the stock is approaching its previous all-time high, and if it can overcome that resistance, we can anticipate further price increases in the coming days. ● Lockheed Martin ➖ This stock is on a strong upward trajectory, consistently achieving higher highs and higher lows. ➖ Following a significant breakout around the $500 mark, the stock price surged and is now trading at $568.5, just shy of its all-time peak of $578.7. ➖ From a technical perspective, the price is hovering just below the upper boundary of a parallel channel, which may act as a resistance point. ➖ However, if the price can break through this range and maintain that momentum, we could see even greater upward movement ahead. Relative Strength ● The chart shows that the NYSE Composite TVC:NYA has provided a solid return on investment of about 18% in the last year. In comparison, Northrop Grumman and Lockheed Martin have done even better, with returns of around 20% and 27%, respectively. REVENUE BREAKDOWN ● Northrop Grumman The company derives its income from four main segments. ➖ The largest share comes from the space systems segment, contributing around 33%, which equates to $14.34 billion out of a total revenue of $43 billion. ➖ Next, the aeronautics systems segment adds nearly 27%, bringing in $11.61 billion of the overall revenue. ➖ The mission systems segment follows closely, accounting for about 26%, or $11.12 billion of the total. ➖ Finally, the defense systems segment generates nearly 14%, totaling $5.99 billion of the overall revenue. ● Lockheed Martin Similar to Northrop Grumman, this company also operates through four segments to drive its revenue. ➖ The aeronautics segment leads the way, contributing around 38.4%, which amounts to nearly $28.77 billion of the total revenue of $74.85 billion. ➖ The rotary and mission systems segment accounts for 26.4% of revenue, equating to $19.76 billion. ➖ Next, the space segment contributes 17.8%, which is $13.33 billion. ➖ Finally, the missile and fire control segment makes up 17.4%, totaling $12.99 billion of the overall revenue. REVENUE & PROFIT ANALYSIS ● Northrop Grumman Revenue ➖ For the FY23 the revenue has jumped by 7.3% to $39.3 B from $36.6 B in FY22. ➖ In the recent June quarter there is no significant surge in revenue as the recent quarterly revenue stands at $10.2 B compared to $10.1 B in the march 2024. But from the last year June quarter the revenue has grown by almost 6% from $9.6 B. Profit ➖ The operating profit has experienced a decline, with FY23 reporting only $2.9 billion, a drop from $6.3 billion in FY22. ➖ In the latest June quarter, the operating profit held steady at $1.3 billion, unchanged from the March quarter. Basic EPS (LTM) ➖ The basic EPS saw a slight rise in June, climbing to $15.26 (LTM) from $14.33 (LTM) in March 2024. However, compared to the same quarter last year, there has been a significant drop from $30.23 (LTM) Analyzing these numbers shows that although revenue has risen, the company is having difficulty producing profits, which may impact the share price in the near term. ● Lockheed Martin Revenue ➖ In FY23, the company experienced a slight revenue increase of 2.4%, rising to $67.6 billion from $66 billion in FY22. ➖ During the recent June quarter, revenue reached $18.1 billion, up from $17.2 billion in the March quarter. Compared to the same quarter last year, this represents a significant growth of approximately 8.6%, up from $16.7 billion. Profit ➖ The operating income has experienced a year-over-year increase. For FY23, it reached $9.0 billion, marking a 23% rise from $7.3 billion in FY22. ➖ However, there hasn't been a notable change in operating profit on a quarter-over-quarter basis. In June, the operating profit stood at $2.2 billion, slightly up from $2.1 billion in March. This figure is consistent with the operating profit reported in the same quarter last year. Basic EPS (LTM) ➖ The basic EPS stood at $27.58 (LTM) in June 2024 ➖ Over the past year, there has been no notable growth in EPS (LTM) Lockheed Martin demonstrates a more robust financial standing compared to Northman Grumman. VALUATION ● P/E Ratio ➖ P/E vs. Median P/E (1) Northrop Grumman's current price-to-earnings ratio over the past twelve months stands at 33.2x, which appears elevated when compared to its four-year median of 15.2x. (2) Lockheed Martin's recent twelve-month p/e ratio is 20.1x, also showing a rise relative to its four-year median of 16.2x. ➖ P/E vs. Industry P/E (1) NOC shows a fair valuation with a Price-To-Earnings Ratio of 33.2x, which is just below the US Aerospace & Defense Industry average of 33.3x. (2) On the other hand, LMT, with a P/E of 20.1x, seems to be undervalued relative to the industry average of 33.3x. ● P/B Ratio ➖ NOC's current P/B ratio of 5.3x appears inflated when stacked against the US Aerospace & Defense Industry average of 3.2x. ➖ In the case of LMT, it stands out as significantly overvalued, boasting a P/B ratio of 21.9x, which is far above the industry average of 3.2x. FREE CASH FLOW ANALYSIS ● Northrop Grumman ➖ In FY23, cash flow from operations saw a remarkable increase, climbing to $3.9 billion, a notable rise from $2.9 billion in FY22. ➖ In the most recent quarter, this figure reached $4.4 billion, up from $3.9 billion in March. ● Lockheed Martin ➖ There was little change in operating cash flow, with FY23 reporting $7.9 billion, which is nearly the same as the $7.8 billion recorded in FY22. ➖ On a quarterly basis, there has been an uptick; for the June quarter, operating cash flow stood at $8.8 billion, an increase from $8.0 billion in March and $7.7 billion in the same quarter last year. DEBT ANALYSIS ● NOC currently has a debt of $16.3 billion, resulting in a debt-to-equity ratio of 114%. While this may raise some concerns, the company boasts an interest coverage ratio of 5.2, indicating a solid ability to manage interest payments on its debt. ● In contrast, LMT carries a debt of $19.3 billion, leading to a debt-to-equity ratio of 311%, which suggests poor financial health. However, with an impressive interest coverage ratio of 8.9, the company is in a strong position to meet its interest obligations. TOP SHAREHOLDERS ● Northrop Grumman ➖ State Street Global has a notable 9.59% ownership in this firm, while The Vanguard Group possesses a considerable 8.22% stake. ● Lockheed Martin ➖ In addition to the 11.2% held by Lockheed Martin's Employee Stock Ownership Plan (ESOP), State Street Global and The Vanguard Group own 15.1% and 8.99% respectively. ➖ BlackRock also maintains a significant 7.13% interest in this company. CONCLUSION After reviewing all the financial metrics, it becomes evident that each company possesses distinct strengths and weaknesses. It's difficult to determine which one is the superior investment choice at this moment. A look at the monthly chart indicates that both companies are currently at a high point, but they could be good candidates for accumulation during any significant downturns. In 2023, the US spent $916 billion on defense, which was more than any other country. This was an increase of $55 billion from 2022. and this figure could increase given the current global landscape. Therefore, companies like Northrop Grumman and Lockheed Martin are expected to perform well in the foreseeable future.
NYSE:NOCLong
by NaranjCapital
Major Sectors that may influence US Markets this week!Health Care Following an extended consolidation phase from December 2021 to August 2024, the healthcare index has developed an Inverted Head & Shoulder pattern. With a recent breakout, the index is now set to experience significant upward momentum. Industrials Similar to the healthcare index, the industrials sector has also established an Inverted Head & Shoulder pattern. Following its breakout, this index has shown positive movement. With a recent breakout from a brief consolidation phase, the index is ready to climb once more. Financials The financial sector plays a vital role in the US stock market. Recently, the financial index experienced a robust breakout after a lengthy consolidation phase, indicating that this sector could enhance the overall US market. Real Estate The real estate sector has faced challenges for a considerable time, with the index suffering a significant downturn. However, following a recent breakthrough, the index is making progress toward recovery.
SP:SPFLong
by NaranjCapital
1