Master your fundamental research. Join 79,627 investors who trust our platform and content.
Save 54+ hours of fundamental research with free access to Stock Card.
We only ask your name and email address.
Key Points
Overall market
The stock market indices ended Friday in the green despite April's Jobs report that came out weaker than expected. Based on the declining number of new unemployment claims in the last few weeks and stellar quarterly earnings report, everybody assumed the economy is back on track already.
The expectation was about 1 million employments and the reported number today was 266,000. Even March's employment data was revised down. The good news is that the Fed would most likely keep the interest rate low and maintains its favorable policies now that it is proven the economy still needs help before things go back to normal. That's why you see the market indices finished the day in the green. What's Up
Three stocks (#TLRY, #NKLA, and #QDEL) with a losing streak regained investors' confidence.
Looking at the most viewed Stock Cards on the Winners and Losers page, a few stocks that have been on the losing streak had a good day today. Tilray (TLRY) was up more than 13% after Jefferies analyst Owen Bennett double upgraded stocks because of its potential opportunity in the U.S., Canada, and the E.U.
Nikola (NKLA) jumped more than 13% after smaller losses than expected and promised to ship its first-ever truck in Q4 this year. And Quidel (QDEL) jumped more than 11%. I own some Quidel shares that I have been buying on the way down. This profitable and cash-rich, rapid diagnostic and testing kit manufacturer just posted an incredible 115% quarterly revenue growth. Among the three stocks, the one I would buy more is Quidel, then Tilray, and I'd stay away from Nikola until it proves it can deliver trucks. What's Down
Is Beyond Meat (BYND) stock a Buy after the recent price drop?
From my research dashboard, shares of Beyond Meat (BYND) dropped more than 6%. The alternative meat company managed to disappoint investors with its latest quarterly earnings report.
Revenue grew more than 11% in the quarter. Investors are used to a much faster growth rate and believe the rapidly growing number of competitors in the alternative meat space could be the reason for slower growth. In contrast, Beyond Meat's CEO argued that the restaurants and Food services business continues to suffer from the COVID-19 related closures, and that's why the revenue growth hasn't been as fast as what investors are used to. Generally, Beyond Meat is among the most established alternative meat brands globally and has developed quite a few partnerships with big brands. I have an eye on Beyond as a possible stock pick for our Future of Food portfolio and add it to my watchlist to keep a close on it. Give Stock Card a Try!
Use promo code "rollwithourceo" to get a 10% discount.
That's it for today. If you haven't already done so, please give Stock Card a try, research as many stocks and ETFs as you'd want, and consider following a few successful investors by visiting the Stock Picks page on Stock Card platform. Don't forget to sign up for a 14-day free trial with promo code "rollwithourceo" all lowercase and in one word.
KEY POINTS
OVERALL MARKET
The market finished in the green after a lower number of unemployment claims.
Despite some volatility at the beginning of the day, all three indices finished Thursday in the green. The most important economic indicator that comes out every Thursday is the number of new jobless claims. This week, the number fell below 500,000 for the first time since the start of the pandemic.
Moreover, the monthly Employment Report will be out tomorrow, and that's the report investors are watching closely. We have heard the Fed wouldn't increase the interest rate until it sees stability in the job market. Tomorrow's report is one of the key indicators the Fed would consider in its interest rate decision. Let's review it tomorrow and discuss the implications for the interest rate. What's Up
Why shares of Costco (COST) jumped more than 2% today?
Shares of Costco (COST) jumped more than 2% today. With today's price jump, the stock isn't too far from its all-time high of $393 per share. Do you remember when Amazon was going to kill Costco? It looks like Costco has quite a loyal customer base who prefer to shop at the stores instead of online. You can see the evidence of that behavior on the company April's sales report.
While sales grew 32.5% in April, eCommerce growth was only 20.5%, much lower than its historical growth rate. Both shoppers and investors are happy with in-store sales growth. Add Costco's reliable and profitable operations and price to sales ratio of lower than its comparable sector, and even at a near all-time high, Costco doesn't seem to be exuberantly priced. What's Down
Why share of Fastly (FSLY) plunged more than 26%?
From the list of today's biggest losers on Stock Card's Winners and Losers page, shares of Fastly (FSLY) dropped more than 26%. This technology company helps large media websites to deliver their content better, faster, and more secure. Of course, during the pandemic, it was one of the most needed technologies that all media companies required. However, now that the COVID-19 rush of living online is over, it seems the company is paying the price of being high in demand last year. After the latest quarterly earnings report, investors got spooked by the managements' flat revenue forecast for the next quarter.
The stock has fallen from the all-time high record of $136.50 per share. At the current price, not only is it priced under the average analysts' price target of $81.5 per share, its price to book value is lower than its comparable sector. It may feel difficult to buy this dip after such a giant price drop. However, it is only logical that companies such as Fastly cannot maintain last year's growth. The company is relatively successful at retaining 139% of the net dollar revenue it generated last year. This means its customers stayed with Fastly and added more products and services from Fastly's product line-up. Moreover, as you can see on Fastly's Stock Card, it has limited to no debt and can use the cash it owns to fund its future. I own a few shares, and I may add more if the price drop continues. Give Stock Card a Try!
Use promo code "rollwithourceo" to get a 10% discount.
That's it for today. If you haven't already done so, please give Stock Card a try, research as many stocks and ETFs as you'd want, and consider following a few successful investors by visiting the Stock Picks page on Stock Card platform. Don't forget to sign up for a 14-day free trial with promo code "rollwithourceo" all lowercase and in one word.
Key Points
Overall Market
The Market Finished with Mixed Results
The Nasdaq index finished the day in the red. In contrast, the other two indexes ended the day in the green zone but only barely. Despite the slight upward movement by the Dow index, it hit a new record high thanks to a few solid quarterly earnings reports by the likes of General Motors (GM).
The economic indicator that grabbed my attention is ADP's private payrolls report that grew by 742,000 in April. While the growth was quite solid, it still missed the expectations. At this point, no one doubts that the U.S. economy is on its way to recovery. What's Up
Why Did Shares of Match Group (MTCH) Jump More Than 3% Today?
Shares of Match Group (MTCH) jumped more than 3% today. If you don't know Match Group, you should. It has more than 45 online dating brands. It has solid operations with growing revenue, profitability, and free cash flow. It announced its quarterly earnings reports, and investors are pretty satisfied with the company's performance. Revenue, operating income, adjusted EBITDA, # of subscribers, and revenue per subscriber were all up. That's what you'd want to see from the companies you invest in.
Moreover, based on Analysts' price target, the stock price still has room to grow up to an average target of $162.74. You can see the average price target on the company's Stock Card under the Fair share price section. By the way, remember we discussed Alteryx's (AYX) 6% price jump yesterday? Shares continued to move up after yesterday's better-than-expected results. What's Down
Why Has Peloton's Stock Price Dropped More Than 14%?
Shares of Peloton (PTON) dropped more than 14%. The stock price is down 45% since the start of the year. But, today's price drop comes after a voluntary recall of the company's Treadmill product. A few weeks ago, there was the sad news of the death of a child after getting injured by Peloton's treadmill.
While it might be tempting to jump on the wagon of buying the dip, however, remember, this is a product-related issue that could impact the company's future growth potential. It's not too different from when a restaurant such as Chipotle announced an Ecoli outbreak in 2015-2016. While Chipotle (CMG) managed to recover from the dip quite nicely, but it took a few years for the company to do so. Product-related issues tend to damage a company's brand and reputation. It takes a lot of marketing dollars and time to recover from it after the initial technical or product problem is resolved. Perhaps, hold before buying the dip in Peloton's stock. Give Stock Card a Try!
Use Promo Code "rollwithourceo" to Get a 10% Discount.
That's it for today. If you haven't already done so, please give Stock Card a try, research as many stocks and ETFs as you'd want, and consider following a few successful investors by visiting the Stock Picks page on Stock Card platform. Don't forget to sign up for a 14-day free trial with promo code "rollwithourceo" all lowercase and in one word.
|
Master your fundamental research. Join 79,627 investors who trust our platform and content.
Save 54+ hours of fundamental
research with free access to Stock Card. Categories
All
Archives
March 2024
|