The question facing big bank stocks like JPMorgan Chase & Co. (NYSE:JPM) is similar to that facing the market as a whole. How much upside really is left after a rally that’s now over nine years long? The JPM stock price today sits 176% higher than it did at the beginning of 2010 — an average return of roughly 13% a year. JPMorgan stock has gained 74% just since the beginning of 2016.
At some point, that rally would seem likely to reverse. JPM stock did stumble in February, but it’s already recaptured those losses. Indeed, it trades just a point or two from its all-time highs.
Despite those gains, however, it’s not as if JPMorgan stock looks all that expensive. In fact, it looks rather cheap. JPM trades at less than 12 times forward earnings, though a 1.75 price-to-book ratio ratio is the highest since the financial crisis. And the news surrounding JPMorgan Chase looks good as well. Fed rate hikes should help spreads, and profits. The loan book seems solid; 2018 should be an extremely solid year in terms of earnings growth.
Top Cheap Stocks To Own Right Now: Wendy’s/Arby’s Group Inc.(WEN)
- [By Jim Jubak, Senior Markets Editor, MoneyShow.com]
It’s hard for any company to raise prices in the current non-inflationary environment. But it’s especially hard right now for operators of fast food restaurants, given the intense price competition in a very crowded marketplace. McDonald’s sales growth in recent quarters has been driven by the success of its Dollar Menu, so raising prices in that segment are a big deal for the company. In addition, pushback from franchisees who say they can’t afford to refurbish their stores, given higher charges from McDonald’s hits at one of McDonald’s key advantages in its market—it’s ability to refresh stores more frequently than competitors. A McDonald’s refresh at $600,000 on average, according to the company, costs substantially more than a remodel at Burger King (BKW) at $300,000 or Wendy’s (WEN) at $375,000 for the least expensive version. McDonald’s restaurants average $2.5 million in annual sales.
- [By Michael Flannelly]
Argus Research upgraded fast food restaurant operator The Wendy’s Co (WEN) on Thursday, noting that the company’s store remodeling and new menus should help drive higher sales.
The analysts upgraded WEN from “Hold” to “Buy” and see shares reaching $10. This price target suggests a 21% upside to the stock’s Wednesday closing price of $8.25.
Wendy’s shares were up 24 cents, or 2.91%, during early morning trading on Thursday. The stock is up 54.19% year-to-date.
- [By Stark Merrifield]
Bill Ackman: Fifty-year-old Ackmans career began in 1992 when he and fellow Harvard graduate David P. Berkowtiz founded the investment firm Gotham Partners. The firms high-profile bid for Rockefeller Center in New York caused investors to flock to the firm, growing it to $500 million in assets. Then in 2004, with $54 million in personal funding, Ackman started Pershing Square Capital Management. Through Pershing, Ackman bought significant shares in companies like Wendys Co. (Nasdaq: WEN), Target Corp. (NYSE: TGT), Chipotle Mexican Grill Inc. (NYSE: CMG), and Valeant Pharmaceuticals International Inc. (NYSE: VRX). Today, Ackman is worth $1.4 billion and is No. 256 on the Forbes 400.
- [By Ben Levisohn]
The market is treating Chipotle as if it is an Amazon, Tesla, Apple or Google, when in fact all they do is make burritos. With the money it would cost you to buy Chipotle today @ $14 billion dollars you could buy Wendy’s (WEN), Cheesecake Factory (CAKE), Papa John’s International (PZZA), and Dunkin’ Brands (DNKN). Chipotle would need to generate at least $24 in earnings per share in order to justify the current market cap — they are not even expected to generate half of that next year. Chipotle is expected to report Q1 on April 25 and the market, in my opinion, has already more than priced in good news.
- [By Ben Levisohn]
Upgrades had a big impact on stocks today. Wendy’s (WEN), for instance, gained 4.5% to $8.62 after being upgraded to Buy at Argus, while Cash America (CSH) advanced 3.7% to $44.32 after being upgraded to Market Outperform from Market Perform at JMP Securities. Walgreen (WAG) proved the big winner in the S&P 500 afterGoldman Sachs called the stock a Conviction Buy.
Top Cheap Stocks To Own Right Now: International Business Machines Corporation(IBM)
- [By Paul Ausick]
The second-best performer for among the Dow 30 this past week is International Business Machines Corp. (NYSE: IBM), 2017’s second-worst performer, which posted a gain of 5.91% in the week. DowDuPont Inc. (NYSE: DWDP) added 5.9%, and Boeing Co. (NYSE: BA), last year’s big winner, added another 4.72% during the first week of 2018.
- [By Chris Lange]
The S&P 500 stock posting the largest daily percentage loss ahead of the close Friday was International Business Machines Corp. (NYSE: IBM) which traded down roughly 4% at $162.12. The stocks 52-week range is $139.13 to $182.79. Volume was over 20 million, compared with the daily average of 5.1 million shares.
- [By WWW.USATODAY.COM]
IBM Chairman and CEO Ginni Rometty at the IBM PartnerWorld Leadership Conference in Las Vegas on Feb. 16, 2016. (Photo: IBM)
“Weve been at (AI) the longest with Watson, but were at beginning of an era where AI will be able to make so much of what we do better,” says IBM CEO GinniRometty. “There’s so much data out there we cant control. Studies show that of all the decisions we make, a third are OK, a third are suboptimal and a third are not correct. AI can help with that.”
- [By ]
And for a long time, Berkshire had a sizable position in IBM (IBM) . However, that position had been mostly liquidated by the end of 2017, as Buffett & Co. lost faith in Big Blue’s turnaround efforts. Given the extent to which parts of IBM’s business were vulnerable to technological disruption, this was perhaps a case of Berkshire extending outside of its comfort zone.
- [By Jack Foley]
First of all, when analyzing any investment, my first port of call is always to see if the stock has strong competitive advantages. Although, Amazon doesn’t pay a dividend, it definitely has huge assets within its arsenal that protect the stock from a huge sell-off to the downside. These advantages include but are not limited to the following.
Why Is This Important
Low Cost operations In terms of scale (Although Amazon has intentions ofopening up brick and mortar stores for groceries), fulfillment centers and online ordering (Amazon’s model) is generally accepted as a cheaper alternative to scaling brick & mortar stores. The “fitting out” of a fulfillment center costs much less than a Super-center from Walmart (NYSE:WMT)for example. This enables Amazon scale its operations at a much faster rate than its competitors.
Network Effect The low prices translate into a network effect which attracts buyers, third party sellers and large merchants on mass. The synergy between these three different groups of people results in a huge array of products being available on the platform for sale. Investors should note that all groups are increasing meaningfully in numbers at present. Third party sellers are a huge cash cow for Amazon due to the margins involved. This “network effect” will only intensify in years to come.
Amazon Prime Amazon’s premium service is another huge competitive advantage the company has. Why? Because Amazon is constantly adding more value to the service by adding more products (either at a discounted price or completely free). Jeff Bezos’s vision here is to add massive value here in order to up-sell normal Amazon users into Prime. Again growth rates are re-accelerating with Prime having just launched in China recently.
Amazon Web Services Amazon has the biggest cloud computing service in the world by far and the margins in this segment are really impressive. In fact, AWS makes up
- [By Paul Ausick]
International Business Machines Corp. (NYSE: IBM) traded up 1.85% at $153.36 in a 52-week range of $139.13 to $172.56. Volume of about 3 million shares was about 40% below the daily average. The company had no specific news.
Top Cheap Stocks To Own Right Now: UnitedHealth Group Incorporated(UNH)
- [By Paul Ausick]
UnitedHealth Group Inc. (NYSE: UNH) traded up 0.51% at $166.18. The stock’s 52-week range is $125.26 to $172.14. Volume was 40% below the daily average of around 3.7 million shares. The health insurer had no specific news Friday.
- [By Paul Ausick]
UnitedHealth Group Inc. (NYSE: UNH) traded up 0.37% at $220.41. The stock’s 52-week range is $156.09 to $231.77. Volume was about a 65% below the daily average of around 3 million shares. The company had no specific news.
- [By Paul Ausick]
UnitedHealth Group Inc. (NYSE: UNH) traded up 1.07% at $162.30. The stock’s 52-week range is $118.97 to $164.97. Volume was half the daily average of around 3.8 million shares. The company had no specific news Thursday.
- [By Garrett Baldwin]
Market fears of an escalating Middle Eastern conflict abated thanks to last week’s military strikes against the Syrian government. On Friday, April 13, U.S. forces joined the United Kingdom and France in retaliation for a chemical gas attack carried out by the Syrian government. The military exercise came at a time that tensions are also rising in the Middle East between Saudi Arabia and Iran.
Today, several members of the U.S. Federal Reserve will be speaking at events around the globe, including San Francisco Fed President John Williams and Chicago Fed Bank President Charles Evans. But no one will be more watched today than Fed Gov. Randal Quarles, who will testify before the U.S. House Financial Services Commission. Quarles will provide testimony on the central bank’s plans to regulate and oversee the financial system. Expect a wealth of questions about the Fed’s plans to raise interest rates and manage its massive balance sheet. Money MorningLiquidity SpecialistLee Adler offers you advice on how to play the Fed’s problems, right here.
Four Stocks to Watch Today: GS, NFLX, TSLA, and ROKU
Shares of Goldman Sachs Group Inc. (NYSE: GS) added 0.6% after the Wall Street bank easily topped Q1 earnings and revenue estimates. The firm reportedearnings per share (EPS) of $6.95 on top of more than $10 billion in revenue. Analysts projected EPS of $5.67 on top of $8.89 billion. The investment bank hiked its quarterly dividend and said that revenue from equity trading rallied thanks to an uptick in recent market volatility.
Shares of Tesla Inc. (Nasdaq: TSLA) are flat on the news that the firm will suspend production of its Model 3 vehicles. The firm said the temporary halt in production will aim to “improve automation” and address ongoing bottlenecks in its production process.
Shares of Roku Inc. (Nasdaq: ROKU) popped more than 8.2% on news that Steven Cohen’s family office has taken a passive 5.1% stake in the company. The streaming device manufactur
- [By ]
UnitedHealth Group’s (UNH) $2.8 billion purchase of Chile-based health insurer Empresas Banm茅dica seems to be paying off, giving a boost to the company’s full-year outlook.
Top Cheap Stocks To Own Right Now: Compass Minerals Intl Inc(CMP)
- [By Monica Gerson]
Compass Minerals International, Inc. (NYSE: CMP) is projected to post its quarterly earnings at $1.33 per share on revenue of $347.03 million.
MKS Instruments, Inc. (NASDAQ: MKSI) is estimated to post its quarterly earnings at $0.33 per share on revenue of $177.19 million.