September 20th 2017
Buy or Sell? NVIDIA Corporation (NVDA)
NVIDIA Corporation (NASDAQ:NVDA), managed to maintain the return on investment for the year to date -, higher than what data shows regarding industry’s average. The average of this ratio is 5.79 for the industry and sector’s best figure appears 11.18. NVIDIA Corporation (NASDAQ:NVDA), at its latest closing price of $193.66, it has a price-to-book ratio of 0.00, compared to an industry average at 0.52. A lower P/B ratio could mean that the stock is undervalued. This ratio also gives you some idea of whether you’re paying too much for what would be left if the company went bankrupt immediately. NVIDIA Corporation (NASDAQ:NVDA), stock is trading $199.59 above the 52-week high and has displayed a high EPS growth of 22.20% in last 5 years. The 1 year EPS growth rate is 137.90% . Its share price has risen 19.74% in three months and is down -1.98% for the last five trades. The average analysts gave this company a mean recommendation of 2.40.
July 20th 2017
Tesla Inc (NASDAQ:TSLA)
Tesla, Inc. (TSLA) have shown a high EPS growth of -13.10% in the last 5 years and has earnings rose of 32.50% yoy. Analysts at GG FINANCIAL have a mean recommendation of 2.10 on this stock (A rating of less than 2 means buy, “hold” within the 3 range, “sell” within the 4 range, and “strong sell” within the 5 range). The stock appeared $389.61 above its 52-week highs and is down -5.17% for the last five trades. The stock ended last trade at $337.34 a share and the price is up more than 57.86% so far this year. The company maintains price to book ratio of 0.00 vs. an industry average at 0.53. Its sales stood at 102.80% a year on average in the period of last five years. A P/B ratio of less than 1.0 can indicate that a stock is undervalued, while a ratio of greater than 1.0 may indicate that a stock is overvalued. Day traders strive to make money by exploiting minute price movements in individual assets (usually stocks, though currencies, futures, and options are traded as well), usually leveraging large amounts of capital to do so, therefore they trade on Stocks in Play. In Play Stocks are volatile enough to produce good risk and reward trading opportunities for both bull and bear traders intraday. Most company stocks have very little volatility. They generally move extremely slowly and they only produce big price swings when the company produces good or bad trading results, which may only happen a couple of times a year at best. Past 5 years growth of TSLA observed at -13.10%, and for the next five years the analysts that follow this company is expecting its growth at 35.00%. The stock’s price to sales ratio for trailing twelve months is 5.70 and price to book ratio for the most recent quarter is 10.92, whereas price to cash per share for the most recent quarter are 18.90. Its quick ratio for the most recent quarter is 0.60. Analysts mean recommendation for the stock is 2.80. This number is based on a 1 to 5 scale where 1 indicates a Strong Buy recommendation while 5 represents a Strong Sell.
June 20 2017
These Stocks feel like Microsoft 1986
There are few stocks that have created fortunes as staggering as Microsoft (NASDAQ:MSFT). Had you bought just 50 shares of the computer software and console gaming giant shortly after its IPO in 1986 — let’s say at $28 per share (keep in mind the stock has split nine times since then) — you’d have over $1 million today, even without reinvesting dividends. If you had opted to use your dividends to buy more shares along the way, you’d have over $1.5 million sitting in the bank.
Of course, this raises the question — are there any stocks on the market today that feel like Microsoft in 1986?
Three top analysts weigh in to that end. Read on to learn why they think Universal Display (NASDAQ:OLED), Activision Blizzard (NASDAQ:ATVI), and Intercept Pharmaceuticals (NASDAQ:ICPT) fit the bill.
Universal Display (NASDAQ: OLED)
There’s little doubt that Universal Display’s flagship phosphorescent organic light emitting diode (OLED) technology is the next big thing in the display market. OLED displays not only boast incredible brightness and contrast — they’re also impossibly thin, energy efficient, cool to the touch, and can even be made flexible and semi-transparent. By licensing its massive OLED-centric patent portfolio and selling its proprietary emitter materials to original electronics manufacturers, Universal Display is poised to benefit as OLED adoption grows.
At the same time, OLEDs are already being used in tens of millions of smartphones and tablets from many of the world’s leading electronics manufacturers. Most notably, Samsung Display has long stood alone as Universal Display’s single largest customer. If supply chain rumblings and industry watchers are any indication, however, Apple should be poised to introduce its first OLED iPhone later this year in celebration of the 10-year anniversary of its most popular product line. This would mark a coup of sorts, as Apple moves away from LCDs and expands its use of OLED from “just” the tiny displays in its less impactful Apple Watch.
What’s more, LG Display, which is Universal Display’s second-largest customer, is in the process of ramping up manufacturing capacity for its high-end OLED televisions. It announced earlier this year that it will invest an additional $4.3 billion into both its OLED production facilities and OLED research and development.
Over the long term, we should also see an increase in novel OLED lighting solutions from manufacturers that are currently in their early stages of development, including LG, Konica Minolta, Acuity, and Philips. Here, again, OLED lights are cool to the touch and offer even, beautiful light, as opposed to the spot light sources provided with today’s typical LED lighting products.
Finally, keep in mind that Universal Display only recently initiated its first dividend at $0.03 per share. That won’t amount to much with Universal Display stock sitting above $117 per share, as of this writing. But management has made it clear they view this as “a good place to start” and will increase their payout as the OLED industry continues to progress. For investors willing to buy now and watch that happen in the coming years, I think Universal Display could still be poised for incredible, “Microsoft-like” returns.
Activision Blizzard (NASDAQ: ATVI)
Leave aside the fact that it’s already a $43 billion company, and you’ll be free to notice a few tantalizing similarities between Activision Blizzard today and a young Microsoft. After all, the video game developer enjoys a leading position in a growth industry with massive profit potential over the long term. For an idea of that dominance, consider that its portfolio of franchises, including Call of Duty, Hearthstone, and Overwatch, helped the company attract record player engagement in the past year, as gamers dedicated 40 billion hours to interacting with its products.
Even though it has been public for years, Activision Blizzard’s business in many ways is only getting started. Its acquisition of King Digital Entertainment just added over 300 million active users that the company is now learning how to market to through in-game advertising and micro transactions. Meanwhile, the stampede toward digital purchasing and downloading of big-budget games is raising profit margins, as video games are becoming year-round properties rather than launch-driven, short-term events. In other words, Activision’s content is growing far more valuable thanks to fundamental shifts in its industry.
Like Microsoft in those early days, the developer is staring at a few large opportunities right now, all of which could significantly boost its addressable market. These include eSports, consumer products, and mobile advertising, in addition to whatever new video game franchises Activision has in its pipeline for the coming years.
Intercept Pharmaceuticals (NASDAQ: ICPT)
Microsoft’s operating system holds dominant market share, and there are very few alternative options for desktop and laptop users. The same may soon be said for Intercept’s drug Ocaliva, which is currently approved to treat primary biliary cholangitis but is more importantly being studied as a treatment for non-alcoholic steatohepatitis (NASH). NASH, also known as fatty-liver disease, has no cure or Food and Drug Administration-approved therapies, yet it impacts between 2% and 5% of the adult U.S. population. By the next decade, it’ll be the leading cause of liver transplants. The first drug that can fight NASH — and potentially even reduce liver fibrosis — could become the go-to therapy, just as Windows is the go-to operating system.
The intriguing data on Ocaliva comes from the FLINT 2b study, which was reported all the way back in 2014. Data from FLINT showed a two-point-or-greater reduction in the NAFLD Activity score in 46% of patients taking Ocaliva, compared to just 21% of patients taking the placebo. What was exceptionally encouraging was the 35% mean score benefit in liver fibrosis, which was almost double that of the placebo at 19%. Currently, Ocaliva is moving on to its pivotal phase 3 REGENERATE trial.
Like Microsoft, Intercept isn’t the only fish in the pond. Genfit has a competing NASH drug known as elafibranor in the phase 3 RESOLVE-IT trial. There’s a big advantage to being the first-in-class NASH drug on pharmacy shelves, so the race is clearly on.
What sort of sales are we talking about here? If Ocaliva demonstrates both NASH resolution and fibrosis improvement (the REGENERATE trial only requires one or the other be met for the primary endpoint to be a success) and is approved by the FDA ahead of Genfit’s drug, Ocaliva has peak annual sales potential that could approach $9 billion. Given that drugmakers are usually valued at many multiples of their lead drug, Intercept’s stock could soar — much like Microsoft did.
May 20th 2017
These Stocks have Doubled so far in 2017!
The stock market has done reasonably well so far in 2017, with the S&P 500 (SNPINDEX:^GSPC) enjoying total returns of about 7% and remaining close to all-time record levels. But some stocks have done a lot better than the overall market, and shareholders in those companies have made a killing. In particular, Universal Display (NASDAQ:OLED), Weight Watchers International (NYSE:WTW), and Exact Sciences (NASDAQ:EXAS) have all doubled in the first five months of 2017, and some investors wonder if they have even further to climb in the near future.
Universal Display has been a leading company in producing organic light emitting diodes for flat-panel displays, including both large formats like television sets and smaller footprints like mobile devices. The company has been working to expand its production capacity recently, and many investors have hoped that big orders for OLED displays would eventually come.
“Most of the gains so far in 2017 have come from reports that Apple (NASDAQ:AAPL) is considering using OLED screens in its future iPhone products, and that could result in a huge boost in demand for the displays from Universal Display,” So far, Universal Display has been a bit vague about the prospects for an OLED iPhone, but that’s not unusual for a company seeking to do business with the mobile-device pioneer. With rising guidance for revenue and expectations for increased production, shareholders are betting that the iPhone effect will boost Universal Display’s fundamentals going forward, and that’s enough to justify a big move in the shares this year.
Weight Watchers picks up steam
“Weight Watchers International has been a popular stock recently, although it has also been a volatile one, In 2015 the stock rose more than fivefold in just a matter of months, and coming into 2017, the weight-loss specialist had seen plenty of ups and downs as investors weighed the impact of celebrity Oprah Winfrey’s presence as a major shareholder and participant in Weight Watchers’ prospects.”
Yet this year, Weight Watchers has earned its upward moves through strong fundamental performance. In March, the company reported a 10% rise in memberships, with solid international growth pointing to opportunities for geographical expansion. May saw another strong quarter, with Weight Watchers reversing a loss in the year-earlier period and hiring former Home Shopping Network CEO Mindy Grossman to take over as CEO in July. Rising guidance also helped push shares higher, and Weight Watchers appears to have the business success to justify this year’s stock price rise.
Exact Sciences has a winner
Finally, Exact Sciences has posted the biggest return of these three stocks, with gains of 138% so far in 2017. The company has found a hit with its Cologuard test for colon cancer, offering patients a chance to have a diagnostic test run for the disease without the discomfort and full cost of a colonoscopy. Demand for Cologuard has been extremely strong, with 100,000 tests done in the first quarter representing 150% growth in just the past year. Insurance reimbursement availability for the test has increased, and that has spurred more customers to consider Cologuard.
“One problem that some investors have with Exact Sciences is that it hasn’t yet been able to turn the explosive sales growth in Cologuard into bottom-line profits, Indeed, even the big rise in test sales was only enough to cut its loss in the first quarter by a little more than 25%. Few expect Exact Sciences to be profitable in 2017 despite calls for continued increases in test sales, and that explains why the stock has actually given back some ground since hitting higher levels in early May.”
Stocks don’t double in such a short period of time that often, and there’s almost always a catalyst to explain the sudden move. From a fundamental perspective, Weight Watchers has arguably seen the most dramatic turnaround in its financials, but both Universal Display and Exact Sciences have potential that investors are banking on seeing in the near future.