Q: Are last year's stock losers poised to be this year's winners?
A: Buying the stock market's losers a time-tested theory of many value investors. When a stock is battered, the only way is up, or so the theory goes.
Academic research shows stocks that are cheaper than the market tend to do better, as a group, than the market as a whole. And there's no question that value-priced stocks, when owned as a big basket in an exchange-traded fund or mutual fund, is a good idea for most investors.
Be careful, though, about taking this information too far. Some investors incorrectly assume that beat-up stocks individually, like last year's losers, are also a good bet. But that's not always a safe assumption. First of all, the definition of a value-priced stock is one that has a low relative share price compared to the company's book value. A stock's price might fall a great deal in one year, but the stock's price-to-book ratio may still be relatively high. Secondly, value-priced stocks as a group tend to outperform. But there are individual value-priced stocks that wind up turning in terrible performances, just not enough to drag the average down.
Top Telecom Companies To Own For 2015: Whole Foods Market Inc.(WFM)
Whole Foods Market, Inc. engages in the ownership and operation of natural and organic food supermarkets. The company offers produce, seafood, grocery, meat and poultry, bakery, prepared foods and catering, coffee and tea, nutritional supplements, and vitamins. It also provides specialty products, such as beer, wine, and cheese; body care and educational products, such as books; and floral, pet, and household products. As of February 9, 2011, the company operated 302 stores in the United States, Canada, and the United Kingdom. Whole Foods Market, Inc. was founded in 1978 and is headquartered in Austin, Texas.
Advisors' Opinion:- [By Jayson Derrick]
Analysts at UBS downgraded Whole Foods Market (NASDAQ: WFM) to Neutral from Buy with a price target lowered to $41 from a previous $48. Also, analysts at JPMorgan downgraded Whole Foods to Neutral from Overweight with a price target lowered to $38 from a previous $48. Shares lost 2.28 percent, closing at $38.22.
- [By Asit Sharma]
Whole Foods Market (NASDAQ: WFM )
For a company that enjoys vigorous revenue growth, Whole Foods employs a slow-motion approach to international expansion. Many domestic companies with similar long-term prospects have jumped into international markets over the last decade to establish a presence in developing markets. But Whole Foods is so focused on optimizing its stores in the U.S. that it is content to have only a middling presence in other countries -- for now. As of its most recent business quarter, the company reported that year to date, it derived fully 96.6% of its sales within the U.S. And those sales resulted in an impressive net profit margin of 4.7% -- one of the highest margins in the grocery industry.One key to Whole Foods' continued success will be its ability to make steady, incremental progress in its pricing strategies and operational efficiencies, which I've discussed previously here. Whole Foods' stock tends to be volatile around its earnings releases, and this often provides a good entry point for first-time investors. - [By Ben Levisohn]
Over in the S&P 500, the surge in Electronic Arts (EA), which creamed earnings forecasts, was offset by plunge in Whole Foods Markets (WFM), which is feeling the heat from competition that’s impacting its bottom line. Electronic Arts gained 23% to $35.12, while Whole Foods Market fell 21% to $39.32.
- [By Rich Smith]
This series, brought to you by Yahoo! Finance, looks at which upgrades and downgrades make sense, and which ones investors should act on. Today, we'll be looking at a pair of downgrades for both Lear (NYSE: LEA ) and Whole Foods (NASDAQ: WFM ) , followed by an improved price target at 3M (NYSE: MMM ) . Let's start with that one.
Top 5 Cheap Companies To Own In Right Now: Capstone Turbine Corporation(CPST)
Capstone Turbine Corporation develops, manufactures, markets, and services turbine generator sets and related parts for use in stationary distributed power generation applications. Its stationary distributed power generation applications include cogeneration combined heat and power (CHP), integrated (CHP), resource recovery, and secure power, as well as combined cooling, heat, and power; and its products are used as battery charging generators for hybrid electric vehicle applications. The company primarily offers microturbine units, subassemblies, and components. It also provides various accessories, including rotary gas compressors with digital controls, heat recovery modules for CHP applications, dual mode controllers that allow automatic transition between grid connect and stand-alone modes, batteries with digital controls for stand-alone/dual-mode operations, power servers for multipacked installations, and protocol converters for Internet access, as well as frames, ex haust ducting, and installation hardware. Further, it remanufactures microturbine engines; and provides after-market parts and services, scheduled and unscheduled maintenance, and factory and on-site training services. The company?s microturbines can be fueled by various sources, including natural gas, propane, sour gas, landfill or digester gas, kerosene, diesel, and biodiesel. It primarily sells its products directly to end users, as well as through distributors in North America, Asia, Australia, Europe, the Russian Federation, and South America. Capstone Turbine Corporation was founded in 1988 and is based in Chatsworth, California.
Advisors' Opinion:- [By Monica Gerson]
Capstone Turbine (NASDAQ: CPST) soared 14.29% to $2.24 in the pre-market trading after surging 7.10% on Monday.
Ballard Power Systems (NASDAQ: BLDP) shares jumped 10.17% to $7.58 in pre-market trading after jumping 30.30% on Monday.
- [By Tyler Crowe]
What:�Shares of Capstone Turbine (NASDAQ: CPST ) skyrocketed 13.59% as the company announced that it had signed a major supplier deal with private real estate and investment firm Related Companies. Shares of Capstone haven't been this high in over a year.
Top 5 Cheap Companies To Own In Right Now: Ford Motor Credit Company(F)
Ford Motor Company primarily develops, manufactures, distributes, and services vehicles and parts worldwide. It operates in two sectors, Automotive and Financial Services. The Automotive sector offers vehicles primarily under the Ford and Lincoln brand names. This sector markets cars, trucks, and parts through retail dealers in North America, and through distributors and dealers outside of North America. It also sells cars and trucks to dealers for sale to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments. In addition, this sector provides retail customers with a range of after-sale vehicle services and products in the areas, such as maintenance and light repair, heavy repair, collision repair, vehicle accessories, and extended service contracts under the Ford Service, Lincoln Service, Ford Custom Accessories, Ford Extended Service Plan, and Motorcraft brand names. The Financial Services sector offers vari ous automotive financing products to and through automotive dealers. It offers retail financing, which includes retail installment contracts for new and used vehicles; direct financing leases; wholesale financing products that comprise loans to dealers to finance the purchase of vehicle inventory; loans to dealers to finance working capital, purchase real estate dealership, and/or make improvements to dealership facilities; and other financing products, as well as provides insurance services. Ford Motor Company was founded in 1903 and is based in Dearborn, Michigan.
Advisors' Opinion:- [By John Rosevear]
Sales of the Fit have remained strong even as strong contenders such as Ford's (NYSE: F ) Fiesta have gained ground. Through June, U.S. sales of Honda's subcompact were up 5.2%, a good gain for an outgoing model in a segment that has lagged a bit as consumers have started moving back toward larger cars and SUVs.
- [By WALLSTCHEATSHEET]
Ford is a well-established vehicle products and services producer distributed in a multitude of countries across the globe. As the current CEO, Alan Mulally, prepares to leave, Microsoft may be planning on hiring him as its CEO. The stock has been rising higher in recent years and is now trading at highs for the year. Over the past four quarters, investors in the company have expected a little more. However, earnings and revenue figures have been improving. Relative to its peers and sector, Ford has been an year-to-date average performer. Look for Ford Motor to OUTPERFORM.
- [By Ben Levisohn]
In fact, it could be argued that General Motors needs change more than Ford Motor (F), Toyota Motor (TM), or even Honda Motor (HMC), which had to recall a slew of Acuras today.
- [By Rustic Nomad]
Automakers have been targeting the Asian market quite aggressively, and India seems to be among one of the most lucrative opportunities in the continent. Although India might not be able to match the growth witnessed in the automobile market in China, it is expected that 9.3 million units will be sold in the country by 2020. So, global automobile majors such as Ford (F) and many more are now targeting the Indian market.
Top 5 Cheap Companies To Own In Right Now: Advance Auto Parts Inc(AAP)
Advance Auto Parts, Inc., through its subsidiaries, operates as a retailer of automotive aftermarket parts, accessories, batteries, and maintenance items. It operates in two segments, Advance Auto Parts (AAP) and Autopart International (AI). The AAP segment operates stores, which primarily offer auto parts, including alternators, batteries, chassis parts, clutches, engines and engine parts, radiators, starters, transmissions, and water pumps; accessories comprising floor mats, mirrors, vent shades, MP3 and cell phone accessories, and seat and steering wheel covers; chemicals consisting of antifreeze, freon, fuel additives, and car washes and waxes; and oil and other automotive petroleum products. This segment also provides battery and wiper installation, battery charging, check engine light reading, electrical system testing, video clinics and project brochures, loaner tool programs, and oil and battery recycling services; and sells its products through online. The AI segm ent operates stores that offer replacement parts for domestic and imported cars, and light trucks to customers in northeast and mid-Atlantic regions, as well as to warehouse distributors and jobbers in North America. As of January 1, 2011, the company operated 3,369 AAP stores, including 3,343 stores located in the northeastern, southeastern, and Midwestern regions of the United States under the Advance Auto Parts and Advance Discount Auto Parts trade names; 26 stores situated in Puerto Rico and the Virgin Islands under the Advance Auto Parts and Western Auto trade names; and 194 stores under the Autopart International trade name in the United States. It serves do-it-yourself, do-it-for-me, or commercial customers. The company was founded in 1929 and is based in Roanoke, Virginia.
Advisors' Opinion:- [By Ben Levisohn]
Autozone has dropped 0.3% to $413.22 �, while�Pep Boys (PBY) has gained 0.2% to $12.19 , Advanced Auto Parts�(AAP) has risen 0.3% to $80.35, and O’Reilly Automotive (ORLY) has advanced 0.3% to $124.42 .
- [By Dan Caplinger]
What's interesting, though, is that historically, auto-parts makers are seen as relying on the lack of success among automakers. After all, new cars don't need parts nearly as often as older cars do, and when Ford and GM perform well, their customers don't have to rely as much on Genuine Parts or competitors AutoZone (NYSE: AZO ) and Advance Auto Parts (NYSE: AAP ) for replacements. Yet, even though Advance's 15% gain, and AutoZone's 20% rise year to date, aren't quite as substantial as Genuine Parts, they still signal a paradigm shift in the way investors look at the industry, perhaps recognizing that for every new car sold, there's usually a used car that gets traded in, and so good news for Ford and GM sales might actually translate into more business for the parts industry.
- [By Ning Jia]
Reuters Description: Advance Auto Parts, Inc. (Advance), incorporated on August 1, 2001, is a specialty retailer of automotive aftermarket parts, accessories, batteries and maintenance items primarily operating within the United States. The Company operates in two segments: Advance Auto Parts (AAP), and Autopart International (AI). The AAP segment is comprised of its store operations, which operate under the trade names Advance Auto Parts and Advance Discount Auto Parts.The AI segment consists of the operations of Autopart International, Inc. which operates under the Autopart International trade name. The Company�� stores carry a product line for cars, vans, sport utility vehicles and light trucks.The Company serves both do-it-yourself (DIY), and do-it-for-me (Commercial), customers. Its Commercial customers consist primarily of delivery customers for whom the Company delivers product from its store locations to it Commercial customers��places of business, including independent garages, service stations and auto dealers. On December 31, 2012, the Company acquired B.W.P. Distributors, Inc.
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