Author: OptimizedValue

Magic Software Enterprises Ltd. stock trades under the ticker MGIC, and offers many interesting trading & investment opportunities. MGIC stock trades at $14.68 as of the close on 8/14/2020. Their recent movements higher have rated them a 201.2 on our Technical Rating scale, and their fundamentals are also attractive for investors.

Magic Software Enterprises Ltd. MGIC Stock Fundamentals Broken Down

MGIC stock’s P/E (ttm) is 54.4, with a P/B of 2.94. They offer a 1.8% Trailing Dividend Yield, with a Payout Ratio of 57.9%.

Magic Software Enterprises Ltd. MGIC stock’s Market Cap is $718.4M, making them a small cap stock; with $87M in Total Cash (mrq) & a low Debt/Equity (ttm) of 15. Their small cap status is likely a major factor in why they have a 16% % Institutional Ownership.

Magic Software Enterprises Ltd. $MGIC Stock’s Technicals Broken Down

Magic Software Enterprises Ltd. $MGIC stock’s fundamentals are attractive, and their recent success has made their technicals also very attractive.

MGIC’s price of $14.68 is above its 10-Day Moving Average of 13.3, which is also above their 50-Day Moving Average of 11.72 and their 200-Day Moving Average of 10.12. While their RSI is 81 and considered overbought, recent dramatic movements to the upside are causing this, and it will settle down as more time passes and the stock establishes its range.

MGIC has a Technical Rating of 201.2, which is far superior to the Information Technology Sector average rating of 65.83 & the Software Industry average of 75.6.

This makes them look appealing for trades to both the upside & downside, based on where they establish their new range & how the overall market moves around them. While they’re a low beta small cap, they still will feel the pain of a NASDAQ correction.

Magic Software Enterprises Ltd. $MGIC Stock Fundamentals Vs. The Information Technology Sector

Magic Software Enterprises Ltd. stock’s fundamentals offer many advantages to their average information technology sector peer, despite their small cap status.

MGIC’s P/E (ttm) is 46% less than average for an Information Technology sector stock, with a 71.5% lower than average P/B, and a 52% less Beta.

One of their strongest advantages is their 98.9% lower Debt/Equity (ttm), which is especially important in times of market uncertainty, and their Technical Rating is 205.6% better than average for the sector.

Their Dividend Yield of 1.8% is 22.7% less than average, although their Payout Ratio of 57.9% is sustainable.

Due to small cap size, MGIC has a 95.6% smaller than average Market Cap, and a 93% lower than average Total Cash (mrq).

This leads to their 72% lower than average % Institutional Ownership, despite their many strong qualities listed above.

Magic Software Enterprises Ltd. $MGIC Stock Fundamentals Vs. The Software Industry

MGIC Stock offers many of the same advantages over their peers in the software industry. Their P/E (ttm) is 73% less than average, with an 82.6% less than average P/B compared to the average Software Industry stock.

Their Debt/Equity (ttm) is the most astounding advantage, 99.6% less than average.

While their Dividend Yield is 35% less than average, their sturdy Payout Ratio is almost 47% better than average for the software sector.

Their Technical Rating is 166% higher than average, which should appeal to most short-term traders.

As they’re a small cap stock, MGIC’s Market Cap is 95.6% lower than average for a software industry stock, and their Total Cash (mrq) is 93% less than average.

Their Dividend Yield is 35% lower than average, and their % Institutional Ownership is 73% less than average for the industry.

Magic Software Enterprises Ltd. MGIC Stock Performance Vs. The S&P 500 & NASDAQ Since IPO

Aside from the lower than average dividend yield, one thing that makes me question the long-term investment here is the fact that MGIC has not outperformed the S&P 500 or NASDAQ since it IPO’d on 8/30/1991. While this does not mean that it is not a suitable investment for the properly set up portfolio, it is certainly something an investor needs to be aware of.

MGIC stock has grown 376.11% since their IPO, 464.97% including dividends collected. While it is excellent, it makes me more interested from a long term perspective as used for minimizing risk to a software exposure position, knowing that you’ll collect a dividend & continue to see growth, with limited downside compared to the average peer’s stock.

The S&P 500 has since grown by 752.96%, excluding dividends.

The NASDAQ has grown 1,993.4% over that same time period, excluding dividends collected.

Tying It All Together

Overall, MGIC offers many advantages to a long-term investor and a trader.

Their performance and fundamentals offer a means of reducing risk while having exposure to technology & software, while also collecting some interest on a dividend.

From a trading perspective, their recent performance warrants a closer look, as when smaller stock have high performance days, more people become aware of them & tend to dive into the pile & join the party.

For A Full PDF Report:

*** I DO NOT OWN SHARES OF MGIC ***

This weekend I had a look at United Parcel Service, Inc. stock, which trades under the ticker UPS. UPS closed for trading at $156.90/share on 8/7/2020, after experiencing a solid gap up at the end of July.

United Parcel Service, Inc. $UPS’s Fundamentals Broken Down

United Parcel Service, Inc.’s stock has a P/E (ttm) of 31.2, with a P/B of 31.02 and a 2.57% Dividend Yield.

UPS has a Beta of .84, making it less volatile than the general market, with a 66.4% % Institutional Ownership. UPS sports a Market Cap of $135.3B, with $9.2B in Total Cash (mrq) & a Debt/Equity (ttm) of 684.8.

Given the nature of their line of work, it makes sense that UPS’s Price to Book Value & Debt/Equity (ttm) are much higher than the typical stocks we post about here. UPS does not need as many resources to operate as most other companies, given that they are transporting goods, and with their high amount of cash & responsible debt rating we can feel safe with their higher Debt/Equity (ttm) compared to other companies that may have a similar level.

United Parcel Service, Inc. UPS Stock’s Technicals Look Strong

UPS’s stock price is currently $156.90, much higher than its 10-Day Moving Average of 138.29, its 50-Day Moving Average of 116.09 and its 200-Day Moving Average of 108.98.

After a bullish gap up at the end of July and further growth into August, their RSI is currently 90, which shows signs of being overbought. However, this is temporary, as while they establish their new trading range their RSI will come back to a more reasonable level.

Using our technical analysis rating formula, UPS scores 222.45, outperforming their sector peers’ average of 39.99, and their industry peers’ average of 131.39.

United Parcel Service, Inc. UPS’s Stock Fundamentals Vs. The Industrials Sector Averages

UPS stock’s P/E (ttm) is almost 36% lower than their average Industrials Sector peer, with a 15% better than average Dividend Yield.

While their Payout Ratio is 197% higher than average, at 47.7% it is still a safe & healthy dividend.

UPS’s Market Cap is 2,162.5% higher than the industrials sector average, and their Total Cash (mrq) is 1,273% higher than average.

Their % Institutional Ownership is 11.8% higher than average, with a 456% advantage over their average peer in our Technical Rating.

As mentioned prior, their Debt/Equity (ttm) is above average (+478%) & their P/B is 560% higher than average.

United Parcel Service, Inc. $UPS’s Stock Vs. The Air Freight & Logistics Industry Average Fundamentals

United Parcel Service, Inc.’ stock has a 37% lower P/E (ttm) than their average Air Freight & Logistics Industry peer, and a 49% higher than average Dividend Yield.

UPS’s Market Cap is 745.6% higher than their average Air Freight & Logistics peer, and they have a 557% higher than average Total Cash (mrq) .

UPS’s Technical Rating is 69% above average for the Air Freight & Logistics Industry.

Their Debt/Equity (ttm) is 279.8% higher than average, with a 14% lower than average % Institutional Ownership.

United Parcel Service, Inc. $UPS’s Stock Performance Vs. The S&P 500 & NASDAQ Since Its IPO

UPS’s stock first began trading on 11/10/1999, and has since grown by 129.89%. When we add in the dividends that were paid over that time, the total gain becomes 192.8%.

In that time the S&P 500 has only grown 144% excluding dividends, while the NASDAQ has grown 248.9% in that same time period (also excluding dividends).

United Parcel Service, Inc. $UPS Has A Solid Debt Rating From Moody’s

Moody’s rates United Parcel Service, Inc.’s Debt Rating an A2, which is considered Upper Medium Investment Grade.

This is an additional sign of strength, especially given that we have been discussing their Debt/Equity (ttm) being higher than what we would like to see. Moody’s sees UPS as being able to service its debt obligations.

Tying It All Together

UPS stock offers many advantages both from a trading & investing perspective. Their growth has been in line with the general market indexes since they IPO’d, and they have some solid fundamental advantages over many of their peers.

As they just experienced a large surge in price growth, I’ll be keeping my eyes out to see what new range they establish, where I can find an advantegeous entry point to build a position.

For A Full PDF Report:

*** I DO NOT OWN SHARES IN UPS STOCK ***

This weekend I had a look at Escalade Inc. stock, which trades under the ticker ESCA. ESCA closed for trading on 7/31/20 at $15.35 per share, and offers a number of strengths from fundamental, technical & growth perspectives.

Escalade Inc. $ESCA Stock Fundamentals Look Strong

ESCA has a P/E (ttm) of 24.4, with a P/B of 1.73, and an attractive Dividend Yield of 3.26%.

Escalade Inc.’s Payout Ratio is high at 80.7%, but their Debt/Equity (ttm) is stellar compared to their peers, at 3.6. They have a Market Cap of $216.4M, with $6.2M in Total Cash (mrq), which makes them less likely to have a high percentage of Institutional Investors (28.7%)

Escalade Inc. $ESCA’s Stock Technicals Broken Down

ESCA’s 10-Day Moving Average is 15.11, and their 50-Day MA is 12.83, both showing signs of strength when their 200-Day MA of 9.92 is taken into consideration.

Their RSI is currently 63, which indicates that they are a little more overbought than average, which is expectable after seeing the recent growth that is shown on their chart.

Escalade Inc. ESCA Has Dramatically Outperformed the S&P 500 & NASDAQ Since It IPO’d

Escalade Inc.’s stock IPO’d on 3/16/1980, and has since grown over 12,004.5%, despite performing multiple stock splits over the years; growing by 16,413.1% total when we factor in Dividends collected over the lifetime of shares.

The S&P 500 has only grown 3,098.8% in that time (excluding dividends), with the NASDAQ increasing by 7,591.7% (excluding dividends), making ESCA an advantageous long-term investment over the years.

Escalade Inc. ESCA Stock Fundamentals Are Stronger Than Their Consumer Discretionary Peers

ESCA trades at 73% less on a price-per-share basis than the average Consumer Discretionary Sector stock. Their P/E (ttm) is 59% lower than average, with a ~77% lower P/B.

ESCA’s Dividend Yield is ~24% higher than averagem with a Debt/Equity (ttm) that is almost 99% lower than the sector average.

While their market cap is 98% less than average and their Total Cash (mrq) is 99.5% less than average, they only trail by 51% when we examine their % Institutional Ownership.

Escalade Inc. ESCA Stock Fundamentals Compared To The Leisure Products Industry Averages

ESCA’s P/E (ttm) is 18% lower than average for Leisure Products Industry stocks, and their P/B is 78% less than average. Pair this with a 79% larger than average Dividend Yield & a 99% lower Debt/Equity (ttm) and they stand out from the crowd, despite being 92% smaller by Average Market Cap.

Tying It All Together

Escalade Inc.’s stock has shown impressive growth since it IPO’d in 1980. Their fundamentals are all very appealing, especially when viewed through the lens of comparing them to their average peer, and their recent technical strength from their chart makes them worth considering for an investment. I will be eyeing an entry after seeing the next bit of price pull-back, with an eye specifically around the $13.50/share mark to see what the trend lines suggest.

For Full PDF Report:

*** I DO NOT OWN SHARES OF ESCALADE INC. ESCA STOCK ***

This week I reviewed Watsco, Inc.’s stock, whose ticker is $WSO, which closed for trading on 7/24 at $227.32 per share.

Watsco, Inc. WSO Stock’s Appealing Fundamentals & Dividend

WSO stock has a P/E (ttm) of 37, with a P/B of 6.07. Their Dividend Yield is 3.12%, offering solid interest on your investment should you hold it for the long term.

While WSO’s Payout Ratio (ttm) is high at 86%, their Debt/Equity (ttm) is 24.8, which looks quite appealing in market conditions with the high levels of uncertainty that we have now.

With a Market Cap of $8.7B & $79.6M in Total Cash, paired with a Beta of 0.68, it is no wonder that Watsco, Inc. has a 93.9% % Institutional Investors.

Watsco, Inc. WSO Stock Technicals Show Strength

Watsco, Inc.’s current price of $227.32 is well above its 10-Day Moving Average of 199.88, which is also stronger than its 50-Day Moving Average of 179.9 & its 200-Day Moving Average of 172.23.

While its current RSI of 87 is showing signs of being overbought, this is being impacted by a recent large gap-up day, when the stock opened far above where it closed on the previous day.

The RSI should decrease over time to a more normal level as time passes, and WSO’s technical levels are much higher than their Industry & Sector peers.

Our Technical Strength formula rates WSO’s stock at 167.7, much higher than its Industrials Sector peers at 7.17 & far superior to its Trading Companies & Distributors Industry peers average score of 0.53.

Watsco, Inc. WSO Stock’s Fundamentals Performance Compared To The Industrials Sector

WSO’s P/E (ttm) is 7% less than that of its Industrials Sector peers, and its Dividend Yield is 27% higher than average. Watsco, Inc.’s Market Cap is 55% higher than their sector average.

Their Debt/Equity (ttm) is 76% better than average & their Beta is almost 50% lower than average, which contributes to their 57% higher than average % Institutional Ownership.

While their P/B is much higher than average (+55.6%) & their Total Cash (mrq) is lower than average, they still offer many interesting advantages to their sector peers.

Watsco, Inc. WSO’s Fundamentals Vs. The Trading Companies & Distributors Industry Averages

Watsco’s Market Cap is 200% larger than the average Trading Companies & Distributors Industry Average, and they offer a 70% lower Debt/Equity (ttm) level, with a 47% stronger % Institutional Investors & a 60% lower than average Beta.

These strengths combined with their stronger than average technicals enable us to look past their higher than average P/E (ttm) (+21%), P/B (+154%) and 9% lower than average Dividend Yield.

Watsco, Inc. WSO Has Dramatically Outperformed The S&P 500 & NASDAQ Since IPO

Since their IPO on 6/7/1984, Watsco, Inc.’s stock has grown by 10,640.9%, for a total adjusted gain of 13,357.4% when their consistent Dividend Yield is factored into the calculation .

The S&P 500 has only grown 1,975.7% excluding dividends in that same time period.

WSO Stock has also dramatically outperformed the NASDAQ in that time, which has only grown by 4,220% in that same time span, excluding dividends.

Tying It All Together

Watsco, Inc. WSO’s Stock is worth taking a closer look at from an investment & trading perspective. Their strong fundamentals & technicals, combined with their lifetime growth performance show that they have many advantages over other stocks.

Being able to grow at the rates that they have since 1984, drastically outperforming the market, while also having responsible & manageable levels of debt gives them big leg up the the modern day’s competition, particularly in market environments like we are in now.

I’ll be looking at the charts to see if there is a good entry point coming up, as after their recent gap up on the 23rd there is no established clear support level within a reasonable range to work with.

For Full PDF Report:

*** I DO NOT CURRENTLY OWN SHARES IN WSO ***

This weekend I had a look at PetMed Express Inc. stock, which trades under the ticker $PETS. PETS closed at $37.99/share on Friday 7/10, with the P/E (ttm) of 29.4 and a P/B of 6.01. They offer an attractive Dividend Yield of 4.47%.

PETS is a small cap stock, with a Market Cap of $785M, with $103.7M in Total Cash, and a low Debt/Equity (ttm) of 0.08. These fundamentals & their growth have led them to an 85.2% % Institutional Ownership, despite their small cap size.

PetMed Express Inc. PETS Stock Technical Analysis

PetMed Express Inc. Stock has a 10-Day Moving Average of 36.58, with a 50-Day MA of 36.02 & a 200-Day MA of 27.89.

This signals technical strength, and their RSI of 56 shows that they are not overbought yet, and implies future growth.

PetMed Express Inc. PETS Stock Vs. The S&P 500 & NASDAQ Indexes

Since their IPO on 4/26/1999, PetMed Express Inc. PETS Stock has grown by 346.9%, and when we combine their historic dividend yield they have grown by 461% since their IPO.

The S&P 500 has only grown 138.55% & the NASDAQ Index has grown by 317.54% in that same time, excluding their dividends.

This shows that their growth outpaces the indexes, despite their small cap status.

PetMed Express Inc. PETS Stock Fundamentals Vs. The Consumer Discretionary Sector

PetMed Express Inc. PETS is a member of the Consumer Discretionary Sector. Their shareprice is 29% lower than the average Consumer Discretionary stock share price, and their P/E (ttm) is 50% less than average, with a 20% less than average Price/Book, signaling fundamental strength.

PETS Stock offers a 60% higher Dividend Yield than the average Consumer Discretionary stock, despite being 93% smaller than their average peer within this sector.

Much of this is attributed to their 99.97% lower than average Debt/Equity (ttm), which helps attract their 43% higher than average % Institutional Ownership.

While their Payout Ratio is 77% and is 51% higher than average, they still offer many strengths compared to their Consumer Discretionary Sector peers.

PetMed Express Inc. PETS Stock Fundamentals Vs. The Internet & Direct Marketing Industry

PETS Stock costs 66% less per share than the average Internet & Direct Marketing Industry average, with a 42% lower P/E (ttm) & a 33% lower P/B. When compared with their 39% above average Dividend Yield, their fundamentals look very attractive compared to their peers.

Their Payout Ratio is only 4% higher than their industry peers, despite being 98% smaller than average by Market Cap.

Despite this, their Debt/Equity (ttm) is 99.9% less than average & as a result of this and their strong fundamentals & growth performance PETS has a 68% higher than average % Institutional Investors than their average Internet & Direct Marketing Industry peer.

Tying It All Together

PETS stock has many attractive fundamental & technical advantages to other stocks, including their Sector & Industry peers. Despite their higher than preferred Pay Out Ratio, they offer a healthy Dividend Yield, and due to their very low Debt/Equity (ttm) this does not look to be threatened.

Their technical strength of their charts also has me interested in looking for an entry point somewhere in the coming days-to-weeks, especially in the current market conditions where stocks with good cash:debt ratings & NASDAQ stocks tend to be performing best.

*** I do not own any shares of PETS ***

For Full PDF Report:

On Monday I purchased some shares of TFI International stock, which trades under the ticker of TFII. After the close on 7/2, TFII stock traded for $36.44/share.

TFII’s P/E (ttm) is 9.2, and their P/B is 2.41, both attractive looking numbers when paired with their 2.09% Dividend Yield.

TFII’s Market Cap is $3.17B, with $92.49M in Total Cash & A Debt/Equity (ttm) of 137.8.

TFI International’s % Institutional Ownership is 35.2%, and it is a member of the Industrials Sector.

TFI International Inc. TFII’s Stock Technical Overview

TFI International trades at $36.44, with a 10-Day Moving Average of 34.2, a 50-Day Moving Average of 30.37 & a 200-Day Moving Average of 29.71, showing signs of strength.

TFII’s RSI on the one year chart was 76 at the time of this being written.

TFI International Inc. TFII Stock Fundamentals Compared To The Industrial Sector Averages

TFII’s P/E (ttm) is 74.6% less than the Industrials Sector average, and their P/B is almost 37% lower than average.

Their Market Cap is 41% less than the sector average, which is reflected in their 42% lower than average % Institutional Ownership. Their Dividend Yield is 17% less than average for the sector, but their Payout Ratio is only 4.5% lower than average. Given the size & age of the company vs. its peers, it is understandable that it has less cash and a higher Debt/Equity Ratio than average.

Despite the lagging areas, their current technicals make them interesting when combined with their fundamentals.

TFI International Inc. TFII Stock Vs. The Road & Rail Industry Average Fundamentals

TFII has a 53% better P/E (ttm) & a 34% better P/B than the Road & Rail Industry averages. Their Dividend Yield is almost 14% better than average, with a 13% better Payout Ratio (ttm).

TFII has a 47% lower Debt/Equity (ttm) than the average for Road & Rail stocks, which is important when making the comparison to their peers, given that they’re 76% smaller by Market Cap.

TFI International Inc. TFII Stock Vs. The S&P 500 & NASDAQ Indexes

TFII’s stock has grown by 127.47% since it IPO’d in 2005, and overall has grown +174.22% including all dividends they have offered over the year (per their investor relations site).

The S&P 500 has increased by 154.7% & the NASDAQ has increased by 366.8% over the same time period since the day of TFII’s IPO.

Tying It All Together

Overall, I purchased these shares because I liked the blend of TFII’s fundamentals & their current technicals. While they may not have as many green comparison percentages as other stocks I post, their size & age vs. the rest of their sector puts them in a unique position.

I certainly think that they’re worth taking a look into for further review.

Full PDF Report Here:

*** I own shares of TFII, as stated in the article’s intro ***

This weekend I took a look at Cummins Inc.’s stock, which trades under the ticker $CMI. Cummins Inc. closed for trading on 6/12 at $167.08/share.

They offer an attractive 12.3 P/E (ttm), with a 3.49 P/B.

Cummins Inc. has a 3.14% Dividend Yield, with a low 38.2% Payout Ratio. Their Market Cap is $26.65B, with $2.03B Total Cash (mrq) & $3.84B Total Debt (mrq), for a Debt/Equity (ttm) of 40.73.

CMI has a 80.58% Institutional Ownership percentage, which is one of their many advantages over their Industrial Sector Peers

Cummins Inc. $CMI Stock Fundamentals Vs. The Industrials Sector

CMI’s P/E (ttm) is 64% less than the average Industrials Sector stock, and their P/B is only 3.6% higher than average.

With their 21.7% higher than average Dividend Yield, they look very attractive from an investment standpoint.

CMI’s Market Cap is 367% higher than the Industrials Sector average, with 270% more Total Cash & a 52% better Debt/Equity (ttm) ratio.

They also have 38% more Institutional Investors than average.

Cummins Inc. $CMI Stock Fundamentals Vs. The Machinery Industry

Cummins Inc.’s stock also has many clear advantages over their peers in the Machinery Industry. CMI’s P/E (ttm) is 77% better than average, and 3.6% better than the average Machinery Industry stock.

CMI’s Dividend Yield is ~36% better than average, with a safe Payout Ratio, which is essential for collecting interest.

CMI is 438% larger than average based on their Market Cap, with 365% more Total Cash & 51% better Debt/Equity, which is especially important in this investing & trading environment.

CMI also has 18% higher Institutional Investment.

Cummins Inc. CMI’s Stock Technicals

CMI is trading at $167.08, with a 174.64 10 Day Moving-Average.

Their 50 Day M/A is 157.68 & their 200 Day M/A is 162.98, showing strength vs. other stocks in turbulent times.

Cummins Inc. $CMI Vs. The S&P 500 & NASDAQ Indexes Since IPO

Cummins Inc. has grown by 3,078.41% since it IPO’d on 2/21/73. It has grown 4,225.06% since then with consideration to historic dividends.

In that time, the S&P 500 Index has only grown by 2,551.77%, excluding dividends.

The NASDAQ Index has grown by 7,558.52% over the same time period, excluding dividends.

Cummins Inc. $CMI Has A Great Debt Rating

Moody’s rates CMI’s debt A2. which is Upper-Medium Investment Grade debt. As more & more companies begin to get into trouble, having access to credit will become a luxury, and these guys are in good standing.

Tying It All Together

Cummins Inc.’s stock shows many advantages both from a long-term investment & short term trade perspective. They are in solid business shape, offer a strong yield & can weather the current market storms.

I am beginning to look for entries, although I am debating between whether I buy puts & the buy long when I cash in, or by buying longer-term calls in the meantime.

That will be dictate by external market factors that I see this week, but overall it offers many advantages for both long & short term performance.

*** I do not own any shares of CMI stock when this was written ***

For Full PDF Report: