Last week had a lot of interesting earnings reports, and a bit of an unwinding of the NASDAQ & S&P 500. This was overdue, as the NASDAQ had far outpaced the S&P based on vaccine optimism, and people looking to trade tech as they deemed it the best work-from-home market option. I didn’t make too many trades, but did pick up some PTON calls, as well as WKHS calls. Some of the WKHS calls I am carrying over the weekend, although I sold many of them last week.
I also sold some CYDY after 45%+ gains, and rolled the profits into AGNC, whose 12.67% Dividend Yield is paid out monthly, adding a nice 1% of my principle back to my portfolio each month. I also hold PSEC which is a similar type of company, but recently began diversifying by holding both.
As the summer has been a bit nuts between losing a close friend (and avid reader of my site, he used to text on Sunday nights asking when posts were coming out if one wasn’t up yet) in July & some trips taken recently, I have not been updating the site as often as I normally would. With that said, a couple of weeks ago I picked up DHT for the quick Dividend Play as they were paying out $0.48/share, it was a quick hold for 8%. Depending on what their next announced dividend is I may do it again as well.
What I’m Watching This Week
Well the Patriots of course…
We’ve got some interesting earnings calls coming up that may give us more color into the true shape of the economy this week. That will pair perfectly with the US Industrial Production numbers (Tuesday), Retail numbers (Wednesday), Business Inventories (Wednesday), NAHB Housing Market Index (Wednesday), & FOMC Economic Projections & Fed’s Rate Decision (Wednesday).
Thursday we will get a look into Jobless claims & employment figures, Housing Starts & Permits data, before Friday we hear about the Michigan Consumer Sentiment numbers & accompanying Inflation Expectations.
This has the potential to throw a little more volatility our way, especially when you look at the current 1 year NASDAQ chart, and see that the current level has intercepted the 50 Day Moving-Average.
This to me shows that we may have a little more volatility coming our way in the near future. This would be healthy for markets, and also be appealing for some new stock entry points.
Final Thought – My CNBC Fast Money Appearance Last Week
Last week I was on CNBC’s Fast Money, with my post-Covid haircut & handlebar mustache, had to share it here!
This weekend I took a look at FBL Financial Group Inc., which trades under the ticker FFG. FFG closed for trading on 9/11 at $49.75/share & offers many interesting advantages for investors & traders alike, as it has great fundamentals, as well as technicals too.
Breaking Down FBL Financial Group Inc. FFG’s Fundamentals
FBL Financial Group Inc.’s P/E (ttm) is 14.8, with a P/B of 0.78 and a low Beta of 0.22
FFG offers a 4.02% annual Dividend, with a 47.2% Payout Ratio, showing that it has the strength to be sustained in the coming years.
While their Market Cap is only $1.22B (small compared to their peers), they have a Debt/Equity (ttm) of 7.51, which is very low, and $142.62M in Total Cash (mrq).
Due to their small cap status, they have a 28.2% % Institutional Ownership.
They also scored a high Technical Rating of 131.9, which is mostly attributed to strength from their recent gap up from $37.25 to $48.87 on 9/4/2020.
FBL Financial Group Inc. FFG’s Technical Strength Analyzed
FFG is currently showing a lot of technical strength, with their 10 Day Moving-Average at 42.45, 20 Day Moving-Average at 37.35 & their 200 Day Moving-Average is 43.84.
As mentioned prior, their recent gap up on 9/4 is the primary reason for their high RSI of 80, which will become a more normal level once they establish a new range.
FFG’s Technical Rating is 131.9, which is much higher than the Financials Sector’s (-33.3) and the Insurance Industry’s (-6.3).
This makes them very attractive from an active trader’s standpoint.
FBL Financial Group Inc. FFG’s Fundamentals Vs. The Financials Sector
FBL Financial Group Inc.’s stock fundamentals outperform their Financials Sector peers, making them appealing to investors.
FFG’s P/E (ttm) is 27.5% lower than average, and their P/B is 80.7% less than average. with a 78.8% lower Beta than their sector peers.
FFG’s Dividend Yield trails the average Financial Sector stock by 10.9%, but their Payout Ratio is 30% more sustainable than the sector average, another good sign to investors.
FFG’s Market Cap is 80.5% lower than the Financials Sector average, leading to their 99% less Total Cash (mrq) & 39.3% lower % Institutional Ownership.
Their impressive Debt/Equity (ttm) is 95.4% lower than average, and their Technical Rating of 131.9 is much higher & advantageous to the sector average of -33.3.
FBL Financial Group Inc. FFG Stock Fundamentals Vs. The Insurance Industry Averages
FBL Financial Group Inc.’s stock also has a leg up on its peers in the Insurance Sector. FFG’s P/E (ttm) is 67.5% lower than the Insurance Industry average, and their P/B is 95.2% less than average.
FFG’s Dividend Yield is 33.1% better than the Insurance Industry average & their Debt/Equity (ttm) is an incredible 90.2% better than average.
Their small Market Cap is 84.7% less than average, resulting in their 52.8% lower than average % Institutional Ownership & their 97% lower than average Total Cash (mrq).
FFG’s Technical Rating of 131.9 is much higher than the Insurance Industry Average of -6.3.
FBL Financial Group Inc. FFG’s Stock Has Outperformed The S&P 500 & Competes With NASDAQ For Total Lifetime Returns
Since FFG IPO’d on 7/19/1996, they have grown by 437.84%, which when collected dividends are included jumps to 763.84%. In that same time period the S&P 500 has only increased by 423.06% excluding dividends.
In that same time, the NASDAQ has grown 888.77%, excluding dividends.
This ability to grow is a great sign for investors.
Tying It All Togeher
Overall, FFG’s stock offers a lot of advantages for both short term traders & long term investors. Their recent success has made their technicals very attractive, which is especially important in a time of minor corrections & pivots that we have seen over the last week.
Their fundamentals look great, especially the appeal of such low debt with a sustainable 4%+ dividend yield, and they have achieved consistent & solid enough growth since they IPO’d to make them worth considering for any investor’s portfolio.
I am going to begin looking at them once they begin to define their new range, as currently it is too early to pick a good entry point.
Another flat week in markets… S&P 500 up narrowly, NASDAQ down narrowly… somewhat fixing the spread between the two that inevitably needs to correct soon. While we cover a lot of smaller cap names with strength, the distance that biotech & the largest tech companies has created has made things a bit more overblown than usual in the NASDAQ index.
Last Weeks Trades – WMT & SPXS Calls, Trimming Gains On STX, TFII, WCLD & SKYY
Last week was a trimming week in the longterm hold category. I purchased CRON shares, and still have outstanding $7 calls with a few months to expiration. I still like the company fundamentals, and am looking to see a boom headline in the space move the overall cannabis segment. CRON offers solid fundamentals compared to their peers, although I am also looking into Aphria Inc. whose ticker is APHA.
I also took profits on STX, TFII, WCLD & SKYY, closing all positions. I will look to reenter after a shakeout of prices, but the current gains warranted a close & re-entry.
On the options front, on Thursday afternoon I purchased WMT calls for $132 with a next day expiration which closed with a solid profit. I also purchased some $6 SPXS calls with a 10/16 expiration, to add to an existing spread of $7-9 calls for the same date, as I expect to see volatility rise before the election & “COVID-19 second wave”.
Market Reports We’re Watching This Week
The beginning of the week is a bit major-news-light, but Wednesday we will be watching the US Building Permits count & Change, as well as the FOMC minutes.
On Thursday, the Initial Jobless Claims & 4 Week Average reports will be released.
Closing the week, on Friday, there will be many PMI Survey Numbers & Existing Homes Sales numbers release.
In these times where it is difficult to gauge exactly where the economy is heading, these numbers may offer us some sobriety from the plethora of earnings reports coming in.
This Week’s Earnings Reports
There are 517+ earnings calls this week, many of which are large cap companies in the tech & consumer spaces. Walmart , Home Depot & Salesforce are among a number of names to be watching for their reports.
It’s beneficial to be watching how these economic numbers pair up with the earnings report numbers, as it will give greater insight into the true spread between the market indexes & the overall real economy, as a lot of highly-saturated large names have been dictating the flow of the macro indexes for the most part recently.
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.
Summer has flown by & we find ourselves in the second week of August already. August tends to see an uptick in volatility each year (I believe someone on Bloomberg said ~4% on average), which could make for some interesting trading conditions over the next three weeks.
S&P 500, NASDAQ & Dow Jones Are All Spreading Apart
As we are to be expecting an uptick in volatility, lets check in with the charts. Below is the chart for the S&P 500 for the last year, with the NASDAQ (Purple line) & Dow Jones Industrial Average (Aquamarine line).
The NASDAQ has recovered much faster & more aggressively, as it is being fueled by Biotech bets, and tech companies that are helping people work from home in the new age of COVID. Looking at February 2020, at their most spread apart point in the last year, these indexes were all much closer to one another in performance.
Looking at the VIX, it seems that things are taming down, but with a performance spread that far apart, there will likely be an ugly correction coming up in the future, as the VIX is still above where it was when the indexes were performing more in unison.
What We’re Watching For In The Market This Week
There are going to be a lot of diverse companies reporting earnings this week, which should add to the rocking of the boat. There are going to be companies in the tech & biotech sector who may be chopped down to size based on them growing at the rate of their peers (on speculation), and other companies in battered down sectors such as travel will be reporting what look to be dismal results.
Will the markets be looking ahead and past this bad quarter, or will the inevitable reality check come back to haunt us, reminding market participants that there things aren’t back to normal yet, and there is still a long road ahead of us for getting people back and actively involved in the economy.
US Job openings will be something to keep an eye on, as we look to see how many people are returning to work, after being surprised week-over-week by the numbers of jobless claims that have been reported. There are going to be a number of Fed speakers this week, and US PPI numbers will be Tuesday as well.
Inflation data & Mortgage application numbers should also be interesting, as despite the trying economic times, people are fleeing the cities to buy homes in suburban areas.
Crude oil stocks, jobless claims & retail sales & industrial production numbers will also be interesting to watch as they come in, to see if they are in line with what the market’s performance seems to be expecting.
I’ve been studying options more of recent and began trading them a month and a half or so ago. Some of my recent purchases were $REAL $12.50 puts with a 12/18 expiration. I don’t see people having much demand for their products this year, especially given the fact that so many states are flip flopping on their COVID responses as infection rates fluctuate.
I also purchased some $PETS $35 calls with a 9/18 expiration after their drop on earnings. I liked the stock prior to that, as I had recently written about it in the stock research section of the site.
Also, I have a $F $6.50 ratio-straddle that expires on 8/28, with a ratio favoring the puts 3:1.
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.
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.
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.
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.
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.
