Category: Stock & ETF Research

Robinhood traders have become an interesting group of market participants, often making headlines as a collective after the COVID lockdowns.

This weekend I took a look at the names that made up their 100 Most Popular Stocks & ETFs list to get an idea of the types of names that they’re trading.

While the name infers that there will be 100 securities, there are only 98, as my Fidelity data screener does not cover two of the names, which was odd as usually it goes the other way around.

Breaking Down What Securities Robinhood Traders Prefer To Own

Most of the companies that you see listed in the Top 100 list are household names. UBER, F, JPM & KO are all on the list, along with some lesser known names such as WKHS, NIO & NKLA.

8 Sectors & 34 Industries are included in this list, along with ETFs.

Only 29% of all securities held offer a dividend yield, and using our Technical Rating Formula, 56 securities are above average for their technical performance rating, with 42 securities falling below the average technical rating.

ETFs are included in the list as well, but are being counted as their own unique sector & industry as there is diversity within each ETF on the list, which will be published in order of technical performance later in the article.

Examining The Robinhood Top 100 Owned Securities List By Sector

By sector, the names favor Consumer Discretionary stocks, such as PTON, TSLA & DKNG, with less emphasis going to Consumer Staples stocks, such as BYND, KO & WMT.

Healthcare (APHA, PFE & SRNE) & Information Technology (MSFT, WORK & ZM) are the second & third most popular sectors, while Energy (HAL, KOS & XOM) & Financials (WFC, IVR & BRK/B) are the second & third least owned sectors (not including ETFs, 0 in the chart above).

This makes sense, given that most retail investors are looking for products & names that they either use, or have an interest in, and or that they hear about often in the news (especially when the headlines are beneficial).

As to be expected, Energy sector stocks have the highest average Dividend Yield, followed by Financials & then Healthcare, with ETFs not offering a dividend, and the bottom three yielding sectors being Industrials, Consumer Discretionary & Information Technology.

From a Technical Rating standpoint, Consumer Discretionary has the highest average (which may be impacted by largest sample size), followed by Industrials & Information Technology.

The worst performing sectors from a technical perspective were Energy, Financials & Consumer Staples, with ETFs having the second worst performance.

Breaking Down The Top 100 Robinhood Stocks By Industry

A really interesting point when we get down into the Industries that these securities are in, is that Pharmaceuticals is the top owned Industry (somewhat expected), trailed by Hotels, Restaurants & Leisure, ETFs & Biotechnology & Airlines.

This somewhat surprised me, as more countries are announcing more COVID measures, so I’m guessing that that trend will be shifting in the not-to-distant future.

The highest yielding industry is Capital Markets, followed by Oil, Gas & Consumable Fuels, & Diversified Telecommunication Services.

From a Technical Rating perspective, Electrical Equipment is the highest rated Industry, followed by Automobiles & Auto Components, while the worst faring Industries are Machinery, Food Products, ETFs & Entertainment.

Who Are The Best Technical Performers Of The Robinhood Top 100 List?

Now, onto what everyone was waiting for, the good stuff.

I have ranked the stocks that were in the Robinhood Top 100 Most Owned list below (barring the two that Fidelity did not have data for, so 98 total names), along with how far above or below average their Technical Rating was (not going to give away all the good stuff 😉 ).

The Top 10 of the list are NIO, PLUG, SNAP, GPRO, MRNA, PENN, CGC, UBER, WKHS & GM.

The Bottom 10 by technical performance are UCO, GUSH, AMC, NKLA, ET, TXMD, INTC, IVR, USO & BYND.

What’s most interesting about this list, is it breaks down how many people outside of the markets look at different companies, sectors & industries, as stock indexes are at all-time highs & the world still has growing concerns regarding COVID-19, the US Election results & more.

It will be interesting seeing how this list shifts in the coming weeks to months.

Educational Development Corp. stock trades under the ticker EDUC, and offers many interesting advantages that long-term investors may be interested in.

EDUC stock closed for trading at $18.19 on Friday 10/23/2020 (publishing this a day later than usual as I am on vacation), and gained an additional 1.21% today (8/26/20).

Breaking Down Educational Development Corp EDUC Stock’s Fundamentals

Investors may be interested in EDUC stock as it sports a P/E (ttm) of 16.1, combined with a Dividend Yield of 2.2% & A Payout Ratio of 11.8%.

In addition to that, their Debt/Equity (ttm) is 54.37, which is much lower than most of its peers & our Technical Rating for EDUC is 308.92, which is also very bullish compared to other stocks.

EDUC is a Micro-Cap stock, with a Market Cap of $151.98M, which contributes to its 19.2% % Institutional Ownership.

Their Total Cash (mrq) is $22.64M, which is especially impressive when you look at their Total Debt (mrq) of just $11.3M.

EDUC stock’s P/B is 4.35 & their Beta is a little hotter than most stocks at 1.73, which is to be expected from smaller stocks, especially in turbulent times such as 2020.

Educational Development Corp. EDUC Stock’s Technical Performance Has Been Strong

Educational Development Corp.’s stock has had a solid year for 2020, after 40 years of impressive growth.

While their price from Friday’s close was even with their 10 Day Moving-Average, their continued growth shows signs of being able to keep gaining, with the potential for some new attractive entry points in the event of anticipated election-time volatility.

EDUC Stock Price (10/23/2020): $18.19

10 Day Moving-Average: $18.19

50 Day Moving-Average:$15.99

200 Day Moving-Average: $9.45

RSI: 58

EDUC’s stock also has a strong Technical Rating of 308.92.

For comparison sake, the average Consumer Discretionary Sector average rating is 83.01, and the Distributor Industry’s score is even worse at 59.28, so they offer strength compared to their direct peers.

Educational Development Corp. EDUC Stock’s Fundamentals Vs. The Consumer Discretionary Sector’s Averages

EDUC’s stock offers many fundamental advantages over its peers in the Consumer Discretionary sector.

EDUC’s P/E (ttm) is 68.6% better than average, and their P/B is 33.4% better than the average of their sector peers.

Their Debt/Equity (ttm) is most impressive, being ~75% better than average & their Payout Ratio is 82% better than average.

EDUC’s Technical Rating is also 272% higher than their average sector peer, showing their past year to be quite strong.

EDUC’s Dividend Yield is 10% lower than average, but more stable given their Payout Ratio.

While their Market Cap is 98% lower than average, their Total Cash (mrq) is only 68% less than average.

EDUC’s higher than average Beta (+12.3%) & Micro Cap status are likely the largest contributors to their 67.6% lower than average % Insitutional Ownership, which shouldn’t deter an average investor.

Educational Development Corp. EDUC Stock Fundamentals Vs. The Distributors Industry Averages

Educational Development Corp.’s stock also outperforms their average peer in the Distributors Industry as well.

EDUC stock’s P/E (ttm) is 30% better than average, and their P/B is 50% better than the industry average.

Their Payout Ratio is 51% better than average, and their Debt/Equity (ttm) is 36% better than their average peer.

On a Technical Rating basis, they outperform the industry average by 421%!

Of course, their Market Cap is 96% less than average, and their Total Cash is 85% over par; leading to their ~70% less than average % Institutional Ownership.

Educational Development Corp. EDUC Stock Performance Vs. The S&P 500 & NASDAQ Indices

Since their first day of trading 40+ years ago on 3/18/1980, EDUC stock has grown by 7,176%.

When you factor in the Dividends that would have been collected over that time, they’ve grown ~9,292%!

For comparison, the S&P 500 has only grown 3,163.8% in that time period (excluding dividends).

They have also outperformed the NASDAQ Index in that same time period, as the NASDAQ has grown 8,087.3% (excluding dividends).

With this lifetime growth in mind, EDUC stock looks like a very attractive long-term investment opportunity.

Tying It All Together

EDUC stock offers many attractive points for long-term investors.

Their value is much better than that of many of their peers, and their debt:cash management is responsible, which is going to be important moving forward.

Their dividend yield may not be as high as most of the stock I post about, but their financial responsibility shows that they are in solid shape for the future.

It is definitely worth taking a closer look at EDUC stock for a long-term investment opportunity!

For Full PDF Report:

*** I DO NOT OWN SHARES OF EDUC STOCK ***

Janus Henderson Group PLC trades under the ticker of JHG, and offers opportunities for both short-term traders & long-term investors.

JHG stock closed for trading at $28.13 on 10/16/2020, after showing lots of technical strength in the month of October.

Let’s break down Janus Henderson Group PLC’s stock further.

Janus Henderson Group PLC JHG Stock Fundamentals Broken Down

JHG stock is a bit unlike most of the stocks I review on this section of the site, with a P/E (ttm) of 74, but it does sport a P/B of 1.16 & a Dividend Yield of 5.11%.

This Dividend looks relatively safe, as their Payout Ratio is 66.2%.

JHG’s Market Cap is $5.09B, and their Total Cash (mrq) is $1.73B.

While their Beta is 1.42, the stock itself has only been trading for a few years.

One of the most interesting things about JHG’s stock, is that their Debt/Equity (ttm) is only 8.53, which likely is why they have a 65.2% % Institutional Ownership.

Their Technical Rating is 166.2, which is also a great sign.

Janus Henderson Group PLC JHG’s Stock Technical Performance

Janus Henderson Group’s stock has had an impressive October performance.

JHG Stock Price: $28.13

10 Day Moving-Average: $26.76

50 Day Moving-Average: $21.74

200 Day Moving-Average: $20.98

RSI: 78

This strength is surely attractive to short & medium term traders, although it may be reason for longer-term investors to wait for a more attractive entry point.

JHG stock also has options, making it easier for traders to benefit from price movement in either direction.

Janus Henderson Group’s stock also outperforms most of its peers:

JHG Technical Rating: 166.2

Financials Sector Avg. Rating: 0.80

Capital Markets Industry Avg. Rating: 22.43

Janus Henderson Group PLC JHG’s Stock Fundamentals Vs. The Financials Sector

JHG’s stock offers many advantages over their Financials Sector peers.

JHG’s P/B is almost 73% lower than the financials sector average, with a 13% above average Dividend Yield, supported by a Payout Ratio that is .93% less than the sector average.

JHG’s Debt/Equity (ttm) looks even more attractive when compared with the fianncials sector average.

JHG’s is ~95% less than the sector average, with a 40.2% higher than average % Institutional Ownership and an astounding 20,675% better than average Technical Rating.

There are a few things to be concerned about though for investors, including their P/E (ttm) that is 254.4% higher than the sector average for financials stocks & their 35% higher than average Beta.

Their Market Cap is almost 18% lower than average, which justifies their Total Cash (mrq) being ~86% below average.

Janus Henderson Group PLC JHG’s Stock Fundamentals Vs. The Capital Markets Industry Averages

Janus Henderson Group’s stock also looks very attractive when compared with the Capital Markets Industry average fundamentals.

JHG’s P/B is 82% lower than average, and their Payout Ratio is ~69% less than average.

JHG’s Debt/Equity (ttm) is 97% lower than their average Capital Markets Industry peer, contributing to their ~37% higher than average % Institutional Investors.

JHG’s Technical Rating is 641% better than average for their industry as well.

Many of the same troubles that they had vs. their sector peers are the same for their industry.

JHG’s P/E (ttm) is 139% higher than average for the Capital Markets Industry, and their Dividend Yield is ~16% lower than average.

JHG stock’s Market Cap is 32% less than average, and their Total Cash (mrq) is 79% less than average for the Capital Markets Industry.

Janus Henderson Group PLC JHG’s Stock Performance Vs. The S&P 500 & NASDAQ Indices

The historic data I referenced began tracking JHG’s performance on 5/30/2017.

One issue that investors may have is that since their inception, the stock itself has declined 6.5%.

However, when you factor in the dividends that investors would’ve collected, they have actually grown by 9.58%.

The S&P 500 has grown by 27.89% in that time period, excluding dividends collected.

JHG’s stock has also underperformed the NASDAQ in that time period, as the NASDAQ Index has grown 56.4%, excluding dividends.

To some investors this may be troubling, but the 5%+ yield should be able to win them over, using JHG as part of a balanced portfolio.

Janus Henderson Group PLC JHG’s Stock Credit Rating From Moody’s

Moody’s rates JHG’s credit as Baa2, a medium grade rating, meaning that JHG should be able to repay any and all short term debt relatively easily.

This is important, particularly in times like early 2020 where the market has been less forgiving to stocks with higher amounts of debt.

Combined with their Debt/Equity (mrq) this is a sign that investors like to see.

Tying It All Together

Janus Henderson Group’s stock has shown signals that appeal to both short & mid-term traders, as well as for longer term investors.

Their 5%+ Dividend Yield is especially attractive in times of economic uncertainty caused by the pandemic, and their Debt/Equity (mrq) is also highly appealing.

JHG stock’s technical performance should appeal to traders as well.

Whether or not you’re looking for a short-term trade, or a long-term investment, Janus Henderson Group is certainly worth taking a deeper look.

*** I DO NOT OWN SHARES OF JHG Stock ***

For Full PDF Report:

Haverty Furniture Companies, Inc. stock trades under the ticker HVT.

HVT stock has many interesting opportunities based on their fundamentals from an investing standpoint, as well as their recently technical performance for a trade opportunity.

Haverty Furniture Companies, Inc. HVT Stock Fundamentals Broken Down

HVT stock closed at $24.02 on 10/9/2020, with a PE (ttm) of 16.8 & a P/B of 1.71.

In addition to this, their 3.32% Dividend Yield is very attractive, and their 20.6% Payout Ratio sweetens the deal, as it shows safety & stability in their yield over the long-term.

Their Debt/Equity (ttm) is 79.3, which also is appealing in the eyes of a longer-term focused investor.

Haverty Furniture Companies is a small cap stock, with a Market Cap of $453.2M, which is also in part of why their Total Cash (mrq) is $157.8M.

Despite this, they have 95% % Institutional Investors, which is higher than many of the other small cap stocks we have covered on this site.

Haverty Furniture Companies, Inc. HVT Stock Technical Performance

Haverty Furniture Companies, Inc. stock has also performed very well in the past year from a technicals perspective.

Looking at their one year chart:

HVT Price: $24.02

10 Day Moving-Average: $22.15

50 Day Moving-Average: $20.38

200 Day Moving-Average: $17.05

RSI: 73

Technical Rating: 171.44

HVT stock’s moving averages all show continued strength, and their Technical Rating is much higher than their sector & industry averages (77.8 & 131.6).

From a trading perspective, there may be many opportunities here as well, as the strength looks to be something that can be capitalized on in the short-term as well as the long-term.

Haverty Furniture Companies, Inc. HVT Stock Fundamentals Compared To The Consumer Discretionary Sector Averages

HVT stock’s P/E (ttm) is 68.7% lower than the average for Consumer Discretionary sector stocks, and their P/B is almost 75% better than average.

HVT’d Dividend Yield is 36.6% higher than average, and despite their Payout Ratio being 57% higher than average, it is still low enough to be considered safe & sustainable.

HVT’s Market Cap is 62.5% less than average for the Consumer Discretionary sector, and their Total Cash is 88.5% lower than average.

However, their Debt/Equity (ttm) is 63.2% less than average, which contributes to the 61.3% higher than average % Institutional Ownership.

From a trading perspective, their Technical Rating is 120.4% better than average for the sector.

Haverty Furniture Companies, Inc. HVT Stock Fundamentals Vs. The Specialty Retail Industry Averages

HVT stock also has strong fundamental advantages vs. the Specialty Retail sector stock averages.

HVT’s P/E (ttm) is 69.2% lower than average, and their P/B is 79.4% better than average.

HVT’s Dividend Yield is 46.3% better than the industry average, and they have a 38.8% higher than average % Institutional Ownership.

HVT’s Market Cap is 95.7% lower than industry average, and their Total Cash (mrq) is ~81% lower than average.

Their Debt/Equity (ttm) is 79.6% lower than average as well, but they still present a solid case for a long-term investment.

Haverty Furniture Companies, Inc. HVT Stock Performance Vs. The S&P 500 & NASDAQ Indexes

Haverty Furniture Companies, Inc. stock has performed very strongly since their IPO on March 17th, 1980.

Their stock price has increased 3,190.4%, and when you factor in their Dividend Yield they’ve grown 5,116.4% in total.

In that time the S&P 500 has grown 3,330,3%, excluding dividends.

The NASDAQ has grown 8,189.7% in that same time period excluding dividends.

This solid historic performance makes them a prime candidate to be a conservative investment in a portfolio, looking to grow steadily, while also providing a dividend payment.

Tying It All Together

Overall, Haverty Furniture Companies, Inc. HVT Stock presents many interesting opportunities for short-term traders & long-term investors alike.

Their technical strength puts them in prime position to be looked at from a short-term trade perspective, especially when compared to their sector & industry peers.

Their long-term strength & growth, as well as the rest of their fundamentals are also very appealing to a long-term investor who is looking for a 3%+ yield stock as part of their portfolio.

*** I DO NOT OWN SHARES OF HVT STOCK ***

CAI International Inc. stock trades under the ticker CAI, and offers some interesting opportunities for traders & investors alike. In addition to having good fundamentals & technicals, they also recently began issuing a dividend, which made it stand out & be worth taking a deeper look.

Breaking Down CAI International Inc. CAI Stock Fundamentals

CAI closed for trading at $27.24/share on 9/18/2020, which gives it a P/E (ttm) of 16.8, a P/B of 0.82 & a newly created Dividend Yield of 3.67%.

That Dividend is protected by a low 16.1% Payout Ratio, meaning that they have enough cash to continue making payments, and increase the yield if need be.

CAI International Inc. is a small cap stock, with a Market Cap of $478.14M, and has $47.9M of Total Cash (mrq).

Despite their Debt/Equity (ttm) of 355.6 being higher than the stocks we like to publish about and their small cap status, CAI still has a 84.6% % Institutional Ownership.

CAI’s technical rating is 182.8 on our scale.

CAI International Inc. CAI’s Stock Technicals Broken Down

Part of the appeal of CAI stock is that their technicals are showing a good deal of strength.

CAI Price: $27.24

10 Day Moving-Average: $22.88

50 Day Moving-Average: $20.06

200 Day Moving-Average: $20.84

RSI 76

CAI’s 50 Day Moving-Average is set to break through the 200 Day Moving-Average soon, which should add some increased support & push their price higher.

When compared with their peers in their sector & industry, CAI is far ahead of the pack, showing one of the strongest Technical Ratings in the market currently.

CAI Stock Technical Rating: 182.8

Industrials Sector Average Technical Rating: 23.46

Trading Companies & . Distributors Industry Average Technical Rating: 28.29

CAI International Inc. CAI Stock Vs. The Industrials Sector Average Fundamentals

CAI Stock has a P/E (ttm) that is 59.7% lower than the Industrials Sector Stock Average, and an 81.7% lower than average P/B. Their new Dividend Yield is 63.8% higher than the Industrials Sector average, with a 10.6% lower than average Payout Ratio, suggesting their dividend is safer than average.

CAI International Inc.’s stock also has 42.5% better than average % Institutional Investors, and their Technical Rating is 679.2% better than the Industrials sector average.

As a small cap stock, it isn’t surprising to see that CAI’s Market Cap is 92% lower than average, resulting in a 93% lower than average amount of Total Cash (ttm).

Their Debt/Equity (ttm) is higher than what we like to publish about, being 229.8% higher than average, and the stock price may fluctuate a bit more than the average stock, as its Beta is 42.9% higher than average for an Industrials stock.

Comparing CAI International Inc. CAI’s Stock Fundamentals Vs. The Trading Companies & Distributors Industry Averages

CAI International Inc.’s stock also has many similar advantages over its peers in the Trading Companies & Distributors Industry. CAI’s P/E (ttm) is 78% lower than average, with their P/B 70.5% less than average.

CAI’s Dividend Yield is 12.9% higher than average, with a 33.5% higher than average % Institutional Ownership & a 546% better than average Technicals Rating.

Small Cap CAI is 85% smaller than their average industry peer, and their Total Cash (mrq) is almost 80% less than average. Their Debt/Equity (ttm) is 171% higher than average.

CAI International Inc. CAI’s Stock Performance Vs. The S&P 500 & NASDAQ Historically

Since they began trading on 5/16/2007, CAI International Inc.’s stock has grown by 84%. If you add their new Dividend Yield they have grown 85%, following only one quarter of payments.

In that same time, the S&P 500 has grown 119.2%, excluding dividends.

The NASDAQ Index has grown 323.7% in that time, excluding dividends.

Moving forward with the 3.67% Dividend Yield, there is now a much stronger case for investing in CAI stock to compete with the S&P 500 for returns.

Tying It All Together With CAI International Inc. CAI Stock

Overall, CAI stock offers many unique advantages that trades & investors can both benefit from. Their recent technical strength is appealing to traders, while investors like their fundamentals and new 3.67% annual Dividend Yield. When looking at their growth prospects, and adding in the new yield, there is an even stronger case for investment.

*** I DO NOT OWN SHARES OF CAI INTERNATIONAL INC CAI STOCK ***

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.

For Full PDF Report:

*** I DO NOT OWN SHARES OF FFG STOCK ***

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 ***