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Does AT&T Inc. (NYSE: T) have a future?

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Today, we are going to evaluate AT&T Inc. (T) so as to get clarity on this organization and its current standing from a fundamental perspective. In that process, we hope to give some insight into what this stock may offer as an investment opportunity for prospective investors. To accomplish that, we will be moving from top to bottom in our evaluation. As such, our first point of focus will be a look at the company from a revenue perspective.

Over the course of the prior fiscal quarter, the company saw sales of 39.67B[3. Sales mrq]. That number needs context to grant us any insight: by comparison, we can see an overall change in revenues, on a quarterly year/year basis, of -0.03%. However, in sequential terms, the situation looks a little different, with sales decline by -0% from quarter to quarter. While revenue analysis gives us a strong sense of changing demand trends in the company?s end market, and how the company is executing in terms of its relationship with potential customers, real shareholder value is only truly created by profitability. With this in mind, we turn to the company?s bottom line data.

AT&T Inc. (T) may offer even more interest as an object of analysis if we zoom in a bit more and look at some of its core trends. For example, the cost of selling goods last quarter was 24.95B, which yielded a gross basic income of 14.72B.

The company?s recently reported data shows total diluted outstanding shares of 6.18B, which implies an overall EPS (or earnings per share) of 0.49. To give the reader a little context that number compares to an analyst consensus expected value of 0.75 in next fiscal quarter EPS data. Next, let?s look ahead at coming performance based on what analysts are projecting for the company more generally, before closing with a survey of the balance sheet and cash flow. Among analysts, the average recommendation for this stock is Overweight. That number represents the product of the work of 28 analysts. It is important to consider the views of the analyst community even though we don?t suggest taking analyst recommendations as face value plans for action in a portfolio. The primary value of looking at analyst opinions is in knowing what sort of views may already be priced into the stock.

If we look at price targets, we can see that analysts currently have things pegged around an average target at about 39.38. When we look at next year, we can things shake out in terms of estimates of a fiscal year forecast to bring about 2.95 in terms of total EPS. That works out to a median P/E ratio basis valuation of right around 11.35 times earnings.

So far, we have covered how the company is doing on both the top and bottom line, as well as what professional analysts believe about its core trends and operational and financial performance going forward. However, we would be remiss if we did not also take a quick look at cash flows and the company?s balance sheet to round out our perspective on the name.

The last thing we like to look at for a company like is the balance sheet. That really is the heart of the company?s ability to weather tough times, and the basis for an experienced investor?s sense of the real downside risk inherent in a stock. So, as we like to see, the balance sheet is the seat of faith for the market. In this case, for T, the company has about 48.5B in cash in the bank, according to its most recent reports. That cash sits opposite about 8.55B in total current liabilities on the ledger. But balance sheet health isn?t a fixed idea. Trends matter. And the best way to understand real risk, particularly where debt levels are concerned, is to trace a line connecting the past with the future. In this case, the company?s debt has been falling. The company also has 443.87B in total assets, balanced by 317.76B in total liabilities. That should put things into perspective quite a bit more in terms of how one can justify the current market cap of the stock.

Finally, we want to take a peek at cash flows. In this case, the company saw free cash flowing at 5.86B last quarter, which represents a net change for the quarter in cash levels of 22.88B. That works out to about 11.11B in terms of cash flow on a net operating basis.

This is certainly an interesting story and one we plan to check back on soon.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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Stocks To Watch: Lowe’s Companies, Inc. (LOW), Signet Jewelers Limited (SIG), Campbell Soup Company (CPB), Palo Alto Networks, Inc. (PANW)

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The following stocks are set to release their earnings today and need to be on top of your radar. These include Lowe’s Companies, Inc. (LOW), Signet Jewelers Limited (SIG), Campbell Soup Company (CPB), Palo Alto Networks, Inc. (PANW)

In the previous session, stock of Lowe’s Companies, Inc. (LOW) opened at $80.66 and last traded at $80.66 x 300. More than 7,507,099 shares exchanged hands compared to an average daily volume of 6,599,563 shares. At the current pps, the market capitalization stands at 67.84B.

The Analyst Chirp:

Lowe’s Companies, Inc. (LOW) has received an average target price from analysts of $86.29 amounting to a recommendation rating of Overweight. That comes from 31 different analysts. Perhaps, the driver for that assessment comes from the company’s valuations. Right now, we are looking at a median price-to-earnings ratio for this calendar year of 17.23. To give a sense of trend, the same data point on the estimate for next year is currently sitting at 15.14 times earnings. Drilling down a bit further, this quarter, we are looking at an average estimate from analysts for earnings per share level of 27.00. That shift to 27.00 heading into next quarter.

Fundamentals you simply cannot ignore

Investors try to use stocks with high beta values to quickly recoup their investments after sharp market losses. Lowe’s Companies, Inc. (LOW) currently has a Beta value of 0.99 . Beta is a measurement of a stock’s price fluctuations, which is often called volatility and is used by investors to gauge how quickly a stock’s price will rise or fall. A stock with a beta of greater than 1.0 is riskier and has greater price fluctuations, while stocks with beta values of less than 1.0 are steadier and generally larger companies. Beta is often measured against the S&P; 500 index. An S&P; 500 stock with a beta of 2.0 produced a 20 percent increase in returns during a period of time when the S&P; 500 Index grew only 10 percent. This same measurement also means the stock would lose 20 percent when the market dropped by only 10 percent. Next, let’s take a look at Lowe’s Companies, Inc current P/E ratio. Lowe’s Companies, Inc. (LOW) currently has a PE ratio of 23.13. PE ratio is an important parameter to look at when trading a stock mostly because it is easy to calculate. There are a couple of ways to calculate PE ratio either by dividing share price by earnings per share or dividing the market cap by net income. It is important to note that the earnings are usually taken from the trailing twelve months (TTM). Nevertheless, P/E tells us how much an investor is willing to pay for $1 of a company’s earnings. The long-term average P/E is around 15, so on average, investors are willing to pay $15 for every dollar of earnings. Another useful way to look at this: Turn the P/E ratio around to look at the E/P ratio, which when expressed as a percentage gives us the earnings yield. For instance: 1/15 gives us an earnings yield of 6.67%.

While we have already looked at Lowe’s Companies, Inc beta and P/E ratio, the EPS cannot be ignored. Lowe’s Companies, Inc EPS for the trailing twelve months was 3.52. Traders and investors often use earnings per share (TTM) to determine a company’s profitability for the past year. So in essence, EPS is the amount of a company’s net income per share of common stock. Earnings per share equal the company’s net income less any dividends paid on preferred stock divided by the weighted average number of common stock shares outstanding during the year. Lowe’s Companies, Inc is estimated to release its next earnings report on 1 / 2018 (N/A-Not know at this time). It would be interesting to see how the earnings fair out considering the recent developments.

 

Technical chart:



 

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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Earnings Preview For Dollar Tree, Inc. (DLTR), Guess’, Inc. (GES), Urban Outfitters, Inc. (URBN), Hormel Foods Corporation (HRL)

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The following stocks are set to release their earnings today and need to be on top of your radar. These include Dollar Tree, Inc. (DLTR), Guess’, Inc. (GES), Urban Outfitters, Inc. (URBN), Hormel Foods Corporation (HRL)

In the previous session, stock of Dollar Tree, Inc. (DLTR) opened at $95.12 and last traded at $99.25 x 100. More than 5,270,702 shares exchanged hands compared to an average daily volume of 2,372,381 shares. At the current pps, the market capitalization stands at 23B.

The Analyst Chirp:

Dollar Tree, Inc. (DLTR) has received an average target price from analysts of $94.17 amounting to a recommendation rating of Overweight. That comes from 26 different analysts. Perhaps, the driver for that assessment comes from the company’s valuations. Right now, we are looking at a median price-to-earnings ratio for this calendar year of 19.92. To give a sense of trend, the same data point on the estimate for next year is currently sitting at 18.01 times earnings. Drilling down a bit further, this quarter, we are looking at an average estimate from analysts for earnings per share level of 22.00. That shift to 22.00 heading into next quarter.

Fundamentals you simply cannot ignore

Investors try to use stocks with high beta values to quickly recoup their investments after sharp market losses. Dollar Tree, Inc. (DLTR) currently has a Beta value of 0.83 . Beta is a measurement of a stock’s price fluctuations, which is often called volatility and is used by investors to gauge how quickly a stock’s price will rise or fall. A stock with a beta of greater than 1.0 is riskier and has greater price fluctuations, while stocks with beta values of less than 1.0 are steadier and generally larger companies. Beta is often measured against the S&P; 500 index. An S&P; 500 stock with a beta of 2.0 produced a 20 percent increase in returns during a period of time when the S&P; 500 Index grew only 10 percent. This same measurement also means the stock would lose 20 percent when the market dropped by only 10 percent. Next, let’s take a look at Dollar Tree, Inc current P/E ratio. Dollar Tree, Inc. (DLTR) currently has a PE ratio of 24.84. PE ratio is an important parameter to look at when trading a stock mostly because it is easy to calculate. There are a couple of ways to calculate PE ratio either by dividing share price by earnings per share or dividing the market cap by net income. It is important to note that the earnings are usually taken from the trailing twelve months (TTM). Nevertheless, P/E tells us how much an investor is willing to pay for $1 of a company’s earnings. The long-term average P/E is around 15, so on average, investors are willing to pay $15 for every dollar of earnings. Another useful way to look at this: Turn the P/E ratio around to look at the E/P ratio, which when expressed as a percentage gives us the earnings yield. For instance: 1/15 gives us an earnings yield of 6.67%.

While we have already looked at Dollar Tree, Inc beta and P/E ratio, the EPS cannot be ignored. Dollar Tree, Inc EPS for the trailing twelve months was 3.91. Traders and investors often use earnings per share (TTM) to determine a company’s profitability for the past year. So in essence, EPS is the amount of a company’s net income per share of common stock. Earnings per share equal the company’s net income less any dividends paid on preferred stock divided by the weighted average number of common stock shares outstanding during the year. Dollar Tree, Inc is estimated to release its next earnings report on 1 / 2018 (N/A-Not know at this time). It would be interesting to see how the earnings fair out considering the recent developments.

 

Technical chart:



 

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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Will GameStop Corp. (GME) Earnings Surprise Investors ?

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In the previous session, stock of GameStop Corp. (GME) opened at $16.40 and last traded at $16.68 x 300. More than 3,796,717 shares exchanged hands compared to an average daily volume of 2,649,384 shares. At the current pps, the market capitalization stands at 1.67B.

Retailer Offers Holiday Shoppers the Lowest Prices Available on Consoles, Games, Toys and Collectibles

Fundamentals you simply cannot ignore

Investors try to use stocks with high beta values to quickly recoup their investments after sharp market losses. GameStop Corp. (GME) currently has a Beta value of 0.97 . Beta is a measurement of a stock’s price fluctuations, which is often called volatility and is used by investors to gauge how quickly a stock’s price will rise or fall. A stock with a beta of greater than 1.0 is riskier and has greater price fluctuations, while stocks with beta values of less than 1.0 are steadier and generally larger companies. Beta is often measured against the S&P; 500 index. An S&P; 500 stock with a beta of 2.0 produced a 20 percent increase in returns during a period of time when the S&P; 500 Index grew only 10 percent. This same measurement also means the stock would lose 20 percent when the market dropped by only 10 percent. Next, let’s take a look at GameStop Corp current P/E ratio. GameStop Corp. (GME) currently has a PE ratio of 4.95. PE ratio is an important parameter to look at when trading a stock mostly because it is easy to calculate. There are a couple of ways to calculate PE ratio either by dividing share price by earnings per share or dividing the market cap by net income. It is important to note that the earnings are usually taken from the trailing twelve months (TTM). Nevertheless, P/E tells us how much an investor is willing to pay for $1 of a company’s earnings. The long-term average P/E is around 15, so on average, investors are willing to pay $15 for every dollar of earnings. Another useful way to look at this: Turn the P/E ratio around to look at the E/P ratio, which when expressed as a percentage gives us the earnings yield. For instance: 1/15 gives us an earnings yield of 6.67%.

While we have already looked at GameStop Corp beta and P/E ratio, the EPS cannot be ignored. GameStop Corp EPS for the trailing twelve months was 3.32. Traders and investors often use earnings per share (TTM) to determine a company’s profitability for the past year. So in essence, EPS is the amount of a company’s net income per share of common stock. Earnings per share equal the company’s net income less any dividends paid on preferred stock divided by the weighted average number of common stock shares outstanding during the year. GameStop Corp is estimated to release its next earnings report on 1 / 2018 (N/A-Not know at this time). It would be interesting to see how the earnings fair out considering the recent developments.

 

Technical chart:



 

The Analyst Chirp:

GameStop Corp. (GME) has received an average target price from analysts of $22.05 amounting to a recommendation rating of Hold. That comes from 13 different analysts. Perhaps, the driver for that assessment comes from the company’s valuations. Right now, we are looking at a median price-to-earnings ratio for this calendar year of 4.92. To give a sense of trend, the same data point on the estimate for next year is currently sitting at 4.95 times earnings. Drilling down a bit further, this quarter, we are looking at an average estimate from analysts for earnings per share level of 12.00. That shift to 12.00 heading into next quarter.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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